FE boots medtech sales performance 2-8%
7th April 2016 | Journal Of Sales Transformation
A recent study by global sales and marketing specialists ZS Associates has found that strategically investing in sales force effectiveness (SFE) can boost sales performance for medtech companies by 2-8%.
The firm ran a year-long study to measure the effect of SFE initiatives – such as sales territory redesigns, account planning processes, training or coaching initiatives and new compensation structures – on company-wide growth. Titled the Explorer Study, the research found an average revenue increase of 5% and an average increase in profitability of 4%.
“The wide mix of products in the industry and the differences in SFE engagements often make it difficult for medtech leaders to define accurate competitor benchmarks and a target return on investment,” said Tobi Laczkowski, ZS principal and a leader in the firm’s medtech practice.
“Our study helps them by revealing for the first time the true impact of these initiatives and proving that, for medtech companies, they can often generate gains significantly greater than the initial investment.”
For instance, if a $150 million medtech company spends $600,000 on an SFE improvement programme and realizes a 4% increase in sales, it can see a return of 500%.