Key Trends, Metrics, and Best Practices Unveiled to Optimize Incentive Strategies and Drive Performance in Life Sciences
BERKELEY HEIGHTS, N.J., Dec. 16, 2024 /PRNewswire/ — Axtria Inc., a global cloud software and data analytics company for the life sciences industry, has unveiled two new comprehensive benchmarking studies: Global (Ex-US) Incentive Compensation (IC) Benchmarking Study and US Incentive Compensation Benchmarking Study. These studies provide critical insights into the evolving landscape of sales compensation trends, empowering life sciences organizations to design and implement effective incentive programs that drive growth and profitability.
“These studies underscore the importance of leveraging robust benchmarking insights to adapt to rapidly changing market dynamics,” said Asheesh Sharma, Head of Commercial Excellence at Axtria. “Whether optimizing pay structures, integrating MBOs, or redesigning IC plans for specialty areas, the insights from these studies are pivotal for organizations to achieve strategic sales goals while driving motivation and performance among their sales teams. At Axtria, we’ve helped transform over 100,000 sales reps into super reps, equipping them with smart tools and fresh insights to boost sales effectiveness while managing $1.5B in annual incentive payouts. Together, these efforts empower organizations to stay ahead of the curve and maximize sales performance across the board.”
Key Items in the 2024 US Incentive Compensation Benchmarking Study:
Prevalence of IC Plan Types: Individual goal-based plans remain the most prevalent type for Healthcare Providers (HCP) and account teams, while all market access teams consistently incorporate Management by Objectives (MBOs) into their IC plan structure.
Prevalence of Data Metrics: Demand units-based metrics remain the most prevalent data metric for HCP teams. While net sales/revenue metric utilization has declined significantly for HCP sales teams, dropping from 25% in 2023 to 12% in 2024, it has seen a notable increase for account teams, rising from 18% to 36%. Additionally, patient starts in rare diseases have surged, climbing from 29% in 2023 to over 40% this year, reflecting a growing focus on specialty areas.
Prevalence of MBOs: About 40% of account teams and 100% of market access teams have management by objectives-based components in their IC plans. Only 10% of HCP teams’ IC plans have MBOs.
Overall Pay Cap: Oncology and rare disease IC plans tend to provide top performers with higher earning potential. The average pay cap is 2.75x and 3.5x the target pay for oncology and rare disease, respectively.
Key Items in the 2024 Global (Ex-US) Incentive Compensation Benchmarking Study:
Pay Mix: Analysis by team, therapy area, and region.
Incentive Plan Design: Preferred IC plans, data metrics, measurement methods, pay structures, and performance periods.
IC Pay Outcomes: Benchmarks on engagement KPIs, top performer differentiation, and budget utilization at ~100% national target.
Management by Objectives (MBOs): Tailored for different roles and teams.
IC Reporting: Best practices across teams.
The study helps life sciences organizations evaluate their current plans to identify gaps and opportunities and design programs that effectively drive growth and profitability.
By identifying trends, gaps, and best practices, these studies empower organizations to design incentive plans that align with market demands, drive team performance, and foster sustainable growth.
About Axtria’s Products and Solutions
Axtria is proud to work with 16 of the top 20 life sciences companies, globally. From our roots as a trusted consultant to our status as one of the world’s leading providers of cloud-based pharmaceutical management software, Axtria powers digital transformations in life sciences. Our experts call upon years of domain experience in the industry to guide pharma giants from brand launches to retirement. Our products go even further. Axtria InsightsMAx™ helps everyone from the C-suite to junior associates uncover trends to make better decisions. Axtria SalesIQ™ helps optimize field forces and provider engagements. Axtria CustomerIQ™ leverages AI-enabled next-best-action omnichannel choices. Axtria MarketingIQ™ turns investment analyses into pinpoint strategies. And Axtria DataMAx™ and DataMAx™ for Emerging Pharma is the data management framework that pulls it all together with best-in-class security and integration.
About Axtria
Axtria helps life sciences companies harness the potential of data science and software to improve patient outcomes by connecting the right therapies to the right patients at the right time. The company is a leading global provider of award-winning cloud software and data analytics to the life sciences industry. We’re proud to deliver proven solutions that help pharmaceutical, medical device, and diagnostics companies complete their journey from data to insights to action, enabling them to earn superior returns on their investments. As a participant in the United Nations Global Compact, Axtria is committed to aligning strategies and operations with universal principles on human rights, labor, environment, and anti-corruption, and taking actions that advance societal goals. For more information, please visit www.axtria.com.
Logo – https://mma.prnewswire.com/media/2256316/Axtria_transparent_bg_Logo.jpg
View original content:https://www.prnewswire.com/in/news-releases/axtria-unveils-new-us-and-global-incentive-compensation-benchmarking-studies-insights-that-drive-life-sciences-success-302332791.html
