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The Pursuit of Value

Is there room (and a role) left for the sales force?

Eyeforpharma’s Specialty Pharma Excellence Conference

Boston, MA

Frank F. DolanPrincipal Consultant

Twitter: @pharma411

Michael Bailey◦ Chief Commercial Officer, AVEO Pharmaceuticals

Jeremy Lutz◦ Senior Director- Decision Support, Cubist

Pharmaceuticals

Brian Irwin◦ Managing Director, Informa Training Partners

Our Panelists

The data is in…

Courtesy 20th Century Fox

Right Message

Right People

Right Frequency

Our Forefathers Algorithm

•Key Performance Indicators

•Calls Per Day

•Reach

•Frequency

•Segmentation

•Promotional Sensitivity

•Awareness

•Trial

•Utilization

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High Potential for Developing Perceived Value of Sales Representatives

◦ While sales representatives impact their treatment decisions, MD’s perceive 70% of them to be of only low or medium value to their practice

Aligned to the Customer

How do MD’s define quality and value?

Product knowledge Disease state knowledge Understanding my needs as a physician Managed care status knowledge Ability to conduct useful face-to-face

interactions Presents relevant product support material

and/or solutions Credibility Appropriate frequency of sales calls

Gaining Competitive Advantage through Value

What percentage of sales representatives meet your expectations regarding all of the following attributes?

Product knowledge Disease state knowledge Understanding my needs as a physician Managed care status knowledge Ability to conduct useful face-to-face

interactions Presents relevant product support material

and/or solutions Credibility Appropriate frequency of sales calls

Meeting Expectations

Gold Standard Representative Has:

-Strong Product Knowledge

-Credibility

◦ The vast majority of MD’s see these two attributes as essential for all sales representatives

Rep Essentials

As a company approaches commercialization with a sales force, what are some approaches to measuring promotional quality?

Panel Question

The Reality of the Sales Call

◦ MD’s want: #1 gain product knowledge, #2 added value

◦ MD’s say that get a message monolog- NOT product knowledge or value

Conflicting Goals

Sales Representatives Impact Brand Loyalty

◦ One-third of physicians indicate their prescribing behavior changes when a sales representative changes companies

Key Findings

In a hospital/institutional selling environment, how do you interpret activity to sales levels?

Panel Question

Sales Representative Often the Determining Factor in Visits

◦ In 39% of visits, the sales representative, not just the company or products detailed, will determine the institution’s willingness to see a sales representative

Sales Rep as a Critical Success Factor

Improvements to Perceived Value Opens Doors

◦ Nearly one-third of MD’s give special privileges to sales representatives who meet their expectations on knowledge, interaction frequency, and credibility

Key to Access

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61% of sales representatives currently

do not meet all these needs, presenting

a major opportunity for growth in

physician access

MD’s Have Control Over Sales Representative Visits

◦ Approximately half of MD’s work in institutions that decide on which sales representatives they engage with on a case-by-case basis

◦ 14% indicate that rep access is determined by formal protocol

Access is Personal

What investments are companies making to fulfill their pursuit of being more “customer-centric”?

Panel Question

75% of MD’s give high value representatives more interaction time, more frequent interactions, or both

The Payoff for High value Reps

Beware activity-to-sales formulas –Quantity centric

Measure promotional quality and value –Customer is scoring you anyway

Customer Listening Metrics is the new Closed Loop Marketing

Where do we go from here