Rethingking Sales Force In 2010Presentation Transcript
NEW WAVE MARKETING 2010 : Optimizing Sales Force Activities
2009 – 2010: Tough Times
“ US pharmaceutical companies have for decades relied on the “pinball wizard” sales model: sales representatives bounce from one doctors office to another in hopes of catching a few moments with physicians and influencing which drugs they prescribe.”
“ In recent years, the changing dynamics of the business have prompted a massive expansion of sales forces. The resulting system is costly, inefficient, and rife with dissatisfaction.” - MCKINSEY “ Industry average for field force budgets is nearly $875 million with top spending organizations committing more than $1billion” – Cutting Edge
Physicians spending less time with sales representatives – about 38% of physicians have consciously decided to make less time for pharmaceutical representatives than they did in 2001.
Research conducted in 2001 indicates physicians were allocating 10% of their day to seeing pharmaceutical representatives assuming they saw them at all.
Because of increasing complexity of marketplace dynamics, sales representatives are unable to effectively adjust their sales activities, and are increasingly experiencing poorer sales results.
Despite these claims, pharmaceutical companies continue to use outdated reach and frequency models based on sales call goals from the mid 1990’s to influence their sizing models.
The pharmaceutical industry continues to march toward the patent cliff in 2010-2012, when a record amount of drug sales will lose patent protection in the U.S. This means some of the best-selling drugs, including Pfizer 's ( PFE ) Lipitor, Bristol-Myers Squibb's ( BMY ) Plavix and Avapro, Eli Lilly 's ( LLY ) Zyprexa, Wyeth's ( WYE ) Effexor, and Merck 's ( MRK ) Cozaar/Hyzaar and Singulair will be exposed to generic competition. Our selection criteria for the top 10 prospects is pretty straightforward—promising late-stage drugs due out over the next two years…………………….. JAKARTA. Meski tetap bergairah, pertumbuhan pasar farmasi di 2010 tak akan terlalu tinggi. Gabungan Pengusaha Farmasi Indonesia (GP Farmasi) memperkirakan nilai pasar bisnis farmasi di Indonesia hanya tumbuh 10%, atau naik sekitar Rp 3 triliun dari realisasi 2009 sebesar Rp 30 triliun. Pertumbuhan pasar farmasi ini lebih rendah dibandingkan negara tetangga seperti Thailand dan Malaysia. "Pertumbuhannya nggak akan lebih dari 10%," tegas Ketua Umum GP Farmasi Anthony Ch Sunarjo, Selasa (24/11). Belum optimalnya pasar farmasi di Indonesia antara lain terhambat beberapa aturan yang mempersempit ruang gerak pelaku bisnis farmasi. Semisal, Peraturan Menteri Keuangan Nomor 104 Tahun 2009 yang membatasi biaya promosi produk obat-obatan menjadi 2% dari setoran pajak penghasilan (Pph) atau sebanyak-banyaknya Rp 25 miliar. Padahal, potensi pasar farmasi di dalam negeri seharusnya lebih besar mengingat jumlah penduduk Indonesia mencapai 230 juta orang. Hingga kini, konsumsi obat-obatan per kapita di Indonesia hanya US$ 6-US$ 7 per tahun. Berbeda dengan Filipina (US$ 14), Malaysia (US$ 20), dan Singapura (US$ 27).
Source: CSO Insights 2009 Sales Performance Optimization Study
97% of CEOs interviewed planned on increasing revenue this year.
67% of CEOs plan in increasing revenue while reducing sales headcount.
Sales Exec Top Priorities
Increasing Revenues 63%
Improving Sales Effectiveness 50%
Growing Market 39%
Optimizing Lead Gen 31%
Reducing Sales Cycles 18%
Source: CSO Insights 2009 Sales Performance Optimization Study
Sales Management Trends From To Transactions Relationships Local Global Management Leadership Individuals Teams Sales Volume Sales Productivity
Sales Teamwork Approaches Relatively permanent, customer-focused group Relatively temporary, transaction-focused group Membership determined by job assignment to a specific buying organization Membership determined by involvement in sales transaction One team per buying unit One selling center per sales opportunity Core Selling Team Selling Center
Sales Teamwork Approaches Core Selling Team Selling Center Membership relatively stable Membership very fluid Characteristics of team depend on characteristics of buying organization Characteristics of team depend on characteristics of sales opportunity Mission is strategic with respect to the buying organization Mission is tactical with respect to the sales opportunity
Marketing Sales Force Goals Strategy Increase share of customer business Marketing Strategy-Sales Force Goals, Strategy and Tactics share 10% Goals Increase share of customer business Strategy Build long-term customer relations Tactics Develop sales teams Provide bonuses for greater customer share Increase market
Sales Rep Time Allocation Almost 2/3 of sales time is spent NOT selling! Source: CSO Insights 2009 Sales Performance Optimization Study
Comparing order takers and order getters
More Selling Time = More Revenue Source: CSO Insights 2009 Sales Performance Optimization Study Selling Time % of Reps Meeting Quota >40% 64% 30-40% 59% <30% 54%
10 min/week additional “selling time”
= $57,000 of additional annual revenue
Source: IDC Sales Enablement Research
Map the Sales Process Suspect Prospect Qualified Scored ABC’s 7 Steps, the Baseline Selling Steps and the Criteria for Reaching Them. 1. Target an Account 2. Meet with Decision Maker 7. Convert Account 6. Closing 5. Successful Evaluation 4. Evaluate Products 3. Qualify Account They Need It Differentiated ABC’s Quantified Problem Compelling Reasons to Buy They’ll Spend More Have Timeline for Decision Know Process for Decision Needs and Cost Appropriate Presentation
Transaction oriented Relationship oriented Partnership Low High Low High Multiple relationship strategies Cost of serving the customer Commitment to the customer
Ask Executives what they need to make their numbers and they’ll likely say:
“ More Leads”
Ask sales people what they need and they’ll likely say:
“ More TIME with QUALIFIED leads”
Source: Lead Generation for the Complex Sale, Brian Carroll, 2006
TOP OF THE FUNNEL:
Identify likely customers
Develop targeted messaging
Deliver those messages
Connect and engage
Disqualify/ Weed out
Identify qualified prospects
IN THE FUNNEL:
Difficulty in Connecting
Usually takes 7-12 calls/emails to get one appointment
95% of sales people quit after 4 th attempt
Last year on average 90 touches to every appointment booked….this year, 120 touches.
Use the resource that fits the task
What is Sales Enablement?
IDC defines Sales Enablement as:
“ The delivery of the right information to the right person at the right time and in the right place to assist in moving a specific sales opportunity forward.”
Source: IDC, 2009
Arm your Sales Team
The right knowledge
specific to the current selling situation
at the right time
in the right place
tailored to the needs of the buyer
It’s not about more collateral, it’s enabling salespeople to have conversations.
It's not about creating messages at “Corporate”, it’s discovering the messages and strategies that are resonating with buyers.
Relevant Content = Information
Irrelevant Content = Noise
Source: New Rules of Sales Enablement eBook, Jeff Ernst Key Messages
Shared experiences :: Stories of successful selling experiences, lessons learned in the field, advice on how to avoid landmines or differentiate from competitors.
Sales support tools :: Competitive analysis, objection handling, customer stories and references, discovery questions, call scripts, sample letters.
Subject matter experts :: Product gurus, industry specialists, client service managers who can help prepare the rep for a sales call or support the rep on a call.
Coaching and proven strategies :: Content, messages, and strategies that are proven to work in the current selling situation.
Customer-facing materials :: Not just static collateral, but dynamic deliverables that are personalized for each prospect.
Source: New Rules of Sales Enablement eBook, Jeff Ernst
Match Content to Buying Cycle
“ Thinking back to your initial meeting, what percent of reps were….” Buyer-Seller Alignment Source: IDC Customer Experience Panel, January 2009 Number of respondents = 296
Understand Your Business
Understand Your Needs
Understand Your Process
Define Your Deliverable
Implement Your Solution
CRM Process Experience …
Customer Relationship Management
Most personal selling is transaction-oriented
Companies want to encourage repeat purchasing because it is more efficient
Mutually profitable relationships are built on creating value, offering packaged solutions to problems, and improving products and processes
How salespeople create value for customers
The marketing ecosystem has changed.
Customers and consumers have evolved.
Your marketing strategies must adapt to
the new expectations,
behavior and attitudes of today’s and tomorrow’s buying decision makers.
Marketing 3.0™, a customer & consumer centric personalized marketing strategy focused on
Satisfying your customers' c
Consumers' needs with a tailored solution, communicated in a way and at a time and place acceptable to the customer to
All change is stressful – even positive change.
Still need more? Please sent email : firstname.lastname@example.org