Some sales and marketing professionals in the pharmaceutical or other life science industries may already be using these “new” metrics, but for those that are not, this article offers a detailed perspective on possible key benefits to using some new metrics at the local geographic levels in order to uncover opportunities for competitive advantage.
This article is clearly focused on the US market, which the reader will quickly be overwhelmed trying to understand all the jargon, acronyms and systems that are referred to.
That is not the point, though, for our selecting this article. The point is – stop forecasting and analyzing the market by traditional data (share, growth, volume, etc.) and instead, look at deeper insights into what kinds of patients start therapy and why do they stay on therapy, and which doctors or accounts drive company and product specific net margin value vs. don’t.
For years, we have taught about the need for CUSTOMER P&Ls. This is what the author is actually alluding to. However, how to create these kinds of analyses were complex and seemingly impossible for many companies in the past. Now, what the author never mentions explicitly, but is really underlying this new opportunity for deeper insights driving value can come from “big data” capabilities. He cites some examples of how new data sources are emerging to allow for this micronization of value analysis so that rather than very generalized pricing strategies, companies are able to do the kinds of analyses and focus their promotional efforts where the value is maximized not only to the company, but also based upon the value appreciated by the patient and healthcare provider organization. In a world of national reimbursement, such as Korea, this becomes particularly important.
Wherever you are in terms of the metrics you are using, marketing and sales leaders should take a close look to see what they can improve in their current metrics, especially in consideration of all the changes in data availability and technology happening right now. For example, how can you leverage new metrics with existing metrics to uncover key insights and competitive advantages?
One area that this article makes note of for using local level metrics is access, including the use of local “co-pay exposure and benefit designs of patients”, price threshold for specific products, or geographic areas where generics are the primary choice. This information could then provide insights into access by area, which would allow a company to decide where efforts would have the most impact on sales, for example, to work to improve impact of patient programs driving adherence.
Although the article is fully focused on the US market, the concept of leveraging new metrics and local geographic differences could be applied to other markets as well. There is no time like the present to look at what improvements you can make to your metrics in order to gain better views and insights, and make better decisions to improve your business.
Review by Barri Blauvelt and Aaron Carpenter, Innovara, Inc.
