pharmaceutical sales training excellence: tools, processes and resources that drive effectiveness
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BEST PRACTICES,®
LLC
Best Practices, LLC Strategic Benchmarking Research
Pharmaceutical Sales Training Excellence: Tools, Processes & Resources
That Drive Effectiveness
Copyright © Best Practices, LLC
BEST PRACTICES,®
LLC
Table of Contents Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 3
Research Overview
Participating Companies
Hallmarks of Excellence
Key Metrics at a Glance
Key Trends at a Glance
Benchmark Findings
Sales Training Program Operations & Models . . . . . . Page 12
Sales Training Content Delivery & Development . . . . Page 26
Technology Issues & Applications . . . . . . . . . . . . . . . Page 41
Sales Training Budget & Resources . . . . . . . . . . . . . . Page 52
Organizational Structure & Scope . . . . . . . . . . . . . . . . Page 69
Trends in Pharmaceutical Sales Training . . . . . . . . . . . Page 76
Best Practices of the Benchmark Class . . . . . . . . . . . Page 81
Appendix: Participant Demographics . . . . . . . . . . . . . . Page 90
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Topics IncludedStudy Overview Sales Training budget trends &
management
Most utilized types of Sales Training included in formal curriculum
Collaboration level of sales training with various stakeholder groups
% Training content developed and delivered by internal staff vs. vendors
Technologies used to deliver training
% training outsourced to vendors
Key Industry Metrics:
Avg. # days of sales training per rep
Sales Training budget as a percentage of revenue.
# employees receiving sales training per trainer
Research Objective: This benchmarking study was designed to provide pharmaceutical leaders with metrics and insights they can use to evaluate and compare the performance of their Sales Training organizations.
The study identifies successful training venues, technologies, organizational structures, delivery approaches, performance measurement processes, and resource levels that drive effectiveness in high-performing Sales Training organizations.
Methodology: Best Practices, LLC engaged 28 biopharmaceutical training leaders through a benchmarking survey instrument. Research analysts also conducted six deep-dive executive interviews with selected benchmark participants.
Research Project Objectives, Methodology & Results
Best Practices, LLC conducted this benchmarking to identify performance benchmarks for the size, cost, scope, content, delivery channels, lessons learned, and success drivers of leading Sales Training organizations across the pharmaceutical industry.
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25 Companies Participated in This Benchmarking Study
Participating Companies: Benchmark Class
Twenty-eight Sales Training leaders from 25 pharmaceutical companies participated in this study. Sixty-three percent of the participants are directors or senior directors. Logos represent the company affiliation of the participants
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Benchmark Participants: Train sales forces representing an average
of $5 billion annual revenue
Train on four continents, with 74% training sales forces in the U.S.
Provide training covering more than 20 different therapeutic areas
100% have a focus on training specialty sales forces, especially in oncology, hematology, immunology & neurology
48% also train primary care sales forces; 67% train sales managers
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Benchmark Findings: Structure & Resources / Budget
The following key findings and insights emerged from this study.
Training Heads Report up to Vice Presidents: More than two-thirds of Sales Training departments are led by directors and senior directors. Nearly three-quarters of the department leaders report up to vice presidents and senior vice presidents.
Companies Put Sales Training Close to Marketing: About two-thirds of participants locate their Sales Training groups in close proximity to Marketing Departments. Only 32% are not within the same building.
Sales Training Budgets for Participants Average Nearly $6M: Participants’ Sales Training budgets averaged $5.87million (US) during the last fiscal year, with a median of $3.35 million. On average, companies in the study allocated 26% for ad hoc training, including POA meetings.
36% of Budget Goes to New Hires: Benchmark participants spent an average of 36% of their budgets for new hire training in the most recently completed fiscal year. On average, new hires receive about 32 days of training during their first year on the job, compared with about 10 days of training per year for existing, or experienced, reps.
More Companies Expecting Budget Decreases than Increases: A third of participants expect their Sales Training budgets to remain flat over the next two years, while another 40% anticipate decreases. Increased budgets are expected by 28% of the benchmark class. This trend reflects current market realities: as blockbusters lose patent coverage, many companies are reducing sales force size. Companies with growing budgets are scheduling new product launches.
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Key Trends at a Glance
TECHNOLOGY: Reducing travel costs, increasing field time, & learner preferences are driving companies to move
some live training into virtual classrooms. However, face-to-face learning continues to be important.
Technology creates opportunities to further individualize or segment training so new hires &transfers are treated differently, as are primary care & specialty reps.
Mobile applications & gaming are gaining usage, but effectiveness has not yet been determined.
IT support relationships vary widely across companies.
PEOPLE DEVELOPMENT: As sales forces shrink, emphasis shifts from new hire learning to advanced training & development.
24-hour access to on-demand training modules through LMS or other systems is expected.
Traditional foundation training content remains in place, but curricula are expanding to include business acumen, health outcomes & more.
Companies are increasingly focused on reinforcement & are equipping DMs with coaching skills & support tools that make training sustainable.
COST: There’s a strong correlation between training cost & program size.
Those training more reps realize significant economies of scale.
Participants stretch budgets with technology & innovation.
The following are key trends observed in this study.
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“Measurement is an area for improvement for us. We continue to look at ways to measure effectiveness. We get good feedback that they were great programs, but I don’t know if that necessarily is translated to effectiveness yet.” -- Associate Director
Program includes career path development
Program effectiveness metrics are used to drive change
Training effectiveness is measured continuously
Curriculum includes post-training reinforcement
Program employs (or contracts with) professional instructional designers
Program leaders collaborate closely with Marketing
Sales Training leverages internal SMEs (subject matter experts) in curriculum development and/ or instruction
Program has active sponsorship/support from senior management
Program is formalized with a dedicated staff and budget
Program leaders collaborate closely with Sales leadership
44%
59%
67%
67%
74%
81%
81%
96%
96%
96%
Q. Which of the following statements are true of the Sales Training program you represent?
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Program Attributes
(n=27) % Responses
Key Program Strengths Are Collaboration, Dedicated Resources & Management Support Nearly all participating Sales Training Departments have dedicated resources, good relationships with sales leadership and active support from senior management. Career path development and use of effectiveness metrics are opportunities for many departments.
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Model:
Sales Training Model Integrates Competencies & Curriculum
“As important as it is to create competency models based on roles, it’s equally important to ensure that the models and competencies are aligned with the corporate culture and values. This is not an overnight process—it takes two to three years.”
--Interviewed Associate Director, Sales Training & Development
Align Program with Corporate Objectives & Values
Establish Competencies
Based on Organization’s
Needs
Create a Competency
Model for Each Role
Identify Individual
Skills Gaps
Create Individual
Development Plans
Document Training & Coaching
Consistently to Ensure
Sustainability
Train Managers to
Identify Needs
Build Curriculum to Develop Each Competency
Map Curriculum to Competencies
Coach to Curriculum
Train Managers & Individuals to UseCompetency Map & Library
Create Library of
Competency-Based Training
Modules
One interviewed partner described a successful Sales Training model based on identifying Sales competencies and building a curriculum to develop them.
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Trainee Satisfaction Is Top Metric for Judging Program Quality
Most participants use a variety of metrics to evaluate the quality of their Sales Training functions. Those with the highest effectiveness rating are trainee satisfaction, role-play certification, and formal feedback from management.
Q. Rate each of the following metrics for evaluating the quality of the Sales Training function? (choose one for each)
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Sales Training Program Quality
Return on Investment (ROI)
Employee retention metrics
% sales goals met by individual trainee
% revenue targets met by sales force
Comparison of test results before & after training
Comparison of individual's performance before & after training
Formal feedback from sales management
Role-play certification
Trainee satisfaction levels
52%
40%
28%
28%
24%
21%
12%
4%
8%
16%
4%
4%
8%
4%
4%
16%
8%
20%
16%
4%
8%
16%
8%
12%
16%
24%
32%
36%
44%
38%
36%
44%
40%
8%
12%
16%
16%
20%
29%
32%
40%
48%
NA/ Not Used Not At All Effective Somewhat Ineffective Somewhat Effective Highly Effective
4%
n =25
25
25
24
25
25
25
25
25
% Responses
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Companies Adding Training Content on Customers & Patients
Evolving role of the patient
Business of the physician
Individualizing customer interaction
How to add value for each customer
Impacts of Health Care Reform
Understanding formularies & reimbursement
Use of selling models
Advanced training/ Management training
The need for content in disease state, compliance, product, selling and other traditional training remains strong, but some new areas are growing in importance. Understanding customers and patients are key growth areas.
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Q. Approximately what percentage of your sales training is delivered using each of the following approaches? (Estimate a percentage for each approach. Total should equal 100%.)
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Training Delivery Approaches
Instructor-led, in-person classroom;
53%
Instructor-led virtual
classroom ; 12%
Asynchronous vir-tual classroom; 3%
Self-paced e- learn-ing
modules, 15%
Self-paced paper-based learning modules; 6%
Field visits/prac-tice selling; 11%
All other approaches; 1%
(n=24)
”For one franchise, we developed a virtual core class with a mixture of iPad content, WebEx, video, and interactivity on the iPad.
“It involves pulling out components where we know we don’t really need a live person.”
- Interviewed Associate Director
In-Person Classroom Instruction Is Top Delivery Approach
Traditional instructor-led classroom learning accounts for 53% of the sales training provided by the benchmark participants. Interest is growing in instructor-led virtual classrooms, however, with 12% of training offered in that venue. For self-paced training, e-modules are used more than twice as often as paper-based modules.
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Q. Approximately what percentage of your core training is delivered via the iPad and/or other similar mobile devices? Q. What apps have you developed?
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Mobile Training
(n=25)
• Custom app where all training content is loaded 24/7
• Custom play books for each product, eLearning Systems housed on iBooks and product specific apps
• Deploying a new CRM APP.
• Google Drive proprietary product called DOCs (Demonstration of Comprehension)
• Handbook app
• Training platform launches brand specific new hire training
• Utilized for "just in time" training. All learning is no more then 5 -7 mins long. Allows rep to look up info when needed before going into a HCP’s office. All content is housed on the iPad; web connection not needed
Percentage of Core Training Delivered to Trainees Through
Mobile Devices
Max 75%75th Percentile 25%Mean 18%Median 10%25th Percentile 5%Min 0%
Training Apps
18% of Core Training Is Delivered via iPad-Type Devices
Companies are increasingly moving Sales Training content to mobile devices. Only about 18% of core training has migrated on average to date, however. Participants are actively creating apps for training purposes.
“The iPad is great for getting things out where speed is of the essence, but we can’t just put everything out there in real time. In our world of compliance and the regulatory environment, the company has to manage what a rep can download, copy, and replicate.” – Interviewed Senior Director
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Technology Comparison: Best Uses Described
Interviewed training leaders described best uses, pros and cons for various types of training technology.
Tech Type Best Use Pros Cons
E-learning ModulesHome study, Preppingreps before face-to-face training events
Easy to track use through LCM, Available anytime
Not available in field, No peer interaction, No manager feedback
WebinarsDisseminating information to a group
Accessible in field; Can be archived for flexible access
Little opportunity for trainee interaction
Conference CallsGroup discussion, Manager feedback, Info dissemination
Can use for individual coaching or group practice sessions
Synchronous communication only
iPad Modules On the job learningAvailable in field; Interactivity potential;User demand
Tech requirements; Content development cost; Unknown effectiveness
Video UploadsCapturing rep practice sessions
Enable student coaching outside classroom
LMS limitations
Virtual Classroom Providing classroom-type instruction over Internet
Reduce travel; Some student/teacher interactivity; Archivable
Tech requirements; Cost, Unknown effectiveness
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* Other: Hire highly qualified training managers, develop content in-house, RFP all projects, scale back on meals and gifts, reduce travel cost, repurpose existing content
Q. What successful or innovative practices have you used to stretch the Sales Training budget in times of flat or reduced corporate funding? (please describe)
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Budget Management
Use of Technology/ e-learning; 36%
Increase internal exper-tise/
content, 18%
Decentralized trainings; 18%
Evaluation of strategies in place;
14%
Switch to con-tractors to supply
training; 7%
Other; 7%*
(n=28)
Participants Stretch Budgets with Technology & Innovation
Benchmark partners have successfully used technology, e-learning, increased internal expertise ,and decentralized trainings to hold down costs in times of flat or reduced budgets.
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Q. Please provide the following numbers for number of training days required per rep for a new product launch.
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Number of Training Days Required per Rep for a New Product Launch
(n=18)
New Hires (Reps within first year on job)
Existing Reps (Excludes new hires)
75th Percentile 23.75 20
Mean 16.5 14.4
Median 10 9
25th Percentile 6 5
(n=17)
Reps Get About Three Weeks of Training for a New Product
New product training requires an average of 16.5 days of training for new hires and 14.4 for experienced reps. One quarter of participating companies provides four weeks or more of new product training. The survey maximum was 45 days, both for new and experienced reps.
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Training Focuses on Needs of Learners & Internal Partners
“It’s important to remember those people are our customers and the stuff that we are putting forth is designed to help them achieve their strategies. So if we understand that and give people the skillsets and the development they need to better achieve a strategy, then that’s how we’re bringing value. So we need to be aligned with our business partners to that to make that happen.”
“For our big products, we have somebody within our training group dedicated to working with each of those plans to make sure that everything we train new folks on is done from a customer lens. We’re involved from the very beginning.”
Interviewed training directors shared best practices on partnering with internal stakeholders and collecting feedback from trainees to ensure training is focused on meeting internal customers’ needs.
“We’re big fans of doing everything we can to improve learner satisfaction where we basically ask them at the end of the training, “If you didn’t have this training, could you be as successful in your job?”” “So learner satisfaction is a big driver for just about everything we do, and we get tons of feedback from our learners. that we scan through after every class we run. Then we use it to try and make improvements.”
“We’re trying to get to this culture of continuous improvement where everything we do we take time to analyze the feedback from our learners, figure out, or evaluate where it falls and what we can do to improve upon it for the next folks that come through.”
Best Practice:
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Best Practices, LLC6350 Quadrangle Drive, Suite 200
Chapel Hill, NC 27517www.best-in-class.com
Sue Silverstein Martha HaswellSenior Director, Advisory Services Project Manager919.767.9227 919.767.9249ssilverstein@best-in-class.com mhaswell@best-in-class.com
About Best Practices, LLC
Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics, and winning strategies of world-class companies.
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Link for Report: Pharmaceutical Sales Training Excellence Benchmarking Report
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