Profitability, Performance and the Potential of AI
One of the strongest motivators driving companies to implement changes is profitability measures in sales compensation plans. For roles with considerable influence over pricing and contract terms, such as national account managers, profit-based incentives are more common. However, for most individual contributors with limited pricing control, incentivizing strategic, profitable products may be a more effective approach.
Another key focus for healthcare companies is driving an increased pay-for-performance culture through their sales compensation program. A majority of leaders reported driving productivity as the primary plan design challenge. Pay-for-performance plan design best practices include clearly linking business performance to rewards, driving individual accountability in the plan, aligning pay mix to degree of persuasion, and differentiating between top and bottom performers.
In the realm of talent practices, there is a noticeable trend towards more hybrid work environments and employee-friendly policies. The potential role of artificial intelligence (AI) in sales compensation management and plan administration is also being explored. However, it is worth noting that many companies are still in the early stages of adopting these AI-driven strategies.
Healthcare companies must be prepared to continuously reassess and adapt their go-to-market strategies and compensation plans to navigate the industry’s changes effectively. As the Alexander Group continues to research and build a community around revenue growth in healthcare, the learnings and insights from such discussions will be critical in shaping the future of healthcare sales and service functions. For healthcare leaders looking to stay ahead of the curve, these shared insights offer a blueprint for driving growth in a market that demands innovation, agility and strategic foresight.
Alexander Group offers a spectrum of services to MedTech, digital health, health insurance, healthcare services and biotech companies. The healthcare practice is committed to propelling top-line revenue through strategic and execution-oriented programs. Specialization spans various areas within the marketing, sales and services domain, including commercial strategy and planning, blueprinting market wins, addressing shifting market realities, programmatic fixes, job design, segmentation, digital motions and resource deployment. Sales compensation design and marketing optimization are among the key offerings.
