Wednesday, August 19, 2009

Optimizing the field force sales and structure

1 Introduction

The objective is to demonstrate an effective method to improve customer coverage and service by normalizing territory workload resulting deliver optimum sales performance. The major criteria for a high-performance sales team in the context of a large multinational company have been studied. The ultimate objective of this study is to quantify the effect of optimal adjustment of the sales teams and how this can be related to the sales performance relatively.
The significant increase in a sales team performance is crucial in large countries including Iran since such significant upward trend in the sales team performance should be also visible though the franchise revenue. With an area of almost 1,648,000 square kilometers and 70 million populations, in Iran, the market almost worth the amount USD 2.1 Bio by end 2009. Iran ranks sixteenth in size worldwide. The importance of a proper territory management as well its resource allocation are getting more complex day after day.


2 Overview
A key indicators, those with maximum influence on SF (Sales Force) effectiveness selected to be reviewed and in of the local market. There should be a definition for the optimal performance within the same framework and finally whether there exist any signs of potential issues that require action. In “Delivery Phase” introducing few tools and techniques attempt to correct the existing issues if identified. The starting point is a review on the current sales force size and structure.

These adjustments outline a three-step approach to evaluating and optimizing sales force size and structure. Even if no significant issue identified to be highlighted, it is still highly recommended to control these major indicators periodically. This would be much more beneficial in a rapidly changing and risk averse market like Iran. The necessity of such periodical controls on team performance gives time to managers for effective correction of the gaps.

The Product-Level Field Force Sizing allows comparison of key Field Force metrics and ROI to enable sizing adjustment decisions. Studying the level of geographical coverage, frequency and detailed position and calls would be encouraging to develop scenarios and expect the unexpected otherwise managers in rapidly changing environments should be ready to face the dilemma of surprises anytime. Sales force qualification and correct segmentation are the two other main parameters in the scope of our study, which might be of help when searching for optimal sales and structure of a team. Sales Force is usually the first visible element of a company to the clients. As we try more in accessing the customers, they become more interested in knowing about the new accompany and what kind of benefits or added value can be added by his/her presence in the most time pressurizing era of the human history. Before everything the following questions should be well discussed and understood.


- How many Med. Reps. Do we need to optimally cover a specific geographical area?
- What are the minimal qualifications of these representatives?
- Which products need to be promoted/detailed through the daily schedule?
- What would be the optimal frequency of calls?
- How the current situation may improve if the structure and/or function of the team change?
- What could be the necessary tools and procedures?