{"id":8785,"date":"2011-06-21T05:16:21","date_gmt":"2011-06-21T11:16:21","guid":{"rendered":"https:\/\/staging.opexlearning.com\/resources\/?p=8785"},"modified":"2014-10-07T17:01:32","modified_gmt":"2014-10-07T22:01:32","slug":"sales-force-effectiveness-metrics-strategy","status":"publish","type":"post","link":"https:\/\/staging.opexlearning.com\/resources\/sales-force-effectiveness-metrics-strategy\/8785\/","title":{"rendered":"Sales Force Effectiveness: Segment Sales Reps Using Pareto"},"content":{"rendered":"<div class=\"a296a24fa2fc69ef5487857f02f111e8\" data-index=\"9\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- Single Post readerboard -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:728px;height:90px\"\r\n     data-ad-client=\"ca-pub-8207522353004717\"\r\n     data-ad-slot=\"1144967431\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>The Pareto Principle ( the 80\/20 principle) can be seen in many, many situations. I was reminded of this fact recently when a friend and I discussed a sales force effectiveness question he had.<\/p>\n<div align=\"center\">\r\n<table border=\"1\" cellpadding=\"5\">\r\n<tbody>\r\n<tr>\r\n<td style=\"text-align: center;\" colspan=\"2\"><strong>Other Articles on the Pareto Principle<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<ul>\r\n\t<li><a title=\"clean energy pareto chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/clean-energy-jobs-pareto\/8780\/\">Pareto Principle in Clean Energy<\/a><\/li>\r\n\t<li><a title=\"sales force effectiveness pareto chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/sales-force-effectiveness-metrics-strategy\/8785\/\">80\/20 in Sales Force Effectiveness<\/a><\/li>\r\n\t<li><a title=\"personal finance pareto chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/personal-finance-the-pareto-principle\/9323\/\">Pareto Chart of Personal Finance<\/a><\/li>\r\n\t<li><a title=\"aquarium filters pareto chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/aquarium-filter-type-pareto\/9443\/\">Pareto Underwater: 80\/20 in Aquarium Filters<\/a><\/li>\r\n\t<li><a title=\"sugar content 80\/20 chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/sugar-content-in-foods-visual-pareto\/10200\/\">Sugar Content Pareto Chart<\/a><\/li>\r\n\t<li><a title=\"pareto on thanksgiving\" href=\"https:\/\/staging.opexlearning.com\/resources\/pareto-thanksgiving-pumpkin-pie\/7280\/\">Thanksgiving Turkey Pareto<\/a><\/li>\r\n\t<li><a title=\"diaper poopy pareto\" href=\"https:\/\/staging.opexlearning.com\/resources\/cost-of-poop-and-diaper-edition\/5742\/\">Daiper Poopy Pareto<\/a><\/li>\r\n\t<li><a title=\"texting by age pareto chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/pareto-text-usage-by-age\/5722\/\">Texting Pareto by Age<\/a><\/li>\r\n\t<li><a title=\"sarah palin pareto on language count\" href=\"https:\/\/staging.opexlearning.com\/resources\/sarah-palin-pareto\/579\/\">Sarah Palin Pareto<\/a><\/li>\r\n\t<li><a title=\"flateto principle, not an 80\/20\" href=\"https:\/\/staging.opexlearning.com\/resources\/the-flateto-principle\/391\/\">Flat as a Pancake Pareto Flateto<\/a><\/li>\r\n<\/ul>\r\n<\/td>\r\n<td>\r\n<ul>\r\n\t<li><a title=\"pareto principle in shopping cart abandonment\" href=\"https:\/\/staging.opexlearning.com\/resources\/reduce-shopping-cart-abandonment\/8555\/\">80\/20 in Shopping Cart Abandonment<\/a><\/li>\r\n\t<li><a title=\"chinese middle class pareto chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/pareto-in-the-wild-the-chinese-middle-class\/8478\/\">Chinese Middle Class Fits a Pareto Distribution<\/a><\/li>\r\n\t<li><a title=\"law and order special victims unit pareto\" href=\"https:\/\/staging.opexlearning.com\/resources\/pareto-law-and-order-special-victims-unit\/8361\/\">Pareto in Special Victims Unit<\/a><\/li>\r\n\t<li><a title=\"black friday 80\/20 chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/foursquare-badges-pareto-black-friday\/7770\/\">Pareto on Black Friday<\/a><\/li>\r\n\t<li><a title=\"water consumption by country 80\/20\" href=\"https:\/\/staging.opexlearning.com\/resources\/pareto-chart-water-usage-by-country\/7762\/\">Water Consumption by Country Pareto Chart<\/a><\/li>\r\n\t<li><a title=\"cyber monday and black friday pareto\" href=\"https:\/\/staging.opexlearning.com\/resources\/cyber-monday-black-friday\/7376\/\">Cyber Monday versus Black Friday Pareto<\/a><\/li>\r\n\t<li><a title=\"hamburger pareto\" href=\"https:\/\/staging.opexlearning.com\/resources\/money-spent-on-hamburgers\/5736\/\">Hamburgers 80\/20<\/a><\/li>\r\n\t<li><a title=\"80\/20 forbes billionaire list\" href=\"https:\/\/staging.opexlearning.com\/resources\/pareto-principle-and-the-forbes-billionaire-list\/4922\/\">Forbes Billionaire List 80\/20<\/a><\/li>\r\n\t<li><a title=\"snoop dogg 80\/20 foshizzle homie\" href=\"https:\/\/staging.opexlearning.com\/resources\/snoop-dogg-the-business-geek-foshiznit\/488\/\">Snoop Dogg Pareto Foshizzle<\/a><\/li>\r\n\t<li><a title=\"nps pareto of defects\" href=\"https:\/\/staging.opexlearning.com\/resources\/nps-customer-feedback-loop-lean-thinking\/10563\/\">Net Promoter Score Pareto<\/a><\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n<br>\n<p>My friend is in the pharmaceutical industry (pharma) and most pharmaceutical firms have a very large sales force, with geographical territories, targeting physicians and doctors that specialize in the diseases for which the pharmaceutical representative&#8217;s drug supposedly treats.<\/p>\n<p>For example, if one is selling a diabetes drug, then the pharmaceutical rep might target primary care physicians, physicians that specialize in cardiovascular health, or ophthalmologist. Why? A co-morbidity of diabetes are heart problems and diabetic retinopathy, or blindness from diabetes.<\/p>\n<p>You get the point.<\/p>\n<p>In our discussion, he explained that a few of his sales force generates the bulk of the drug sales. During our discussion, I drew a picture of what he described with words:<\/p>\n<p style=\"text-align: left;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-8786 size-full\" title=\"sales force effectiveness framework\" src=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2011\/06\/salesforce-effectiveness-framework.jpg\" alt=\"sales force effectiveness metrics\" width=\"960\" height=\"720\" srcset=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2011\/06\/salesforce-effectiveness-framework.jpg 960w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2011\/06\/salesforce-effectiveness-framework-600x450.jpg 600w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2011\/06\/salesforce-effectiveness-framework-300x225.jpg 300w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/>In other words, the majority of your sales force will generate average to below average sales, while roughly 20% of your sales force will generate 80% of the drug sales.<\/p>\n<p>The anecdotal data he shared with me really validates the Pareto Principle. In fact, for my friend, about 13 sales reps are responsible for roughly 67% of the drug sales in his territory. Indeed, sales force performance is defined by those sales reps.<\/p>\n<p>But this is just the beginning. One can actually use this model and framework to increase the performance of their sales force, or increasing sales force effectiveness.<\/p>\n<h2>Sales Force Effectiveness Model<\/h2>\n<p>Once you&#8217;ve identified the top 20% of your sales force that is generating the majority of your sales, consider the following questions:<\/p>\n<ol>\n<li>What are they doing differently than the rest? Look out for small, subtle behaviors or practices or habits. Something small can make a big difference.<\/li>\n<li>Related to #1, consider <a title=\"pharma, standard work, positive variance\" href=\"https:\/\/staging.opexlearning.com\/resources\/positive-variance-and-standard-work\/2587\/\">positive variance<\/a>. Are your sales reps that generate the majority of the sales doing something unique?<\/li>\n<\/ol>\n<p>These questions, while seemingly simple, are the beginning to improving the effectiveness of your sales force.<\/p>\n<!--CusAds0-->\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>The Pareto Principle ( the 80\/20 principle) can be seen in many, many situations. I was reminded of this fact recently when a friend and I discussed a sales force effectiveness question he had. My friend is in the pharmaceutical industry (pharma) and most pharmaceutical firms have a very large sales force, with geographical territories, [&hellip;]<\/p>\n","protected":false},"author":12327,"featured_media":8787,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[64],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sales Force Effectiveness: Segment Sales Reps Using Pareto<\/title>\n<meta name=\"description\" content=\"Sales Force 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