Incentive Compensation



Perspectives On The Design And Effectiveness Of Pharma Sales Contests

Axtria periodically receives questions from pharma clients on whether they should proceed with conducting a sales contest (under the general category of special incentive programs or SIPs), and if so, how should a successful sales contest be designed in order to achieve desired outcomes? Companies annually spend an enormous amount of money on sales contests according to recent estimates. Yet, despite such significant investments, there is a general lack of understanding and robust empirical evidence on the effects of sales contests on company sales, individual customers and salespersons, and how variations in program design affects the achievement in desired outcomes.

This white paper covers an array of topics pertaining to the development, execution, and outcomes from sales contests to provide sales operations leaders practical guidance on key questions they face from business leaders regarding these SIPs. The following areas of investigation are reviewed on sales contests, first on their application across industries, and then specifically regarding their execution and effects in the pharma industry:

  1. Do variations in sales contest design affect outcomes as expected from such programs?
  2. What is the effectiveness of sales contests as well as generating side effects?
  3. What role does salesperson perceptions about sales contests, motivation, behaviors, and job satisfaction have on the effectiveness of such programs?
  4. What is the effect of sales contests on generating customer value?


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Learn More linkClick Here To Learn More About Axtria Incentive Compensation Benchmarking Study – 2020 Results

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