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Introducing EIM: The key to improving pharmaceutic

David Blume, European sales director of Callidus S Posted on: 08 May 03
Introducing EIM: The key to improving pharmaceutic

Summary

Enterprise Incentive Management (EIM) software -improves pharmaceutical sales and provides accurate and timely compensation to both direct and indirect sales people. Already used in the pharmaceutica
It’s impossible to exaggerate the role played by the sales force in the success of any pharmaceutical company.

Until recently, the size of a company’s sales force was seen as the ‘x’ factor in the success equation. According to a Cap Gemini Ernst and Young report* issued in 2002, companies are increasingly recognising that the economics that made huge sales teams so attractive are unsustainable. What we’re seeing today is a pared-back sales force tasked with maximising payback from diminishing face-to-face sales contact.

Sales success is no longer about the size of the team, it’s determined by the quality of the individual sales professional. More than ever before, every member of the sales team counts. It’s imperative that pharmaceutical companies build mutually beneficial, long-term relationships with all potentially productive sales people – not just the top performers.

While it’s not uncommon to hear pharmaceutical company spokespeople trotting out the ‘our people are our main asset’ mantra, feedback from sales people, and their managers, suggests the reality is somewhat different. Too many pharmaceutical companies tend to forget that there’s a person at the end of every sale – an individual with financial and, let’s face it, emotional needs.

The good news is that there is a proven solution out there. It’s called Enterprise Incentive Management (EIM). As you read this article, EIM solutions from Callidus Software are being used to great effect by organisations in the pharmaceutical and other sales-driven industries worldwide.

An effective EIM strategy allows pharmaceutical companies to instigate, manage and reward productive sales behaviour. At the same time, EIM can increase top-line revenue and reduce bottom-line costs. Implementing an EIM solution can make a resounding difference to the individual motivation within a pharmaceutical sales team with a consequent boost in the number and value of sales.



One of the most basic facilities provided by an Enterprise Incentive Management (EIM) solution is that it automates the management of incentive programmes. By using Callidus Software’s suite of integrated EIM solutions, primarily TrueComp and TruePerfomance, pharmaceutical companies can streamline all the processes needed to calculate variable compensation - from modeling, planning, administration and reporting through to analysis. As a result, sales people are paid the correct amount of commission on time, every time.

An EIM solution enables companies to realise the greatest ROI on every penny they spend on remunerating their sales force. EIM is a world away from the spreadsheets used by many otherwise technically sophisticated pharmaceutical companies. An EIM solution cuts through the arcane reporting and compensation structures that dominate the industry undermining even the most conscientious employer’s attempts at accurate and timely remuneration.

Another benefit of EIM - much appreciated by sales people - is that commission statements are laid out in a clear, readily understood format. Interestingly, we’ve been told that within a couple of months of a Callidus EIM solution going into operation, sales people give up checking their commission statements. This contrasts markedly with the mistrust – and the barrage of heated complaints to sales directors - with which sales people traditionally respond to commission statements.

It’s obvious that working smarter ultimately results in a fatter commission cheque and better profits for the company. Implementing an EIM solution allows sales behaviour to be aligned to meet both corporate and customer needs. An EIM solution ensures that every second of the average four minutes a sales representative gets with a doctor can be used to best advantage. For example, sales people can be alerted to the high-priority and, crucially, high-value products that are most suited to a doctor’s specific needs, such as the local demographic or personal specialisms.

A further bonus of using EIM is that sales people can record their time and activities in a format that enhances the accuracy and efficiency of their subsequent commission payments

It’s no secret that the best sales people share a keen competitive instinct. These same people like to see their achievements up in lights! Callidus has recently installed its EIM system for a pharmaceutical customer that incorporates a pronounced communication element. Since the solution went live, sales teams have enjoyed access to up-to-date information that plays to their competitive instincts. Simple but well designed graphics make it easy to pinpoint the ‘winners’ topping of the sales performance charts. In addition, team members are advised on ways in which they can improve their own numbers.





Finally, how soon can a pharmaceutical company expect a return on its investment in EIM? Following a properly planned and executed EIM strategy, a pharmaceutical company can expect an immediate increase in revenue and profit. Many companies have seen a dramatic return on investment within six months.



*”Beyond 2005: The Future of Pharmaceutical marketing and Sales” published by Cap Gemini Ernst and Young in 2002

David Blume

Last updated on: 27/08/2010 11:40:18

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