Non-members: Click here to review a complimentary excerpt from "Assessing the Use of CSOs vs. Internal Hires"
As pharma organizations continue to look for ways to cut costs while maintaining market position, the use of Contract Sales Organizations (CSOs) is an option that has been used by some companies. But what are the advantages and disadvantages of using CSOs? What is the financial impact of using a CSO versus an internal sales force? These are key issues for a company to consider as it weighs the impact of using a CSO.
Best Practices, LLC undertook this benchmarking study to investigate the pharma industry's experiences with CSOs, the advantages and disadvantages of using CSOs, CSO competencies vs. internal hire competencies, and CSO vs. internal hire investment and team structure. Sales leaders can use this research to better evaluate whether a CSO would be a good fit for their organization.
- Participant Experience Partnering with CSO’s
- Advantages and Disadvantages of Using CSOs
- CSO vs. Internal Hire Investment and Team Structure
- Past Experience with CSOs
- Favorability Ratings for Highest Used Industry CSOs
- Effective CSO Field Deployment Models
- Advantage of Using CSOs
- Additional Valuable Uses of CSOs
- Best Time to Use a CSO
- Comparing a Direct Hire vs. Contract Reps
- CSO Contract Duration Advantages
- Annual CSO Rep Turnover Rate
- Risk-Sharing and Performance-Based Incentives
- CSO Rep Management
- Average Internal Rep Salary and Benefit Cost
- Average CSO Rep Salary
- Bonus Amounts Based on Target Base Salary
SAMPLE KEY FINDINGS
- Upside of CSOs: Benefits of using CSOs are purely volume and cost based, not for product knowledge or building a company’s reputation in a given therapeutic area.
This study engaged 9 leaders from 8 biopharmaceutical companies (2 launch teams from AstraZeneca) with experience working with Contract Sales Organizations. Almost 70% of participants are at the level of director or above.