Life Sciences

Reigniting Sales Effectiveness for Life Sciences Tools & Services Sellers

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In sales, like in science, unknown variables can lead to unexpected results. The market growth rate has slowed, customers demand specialized interactions and sellers struggle to meet quotas. It’s as if the control variables have changed, and the results are surprising.

Just as scientists eliminate unknowns for accurate outcomes, go-to-market (GTM) leaders must identify and address the factors hindering their sales effectiveness. Let’s dive into the data to uncover the reasons behind these unexpected results and turn the tide in our favor.

1. Field Sellers are Becoming Expensive Customer Service Reps

2. Best Sales Talent is Leaving Your Organization

3. Marketing and Sales Handoff is Broken

4. Sales Leaders are Struggling with the Management Basics

Key Topics

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1. Field Sellers are Becoming Expensive Customer Service Reps

GTM leaders have observed that field sellers are spending more time than ever in front of their computers. According to the Alexander Group’s Sales Time Benchmarking (STB) database, life sciences tools and services sellers are dedicating approximately three days a week to sales completion activities. Despite being paid $185,000, these sellers are often bogged down with chasing orders, resolving basic customer service issues, navigating internal administration and reporting and attending training sessions. This mix of tasks is preventing sellers from focusing on hunting – prospecting, account development and closing deals. Additionally, it limits their ability to expand their portfolio and technical knowledge.

Combine this with recent feedback from the Alexander Group’s voice-of-customer (VOC) study, which includes insights from bench scientists, lab directors and procurement professionals. Some buyers described the sellers as merely ‘quote takers,’ highlighting the customer’s desire to interact with specialists. The study validated the Life Sciences Coverage Study, the biggest role-specific GTM investments are product specialists and field application scientists. Getting to the crux of a difficult GTM conundrum – do you need better sellers or more specialists? Either way, it’s critical to alleviate immediate pain and give sellers their time back.

Sales Effectiveness: Sales Time

Give high-value sales time back to your sellers. Either automate (e.g., digital, self-serve) or reassign low-value activities to support teams (e.g., quota and technical product specialists, customer service). Review sales coverage ratios between generalists, specialists, FAS and service.

2. Best Sales Talent is Leaving Your Organization

While some leaders believe the war for talent has been over for a few years, the reality is that the battle for top talent never ends. There will always be companies eager to invest in top-tier hunter sales archetypes. These organizations offer competitive pay levels and sales compensation plans with substantial rewards for exceeding performance goals. The industry average for high-performance pay is 2.6x (i.e., top 10 percentile of performers earn 260% of their annual target incentive). 92% of organizations uncap their plans, while 55% put decelerators in to protect themselves.

The opportunity and hidden costs of losing talent (e.g., backfill, training, low year one productivity) outweighs the additional cost of the sales compensation pay levels and plan changes. Although pay is the primary driver for retaining someone, companies need to supplement the employee value proposition. Additional talent programs include career pathing and professional development. In recent voice-of-field (VOF) interviews, sellers emphasized that having a clear and transparent career development plan for the next five to 15 years is a key differentiator, even though their company was paying around the 25th percentile to the market.

Sales Effectiveness: Sales Talent

Assess and reposition your total target compensation package and the sales compensation plan mechanics. Push finance to afford rich upside by showing that plans pay for themselves. Build a strong employee value proposition, supplementing pay with transparent career pathing and professional development.

3. Marketing and Sales Handoff is Broken

Marketing teams are consistently generating a high volume of leads for sales teams, and companies are committed to investing in marketing due to the clear return on investment (ROI) seen by leadership. A recent Alexander Group marketing study, which included insights from 215 marketing leaders and over 50 client engagements, revealed that marketing efforts are contributing an impressive $24.6 million in total revenue per marketing headcount in the life sciences sector. With a marketing expense to revenue ratio of just 2.5%, the most significant investment areas are digital strategy and programs, content development and marketing intelligence.

Despite significant investments, sellers often delete or ignore marketing-qualified leads, viewing them as not valuable. They frequently complain about wasting time on contacts who aren’t decision-makers or are just casually browsing. To address this broken handoff, GTM leaders must collaborate to create a feedback loop, have marketing join sales on ride-alongs and ultimately build trust between the two teams. Accountability can be supported by incorporating metrics to share success stories or quickly abandon low-performing plays.

Sales Effectiveness: Sales Plays

Build a better lead scoring model and process. Align on targeted sales plays and right to win across end-markets, buyer types and products. Incorporate a voice-of-field (VOF) feedback loop between marketing and sales and watch metrics to make decisions quickly.

4. Sales Leaders are Struggling with the Management Basics

Many first-line sales managers (FLSMs) were promoted during the COVID era when interest rates were low, government funding was abundant, and selling was relatively easy. Now, with a tightened market and an ultra-competitive environment, these sales leaders face challenges they haven’t encountered before. Recent project engagements reveal that FLSMs are struggling with forecasting and often find themselves acting as super-sellers during client meetings. Additionally, in line with the first theme of this article, they are grappling with time management issues.

According to the Alexander Group’s Sales Time Benchmarking Database, life sciences leaders spend only one day a week on coaching and training, which accounts for just 22% of their time. The rest of their time is consumed by administration and reporting (17%), non-productive travel (9%), implementation problems (8%), customer service (7%) and order management (3%). This means that nearly 2.5 days per week are spent managing the current business rather than focusing on growth. GTM leaders need to unlock and enable their sales leaders by alleviating their time constraints, focusing them on coaching and enablement, and providing better professional development through a Sales Leadership Academy.

Sales Effectiveness: Sales Management

Identify the ideal sales leader talent profile. Assess your sales management teams. Make talent decisions quickly and build a Sales Leadership Academy. Focus on forecasting, metrics, coaching and enablement.

Reigniting Sales Performance

Sales underperformance in the life sciences tools and services industry isn’t just about working harder or better training. The industry itself is changing, and sales leaders need to break old habits, rewire sales motions and free their sellers to actually sell. By addressing these issues, you will enhance your sales effectiveness and drive better top-line results.

Need Help?

For life science organizations looking for new ways reignite sales performance, contact an Alexander Group expert to learn more.