The New Pharma Commercial Mandate: Evolve to Thrive
New Commercial Results From 2020 Pharmaceutical Industry Study
More than 30 pharma and biotech companies participated in Alexander Group’s latest 2020 research into market trends and commercial mandates in the pharmaceutical sales industry. Current practices and trends across therapeutic areas such as oncology, rare diseases, diabetes and cardiology provided several key mandates companies should consider to stay ahead of the competition.
Below is an outline of the high-level findings and mandates for change.
Findings and Mandates for Change
- Adapt your go-to-customer model to keep up with the demands of a dynamic healthcare ecosystem: >80% of organizations have evolved from traditional customer coverage models to highly specialized and complex coverage models
- Consider four distinct customer coverage model archetypes in aligning your organization to growth: In addition to the core “basic” traditional model, use three newly classified archetypes to drive portfolio growth and patient outcomes
- Invest in new sales roles to drive scale: 86% of organizations use some type of key account manager role and >50% of companies are planning on making key account investments in 2020 and 2021. Similarly, customers are investing in digital channels and “customer success” roles that help drive positive provider and patient outcomes.
- Improve sales team productivity by pulling enablement levers: 82% of organizations are investing in expanding commercial capacity & effectiveness through focused rep and manager enablement program investments, such as coaching programs, sales training, and digital enablement.
- Update quota and compensation programs to align to changing commercial model and drive performance: As organizations add new roles and add complexity, they need to reassess goal-setting and compensation plan designs. >70% of organizations are adjusting their compensation plan designs in 2020 and >68% are investing re-designing their sales goal-setting programs.
For a detailed readout on these commercial mandates for pharma companies along with industry benchmarks and a breakdown of the key leading market models, request a review session.