The chameleons of pharma - Pharmaceutical Representative
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The chameleons of pharma
The unique challenges of contract sales forces


Pharmaceutical Representative

Contract sales representatives promoting products on behalf of pharmaceutical companies across the country often have to work extra hard to ensure that clients' needs – and, of course, those of prescribing physicians – are being met.

A recent report from Health Strategies Group Inc., Palo Alto, CA, indicates that certain challenges faced by contract sales forces are hindering their long-term effectiveness. The findings, based on data collected from prescribing physicians and their offices concerning sales representative access and call effectiveness, show that contract sales representatives' effectiveness erodes over time compared with manufacturer representatives promoting the same products.

"We found that contracted representatives gain access to prescribing physicians less often than manufacturer representatives and have one-third fewer sit-down visits," notes the report's author, Rayna Herman. "Data also showed that drop-in visits by contracted representatives become sit-downs less than half as often as those made by manufacturer representatives."

While Health Strategies Group offers possible explanations for the gaps in sales force effectiveness, including the notion that CSO representatives may not be using selling skill and resource combinations (such as relying on interactive product dialogue, using detail pieces in combination with reprints and including four specific topics in their discussions with physicians) to their best advantage, some CSO and drug company representatives say that the findings contradict their companies' data, which show that contract sales forces are every bit as effective as their manufacturer-employed counterparts.

"We were very surprised by the findings of this report," says Ed Smith, national director of contract sales for Wilmington, DE-based AstraZeneca LP. "We have had great success with our contract sales representatives over the years. If we weren't getting good results, we certainly wouldn't have these long-lasting relationships."

Great expectations

Although CSOs may take issue with the findings of the study, most admit they are up against some unique challenges.

Sources agree that contract sales representatives must be more flexible and have the ability to meld into the unique personalities and sales approaches of numerous pharmaceutical companies. Add the typical pressures of meeting sales objectives, fulfilling physician expectations and developing successful relationships, and it becomes clear that contracted representatives face some added complexities, notes Pete Dugan of PDI Inc., Upper Saddle River, NJ.

"When you work with many different companies, you have to be almost chameleon-like if you are going to be effective," he says. "No two companies are exactly alike, so the approach and personalities of one may be very different from another. Essentially, CSOs have to meet the expectations of their employers, the client whose products they are promoting, as well as the prescribing physician. I also believe contract sales representatives are often held to a higher level of expectations than manufacturers' own people."

Contract sales organizations may also find themselves at a disadvantage if they are limited to new or very small markets, or physicians who pharmaceutical companies may deem less important. One contract sales manager says some manufacturers give their own representatives the best products and clients, and then pass the more challenging promotions on to contract sales forces.

"It's not uncommon to have contract sales reps going in with lesser-known products and trying to promote them to physicians whom they have never met," he notes. "It's also not uncommon for them to work on such a short-term basis that they are frequently starting from scratch with new products and new physicians. How are they supposed to develop effective relationships and reach their potential if they are never given a chance to establish themselves?"

As if that weren't difficult enough, some contract sales representatives still may not be earning enough credit for a job well done. "We are a real presence in the industry and are woven through the fabric of the pharmaceutical sales force [community]," stresses Dugan. "Unfortunately, there doesn't seem to be as much appreciation for them, which is a shame."

Herman adds that some CSOs may unknowingly be placing their sales forces at a disadvantage by pushing for a high number of sales visits rather than more meaningful interactions with physicians, which ultimately drive market share.

Overcoming obstacles

Whatever challenges may come along with the CSO territory, sources agree there isn't one that can't be overcome. In fact, compensating for those complexities could actually strengthen relationships among CSOs, manufacturers and physicians.

Consistent training for both contracted and manufacturer sales representatives goes a long way in leveling the playing field and ensuring that every employee is adequately prepared to promote a product effectively in the field. According to Mahmoud Ladha, vice president of marketing and operations for Innovex Inc., Parsippany, NJ, the key to successful partnerships is building sales forces specifically for each client and then training them in the same manner as the drug company's own representatives.

"We aim to mirror the representative to the client company, and to do that effectively, we believe they need to be trained in the same way," he says.

And Innovex isn't alone. PDI's contracted representatives train alongside AstraZeneca's sales force, attend all business emphasis meetings, use the same platforms and receive the same performance reports as the internal sales team.

"Our contract sales representatives are so well integrated with our own team – in their training, business meetings, performance reviews and even aligned incentive programs – that the operations among the collective group of representatives are virtually seamless," explains Smith. "In our experience, we have not had the problems with effectiveness waning over time, and I attribute that to AstraZeneca's dedicated effort to make differences between representatives invisible to the end customer. Our contract sales representatives feel very much a part of our team because we treat them in all ways as a valued partner."

This approach appears to be working. PDI retains 89% of its sales representatives and revealed that 93% of products sold last year met or exceeded client sales goals. Ventiv Health, Somerset, NJ, also experiences high retention — a coup that Paul Mignon, senior vice president of business development, attributes to solid training and skill development, and in part, to contract representatives' desire for variety.

"Contract sales is no longer viewed as a stepping stone. Many representatives want to work with different products and just don't want to be stuck in one area. We have people here who have been doing this for years and have no interest in getting into product management. It is their career choice," Mignon notes.

Of course, the crossover still exists — a fact that goes with the territory and further demonstrates manufacturers' satisfaction with contract sales representatives, according to Ladha.

"Many of our sales reps end up being hired by the client, which I believe is a great testament to the value and service they provide. After all, if they weren't selling products and having successful sales calls, they wouldn't want them long-term and on their own [internal] team." PR

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