Almost all the executives believe in the principle that investment in sales and marketing drive the sales and profitability, however there are empirical evidences that many of them end up defying this simple logic. Studies show that managements size their companies sub-optimally at ~83% of optimal size. Why does it happen?
Our team of Data Scientists has developed a robust algorithm to deconstruct sales data and attribute it to:
Promotion sensitive sales element,
Physician loyalty element, and
Consumer/patient preference element
We then calculate promotion response curves and projects profit and loss account at different size scenarios. Key outputs:
Direct link of sizing into P&L account provides executive flexibility to optimize size based on the objective they want. Studies have shown that optimal sizing can lead to 1%-2% sales gain over 3 years.
Optimal allocation of salesforce effort among products, customer and geographies. Studies show that optimal resource allocation can lead to 2%-4% incremental sales over 3 years.