Life Sciences Company Improves Sales Productivity
Situation: A large life sciences company faced declining revenue growth combined with significant cuts in investments. The company recently made changes to the sales organization but needed to further optimize their go-to-market model and improve overall sales model productivity. Sales leaders expected growth to come from emerging markets; however, budget cuts meant that funding emerging market investment would need to come from increased productivity.
Challenge: The company wanted to understand how its sales OpEx spend compared to other companies in the life sciences industry and specifically, areas that were over- or under-invested. The goal was to uncover opportunities for coverage improvements and efficiency within sales models.
Solution: Alexander Group utilized our proprietary benchmarking database to compare the company’s sales productivity and investments against a Life Sciences industry peer group. Survey results showed consistently low account development time for reps and managers compared to the benchmark companies. Our comprehensive analyses, including interviews with sales reps and managers, revealed that all customer types are assigned the same level of resources, regardless of account opportunity, customer needs or buying habits. As a result, we recommended a more robust segmentation with differentiated customer coverage, as well as greater use of lower cost telesales resources.
Benefit: The client used Alexander Group’s benchmarking analysis to identify areas for increased investment (account management, post-sales resources). They were also able to create a customer centric segmentation model that optimized how resources were allocated across different customer types. Sales leaders had a better understanding of how to match sales resources to customer needs resulting in improved sales productivity and freeing up investment dollars for growth opportunities.
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