U.S. Sales Communications Excellence: Resources, Structure and Processes to Optimize Pharmaceutical Sales Communications

U.S. Sales Communications Excellence:
Resources, Structure and Processes to Optimize
Pharmaceutical Sales Communications

BEST PRACTICES,®
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Table of Contents
Research Overview
Research Background
Key Insights
Communication Volumes
Communication Headcounts and Investment
Communication Skill-Sets
Communication Systems and Training
Appendix
About Best Practices, LLC

Copyright© Best Practices®, LLC
Sales/Field Communication Study BEST PRACTICES,®
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Research Overview

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Research Objective and Methodology

Data for this study was collected utilizing an on line survey instrument and several in-
depth qualitative interviews. Seventeen organizations participated in this study.

Study Objective & Methodology
Study Objective & Methodology Key Study Objectives
Key Study Objectives
Sales force performance significantly
Sales force performance significantly Understand the investment levels
Understand the investment levels
impacts growth and bottom line
impacts growth and bottom line and headcounts necessary for
and headcounts necessary for
results. The ability of senior
results. The ability of senior optimal Communications
optimal Communications
management to effectively disseminate
management to effectively disseminate performance
performance
vital information to their sales forces
vital information to their sales forces
while maximizing selling time is Benchmark the volume of
Benchmark the volume of
while maximizing selling time is communications and the delivery
integral to the overall success of all
integral to the overall success of all communications and the delivery
pharmaceutical and biotech vehicles used
vehicles used
pharmaceutical and biotech
companies.
companies. Discover what systems are being
Discover what systems are being
used to measure and track
used to measure and track
The objective of this benchmarking
The objective of this benchmarking messaging
messaging
study is to better understand U.S.
study is to better understand U.S.
pharmaceutical sales communications
pharmaceutical sales communications Find what skill-sets are considered
Find what skill-sets are considered
groups impact and effectiveness. To
groups impact and effectiveness. To most valuable for Communications
most valuable for Communications
accomplish this, an on-line survey was
accomplish this, an on-line survey was employees and what skill sets will
employees and what skill sets will
conducted, supplemented with several
conducted, supplemented with several be of value in the future.
be of value in the future.
interviews.
interviews.
Sales/Field Communication Study BEST PRACTICES, ®
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Research Background

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Benchmark Class

Data for this study was collected utilizing an online survey instrument and several in-depth qualitative
interviews. Nineteen respondents from 17 organizations participated in this study.

Adams Respiratory Therapeutics Merck

Ascend Therapeutics Novartis

Centocor Ortho-McNeil

Covidien Sanofi-Aventis

Cubist Pharmaceuticals Shire Pharmaceuticals

Eli Lilly and Company Solvay Pharmaceuticals

Endo Pharmaceuticals Takeda Pharmaceuticals North America

GlaxoSmithKline Vistakon Pharmaceuticals

LifeScan

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Benchmark Segmentation
For the Purposes of this study, the Benchmark Class was cut into two different groups. A Total Benchmark
Class (TBC) containing all participants and a Large Pharma Segment (LPS) containing those
Communications groups supporting at least 1 blockbuster brand

Total Benchmark Class Large Pharma Segment
Adams Respiratory Therapeutics Centocor
Ascend Therapeutics Eli Lilly and Company
Centocor GlaxoSmithKline
Covidien Merck
Cubist Pharmaceuticals Novartis
Eli Lilly and Company Ortho-McNeil
Endo Pharmaceuticals Sanofi-Aventis
GlaxoSmithKline Shire Pharmaceuticals
LifeScan Solvay Pharmaceuticals
Merck Takeda Pharmaceuticals
Novartis
Ortho-McNeil
Sanofi-Aventis
Shire Pharmaceuticals
Solvay Pharmaceuticals
Takeda Pharmaceuticals
Vistakon Pharmaceuticals

n= 19 n=10

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Participant Titles

As with all benchmark data, the position of the participants is as important as the companies they represent.
Participant titles included:

Associate Director, Communications Manager, Training & Development

Communications Manager National Sales Director

Director, Internal Communciations Sr. Director, Internal Communications

Director, Sales Operations Sr. Director, Sales Operations & Analytics

Global SFE Director Sr. Manager, Field Communications

Manager, Field Communications VP, ADHD Sales

Manager, Field Operations VP, Healthcare Systems and Training

Manager, Sales Communications OTC VP, Sales OPs & Training

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Key Insights

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Communication Volumes

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Business/Sales Analytics and Brand Communications
Have the Largest Volumes for the TBC
Communications volumes were consistently high for Business/Sales Analytics, Brand’s and to a
slightly lesser extent, Sales Training.

Please indicate the monthly sales/field communications volume associated with each
function/department.
Total Benchmark Class Percentage of N respondents for each Function Average Volume for Each Function

Very Low Very High Very Low Very High

Communications Volume by Function N 1 2 3 4 5 1 2 3 4 5

Business / Sales Analytics 17 0% 12% 6% 53% 29%
4
Brand 17 6% 6% 24% 24% 41%
3.88235
Sales Training 16 13% 19% 0% 50% 19%
3.4375
Samples 16 13% 13% 31% 31% 13%
3.1875
Corporate 16 6% 38% 31% 25% 0%
2.75
Human Resources 17 18% 24% 35% 18% 6%
2.70588
Information Technology 18 22% 33% 11% 22% 11%
2.66667
Compensation 17 18% 29% 41% 12% 0%
2.47059
Health Care Compliance 16 19% 50% 19% 13% 0%
2.25
Safe Fleet 17 35% 35% 18% 12% 0%
2.05882
Finance 14 57% 29% 14% 0% 0% 1.57143

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Communication
Headcounts and
Investment

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Organizations Typically Spend $80-$150 in Sales
Communications Salary per Salesperson Served
This ratio was derived from the total number of people supported by each communication group and
the salaries of the communications employees. This indicator should serve as a means to assess the
relative amount of resources dedicated to providing efficient communications. Interestingly, the
overall range for the TBC and LPS are very similar.

Total Salary Cost & Salary Per Salesperson Served


Salary spent per Salary spent per
Total Cost of Salaries Total Cost of Salaries
Salesperson served Salesperson served

75th Percentile $455,000 $157 $410,000 $153

Mean $451,929 $149 $528,833 $123

Median $230,000 $111 $240,000 $111

25th Percentile $161,500 $80 $142,000 $80

n= 14 13 9 9

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Communication Skill-Sets

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Prior Sales and Communications Experience Rate Most
Effective for the TBC
Participants generally indicated a preference for employees with some experience in the area of
sales, communications, or pharmaceuticals, while bringing in an outside perspective of a non-pharma
employee did not seem to be an issue of importance for the majority of participants.

Based on your experience, please rank the relative importance of the following prior
experiences when selecting an individual for your sales/field communications group.?
Percentage of N respondents for each
Total Benchmark Class Experience Factor
Average Importance of each Experience Factor
Least Most Least Most
Important Important Important Important
Experience Factors N 1 2 3 4 5 1 2 3 4 5

Prior Sales Experience 18 0% 11% 22% 33% 33%
3.88889

Prior Communications Experience 16 0% 6% 38% 25% 31%
3.8125

Prior “Pharma” Industry Experience 17 0% 12% 29% 47% 12%
3.58824

Prior “Pharma” Communications Experience 14 0% 21% 29% 29% 21%
3.5

No Prior Pharma Experience 17 35% 24% 24% 6% 12%
2.35294

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Communication Systems
and Training

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Content Creation and Management Are the Most
Common Intranet Tasks
Roughly 2/3 of participants stated that they create and manage content on their intranet, while
roughly half also indicate that the are also responsible for vendor management. Among larger
companies, webpage design tends to also be part of communications responsibilities, but most
communications groups are not responsible for more technical tasks.

What aspects of your Field Intranet is your sales/field communications group
responsible for?

Intranet solution development (business case and
26.3% 20.0%
technical specification creation)
Vendor Management (specifically for external
52.6% 60.0%
vendors and internal IT resources)

Application design and evaluation 26.3% 20.0%

Webpage design, creation and maintenance 42.1% 60.0%

Communications content management 68.4% 80.0%

Communications content creation 68.4% 70.0%

Quality assurance and systems auditing 31.6% 40.0%

IT infrastructure operations and maintenance 10.5% 10.0%

n= 19 10

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Appendix

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FTE Levels – Managers/Operations Supervisors

Please indicate the composition of your U.S. based sales/field communication group
by indicating the number of FTE for each title and their average annual salary in U.S.
dollars

Manager/ Operations Supervisor Total Benchmark Class Large Pharma Segment

75th Percentile 2.0 2.0

Mean 1.3 1.6

Median 1.0 1.0

25th Percentile 0.1 1.0

n= 14 9

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Investment Levels – Managers/Operations Supervisors

Please indicate the composition of your U.S. based sales/field communication group
by indicating the number of FTE for each title and their average annual salary in U.S.
dollars

Manager/ Operations Supervisor Total Benchmark Class Large Pharma Segment

75th Percentile $120,000 $120,000

Mean $106,364 $108,750

Median $110,000 $115,000

25th Percentile $100,000 $107,500

n= 11 8

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Email, Voice Mail and Intranet Are the Primary Modes of 21

Communication

Please share approximate volumes for each of the following communications tools
delivered by your sales/field communications group on a monthly basis.

Total Benchmark Class

News- News- Text
Email Voice Mail Field Mail Intranet Surveys letters: letters: On- Podcasts Messag-
Hardcopy line ing

75th
100 25 8 23 2 1 4 0 0
Percentile

Mean 79 16 6 18 2 0 3 0 3

Median 50 10 2 10 1 0 1 0 0

25th
30 5 0 3 1 0 0 0 0
Percentile

(n=19) Sales/Field Communication Study BEST PRACTICES, ®
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Best Practices, LLC is a research and consulting firm that conducts work
based on the simple yet profound principle that organizations can chart a
course to superior economic performance by studying the best business
practices, operating tactics and winning strategies of world-class
companies.

Best Practices, LLC
6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517
(919) 403-0251
bestpractices@best-in-class.com
www3.best-in-class.com

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