Situation:
A global clinical research organization (CRO) was experiencing stagnating growth in their bioanalytical, central and cGMP laboratories. When it was critical to perform a broad and deep evaluation of the productivity and commercial effectiveness of the sales force, the CRO relied on Kineticos. At the time, the CRO faced multiple challenges including:
- Proposal win rates below market norms
- Increasing competition
- Lower sales force productivity than the competition
- Growing sales force costs
- Incomplete sales activity records
Process:
Working from a data-driven perspective, the Kineticos team began with an analysis of five years of sales force and proposal data. We focused on the following areas to examine and improve revenue growth: organizational structure, compensation program, segmentation and targeting, sales force account and territory planning, compensation programs, sales force capabilities and pricing. Project activities included:
- Analysis of central, bioanalytical, cGMP and vaccine laboratory authorizations, awards, losses by territory and sponsor over six year period
- Review and analysis of sales plans by laboratory offering and territory
- Individual interviews with key business directors, marketing team and managers
- Voice of Customer (VOC) execution and analysis
- Review of internal business development structure and alignment to goals
- Assessment of call quality, including gaining access to customers, providing them with tailored information to meet their needs and obtaining commitment
Outcome:
We recommended executable solutions aimed for sustained improvement including an optimal organizational structure, revised compensation program, a new approach to segmentation and targeting, a revised account and territory plan for the sales team and an in-depth pricing study.
As a result of the sales force marketing evaluation, the CRO implemented multiple change initiatives. Significant productivity improvements have been realized. Sales force activity levels and proposal win rates increased significantly within a one-year period.
