Nothing Sells as Well as Personal Contact – Customer Loyalty in Pharma

Announcement posted by marcus evans, summits division 18 May 2010

Steven Lewis from Development II Inc., a solution provider at the marcus evans PharmaMarketing Summit 2010, on maintaining customer loyalty in the pharmaceutical industry.

Interview with: Steven Lewis, Founder & President, Development II Inc.

Miami, FL, May 17, 2010 - FOR IMMEDIATE RELEASE

Failing to communicate with customers is a fairly common mistake that pharmaceutical companies make, according to Steven Lewis, Founder and President of Development II Inc. Many industries, including pharma, may be trying to tighten their marketing budgets to survive, but one-on-one interaction with clients is critical for maintaining customer loyalty. A solution provider at the marcus evans PharmaMarketing Summit 2010 taking place in Florida, May 10-12, 2010, Lewis shares his views on personal contact with clients and best practices for brand building.

What is the best way of maintaining customer loyalty in the pharmaceutical industry?

Steven Lewis: The number one instance of failure in customer loyalty is when pharmaceutical companies forget to communicate with their customers; communication is often pieces of papers or emails, but it is actually the personal interaction of that communication that is important. Nothing sells as well as personal contact.

We have done many studies and surveys for the Strategic Account Management Association (SAMA) and interviewed some of the top salespeople across all industries, and identified that in maintaining customer loyalty, relationships count for 40 per cent of the sales process between pharmaceutical companies and their customers. This is a high percentage. We see it time and time again why companies migrate: when the relationship is strained, they start looking around.

What strategies would you recommend?

Steven Lewis: All industries, including the pharmaceutical, are looking to save money. How do they usually do that? They cannot do it on the process side and they usually cannot cut the distribution budget, therefore they look at the personnel side.

Many companies know their industry and internal processes inside out, but their customers do not; they fall into the trap of using their own jargon and way of doing business internally, but customers are not as familiar with their business as they are. Improving that communication could simply be clearly defined inserts for the medication or a salesperson sitting down with the distribution, doctors, HMOs and clarifying the usage and side effects of a drug. We are all frustrated with automated systems asking us to dial nine for this and three for that – it is a way of saving money but also of losing customer loyalty. There needs to be a balance between cost and maintaining customer loyalty.

Important customers should have a designated account manager to resolve their issues and serve them better. A single point of contact for all matters would make a huge difference in applying and maintaining customer loyalty.

Marketing directors need to leave their desk and go out to meet customers. That is one of the biggest drawbacks I have seen in corporate marketing departments; they are often busy creating materials for the field but they themselves rarely get into the field itself. They should travel with their sales teams, shake hands with customers and walk the trade show booths. There may be exceptions, but that is the number one flaw I have seen. Marketing directors are getting their information second hand, not first; that should be their number one commitment.

What brand building strategies would you recommend?

Steven Lewis: The key word in today’s environment for pharmaceutical companies to position themselves is ethics. There is a battle between pharma and the media, who are always looking to pick the bad side and uncover stories. They are ethical organizations, but they need to position themselves in that way to combat some of the negative impact. The whole issue of changing the medical system, what came into the limelight? Big pharma in a negative context. My own personal observation is that when new products are being introduced, companies need to play the ethics button as heavily as they can. It goes back to the communication issue – communicating what they are doing, what tests they have done, which approvals they have and who the drug will cure.

What long-term strategies would you recommend to pharmaceutical industry marketing officers?

Steven Lewis: US organizations sadly tend to think in quarterly terms; European and Asian organizations have an advantage in culturally looking out longer term. Although my advice would be to take a look at the organization in a five to 10 year span, track where you want to be the expert and follow that goal regardless of quarterly returns.

Contact: Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits Division

Tel: + 357 22 849 313

Email: press@marcusevanscy.com

About the PharmaMarketing Summit 2010

This unique forum will take place at the Doral Golf Resort & Spa, Miami, Florida, May 10-12, 2010. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The summit includes includes pharma marketing presentations on social media, healthcare reform and how to approach emerging markets.

For more information please send an email to info@marcusevanscy.comor visit the event website at http://www.pharmamarketingsummit.com/StevenLewisInterview

Please note that the summit is a closed business event and the number of participants strictly limited.

About marcus evans Summits

marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-on-one business meetings. For more information, please visit http://www.marcusevans.com