Selling Value Versus Capabilities
Expanding the Opportunity
for Contract Sales Organizations
CSO Differentiation Starts with the Sales Presentation
We have a solution
now let’s look for a problem
You have a problem
...
You Want to Change/Maintain Current Behavior
What
How
WHY?
Critical Gap
CSO is Employed
To impact purchasing
behavior
In today’s hyper-competitive
CSO market organic growth
often means capturing
competitive clients
You Want to Change Curren...
You Want to Maintain Current Behavior
In today’s hyper-competitive
CSO market your existing
customers are under attack
fro...
Why Corporations Buy?
• Companies, like consumers, buy
on the basis of perceived value
• They perceive their choice of CSO...
What is Value?
• Customers buy on Value
• Value equals QUALITY relative to PRICE/RISK
• Quality includes all non-price att...
What is Value?
• Value is whatever the customer
defines it to be:
 How does the pharmaceutical
industry define QUALITY wi...
“If a movie idea
cannot be
explained in 30
words or less it is
probably not a
good idea.”
Customer Value Analysis describes which CSO is
preferred, why, to what extent and what is required
to increase the perceiv...
Customer Status Profile
Current Customers
Non-Customers
Lost Customers
Company Profile
Big Pharma
Small-medium
Pharma
Biot...
• What are the attributes that
drive Pharma decision-making?
• What is the rank importance of
these attributes?
• How is y...
• What is required to increase
your perceived value?
• Where are you strong or
vulnerable?
• Where is the competition weak...
Impact Primary Value Attributes
- Perception In Sync?
Impact Secondary Value Attributes
-Raise Importance
Shift Value Focu...
… recognized as Canada's premier healthcare-
focused contract sales organization (CSO).
Vanguard Pharma offers you the ult...
We’re Different… how
PDI, Inc. is a leading health care commercialization
company providing superior insight-driven, integ...
The market says so!
Highest ranked CSO in
terms of customer
defined value
Selling You CSO Service: We’re Different
Customer Value Analysis
• Customer Value Analysis uses information acquired
directly from customers to show how customers
...
Customer Value Analysis Features
• Defines attributes that determine
purchase behavior
• Defines perceived comparative
per...
Customer Value Analysis Features
• Forward looking data
• “What if” scenario planner – data is
dynamic
• Ensures sales cal...
Customer Value Analysis Features
• Executed at actionable segment
• Provides a yearly metric to measure
performance and im...
Customer Value Analysis - Delivering Critical Insight
How many of the following 18 key strategic questions can
you current...
Customer Value Analysis - Critical Insight
Perception of Promoted Capabilities:
1. How do/will your CSO offering motivate ...
Customer Value Analysis - Critical Insight
How Pharma Decides:
4. How does Pharma select among competing CSOs?
5. What are...
Customer Value Analysis - Critical Insight
How Pharma Decides:
7. How does your CSO perform against each key
criterion?
8....
Customer Value Analysis - Critical Insight
Strategic Planning:
9. What is your CSO’s customer-perceived value
rating/score...
Customer Value Analysis - Critical Insight
Actionable Customer Segments:
13. How does each customer/prospect segment size-...
Customer Value Analysis - Critical Insight
Return on Promotional Investment:
16. What would the ROI be behind any program/...
• Where does the customer
segment position us?
• Why does the segment
position us?
• What has to be done to change
the pos...
Sell Value Not Capabilities – Do You Know…
• What value score is required to
acquire a competitive customer?
• What value ...
Next Steps
Proprietary Data or Syndicated Data?
Let Us Know
If you want to differentiate your CSO
on the basis of perceived value contact us….
Sell Value Not Capabilities
David Delon...
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Selling Value not Capabilities - CSO Differentiation

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A quick review of the "About Us" pages on the websites of the major Contract Sales Organizations in North America reveals remarkably similar positioning and capabilities. Selling based on your capabilities is a highly inefficient model to employ, especially when the capabilities you are presenting are matched by your competitors. Focusing on your capabilities presents another business development barrier in that it communicates an inward versus an outward focus. Selling value, as defined by the customer/prospect, ensures a customer/prospect focus is communicated as well as ensuring sales calls are relevant to both the CSO and the pharma company.

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Selling Value not Capabilities - CSO Differentiation

  1. 1. Selling Value Versus Capabilities Expanding the Opportunity for Contract Sales Organizations
  2. 2. CSO Differentiation Starts with the Sales Presentation We have a solution now let’s look for a problem You have a problem we have a solution Selling Capabilities Selling Value
  3. 3. You Want to Change/Maintain Current Behavior What How WHY? Critical Gap CSO is Employed To impact purchasing behavior
  4. 4. In today’s hyper-competitive CSO market organic growth often means capturing competitive clients You Want to Change Current Behavior
  5. 5. You Want to Maintain Current Behavior In today’s hyper-competitive CSO market your existing customers are under attack from your competitors
  6. 6. Why Corporations Buy? • Companies, like consumers, buy on the basis of perceived value • They perceive their choice of CSO to be superior to all other available vendors • Perceived value is the best leading indicator of performance leading to the achievement of financial goals Increase Perceived Value Increase RFP Wins Increase Client Base Increase Revenue
  7. 7. What is Value? • Customers buy on Value • Value equals QUALITY relative to PRICE/RISK • Quality includes all non-price attributes • QUALITY, PRICE/RISK and VALUE are relative - Product - Customer Service Value Quality Price Product Customer Service Managing Customer Value, Bradley T. Gale
  8. 8. What is Value? • Value is whatever the customer defines it to be:  How does the pharmaceutical industry define QUALITY within the CSO category?  How does the pharmaceutical industry define PRICE/RISK within the CSO category?
  9. 9. “If a movie idea cannot be explained in 30 words or less it is probably not a good idea.”
  10. 10. Customer Value Analysis describes which CSO is preferred, why, to what extent and what is required to increase the perceived value of your CSO at the actionable segment level. 29 words
  11. 11. Customer Status Profile Current Customers Non-Customers Lost Customers Company Profile Big Pharma Small-medium Pharma Biotech Segment Levels (example)
  12. 12. • What are the attributes that drive Pharma decision-making? • What is the rank importance of these attributes? • How is your performance perceived on those attributes? • How is the competition perceived on those attributes? Minimum Market Insight
  13. 13. • What is required to increase your perceived value? • Where are you strong or vulnerable? • Where is the competition weak? Minimum Market Insight
  14. 14. Impact Primary Value Attributes - Perception In Sync? Impact Secondary Value Attributes -Raise Importance Shift Value Focus - New Attributes 3 Ways to Impact CSO Purchasing
  15. 15. … recognized as Canada's premier healthcare- focused contract sales organization (CSO). Vanguard Pharma offers you the ultimate in flexibility… Vanguard Pharma offers you the full spectrum of salesforce solutions…. Pharmexx Canada is the leading outsourcing partner for the pharma… With more than 25 years of experience we have the right solution for you. We’re Different… how Agility and flexibility are musts in today’s market. Our pharmaceutical sales solutions go beyond traditional contract sales organizations.
  16. 16. We’re Different… how PDI, Inc. is a leading health care commercialization company providing superior insight-driven, integrated multi-channel message delivery for established and emerging health care companies. OnCall has a reputation for excellence and flexibility and a unique ability to customize solutions to fit product needs and client budgets. Our clients reach new heights of success fueled by our unique blend of services and unmatched expertise. Our high-performing field sales representatives engage with healthcare professionals to effectively communicate your message and grow your brand. Every team is custom- designed to your profile, culture, and goals.
  17. 17. The market says so! Highest ranked CSO in terms of customer defined value Selling You CSO Service: We’re Different
  18. 18. Customer Value Analysis • Customer Value Analysis uses information acquired directly from customers to show how customers make decisions in a the CSO category and what is needed (program development) to ensure that more of them purchase your CSO service. • A customer-perceived value profile provides an objective, impersonal measure of how the pharma really judge competing CSOs.
  19. 19. Customer Value Analysis Features • Defines attributes that determine purchase behavior • Defines perceived comparative performance • Identifies points of competitive attack • Provides a customer defined promotional roadmap
  20. 20. Customer Value Analysis Features • Forward looking data • “What if” scenario planner – data is dynamic • Ensures sales calls are relevant to customer/prospect
  21. 21. Customer Value Analysis Features • Executed at actionable segment • Provides a yearly metric to measure performance and impact of promotional activities • Fraction of the Cost of Traditional Market Research
  22. 22. Customer Value Analysis - Delivering Critical Insight How many of the following 18 key strategic questions can you currently answer at the actionable segment level?
  23. 23. Customer Value Analysis - Critical Insight Perception of Promoted Capabilities: 1. How do/will your CSO offering motivate purchasing behavior? 2. Is customer/prospect perception in sync with fact? 3. Do your services provide you with a competitive advantage?
  24. 24. Customer Value Analysis - Critical Insight How Pharma Decides: 4. How does Pharma select among competing CSOs? 5. What are the key Quality attributes and Price / Risk attributes in the CSO category? 6. Which value criterion are increasing or decreasing in importance?
  25. 25. Customer Value Analysis - Critical Insight How Pharma Decides: 7. How does your CSO perform against each key criterion? 8. How does the competition perform against each criterion and how does your CSO compare to the competition?
  26. 26. Customer Value Analysis - Critical Insight Strategic Planning: 9. What is your CSO’s customer-perceived value rating/score versus its competition? 10. What process will determine your CSO’s performance versus its competitors? 11. Who will your CSO acquire / lose customer & marketshare from, or to? 12. How can your CSO improve its value rating versus the key competitors?
  27. 27. Customer Value Analysis - Critical Insight Actionable Customer Segments: 13. How does each customer/prospect segment size-up your CSO head-to-head versus the competition? 14. How do these criteria differ by customer segment (Customer status, type of pharma company)? 15. What is the likelihood of your CSO’s market share to increase within each of the key customer segments ?
  28. 28. Customer Value Analysis - Critical Insight Return on Promotional Investment: 16. What would the ROI be behind any program/campaign to increase your CSO’s perceived value? 17. Which customer segments will provide your CSO with its revenues? 18. What would the impact be of a new service or capability on the CSO category?
  29. 29. • Where does the customer segment position us? • Why does the segment position us? • What has to be done to change the position, if anything? • Which competitor should we target? • What attributes should we promote? • What is the new position worth? • What is the likelihood of succeeding Sell Value Not Capabilities – Do You Know… Potential CSO Value Map
  30. 30. Sell Value Not Capabilities – Do You Know… • What value score is required to acquire a competitive customer? • What value score puts your customers at risk? Slippery Slope Diagram
  31. 31. Next Steps Proprietary Data or Syndicated Data? Let Us Know
  32. 32. If you want to differentiate your CSO on the basis of perceived value contact us…. Sell Value Not Capabilities David Delong Chief Customer Evangelist (705)-733-0739 ddelong@cmg-pharma.com

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