Articles

Dimensioning of the Sales Force in the Management of the Pharma Sector

Written by Admin | Sep 25, 2024 4:00:00 AM

By Jordi Sánchez, Executive Manager Farma

 

One of the most important considerations for any company is the size of their sales force. This is even more critical when it comes to small teams, who often find themselves covering large territories. In these cases, it is easy for concerns to arise. Are all areas being covered effectively? Is each sales rep being assigned a fair number of doctors or pharmacies? If a sales rep requires maternity/paternity leave, is there an approach in place?

It is precisely at this point where data can become the solution to our problem. But, to begin, it is essential that we question whether the information we have is correct. For example, are the doctors/pharmacies I have in my CRM correct? Do my sales representatives have them updated? What's more, if we have to buy this information from an external source, we must also ask ourselves if the segmentation is taking into account particular cases of my business, such as affinity, distance, etc. If the answer to any of these questions is “no”, the first thing to do is correct it. Without verified data, it is impossible to resolve any doubts regarding the size of a sales force.

Once the challenge of correcting the data has been solved, we must consider whether it is sufficient for use in decision making. One might think that having a contact list with potential is enough to obtain valid business insights, but at SDG we believe that it is essential to try to integrate other data that can enrich the analysis. A fairly common example is knowing a contact’s preference of digital channel. In this case, the objective is to identify doctors/pharmacies that feel more comfortable with video calls or informative emails, for instance, so that one knows it is not necessary to organize a face-to-face visit from the sales representative as often. This data helps us establish more balanced "customer groups”, which renders processes more efficient and allows the sales force to provide better coverage for wider territorial areas.

With the two previous points already solved, we are finally able to tackle the solution of other problems. In fact, we have different methodologies or solutions that can be used to answer the questions raised at the beginning of the article. Depending on the maturity and circumstances within each company, we propose two different approaches:

  1. "One-shot" Analysis: A practical and effective solution for companies that need to address a specific situation, or do not yet have an advanced analytics platform. This approach begins with an exhaustive study of the market and its potential, which allows for estimation of the appropriate sales team size needed to cover territories effectively. Next, relevant variables are selected that allow doctors and pharmacies to be grouped in a meaningful way, taking into account both the available sales force and the potential of contacts. It is essential to parameterize these analyzes so that, in the future, it is possible to run the segmentation again in a simple and autonomous way regardless of changes in information.
  2. Analytical Solution as Final Product: Having an analytical product or solution, such as Next Best Action (NBA), offers a more advanced and continuous approach. These solutions not only prioritize the commercial actions that the sales force must perform to maximize sales, but also allow the ideal sales force to be sized regularly, adapting to changes in the commercial environment. By implementing an analytical solution of this type, companies can obtain a more dynamic and accurate view of their sales personnel needs, which allows them to optimize their resources and maximize their performance in the market.

In short, both the "one-shot" approach and the analytical solution offer very useful tools to address the challenges of sizing the sales force. The choice ultimately depends on the maturity and specific needs of each company, but in both cases, the intelligent use of data is essential for making more informed and strategic decisions that ensure commercial success.

 

Original article published on PMFarma, here.