Digg It - Business

The Driver of All Marketing Efforts

You need to determine what the value of a customer is to yo

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ur company. Answer the following questions:

How much will the average customer spend with you p

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

r year?

A = _____________

If you provide quality service and products, how many years can you

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

xpect to keep a customer ?

B = _____________

What is your gross profit, as a percentage of rev

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

nues?

C = _____________

The value (V) of a customer is:

V = A X B X C

We learned with our ne

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

work consulting company that the average life of a customer was about 2 ? years and the average

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

early expenditure was around $10,000. With a gross margin of 35%, each client was worth $8750 to

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

the company.

$10,000 X 2.5 * .35 = $8750

If you haven’t used this simple formula before, it ca

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

totally change how you view customer acquisition, retention and customer service. Normally you’

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

l want to spend about 10% of current or projected revenues on customer acquisition. This formula

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

allows you to accurately project what a customer is worth to you over their customer life cycle.

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

A valuable concept to learn and leverage is to go to great lengths to keep a good customer. Th

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

simplest and least intensive marketing efforts are those that you do for existing customers. St

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

y in contact, educate them on the excellent services you have provided them and the value propos

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

tion that you offer.

Close Ratios

The next important parameter is to calculate your close rati

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

. This means for every prospect you talk to, how many become customers? We had a close ratio of

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

round 25%. With the above example, assuming a marketing budget of 10% of gross revenues per cust

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

mer, we had $1500 to work with. With a 25% close ratio, that meant we could spend on average $37

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

for every prospect we talked to ($1500*.25=$375).

This is a very useful tool for making decisi

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

ns around how much time to spend on proposals, contact, lunches and other prospecting activities

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.diggit.org.ua/article/30164/diggit-The-Value-of-a-Customer.html">The Value of a Customer</a>

BB link (for phorums):
[url=http://www.diggit.org.ua/article/30164/diggit-The-Value-of-a-Customer.html]The Value of a Customer[/url]

Think about the situation where your company is receiving more phone calls than it can handle, not for one day but every day for weeks, the customers and prospects are waiting minutes of valuable time. They will loose their patience. And your company is losing even more - You can solve a mathematical problem ending up with a solution. If your organization is facing a change, than the problem solving equation is more complex -And you are there in front of a decision to take

By reading every word in this article, you will learn: * Is it possible to earn cash while sleeping? * The options open to us to earn cash online while sleeping * Solutions to making cash from home

Dry Wash and Pressure Washing Auto Detailers should educate their customer as part of the marketing process. Mobile auto detailers need to understand customer buying behavior and preconcieved notions of car washing.

Tags

Links

Digg It - The Value of a Customer

Related Articles: