There is an old saying which says “80% of Business comes from 20% of the customer”. This has been true even for the pharmaceutical industry. In fact, when it comes to Pharma business customer’s producing business would be even low.
The top priority customers who are engaged with the company in some of the forms remain the most important contributors for business. The remaining customer list is not of that much significance. The important aspect to think about is that if this is the case then what purpose does the big customer list in the sales representative file does?
It has been years we have worked by the concept of 20-80 segmentation. The results are evident. The growth rate has been good. But how can such a good rate of growth be sustained with the increasing competition and saturation level hitting up the market.
The answer to this would be bringing in the concept of Millionaire, Monk, and Beggar segmentation of customers. A millionaire is a concept in which you think like a rich person. Uber, a famous cab aggregator is a result of the millionaire concept of thinking. When we try to put things in perspective with Pharma selling, Millionaire’s segmented customers can be customers who give the maximum chunk of business. The customers who get engaged with the company in various ways and are important for sustaining the business. Traditionally called the top 20 percent customers for the Pharma business. Here the resources and scope of business are large. The major chunk of business will come from this segment.
Now talking about the Monk Segmentation, typically if you see monk you can easily come to the conclusion that for monks only certain things are of importance. In the technological word if you see, famous photo-sharing app Instagram is a very good example of monk concept of thought process. Now coming to the Pharma business aspect, this can be customers for Pharma companies who have a specific requirement. For example, identifying a specific need of the customer and catering the same and generating business from a new customer base.
Now coming to the beggar concept of segmentation. If you observe beggar, it would not be difficult for you to conclude that beggar has a very limited resource and he has to carve out his livelihood from the available limited resources with him. Twitter with a 140-character limit is one of a good example of this mentality. Now when we apply this in Pharma customer segmentation every customer list has a laggard customer, who either has less potential or has some constrains might be due to premium pricing of the product. Now, this set of customers can be concurred by identifying reason for him being in the customer list but not a revenue-producing customer for the business. Typically, these customers can be targeted for more of a generic product from the catalog. Having done the proper customer segmentation. It should be made sure that each and every customer from the list should at least produce business for one product from the catalog. This way of segmentation would be helpful for sustaining the growth rate of the business be it Pharma or any other domain.
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