Sales Force Optimization

This study adopts a structured approach to detect and mitigate fraudulent activity during pharmaceutical sales field visits. The methodology is broken down into several parts, each supported by mathematical models and equations:

1. Business Understanding: The primary concern is ensuring the quality and integrity of sales representatives' field visits. With 127 representatives visiting retailers, validating reports is crucial for accurate performance measurement. The presence of potential imposter visits (under 5 minutes) undermines data quality, affecting success rates and overall sales outcomes. The goal is to improve performance accuracy, boost productivity, and implement targeted interventions.

2. Data Understanding: The analysis utilizes Call Detail Report (CDR) data from 127 sales professionals over a three-month period. Key metrics calculated include visit duration (Log-out - Log-in time) and success rate (Orders Placed / Total Visits).

3. Data Preparation: Raw CDR data was extracted and structured using Excel. Rigorous data cleaning involved identifying and rectifying missing, repeated, or inconsistent figures to ensure data integrity.

4. Modeling and Evaluation:

• Fraud Detection: A threshold-based approach classifies visits as fraudulent if their duration (D) is less than 5 minutes (D = T_logout - T_login). This categorizes visits into 'actual' and 'fraudulent'.
• Success Rate Analysis: Success rates are calculated twice: once including all visits (S_all = O / V_total) and once excluding fraudulent visits (S_true = O / V_true). The improvement (ΔS = S_true - S_all) quantifies the impact of fraud.
• Employee Performance Ranking: Employees are ranked based on their proportion of fraudulent visits (Pi = Fi / Vi), identifying top and bottom performers.
• Regional Analysis: Regional success rates (Sr = Or / Vr) and fraudulent activity proportions (Fr = Fr / Vr) are calculated. Regions with high Fr and low Sr are flagged for intervention. This allows for identifying geographical trends and targeting focused operations.

The analysis of Call Detail Records (CDRs) from 127 sales officers over three months (January-March), totaling 96,537 field visit records, revealed significant insights into fraudulent activities and their impact on sales performance.

Correlation Analysis:

• Total Visits vs. Success Rate: An initial scatter plot showed a strong positive correlation between total visits and orders placed, indicating a high conversion rate generally. However, significant variations and outliers were observed, with some locations having high visits but few orders, suggesting issues with user experience, system defects, or fraudulent visits. These outliers highlight areas needing improvement or exceptionally successful strategies.
• True Visits vs. Success Rate: When all visits (actual and fraudulent) were considered, success rates ranged from 30-40%. After removing fraudulent visits (those under five minutes), the success rate significantly increased to 50-60%. This 10% gain underscores the negative impact of fake visits and the importance of genuine client interaction. Eliminating fraudulent visits enhances resource utilization and provides a more accurate performance picture.

Regional Analysis of Success Rates:

• Significant regional disparities were identified. West Bengal showed the highest success rate at 61.53%, attributed to well-trained sales agents, effective client interaction, and favorable local market conditions. This region serves as a benchmark.
• Telangana had the lowest success rate at 28.41%, possibly due to intense market competition, inadequate training, or unfavorable market conditions. This highlights the need for targeted interventions (improved training, updated engagement plans, advertising campaigns) in Telangana.
• Other regions like Andhra Pradesh (50.84%), Karnataka (49.11%), Maharashtra (51.60%), Tamil Nadu (50.13%), and Uttar Pradesh (51.59%) showed consistent mid-range success, suggesting opportunities for tactical adjustments.

Employee Performance Evaluation:

• The analysis revealed that the top 10% of employees with the highest percentage of fake visits require further investigation, retraining, or disciplinary action.
• Conversely, employees with few fake visits demonstrate dedication and can serve as role models for best practices.

Regional Analysis of Fraudulent Activities:

• Telangana exhibited the highest proportion of fake visitors (70%), indicating a need for focused treatments such as augmented training, closer monitoring, and improved reporting procedures in this region. Other regions showed lower but varying percentages of fake visits (e.g., West Bengal 29%, Andhra Pradesh 39%, Karnataka 48%, Maharashtra 42%, Tamil Nadu 40%, Uttar Pradesh 44%).

Overall, the findings demonstrate that fraudulent visits significantly dilute performance metrics and that targeted, region-specific interventions are necessary for optimizing sales force efficiency and integrity.

A detailed CDR analysis for sales representatives revealed key information concerning the impact of fraudulent behavior on sales performance, as well as geographic variations in success rates. The analysis revealed a high positive correlation between total visits and order placements, highlighting the significance of real visits in sales success. By identifying top and bottom performers and comparing geographical differences, I was able to identify areas of weakness and intervention. In order to overcome these issues and foster a performance and integrity culture, I recommend the following important strategies:

1. Tiered Reward System: Establish a tiered reward system where sales representatives gain points for trips that are more than 10-15 minutes long. Workers can redeem accumulated points to receive bonuses, gift cards, or other rewards, motivating them to make more productive trips.

2. Recognition for High Achievers: Reward and recognize high achievers through monthly or quarterly awards, public recognition, or other incentives. Not only does this promote high performance but also a culture of excellence.

3. Gamified Employee Dashboard: Create a gamified employee dashboard to display real-time performance metrics such as actual visits, success rate, and peer ranking. Transparency and timely feedback can enhance motivation and accountability.

4. Team-Based Competitions: Design team-based competitions to reward salespeople on the basis of visit performance and order placement rates. This fosters a sense of community and achievement.

Companies applying these strategies are able to significantly enhance the accuracy of visit reporting, worker morale, and ultimately sales performance. These practices provide an orderly means for solving known problems and achieving best practice in promoting sustainable development and achievement in the pharma industry.