A quick review of the "About Us" pages on the websites of the major Contract Sales Organizations in North America reveals remarkably similar positioning and capabilities. Selling based on your capabilities is a highly inefficient model to employ, especially when the capabilities you are presenting are matched by your competitors. Focusing on your capabilities presents another business development barrier in that it communicates an inward versus an outward focus. Selling value, as defined by the customer/prospect, ensures a customer/prospect focus is communicated as well as ensuring sales calls are relevant to both the CSO and the pharma company.

1. Selling Value Versus Capabilities
Expanding the Opportunity
for Contract Sales Organizations

2. CSO Differentiation Starts with the Sales Presentation
We have a solution
now let’s look for a problem
You have a problem
we have a solution
Selling Capabilities Selling Value

3. You Want to Change/Maintain Current Behavior
What
How
WHY?
Critical Gap
CSO is Employed
To impact purchasing
behavior

4. In today’s hyper-competitive
CSO market organic growth
often means capturing
competitive clients
You Want to Change Current Behavior

5. You Want to Maintain Current Behavior
In today’s hyper-competitive
CSO market your existing
customers are under attack
from your competitors

6. Why Corporations Buy?
• Companies, like consumers, buy
on the basis of perceived value
• They perceive their choice of CSO
to be superior to all other
available vendors
• Perceived value is the best leading
indicator of performance leading
to the achievement of financial
goals
Increase
Perceived Value
Increase
RFP Wins
Increase
Client Base
Increase
Revenue

7. What is Value?
• Customers buy on Value
• Value equals QUALITY relative to PRICE/RISK
• Quality includes all non-price attributes
• QUALITY, PRICE/RISK and VALUE are relative
- Product - Customer Service
Value
Quality
Price
Product
Customer Service
Managing Customer Value, Bradley T. Gale

8. What is Value?
• Value is whatever the customer
defines it to be:
 How does the pharmaceutical
industry define QUALITY within
the CSO category?
 How does the pharmaceutical
industry define PRICE/RISK
within the CSO category?

9. “If a movie idea
cannot be
explained in 30
words or less it is
probably not a
good idea.”

10. Customer Value Analysis describes which CSO is
preferred, why, to what extent and what is required
to increase the perceived value of your CSO at the
actionable segment level.
29 words

11. Customer Status Profile
Current Customers
Non-Customers
Lost Customers
Company Profile
Big Pharma
Small-medium
Pharma
Biotech
Segment Levels (example)

12. • What are the attributes that
drive Pharma decision-making?
• What is the rank importance of
these attributes?
• How is your performance
perceived on those attributes?
• How is the competition
perceived on those attributes?
Minimum Market Insight

13. • What is required to increase
your perceived value?
• Where are you strong or
vulnerable?
• Where is the competition weak?
Minimum Market Insight

14. Impact Primary Value Attributes
- Perception In Sync?
Impact Secondary Value Attributes
-Raise Importance
Shift Value Focus
- New Attributes
3 Ways to Impact CSO Purchasing

15. … recognized as Canada's premier healthcare-
focused contract sales organization (CSO).
Vanguard Pharma offers you the ultimate in
flexibility…
Vanguard Pharma offers you the full spectrum of
salesforce solutions….
Pharmexx Canada is the leading outsourcing
partner for the pharma…
With more than 25 years of experience we have
the right solution for you.
We’re Different… how
Agility and flexibility are musts in today’s market.
Our pharmaceutical sales solutions go beyond
traditional contract sales organizations.

16. We’re Different… how
PDI, Inc. is a leading health care commercialization
company providing superior insight-driven, integrated
multi-channel message delivery for established and
emerging health care companies.
OnCall has a reputation for excellence and flexibility and
a unique ability to customize solutions to fit product
needs and client budgets.
Our clients reach new heights of success fueled by
our unique blend of services and unmatched
expertise.
Our high-performing field sales representatives engage
with healthcare professionals to effectively communicate
your message and grow your brand. Every team is custom-
designed to your profile, culture, and goals.

17. The market says so!
Highest ranked CSO in
terms of customer
defined value
Selling You CSO Service: We’re Different

18. Customer Value Analysis
• Customer Value Analysis uses information acquired
directly from customers to show how customers
make decisions in a the CSO category and what is
needed (program development) to ensure that more
of them purchase your CSO service.
• A customer-perceived value profile provides an
objective, impersonal measure of how the pharma
really judge competing CSOs.

19. Customer Value Analysis Features
• Defines attributes that determine
purchase behavior
• Defines perceived comparative
performance
• Identifies points of competitive attack
• Provides a customer defined
promotional roadmap

20. Customer Value Analysis Features
• Forward looking data
• “What if” scenario planner – data is
dynamic
• Ensures sales calls are relevant to
customer/prospect

21. Customer Value Analysis Features
• Executed at actionable segment
• Provides a yearly metric to measure
performance and impact of promotional
activities
• Fraction of the Cost of Traditional
Market Research

22. Customer Value Analysis - Delivering Critical Insight
How many of the following 18 key strategic questions can
you currently answer at the actionable segment level?

23. Customer Value Analysis - Critical Insight
Perception of Promoted Capabilities:
1. How do/will your CSO offering motivate purchasing
behavior?
2. Is customer/prospect perception in sync with fact?
3. Do your services provide you with a competitive
advantage?

24. Customer Value Analysis - Critical Insight
How Pharma Decides:
4. How does Pharma select among competing CSOs?
5. What are the key Quality attributes and Price / Risk
attributes in the CSO category?
6. Which value criterion are increasing or decreasing in
importance?

25. Customer Value Analysis - Critical Insight
How Pharma Decides:
7. How does your CSO perform against each key
criterion?
8. How does the competition perform against each
criterion and how does your CSO compare to the
competition?

26. Customer Value Analysis - Critical Insight
Strategic Planning:
9. What is your CSO’s customer-perceived value
rating/score versus its competition?
10. What process will determine your CSO’s performance
versus its competitors?
11. Who will your CSO acquire / lose customer &
marketshare from, or to?
12. How can your CSO improve its value rating versus the
key competitors?

27. Customer Value Analysis - Critical Insight
Actionable Customer Segments:
13. How does each customer/prospect segment size-up
your CSO head-to-head versus the competition?
14. How do these criteria differ by customer segment
(Customer status, type of pharma company)?
15. What is the likelihood of your CSO’s market share to
increase within each of the key customer segments ?

28. Customer Value Analysis - Critical Insight
Return on Promotional Investment:
16. What would the ROI be behind any program/campaign
to increase your CSO’s perceived value?
17. Which customer segments will provide your CSO with
its revenues?
18. What would the impact be of a new service or
capability on the CSO category?

29. • Where does the customer
segment position us?
• Why does the segment
position us?
• What has to be done to change
the position, if anything?
• Which competitor should we
target?
• What attributes should we
promote?
• What is the new position
worth?
• What is the likelihood of
succeeding
Sell Value Not Capabilities – Do You Know…
Potential CSO Value Map

30. Sell Value Not Capabilities – Do You Know…
• What value score is required to
acquire a competitive customer?
• What value score puts your
customers at risk?
Slippery Slope Diagram

31. Next Steps
Proprietary Data or Syndicated Data?
Let Us Know

32. If you want to differentiate your CSO
on the basis of perceived value contact us….
Sell Value Not Capabilities
David Delong
Chief Customer Evangelist
(705)-733-0739
ddelong@cmg-pharma.com