Segmentation and Targeting Integration in the Pharmaceutical Industry | In the first part of this article, we discussed the requirements and key factors for success of an effective segmentation and targeting process. Today, we will detail the different approaches you can adopt in order to segment and target the right customers.
The 3 approaches for segmentation & targeting
Basically we can distinguish 3 main approaches:
1. Hard data driven: a methodology based on solid numbers representing usually sales and share, eventually new prescriptions during the defined period.
2. Soft data driven: an approach based on customers’ behavior, attitude, personal typology, motivations, communication channel preferences, influence network, etc. All of this soft data input is usually translated into a numeric scale from low to high and used in combination with others.
3. Combined hard & soft data – the most complex approach but yet the one yielding the best results when a segmentation and targeting set-up is appropriate.
Crossing this data further into the matrix of results in differentiated sub-groups of customers with similar combinations and thresholds, which are to be targeted afterwards. ABC 123 could be a typical example.
As seen previously, when we have access to relevant data or really solid market research designed for new innovative methods, we can then use predictive advanced analytics which look on to future customer behavior by mapping different patterns over different sub-segments. This method has already proven very successful, especially for product launches.
There are a lot of criteria that can be used to decide which segments to target. Potential, prescription and adoption are mostly used, as we said earlier. A concrete segmentation and targeting set-up depends on many factors such as: company strategy, product life cycle stage, customer group, influence network, as well as the sales team’s maturity and quality.
How to integrate your segmentation & targeting process in your business strategy
First of all, your teams need to understand that segmentation and targeting are derived from your company’s business strategy, not the other way around. For example, when my business strategy defines market share growth and investment my S&T will look different in comparison to the strategy focused strictly on ROI and savings approach.
Eventually, you can estimate and compute the impact of effective S&T on your sales - we do it very successfully for our partners. Experienced internal experts can navigate through the optimization process which includes not only S&T capacity calculation, but also other financial analyses, carry-over calculations, and portfolio prioritization. This leads to realistic impact analysis results and ROI calculations per team and product, when needed. This process, much more complex, will be addressed in another article.
How to optimize your segmentation and targeting process?
As in many projects, the set-up only accounts for 20% of the success; the remaining 80% rely on implementation and follow-up, the last being unfortunately often overlooked. The S&T process should be regularly updated and re-challenged at least once a year (in a European environment).
This establishes a good rythm for sales forces and marketing using all feedbacks from the previous S&T round. This is the healthy way to engage all stakeholders and helps show the importance of this process to top management actors as well.
The Actando approach to S&T training
Our learning approaches and solutions seek to maximize learning retention by combining in-class Serious Games-based courses with eLearning modules, assessments and implementation tools. It has proven to be the most effective way for learning in a way that allows the flexibility required in today’s busy corporate environment.
Our Segmentation and Targeting programme brings participants through each step of the process from designing to implementation of Segmentation and Targeting using the Serious Games Simpact Segmentation and Targeting as a learning laboratory.
If you want to learn more about it, download our detailed Segmentation and Targeting brochure by clicking the button below:
The Actando Consulting Team