Decline in Pharma Rep Sales Force: What Pharmaceutical Companies Will Do Next
The long decline of drug sales reps isn’t over. According to an article in WSJ’s Health Blog, numbers are supposed to fall from a high of 102,000 in 2007 to 75,000 (or less) in the next few years. It’s the result of a double-whammy for pharmaceutical reps: while companies are looking to cut costs in a difficult economy, doctors are restricting access in a major way. One in 4 doctors works in a practice which refuses to see drug reps. And 40% of physicians who will see pharma reps require appointments, which has risen sharply in a matter of months.
Even though revenues at Merck and Pfizer are rising, they’re still planning more layoffs. Recent cost-cutting measures, consolidations, and product innovations are improving the bottom line, but the streamlining processes of the last few years are still going.
Physicians still want to see pharma reps, and drug companies are still convinced of the effectiveness of one-on-one sales rep visits, but the sales model and the sales rep’s job will require a more focused, technical, targeted, and value-filled approach.
In response to a changing market, and changing needs of the physician customer, big pharma companies are modifying sales models from a reliance on a massive one-at-a-time “door-to-door” sales force to more of a hybrid sales structure using internet tools and other technologies combined with a more educated, targeted sales rep with a stronger scientific and technical background.
Here’s a link to a terrific article called Managing the Crisis of Marginalization with a detailed discussion of what companies are doing, including Novartis’ regional model and AstraZeneca’s new sales and service model with significant structural changes to the traditional sales role that includes a solid self-service aspect augmented by a better-trained sales force.
What do you see pharma companies doing to retool their sales process?
(If you’re a pharma rep who’s ready to move on, I help pharma reps move into medical device, medical supply, and other clinical sales roles as a career consultant in medical sales. In fact, here’s a link to an audio piece from a pharma rep who transitioned to surgical sales with some career coaching help. )
Corporate Website
-
Mailing List
