Advice You - Business

Have you ever looked at the difference between the value of a Customer relationship and what that Customer is worth? Lets take a look at the difference between

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

the two.

Say your average customer spends only $100.00 per transaction with you. And, you transact business with an average of 10 customers per day. That’s $10

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

Examples of combination products may in

00.00 per day. If you are open 20 days a month that equals a total of $20000.00. Pretty simple math, right?

Now, we are open 12 months a year, and that equals

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

240,000.00. If you make one person unhappy per day, that’s $2000.00 a month or 10% of the business you did for the month and a loss of $24,000.00 for the year.

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

Since we know that an unhappy person tells at least 11 people who then tell at least 5 more people, each, what is that relationship worth? If you do the math,

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

Combination pro

it adds up to $6700.00 in lost sales from one customer. If you continue to lose one a day at the end of the year you would have a potential loss of $1,608,000.0

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

in sales. Uh, that’s a million, headed towards two.

I think anyone would love to have an additional Million Dollars in sales for the year. I know I would. Th

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

e question is, is it worth your time to be more professional and courteous? Is it worth your time to invest in yourself by upgrading your skills and developing

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

a healthy attitude?

So what is the value of the relationship you might ask?

Good question Customer Service Professional. Let’s take a look.

The value comes f

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

om maintaining and nurturing the relationship. The customers that you make happy tell an average of 3 people that they liked or were happy with your service.

W

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

eird, huh? Unhappy, tell 11, happy, tell 3. Those turn into additional potential sales totaling $3000.00 more per day. $3000.00 more translates into $60,000.00

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

Following aspects would a

per month or $720,000.00 per year or more in possible sales. Not too bad. Make ‘em happy, $720,000.00 increase in sales. Did I mention that we are only talking

dd to the challenges in developing combination products:

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

bout a hunskee per person per day? Now that is some serious coin!

However, that is not were the real value is.

It’s in the relationship that you built with yo

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

ur customer. It’s that your customer feels comfortable enough to refer you to 3 of their trusted friends and family. And it's about your customer coming back to

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

you again and again for the same great service you provide each and every time.

See, when we are unhappy with something, we’ll tell anybody and everybody with

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

n earshot, and tell them to tell all their friends, neighbors, relatives, passers by and practically anyone within arms length how bad the experience was.

Ever

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

Professional from academic institutions, pharmaceutical industries, health care indust

drive by someplace that treated you badly, say 5 years previously? Don’t you still talk about it? And you tell everyone “Don’t go in there, they treated me bad

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

ly” even though it’s been 5 years. What has your lost business been worth to them? And what is the value of them retaining your business?

We only tell our mos

.

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

trusted relatives and friends about the great service we have had.

And that is where the value in a relationship exists between you and your customers.

If yo

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

Companies that provide selfless information through particip

u build the value in the relationship you have with your customers, they will be worth more than you can imagine.

No math required to figure out the difference

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

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