Collecting Optimal Feedback from the Field on Sales Compensation Plans
Most life sciences companies seek feedback from the field on the sales force members’ attitudes and opinions of the sales compensation plan. There are a number of ways pharma, biotech and medical device companies can collect sales compensation plan feedback and some of these ways are more effective than others. Let’s explore some of the methods life sciences companies use to collect feedback from the field and which one should be utilized.
Most Popular Methods of Collecting Feedback
There are four primary methods life sciences companies utilize to collect pharma sales force feedback on the sales compensation plan:
| Description | Main Advantages | Main Disadvantages |
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| Survey the entire sales force | Everyone has a say and a feeling of contribution in the process | Poor source of true opinions as responses tend to be self-serving |
| Survey select members of the sales force | More accurate and actionable results than from entire sales force | Who is selected for additional feedback is critical to accuracy; unless the follow-up is with phone calls, it is difficult to get actionable results |
| Bring together a discussion group of select sales force members, together with experts | In-depth discussion of topics; can explore alternatives; members tend not to be self-serving | More costly than survey methods because of need to physically bring participants together |
| Formulate an advisory committee from the sales force, together with experts | Tends to be the most effective method to get true insight on how to improve sales compensation plans | More costly than survey methods because of need to physically bring participants together |
We have found that the fourth method in the table above—the representative advisory committee—is the most effective in getting actionable feedback from the field that is unbiased and not self-serving.
Representative Advisory Committee
The main difference between a representative advisory committee and a discussion group is the continuity of the representative advisory committee. Because an advisory committee member has a year-long membership, the advisory committee can be asked to provide feedback on issues regarding the sales compensation plan as changes occur over the year. The do’s and don’ts of a representative advisory committee are outlined below:
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Do’s of Advisory Committee Meetings |
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DO select sales representatives from across regions, across seniority levels and across performance levels. This helps to gain a more accurate attitude of the entire sales force.
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DO have your sales data and analysis prepared so that questions from the representative advisory committee can be answered on the spot.
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DO, if possible, have an expert on sales compensation available to lead the discussion and point out advantages or disadvantages with different suggestions.
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DO probe the discussion group for their ideas on improvement.
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DO rotate the membership. About one-third the membership should be new each year.
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DO utilize the committee to survey other sales representatives and to participate in certain activities that will assist in creating better sales compensation plans.
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Don’ts of Advisory Committee Meetings |
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DON’T be misled in the meeting by anecdotal stories that may get too much weight for how well the anecdotal story is representative of the truth. Be prepared with data to either support or refute such anecdotal stories.
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DON’T permit any one person to dominate the discussion.
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DON’T permit members with seniority to stifle the input of newer members. Older members sometimes unwittingly say things such as “we discussed that idea last year, let’s move on.” While these members are trying to add efficiency to the meeting, they can drive new members to limit their participation.
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Conclusion
No matter which method is used, it is very important to let the sales force know that there are many considerations in designing a sales compensation plan beyond getting bonuses to the sales force. For this reason, their opinions will be listened to, but not necessarily followed. Finally, it is also important to provide feedback to the field about the results of the feedback.
