How pharmaceutical sales models impact revenue growth
Growing revenue and capturing share in the pharmaceutical market has always been challenging. Leaders are faced with new entrants, new products, increased patient and provider expectations, and pressure to maximize both sales volumes and the exclusivity period. COVID-19 only increased the pressure to maintain revenue growth and margins while offering new services to engage providers virtually and digitally.
Traditional commercial model issues did not go away or get easier; if anything, the situation became more complex and challenging across the entire front office (e.g., sales, marketing, market access, patient access). Commercial leaders today need to re-examine their sales models to ensure they are keeping up with expectations. Pharma sales models and incentive structures are changing to generate authentic clinician buy-in and respond to legal and societal scrutiny.
In this first article in a series of three articles, we consider the biggest challenges and roadblock to commercial models, the most common issues with traditional models, and the transformation efforts that smart sales and commercial leaders are taking to transform.
There are five key challenges that biopharma commercial leaders must adapt to if they want to drive profitable revenue growth:
1Source: Forrester, “The State of Customer Obsession in Healthcare” (January 2022)
2Source: Forrester, “Top trends in Pharma, and Trust Are needed to build resilience in 2022” Eric Bellomo, (Sept 3, 2021)
3Source: The Wall Street Journal, “These Drugs Are So Futuristic That Doctors Need New Training”, Amy Dockser Marcus, (April 5, 2023)
4Source: National Library of Medicine, “Prediction of clinical trial enrollment rates” (February 24, 2022)