Sales territory design and management is a very sophisticated and complicated process in pharma industry. It’s definitely a win-win situation for the pharma company if the sales force is aligned properly and helps in increasing their revenue. The sales representatives are also motivated to achieve target and find innovative ways to improve the sales.
Have you ever thought how to properly design the territories?
Major factors are workload and change in opportunities like market shift or competition in the market, new product launches, discontinued products, mergers and acquisitions, expansion of the sales force.
The territory design process should be in such a way that representative have potential to cover the target market, they can manage existing business and maintain sales. Also an important factor should be kept in mind that is customers get adequate service.
To address all this kind of situations, “INDEX” method is commonly used. Incorporating multiple variables into a single index and then balancing the single index across all the territories. This process is very simple and helps in proper sales management and easily understood by the sales representatives. This method can drastically increase the sales revenue. Companies with national coverage, wide target market use this approach.
However, a territory design model should be designed in such a manner that it has workload, travel criteria, account profitability along with sales management and target achievement to determine cost benefit ratio of the accounts.
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