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Business Articles - Incentive Dilemma:
Manufacturers and distributors are rolling out more sales incentive programs for their channel partners than ever before.
Some of these programs are not as successful as they could be, however, because they fail to appreciate fully what motivates salespeople and drives them to overachieve. Read on to learn six key concepts that can make your i
Some of these programs are not as successful as they could be, however, because they fail to appreciate fully what motivates salespeople and drives them to overachieve. Read on to learn six key concepts that can make your i
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
ncentive programs more effective.
The dangling of the proverbial carrot is an ancient art that is commonly understood to be at the heart of human behavior, psychology, motivation, and, in particular, business. Manufacturers and distributors commonly use this technique with their channel partners in an effort to add unique motivational value to
The dangling of the proverbial carrot is an ancient art that is commonly understood to be at the heart of human behavior, psychology, motivation, and, in particular, business. Manufacturers and distributors commonly use this technique with their channel partners in an effort to add unique motivational value to
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
move specific products or services. The reason this technique has stood the test of time is because, for the most part, it works! At times, however, elements of the technique are executed improperly. Sales incentive programs under perform or fail as a result.
The monetary values of incentives are often not the critical factor in motivating sa
The monetary values of incentives are often not the critical factor in motivating sa
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
es people to succeed. Take my own example. I was fortunate to work in an industry that provided an unending supply of incentives and awards for overachievement. I knew that, if I won every trip, every TV, every incentive offered, the money would come with it! For me, the money and the goodies were not my primary motivation. My philosophy was si
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
ple; “If you win all the incentives there are to win, you couldn’t help but be at or near the top every time.” Corporations use incentive programs to drive behavior and I agreed to play the game and conform to their wishes; what gets rewarded, gets done.
The problem, from the vendors’ point of view, is that not all salespeople are motivated t
The problem, from the vendors’ point of view, is that not all salespeople are motivated t
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
e same way. Consequently, not all incentive programs work. Why is that? From my experience, I’ll make the following observations:
1) The 80-20 Rule: Twenty percent of the salespeople make eighty percent of the sales and profits. Too often, sales incentives – perhaps in an effort to be fair – are geared to the entire sales force or VAR channel
1) The 80-20 Rule: Twenty percent of the salespeople make eighty percent of the sales and profits. Too often, sales incentives – perhaps in an effort to be fair – are geared to the entire sales force or VAR channel
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
The risk in a program like this is that the glove that fits everyone, in the end, fits no one. Enlightened marketing strategists know that the top twenty percent are already motivated. Simply put, a strategy that’s geared to light a fire under the next twenty percent – the next logical group – doubles the business in a more cost efficient man
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
ner.
2) The KISS Theory: Salespeople by nature are like electricity. They naturally take the path of least resistance. That’s not to say they are lazy or untoward. In fact, it’s just the opposite. Good salespeople look to simplicity to make things happen.
Often, incentive programs fail miserably because of innate complexities either in their
2) The KISS Theory: Salespeople by nature are like electricity. They naturally take the path of least resistance. That’s not to say they are lazy or untoward. In fact, it’s just the opposite. Good salespeople look to simplicity to make things happen.
Often, incentive programs fail miserably because of innate complexities either in their
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
ecording and reporting systems or in how rewards are won. If you put the salesperson in a position where they are forced to assess “To get this, I first have to sell this, plus these and not these and they must include these,” you are creating a recipe for confusion, sales frustration and failure. In the end, the incentive program becomes a dis
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
ncentive!
The remedy? Manufacturers must keep the program sweet and simple and attainable. There can be no ambiguity. Anything less will result in a lack of interest, as well as a waste of time and money that can sometimes spill over into other departments whose task it is to administer and account.
3) Education: Edison may have invented the
The remedy? Manufacturers must keep the program sweet and simple and attainable. There can be no ambiguity. Anything less will result in a lack of interest, as well as a waste of time and money that can sometimes spill over into other departments whose task it is to administer and account.
3) Education: Edison may have invented the
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
ight bulb, but it never went anywhere until a salesman understood its benefits and made the first sale… and probably sold a lamp to go with it!
Incentive programs don’t just sell themselves. Too often, expensive motivational programs are overlooked in the field because reps either don’t understand their value and/or are unsure how to sell them
Incentive programs don’t just sell themselves. Too often, expensive motivational programs are overlooked in the field because reps either don’t understand their value and/or are unsure how to sell them
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
Many times, good programs are written off as having missed the target, when in reality, they just weren’t rolled out and managed properly.
4) Competition: Everyone’s heard the expression, “Timing is Everything!” This is particularly important sage advice for the successful incentive program planner. Marketing execs can’t know when every compe
4) Competition: Everyone’s heard the expression, “Timing is Everything!” This is particularly important sage advice for the successful incentive program planner. Marketing execs can’t know when every compe
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
itive incentive program will rear its aggressive head, but they can take strides to ensure their program is given first look.
Any successful salesperson will tell you, “Most sales are made as a result of due diligence on the front end.” Simply put, the better the preparation, the more likely the sale. The same can be said for incentive initiat
Any successful salesperson will tell you, “Most sales are made as a result of due diligence on the front end.” Simply put, the better the preparation, the more likely the sale. The same can be said for incentive initiat
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
ves. Real incentive programs, like new movie releases, are something to be anticipated. The right amount of promotion ensures greater acceptance and interest that often usurps focus on competing programs.
5) Reward: Any reward-value can become an unmotivated anticlimactic activity if the time span between winning and getting, is too long. Succ
5) Reward: Any reward-value can become an unmotivated anticlimactic activity if the time span between winning and getting, is too long. Succ
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
essful incentive programs reward immediately! As a rule, the faster the reward is delivered, the greater the enthusiasm for the program.
Although on some levels, salespeople are a complex breed, when it comes to incentives, they are – for the most part – quite predictable. Their nature is to react to excitement or challenge faster then most, a
Although on some levels, salespeople are a complex breed, when it comes to incentives, they are – for the most part – quite predictable. Their nature is to react to excitement or challenge faster then most, a
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
d then move on. One way to maximize their natural bent and ensure greater program success is simply to cater to their natural motivators. “Get them their stuff QUICKLY!”
6) Recognition: At the risk of making salespeople appear shallow or monolithic (they are not), recognition amongst their peers is still the quintessential motivator, whether t
6) Recognition: At the risk of making salespeople appear shallow or monolithic (they are not), recognition amongst their peers is still the quintessential motivator, whether t
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
ere’s an incentive program or not.
The rule again, is, there is no such thing as TOO much recognition! Salespeople by nature gravitate to the limelight much like other performers, and so there should be no shortage of achievement and overachievement recognitions that find their way – in a timely manner – to the public’s eye.
Psychological stu
The rule again, is, there is no such thing as TOO much recognition! Salespeople by nature gravitate to the limelight much like other performers, and so there should be no shortage of achievement and overachievement recognitions that find their way – in a timely manner – to the public’s eye.
Psychological stu
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
ies have shown that the pursuit of recognition, in and of itself, can make the difference in targeting that critical second twenty percent on the sales achievement ladder. Experts agree that successful sales teams find motivation in their own champions. Beatifying the sales leaders instills excitement and a definable hierarchy that beckons all
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
layers to become a part.
Another fact that is frequently overlooked is that recognition, whether part of an incentive or not, is the least expensive means of motivation. In many cases, it’s free! Often, shaking the hand of the president in front of the company is all it takes to galvanize the need to overachieve.
The Bottom Line: Manufacturer
Another fact that is frequently overlooked is that recognition, whether part of an incentive or not, is the least expensive means of motivation. In many cases, it’s free! Often, shaking the hand of the president in front of the company is all it takes to galvanize the need to overachieve.
The Bottom Line: Manufacturer
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
and Distributors must take greater care when designing motivational incentive programs. Take a page out of the “Sales 101” book that says, “Find out what they want, then, give it to them!” But make sure to keep it simple, keep it clear, promote it properly, reward immediately, don’t try to target everybody, and, recognize, recognize… RECOGNIZE
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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