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BEST PRACTICES,®
LLC
U.S. Sales Communications Excellence:U.S. Sales Communications Excellence:Resources, Structure and Processes to Optimize Resources, Structure and Processes to Optimize
Pharmaceutical Sales CommunicationsPharmaceutical Sales Communications
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Table of ContentsTable of ContentsResearch OverviewResearch BackgroundKey InsightsCommunication VolumesCommunication Headcounts and InvestmentCommunication Skill-SetsCommunication Systems and TrainingAppendixAbout Best Practices, LLC
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Research OverviewResearch Overview
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Key Study ObjectivesKey Study Objectives
Understand the investment levels and headcounts necessary for optimal Communications performance
Benchmark the volume of communications and the delivery vehicles used
Discover what systems are being used to measure and track messaging
Find what skill-sets are considered most valuable for Communications employees and what skill sets will be of value in the future.
Understand the investment levels and headcounts necessary for optimal Communications performance
Benchmark the volume of communications and the delivery vehicles used
Discover what systems are being used to measure and track messaging
Find what skill-sets are considered most valuable for Communications employees and what skill sets will be of value in the future.
Study Objective & MethodologyStudy Objective & Methodology
Sales force performance significantly impacts growth and bottom line results. The ability of senior management to effectively disseminate vital information to their sales forces while maximizing selling time is integral to the overall success of all pharmaceutical and biotech companies.
The objective of this benchmarking study is to better understand U.S. pharmaceutical sales communications groups impact and effectiveness. To accomplish this, an on-line survey was conducted, supplemented with several interviews.
Sales force performance significantly impacts growth and bottom line results. The ability of senior management to effectively disseminate vital information to their sales forces while maximizing selling time is integral to the overall success of all pharmaceutical and biotech companies.
The objective of this benchmarking study is to better understand U.S. pharmaceutical sales communications groups impact and effectiveness. To accomplish this, an on-line survey was conducted, supplemented with several interviews.
Data for this study was collected utilizing an on line survey instrument and several in-depth qualitative interviews. Seventeen organizations participated in this study.
Research Objective and MethodologyResearch Objective and Methodology
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Research BackgroundResearch Background
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Benchmark ClassBenchmark 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 SegmentationBenchmark 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 SegmentAdams Respiratory Therapeutics Centocor
Ascend Therapeutics Eli Lilly and CompanyCentocor GlaxoSmithKlineCovidien Merck
Cubist Pharmaceuticals NovartisEli Lilly and Company Ortho-McNeilEndo Pharmaceuticals Sanofi-Aventis
GlaxoSmithKline Shire PharmaceuticalsLifeScan Solvay Pharmaceuticals
Merck Takeda PharmaceuticalsNovartis
Ortho-McNeilSanofi-Aventis
Shire PharmaceuticalsSolvay PharmaceuticalsTakeda Pharmaceuticals
Vistakon Pharmaceuticals
n= 19 n=10
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Participant TitlesParticipant 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 InsightsKey Insights
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Communication VolumesCommunication Volumes
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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
Business/Sales Analytics and Brand Communications Business/Sales Analytics and Brand Communications Have the Largest Volumes for the TBCHave 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 asPlease indicate the monthly sales/field communications volume associated with each sociated with each function/department.function/department.
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Communication Communication Headcounts and Headcounts and
InvestmentInvestment
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13Organizations Typically Spend $80Organizations Typically Spend $80--$150 in Sales $150 in Sales Communications Salary per Salesperson ServedCommunications Salary per Salesperson ServedThis 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 Benchmark Class Large Pharma Segment
Total Cost of Salaries Salary spent per Salesperson served Total Cost of Salaries Salary spent per
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
Total Salary Cost & Salary Per Salesperson ServedTotal Salary Cost & Salary Per Salesperson Served
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Communication SkillCommunication Skill--SetsSets
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Total Benchmark Class Percentage of N respondents for each Experience Factor Average Importance of each Experience Factor
Least Important
Most Important
Least Important
Most 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
Prior Sales and Communications Experience Rate Most Prior Sales and Communications Experience Rate Most Effective for the TBCEffective for the TBCParticipants 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-pharmaemployee did not seem to be an issue of importance for the majority of participants.
Based on your experience, please rank the relative importance ofBased on your experience, please rank the relative importance of the following prior the following prior experiences when selecting an individual for your sales/field coexperiences when selecting an individual for your sales/field communications group.?mmunications group.?
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Communication Systems Communication Systems and Trainingand Training
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17Content Creation and Management Are the Most Content Creation and Management Are the Most Common Intranet Tasks 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 communicWhat aspects of your Field Intranet is your sales/field communications group ations group responsible for?responsible for?
Total Benchmark Class Large Pharma Segment
Intranet solution development (business case and technical specification creation) 26.3% 20.0%
Vendor Management (specifically for external vendors and internal IT resources) 52.6% 60.0%
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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AppendixAppendix
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FTE Levels FTE Levels –– Managers/Operations SupervisorsManagers/Operations Supervisors
Please indicate the composition of your U.S. based sales/field cPlease indicate the composition of your U.S. based sales/field communication group ommunication group by indicating the number of FTE for each title and their averageby indicating the number of FTE for each title and their average annual salary in U.S. annual salary in U.S.
dollarsdollars
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 Investment Levels –– Managers/Operations SupervisorsManagers/Operations Supervisors
Please indicate the composition of your U.S. based sales/field cPlease indicate the composition of your U.S. based sales/field communication group ommunication group by indicating the number of FTE for each title and their averageby indicating the number of FTE for each title and their average annual salary in U.S. annual salary in U.S.
dollarsdollars
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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21Email, Voice Mail and Intranet Are the Primary Modes of Email, Voice Mail and Intranet Are the Primary Modes of CommunicationCommunication
Please share approximate volumes for each of the following commuPlease share approximate volumes for each of the following communications tools nications tools delivered by your sales/field communications group on a monthly delivered by your sales/field communications group on a monthly basis. basis.
Total Benchmark Class
Email Voice Mail Field Mail Intranet Surveys News-letters:
Hardcopy
News-letters: On-
line Podcasts
Text Messag-
ing
75th Percentile 100 25 8 23 2 1 4 0 0
Mean 79 16 6 18 2 0 3 0 3
Median 50 10 2 10 1 0 1 0 0
25th Percentile 30 5 0 3 1 0 0 0 0
(n=19)(n=19)
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About Best Practices, LLCAbout Best Practices, LLC
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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, LLC6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517
(919) [email protected]
www3.best-in-class.com
About Best Practices, LLCAbout Best Practices, LLC