Sunday, March 4, 2012

Motivation in Pharmaceuticals Sales Representatives

Motivating high performance in pharmaceutical sales teams is a growing issue in the pharmaceutical industry.  The challenges facing the pharmaceutical industry in motivating sales teams are compounded by a variety of factors that many other industries do not face including: government regulation of sales practices, non-direct tracking of sales results, and the impact of managed care on sales performance. By impacting a few key team process and compensation elements pharmaceutical companies can have a significant impact on team performance.

Companies Facing Challenges in Modern Era: 

Motivating sales force representatives to perform at a high level of performance is a challenge that all companies in all industries have in Pakistan. The pharmaceutical industry is no different in this aspect. In fact, the challenges facing the pharmaceutical industry are compounded by a variety of factors that many other industries do not face including: government regulation of sales practices, non-direct tracking of sales results, and the impact of managed care on sales performance.

Sales processes, perks and incentives aimed at improving sales performance have been seen as the key to increased productivity and performance throughout the industry.  However, the reality is that most pharmaceutical companies have not refined their perks and incentives strategies nor have they developed team processes to accommodate them.  This has led to many of the "mirrored sales" forces not achieving the desired performance results that had been expected of them by management. Indeed, one mirror force sales representative put it this way, "They thought that by teaming us up we'd produce more, but they just threw us together in this team with no training and no incentive to work together - and we were expected to work out all the kinks ourselves". To maintain competitiveness, pharmaceutical companies will need to adapt their processes and motivational techniques in response to this changed work environment. 

How to Motivate Sales Reps:

Have you experienced a drop in sales? If your answer is yes, chances are your sales reps are not motivated. Motivation is the driving force in successful salespeople. Many industries rely on sales reps to generate revenue. Regardless of the industry, all salespeople have motivators which include achievement, social affiliation, power, ego gratification and survival. These motivators are manifested differently in each salesperson. Often the level of experience and training impacts an individual's dominant motivator.

Instructions:

  • Recruit capable employees. Hire people who possess the right skills for sales jobs. Avoid hiring ego-driven applicants for salaried sales positions. Sales teams should consist of people driven by social affiliation.
  • Provide training. Prepare a training guide and distribute it to sales reps. Well-trained sales reps accept periodic rejection and experience success. Sales people who train in groups are motivated by the social affiliation. Include role-play segments when training.
  • Give them good salary and make attractive incentives plan. Lack of pay will have negative effects. Sales reps may not work up to potential. Good salary and Incentives allow sales people to focus on achieving company goals without fear of survival.
  • Create recognition programs and contests. Set realistic goals that most sales reps can achieve. Motivation of each salesperson will increase. Award trips, jewelry or other non-cash items that are viewed as gifts.
  • Avoid conflicts. Thoroughly consider all aspects of all sales programs. Eliminate all components that are unfair. Unfair treatment damages egos, motivation and the productivity of the sales force. For instance, don't hire a sales manager from outside the company. Instead, promote a sales rep who has demonstrated her ability.