Customer Segmentation Does Not Work What's Wrong With It?

Transcription

1 Customer Segmentation Does Not Work What's Wrong With It? July 2017

2 OSG at a Glance Offices in US, EU and Asia Over 700 projects Diverse range of leading Fortune 500 clients Reference-able C-Suite level relationships at clients across industry sub-sectors Pharmaceuticals, Healthcare, CPG, Energy Recognized analytics thought leader featured in leading publications Recognized for five consecutive years as one of the fastest growing companies in the US 2

3 OSG s Capabilities in Life Sciences LIFE CYCLE RELATIONSHIP USING TECHNOLOGY & SERVICES COMPETENCIES BUSINESS APPLICATIONS MARKET RESEARCH ADVANCED ANALYTICS ADVISORY TECHNOLOGY R&D/INNOVATION Innovation Prioritization / Market Map Trial Optimization PRO Analytics Portfolio Prioritization DEVELOPMENT Market/Commercial Assessment Licensing & Acquisition Forecasting & Evaluation MARKETING Segmentation Launch Planning Brand Equity & Tracking Brand & LCM Planning Positioning,Message Testing SALES Sales Force Effectiveness Field Optimization Performance Analytics Closed loop Marketing PLATFORMS ASEMAP TM In-Depth Behavioral Analytics Platform OSMPS Online Data Visualization and Predictive Analytics Portal CAVII Customer Engagement Platform 3

4 What is Segmentation? Different customers have different characteristics Customers with similar characteristics likely Make product choices similarly Respond similarly to promotional efforts 4

5 Some Challenges with Current Healthcare Segmentations Primarily based on specialty and past Rx volume deciles What drives Rx behavior is not clearly known Message delivered may not resonate as it may not be aligned with true motivation for their behavior 5

6 OSG s Segmentation is Based on What Matters To Customers DEMOGRAPHIC SEGMENTATION ATTITUDINAL SEGMENTATION LOCATION TRADITIONALISTS AGE VOLUME Easy to target but provides little insight about what customers value EARLY ADOPTERS OVER ACHIEVERS Difficult to target or track performance as attitudes may change over time OSG-SEGMENTTM (Needs and Outcomes Based) ENDURANCE S SIMPLICITY S SAFETY S RAPID TREATERS Provides powerful guidance on how to change behavior and guide strategy/tactics 6

7 Pharma Example Competitive Psoriasis Market Situation New biologic (Product X) for moderate-to-severe plaque psoriasis Crowded therapeutic area with many established biologics Client (Company X) was seeking an effective way to enter and establish their product in this crowded market OSG s Solution: OSG-Segment OSG recommended using its proprietary ASEMAP TM methodology to develop actionable needs-based segments that can guide effective targeting and messaging for Product X 7

8 Segmentation Was the First Step in a Fact-Based and Differentiating Go-To-Market Strategy REACHING SEGMENTS & MESSAGING How must Company X convey its value to win in a segment? TARGETING Which customers should Company X focus and align the business around? SEGMENTATION Are there distinct segments of customers that value certain attributes uniquely over other customers? 8

9 Research Approach 30 minute online survey across 7 countries Screener (2 mins) Usage/Prescription Behavior & TPP Receptivity (5 mins) ASEMAP TM Attributes trade-off exercise (15 mins) ~30 ATTRIBUTES THAT ENCOMPASSED EFFICACY, SAFETY, DOSING, MOA ETC. Attitudes (5 mins) Firmographics (3 mins) 9

10 ASEMAP Steps in Prioritizing Attributes A. CATEGORIZE ATTRIBUTES B. RANK ATTRIBUTES TM TM C. TRADE OFF ATTRIBUTES TM 10

11 An ASEMAP Segmentation Is Based on Key Attributes That Drive Choice DERMATOLOGISTS SEGMENTATION EXAMPLE SEGMENT 1 SEGMENT 2 SEGMENT 3 SEGMENT 4 Availability of long-term safety data Percent of patients who achieved PASI 100 at week Percent of patients reporting PASI 75 at week 12 who achieved PASI 90 at week Incidence of malignancies Percent of patients who achieved PASI 90 at week Percent of patients who achieved PASI 75 at week Incidence of serious infections Incidence of nausea Incidence of vomiting Ability of patients to return to work EMPHASIS ON SERIOUSSAFETY ISSUES EMPHASIS ON ENDURANCE EMPHASIS ON RAPID OR SHORT-TERM EFFICACY EMPHASIS ON SIDE-EFFECTSAND PRACTICAL PATIENT OUTCOMES 11

12 Combining Attributes Importance with Attitudes & Behavior for Holistic Segmentation Points of differentiation DERMATOLOGISTS SEGMENTATION EXAMPLE Segment 1 Segment 2 Segment 3 Segment 4 Differentiating Attribute Categories Serious safety issues Endurance Rapid Efficacy Side-effects & Patient outcomes Key Attitudes Try out new treatments only after they have been in the market for a long period Top priority is to improve clinical outcomes Keep up with breaking developments in the field Priority is to improve profitability, physician and employee satisfaction First to try new treatments Fear of side-effects limits their prescription of biologics Burdened by administrative paperwork Treat patients aggressively More likely to discuss patient support programs Prescribing Behavior Lowest biologic prescribers High biologic prescribers High biologic prescribers Have a wider prescription pattern (biologics, topicals, systemics, light therapy, orals) Firmographics Primarily a medical practice Primarily a medical practice Primarily a cosmetic practice Mix of medical and cosmetic practice SAFETY ENDURANCE RAPID TREATER SIMPLICITY 12

13 Develop Actionable Segment Personalities Segment Personalities & Messaging Attributes Attitudes Usage Behavior & Demographics 13

14 A Fact-Based Approach Must be Taken for Identifying Target Segments REACHING SEGMENTS & MESSAGING How must Company X convey its value to win in a segment? TARGETING Which customers should Company X focus and align the business around? SEGMENTATION Are there distinct segments of customers that value certain attributes uniquely over other customers? 14

15 The Highest Priority Segments Were identified Through An Exhaustive Fact-Based Process SAFETY ENDURANCE RAPID TREATER ENDURANCE SAFETY SIMPLICITY PRIMARY TARGETS SIMPLICITY Example Criteria for Segment Targeting RAPID TREATER SECONDARY TARGET Can Product X demonstrate superiority vs. competition on attributes that uniquely matter to this segment? Is this segment sizeable enough to justify the effort? How much effort would it take to acquire customers in this segment? 15

16 Communication Must be Tailored Towards Segments for Greater Impact REACHING SEGMENTS & MESSAGING How must Company X convey its value to win in a segment? TARGETING Which customers should Company X focus and align the business around? SEGMENTATION Are there distinct segments of customers that value certain attributes uniquely over other customers? 16

17 Empowered Sales Team With A Targeted Product Selling Toolkit ENDURANCE SAFETY OSG worked with Company X and an agency to develop and prioritize the right messages, visual aids and other marketing collateral Segment Tool Kits (Segment Profiles and Insights, Messaging Platforms, E-detailing, Visual aids and Enablers to Selling) SIMPLICITY 17

18 Developed an easy-to-use tablet/mobile based typing tool that Integrated with Company s IT System for Classification and Identification TYPING TOOL (Administered via sales reps, online surveys or using secondary data) Hello Dr. John, can you please review these 8 statements and rank them for me? It will take 15 seconds. I am just trying to understand what is important to you in choosing a treatment for plaque psoriasis. TYPING TOOL CLASSIFICATION BROAD DIRECTIONS TO SALES REP ON COMMUNICATING THE PRODUCT S VALUE PROPOSITION 18

19 Impact of OSG s Segmentation Product Impact Improvement in market share in crowded categories Faster uptake of new products Organizational Impact Sales Streamlined sales activities to target key segments and improved sales calls and prospects Improved the velocity of opportunities Decreased cost to serve Marketing Elevated the relevance of the marketing as a key enabler of success to the business R&D Entire R&D portfolio was aligned to the needs of key customer segments Implemented as a first screen to understand how to assess the potential of new technology 19

20 OSG Advantage: Why OSG for Segmentation? I. Unique Segmentation Approach OSG uses a combination of needs (ASEMAP TM ), attitudes, behaviors and demographics to develop a holistic segmentation II. Long-term Applicability OSG segments hold longterm relevance without the need for periodic refresh because it is based on customer current and future needs III. Proven Across Verticals OSG has successfully executed segmentations across multiple verticals (Pharma (multiple therapeutic areas), Medical devices, CPGetc.) IV. One Stop-Shop for Developing & Activating Segments OSG s teams combine analytical rigor (various approaches to develop segments such as K- means, Latent class, Hierarchical clustering etc.) with practical know-how to develop actionable and targetable segments V. Developing Segmentation Toolkits OSG s project and graphics teams have combined to develop segment toolkits for clients for company-wide socialization (i.e. segment booklets, segment pocketbooks etc.) 20

21 Contacts Mani Vannan, PhD E. M O Sanjeev R Sridharan E. Sanjeev.Sridharan@optimalstrategix.com M O