New AH market Reality - Predictive Analytics is the Solution!
As the new product pipelines dry up and market consolidation having played out, Marketers in Animal Health Industry are increasingly under pressure to come up with newer ideas in ensuring right messages to the most appropriate KOLS / Vets / Customers at an optimal effort by the sales team. Key challenges facing AH players:
“New market reality” has the marketers worried because despite increased market reach and penetration, there is decreasing frequency of customer contacts and diminishing returns on marketing investments:
More number of sales reps are making fewer calls
More sales reps are getting lesser detailing times
More attrition rates at sales rep levels in almost all companies
More knowledgeable customers with increasing access to information
More active authorities esp. from perspective of food safety and animal welfare
More investments in SCM to ensure right products reaching in right quantities at right times
Animal Health industry in the past has been hugely successful in targeting big-customers and KOLs using past purchase data and third party retail audits by market research companies.
This strategy has been successful for the animal health industry and very profitable for the research firms peddling “old dressed data”.
In “new market reality” of the VUCA world, this approach of using historical data alone to project future trends and make plans is fraught with bigger risks as marketing budgets are being squeezed and more and more customers are increasingly reluctant to share time with reps.
Sharper, Smarter Segmentation is “in”
Animal Health industry in general and progressive marketers in particular are fast realizing that its more and more futile to target entire pool of accessible customers and that only sharper, smarter segmentation can ensure higher long term customer value, even if it means targeting e.g. only 50% of the accessible customers.
Targeting long term future value of the customers requires a shift away from overly relying on historical purchase data as this approach does not take into account the rapidly changing environmental factors and other influences on the customers and consumers alike.
In addition, similar past, historical purchase and prescription data is available and is being used by the competition also, thus resulting in no “real competitive advantage” for any of the companies in any case.
Transform Data to Knowledge to Decision Science
There is an increasing realization that Historical Data alone has only so much value – unless we treat it well to derive scientific decisions out of it. This derived knowledge can only then be unique and may offer distinct competitive advantages.
“New market reality” requires an urgent shift from historical, simple data sets to more meaningful, multivariate predictive analytics.
Predictive Analytics = More Effective Marketing
Marketers can now rely on predictive analytics to use and decipher multiple sets of data to make predictions for the future intent to purchase and long term value of the customers.
Marketers can thus formulate more effective: segmentation, targeting, positioning and even messaging. All this could be unique to an individual organization resulting in efficient resource allocation and eventually effective marketing.
Predictive analytics could easily and seamlessly use existing CRM data, historical purchase patterns and other influences to project 3600 view of the customers and markets & reliably predict their purchase habits resulting in more effective marketing.
Predictive analytics allows animal health companies to look beyond the actual sales volumes to more holistic – “why’s and how’s” of these sales and customers’ purchase behaviors.
To sum, predictive analytics leverages your data, transforms into knowledge & insight and delivers to the right individual at right time for an informed decision – this is what we call science of intelligent decision making.
For more details on how Predictive Analytics could bring in unique competitive advantages to your organization, get in touch with us: email@example.com