Are You Targeting HCPs & Accounts the Right Way or the Easy Way?
April 3, 2023
Critical to optimizing sales force productivity and efficiency is identifying the right HCP and/or account targets. The easiest way of segmenting and targeting HCPs is based on volume decile; for example, HCPs in deciles 6 through 10 are selected as targets. However, in the complex pharma, biotech and medical device landscape, the easy way of segmenting and targeting HCPs is, unfortunately, not the right way in most circumstances, and ultimately diminishes sales and adoption. Let’s explore the two primary reasons why the easy way of identifying HCP targets falters and what is a more successful strategic HCP segmentation and targeting method.
Reason 1: The Majority Fallacy
The first reason why pursuing the top volume decile HCPs has significant limitations is what is referred to in marketing as the majority fallacy, or the belief that the largest segment of a market is the best and most profitable to pursue. However, if all products in the market are chasing the largest segment of that market, then this segment consequentially becomes the most competitive. Similarly for biopharma companies, if all products in a therapeutic class are pursuing the high decile HCPs, then these HCPs become the most competitive targets.
Reason 2: Top Volume Doesn’t Equal Top Sales
The second reason why the easy way of segmenting and targeting HCPs doesn’t always work is that although an HCP may prescribe in high volume, that HCP may not be amenable to prescribing our product. For example, an HCP may be so loyal to a competitive product that the amount of sales effort our sales representative would have to expend to convert the HCP would make that HCP no longer profitable. Far too often, the call level assigned to an HCP is based on the HCP’s volume. It shouldn’t be.
What’s the Best Way to Target HCPs?
Now that we’ve explored the two primary limitations of the easy way of segmenting and targeting HCPs, let’s discuss a more effective HCP targeting and segmentation method. HCP targets should be those who will respond to our sales force’s call activity by prescribing our product. This can be high, medium or even low volume HCPs.
Then how do we identify if an HCP will respond to our sales force’s selling activity? The answer is behavioral metrics—such as dominant dual or spreader erratic—as they are stronger indicators than standard metrics—such as decile or market share—of why HCPs prescribe the way they do. In fact, over the years, we at The Marketing Advantage have developed a number of exclusive, innovative behavioral metrics—such as product loyalty index, propensity to switch index, etc.—that identify with high levels of accuracy which HCPs and accounts are likely to respond to our call activity.
We advise that HCPs and accounts are re-targeted each plan period in order to continually account for those HCP targets who have been converted (i.e., start with the low-hanging fruit, and then pursue the targets who are harder to switch). This strategy will maximize sales and lead to faster adoption.
Conclusion
Rather than segmenting and identifying HCP targets the easy way—according to volume—HCP targets should instead be identified according to their likelihood of responding to our selling activity. Not only does the easy way of segmenting and targeting HCPs suffer from the majority fallacy, but it also overlooks the fact that just because an HCP prescribes in high volume does not mean the HCP will prescribe our product. Request a free consultation with us today to get started on making sure you’re pursuing the HCP targets who will respond.
