Organizational Effectiveness Case Study

The Challenge:
A pharmaceutical sales force's practice of calling on low-volume accounts was inconsistent with the company's new customer segmentation strategy and increased the cost to serve customers.

Our Solution:
We advised the client to:

• Change the sales approach from a product distribution to a consultative selling model,
• Build and expand a telesales group to efficiently cover smaller volume accounts at a reduced cost,
• Address territory performance issues by requiring sales managers to coach and develop talent capable of consultative selling or replace reps unable to make the transition, and
• Design an incentive plan providing greater rewards for selling to target prospects, penetrating and expanding key account sales and increasing target customer retention and satisfaction.

The Impact:
The company aligned sales compensation to support its sales and marketing strategy, growth plan, and account management objectives. As a result, total sales increased by 5%over the prior year. New sales to prospects in the top two segments climbed by 24%, helping to lower the company's cost to server.