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Advice You - Marketing Metrics: The Science That Makes the Art of Advertising Profitable
Would your sales increase if you got more leads, prospects, callers, or visitors coming to your business? Wouldn’t it be exciting if there were a way to achieve this while reducing your marketing costs at the same time? Well, there is a way and I’m going to share that with you right now.
Here it is. STOP spending money on adve
Here it is. STOP spending money on adve
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
rtising and promotions that do NOT produce profitable leads. Then take those dollars you were previously wasting and START investing them in advertising and promotions that DO produce profitable leads.
But exactly how can this be achieved? First, you need the type of hard data you get from Marketing Metrics Reports. To find o
But exactly how can this be achieved? First, you need the type of hard data you get from Marketing Metrics Reports. To find o
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
ut more about this, let’s look at a few simple examples.
Let’s assume you use a yellow pages ad, flyers, and radio ads to attract prospective customers.
If you spend $12,000 per year on yellow pages advertising and this gets you 600 leads per year, you can calculate the cost of each lead by dividing the cost of the advertising
Let’s assume you use a yellow pages ad, flyers, and radio ads to attract prospective customers.
If you spend $12,000 per year on yellow pages advertising and this gets you 600 leads per year, you can calculate the cost of each lead by dividing the cost of the advertising
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
by the number of leads you get. $12,000 divided by 600 leads equals $20. In other words, each lead you get using this method costs you $20.
We call this $20 your ‘Lead Acquisition Cost’. Depending on the amount of your average sale, paying $20 for each lead could be tremendously profitable.
However, in our example, let’s ass
We call this $20 your ‘Lead Acquisition Cost’. Depending on the amount of your average sale, paying $20 for each lead could be tremendously profitable.
However, in our example, let’s ass
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
ume that your yellow pages ad doesn’t work so well and you get only 60 leads per year while spending $12,000 on the advertising. In this example your Lead Acquisition Cost works out to $200. If your average sale is only $150 and your customers (on average) deal with you once every year, obviously a Lead Acquisition Cost of $200
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
is just not profitable.
To complete our example, we’ll assume your lead acquisition cost with flyers is $26 per lead and with radio ads it is $97 per lead.
When you have this information, you become aware that (in this example) you must eliminate your yellow pages advertising with its Lead Acquisition Cost of $200 per lead so y
To complete our example, we’ll assume your lead acquisition cost with flyers is $26 per lead and with radio ads it is $97 per lead.
When you have this information, you become aware that (in this example) you must eliminate your yellow pages advertising with its Lead Acquisition Cost of $200 per lead so y
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
ou can afford to send out more flyers, which have a Lead Acquisition Cost of $26 per lead.
You would also let your radio advertising reps know they must produce dramatically better results right away or your radio ads will be eliminated as well.
From the above example, we can easily understand the lesson. To make profitable adv
You would also let your radio advertising reps know they must produce dramatically better results right away or your radio ads will be eliminated as well.
From the above example, we can easily understand the lesson. To make profitable adv
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
ertising decisions you need to know your EXACT Lead Acquisition Cost for EVERY form of advertising and promotion you use.
How do you track that? You create Marketing Metrics Reports. But before you do that, let’s consider a few more variables. Some types of advertising produce a greater percentage of ‘tire kickers’ and a small
How do you track that? You create Marketing Metrics Reports. But before you do that, let’s consider a few more variables. Some types of advertising produce a greater percentage of ‘tire kickers’ and a small
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
er percentage of buyers. So we now see that our Marketing Metrics Reports should track not only the cost and number of leads produced by each type of advertising—they should also tell us how many of the leads from each advertising source became buyers.
When we have this information, we can calculate our ‘Customer Acquisition Co
When we have this information, we can calculate our ‘Customer Acquisition Co
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
st’ or, in other words, the amount it costs us to ‘buy’ a customer using each different type of advertising.
Also, at this point we need to understand another marketing metrics term—Conversion Rate. Your Conversion Rate is simply the percentage of leads or prospects that actually buy something. You calculate this percentage by
Also, at this point we need to understand another marketing metrics term—Conversion Rate. Your Conversion Rate is simply the percentage of leads or prospects that actually buy something. You calculate this percentage by
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
ividing the number of prospects who became customers through buying something by the total number of prospects you talked to.
It is critical to calculate the conversion rate for each individual salesperson as well as the conversion rate for your team as a whole. We’ll use an example to illustrate why knowing your conversion rat
It is critical to calculate the conversion rate for each individual salesperson as well as the conversion rate for your team as a whole. We’ll use an example to illustrate why knowing your conversion rat
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
e for each salesperson is so important.
Lets suppose you have 3 salespeople on staff. You calculated that 48% of the prospects who talked to Salesperson A actually bought something. This means that Salesperson A’s conversion rate is 48%. To continue with our example, lets assume that Salesperson B has a conversion rate of 33%
Lets suppose you have 3 salespeople on staff. You calculated that 48% of the prospects who talked to Salesperson A actually bought something. This means that Salesperson A’s conversion rate is 48%. To continue with our example, lets assume that Salesperson B has a conversion rate of 33%
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
and Salesperson C has a conversion rate of 24%.
Really think about what this means. Salesperson C uses up twice as many leads per sale as Salesperson A. Of course, this means when Salesperson C makes a sale, your profits are dramatically less than when Salesperson A sells something. Let’s plug some numbers into our example to
Really think about what this means. Salesperson C uses up twice as many leads per sale as Salesperson A. Of course, this means when Salesperson C makes a sale, your profits are dramatically less than when Salesperson A sells something. Let’s plug some numbers into our example to
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
see why profits are so strongly affected.
If the Customer Acquisition Cost per sale is $56 dollars for Salesperson A, then the Customer Acquisition Cost for Salesperson C is $112. This is because Salesperson C’s conversion rate is only half as good as Salesperson A’s. This high Customer Acquisition Cost (probably caused by Sa
If the Customer Acquisition Cost per sale is $56 dollars for Salesperson A, then the Customer Acquisition Cost for Salesperson C is $112. This is because Salesperson C’s conversion rate is only half as good as Salesperson A’s. This high Customer Acquisition Cost (probably caused by Sa
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
lesperson C’s poor sales skills) likely means that you lose money on every sale made by Salesperson C. It looks even worse when you calculate the lost gross profits on the potential sales Salesperson C failed to make.
In this example, your Marketing Metrics Reports have again served you well. You now know Salesperson C must im
In this example, your Marketing Metrics Reports have again served you well. You now know Salesperson C must im
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
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
rove his or her conversion rate (probably through additional sales training) or termination will be necessary.
Now let’s review how your Marketing Metrics Reports have helped you boost revenue and cut costs—in other words, made your business more profitable.
1. Your Marketing Metrics Reports have identified which forms of adver
Now let’s review how your Marketing Metrics Reports have helped you boost revenue and cut costs—in other words, made your business more profitable.
1. Your Marketing Metrics Reports have identified which forms of adver
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
tising and promotion are effective at generating leads and which are not. You know for sure exactly how much it costs to buy each lead using each different type of advertising.
2. Your Marketing Metrics Reports have helped you determine the relative quality of leads from each advertising source. You know which types of ads br
2. Your Marketing Metrics Reports have helped you determine the relative quality of leads from each advertising source. You know which types of ads br
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
ing in the ‘tire kickers’ and which types of ads bring in buyers.
3. Your Marketing Metrics Reports have identified the conversion rate of each individual on your sales team as well as the conversion rate of your team as a whole. This gives you the information you need to implement ‘best practices’, focus your training efforts,
3. Your Marketing Metrics Reports have identified the conversion rate of each individual on your sales team as well as the conversion rate of your team as a whole. This gives you the information you need to implement ‘best practices’, focus your training efforts,
.
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
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
and even decide which salespeople to replace if they fail to improve.
With this critical information in hand, you can make decisions that will quickly improve your bottom line. Of course, without this information some of your decisions and actions will be a blind gamble—not good if you are serious about maximizing your profits
With this critical information in hand, you can make decisions that will quickly improve your bottom line. Of course, without this information some of your decisions and actions will be a blind gamble—not good if you are serious about maximizing your profits
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
.
What do Marketing Metrics Reports look like? They are usually simple charts or spreadsheets where the type of information identified above can be easily entered. If you would like to see sample reports, e-mail the author and he will send you some. You can then modify the reports, making them perfect for use in your business
What do Marketing Metrics Reports look like? They are usually simple charts or spreadsheets where the type of information identified above can be easily entered. If you would like to see sample reports, e-mail the author and he will send you some. You can then modify the reports, making them perfect for use in your business
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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