Case Study

Sales Force Relaunch and Sales Compensation Restructure

This leading medical device company had an overweight sales force. Its selling, general and administrative (SG&A) expense was significantly higher than internal and external benchmarks. Looking at the fast-paced change in the US healthcare market, competitors and buyer behavior, the company decided to relaunch its sales force.

The vendor needed sustained growth and innovation, with lower SG&A. The company also needed to integrate a newly acquired company smoothly into the organization without disrupting revenue.

The Alexander Group delivered an in-depth revenue, cost and productivity analysis. We pinpointed improvement opportunities, starting with a new customer coverage model to allow product cycling and deeper account penetration. Further, we re-balanced territories, set new quotas and revamped the incentive compensation program to support the new job roles, product bags and selling responsibilities. After the full re-design, the Alexander Group helped implement and transition the field teams. We organized the transition plans into a comprehensive playbook to help both management and sellers succeed.

After implementation, the company saw an annual cost savings of 10% while remaining headcount neutral, due to deploying lower cost resources. The device vendor also improved account penetration at its top 200 accounts by 10%, and exceeded its EBITDA goal during the transition year. The restructured sales force and compensation program played a large part in delivering these results.

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