Upcoming Webinar: How to Understand and Leverage Your Data

Case Study

IC Plan Design in Defense of Competitive Entry

Sales Force Effectiveness

Share on facebook
Share on twitter
Share on linkedin

Using IC to optimize sales force behavior and generate sales success.

Addressing a client’s incentive compensation (IC) plan and implementation can have a significant and immediate impact on changing sales force behavior when priorities shift.

In this particular case, our client, a global pharmaceutical company, dominated an expanding market when an unexpected new competitor arrived, eating into our client’s sales figures.

Our client was previously not geared toward addressing competition since it had not been a factor, sales were consistent year-over-year without attempting to expand into new patient areas. With the introduction of new direct competition, our client was compelled to act.

Upon review, we found that unbalanced compensation payout occurred in high volume sales geographies.

In order to gain new patients, KMK collaborated with the client to evaluate a share contest to address the competition directly. In addition we assessed current IC plan fairness and conducted a sensitivity analysis for the sales forces. And finally, we created an analytics simulation to find optimal IC component weights to balance fairness and drive particular field force behaviors deemed to be highest priority.

Via strategic IC plan design our client was able to successfully help a higher percentage of new patients, stave off the competition, and lock in long-term success for their therapy.

Activities

  • Evaluated a share contest to face the competition
  • Assessed IC plan fairness and sensitivity analysis
  • Simulated optimal IC component weights to balance fairness and behaviours driven
  • Introduced an NBRx share contest

Results

  • IC plan redesign helped our client pivot quickly and effectively within an environment of new competition.
  • With proper design and communication, sales reps found the adoption of the new plan simple and helpful
  • Through IC plan design our client was able to stave off the negative impacts of direct competition
  • IC plan redesign position our client for long-term success with this product

Key Learnings

  • Adjusting existing IC plan weights to can produce fairness and motivation
  • Keeping the core IC components unchanged creates consistency of message delivery and better adoption for sales force
  • Balancing sales reps payouts can work to effectively manage head-on competition

For Questions, Contact Us Now

Related insights

Migraine Study Demonstrates Impact of Treatment Failures on Healthcare System

KMK Welcomes Oncology Market Research Veteran Lisa Logan

The Ultimate Plan for Strong Analytics Support to Drive Business Decisions : A no-compromise solution on quality and value

A Roadmap to Success: Five Guiding Principles to Incentive Compensation Planning

Pharma Companies’ Sales Reporting Efforts Often Fall Short. A look at why this occurs and how to avoid it in the future.

KMK Value Based Medicine

Unlock forward looking Insights via Machine Learning

KMK President Michael Karbachinskiy Weighs in on the use of AI and Machine Learning in Pharmaceutical Sales

GSK, AstraZeneca, Genentech, and Novartis Identified as the Top Companies Driving Therapeutic Innovation in Asthma

Allergan and Bausch Health Identified as the Top Companies Driving Therapeutic Innovation in IBS

Readjusting Your Field Force in the World of COVID-19

How to Reach Oncologists when Face-to-Face Interaction is Impossible

KMK’s Split Credit Tool Improves IC Performance

KMK’s Employee Performance Tool Streamlines HQ/Sales Rep Calibration

Field Force Re-Optimization in Anticipation of Loss of Exclusivity (LOE)

Sales Force Effectiveness for Top 20 Pharma