Bending the buyer power curve downwards
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Bending the buyer power curve downwards

Winning with analytics
Key Highlights:

  • 73% companies believe that selling and marketing pharmaceutical products has become more difficult in the US during the last four to five years to 2015
  • 67% of survey respondents mentioned that their company is currently seeking the services of specialist analytics companies
  • 87% of companies say that they have achieved commercial benefits from the application of analytics
  • 47% of the companies expect to increase investments by 6-10% per year going forward for the next 4-5 years

Predictions suggest that the Pharmaceutical industry needs to cut $36 billion in Selling, General and Administrative costs by 2017 to maintain an operating margin similar to 2012. Expiring patents, increased government regulation, declining physician access and reducing out of pocket expenditures have shifted the balance of (buyer) power to payors and providers. WNS DecisionPointTM estimates that the rising influence of payors and providers has eaten up around 3.6 percentage points of the top 10 players’ average gross margins from 2009 to 2014 and is expected to hurt them more going forward.

Currently, many pharma companies are focused on containing sales and marketing expenses as a strategy to combat shrinking profit margins, but doing so is likely to hurt their bottom line in the long run. Without strong sales and marketing efforts, demand for their products is bound to decrease. Rather than sacrificing headline growth by cutting down investments in robust sales force and reducing marketing spend, pharma companies could turn to analytics to improve their existing sales force effectiveness and improve marketing return on investment. Analytics can help companies:

  • Study data related to claims, patient, physicians, payors and providers to generate useful insights around launch action plans and create a distinct positioning thereby ensuring maximum usage post launch

  • Draft market entry and expansion strategies

  • Understand patients’ needs, competitors’ strategies, and stakeholder expectations early in the drug development process to aid delivering an acceptable return on investment (ROI)

  • Tailor promotional messages, understand affinity of channels for various stakeholders, monitor sales force metrics, reduce administrative time to improve selling & marketing efficiency and effectiveness

To learn more about the challenges facing the pharmaceutical industry and strategies to overcome them, read the full report. 


Developments expected to lower the pharma industry size and profitability include patent expirations that could potentially erode $65 billion of industry's revenue by 2019;
generics promotion; cost containment strategies adopted by providers; consolidation of providers in the US; and declining prescriber access to sales representatives in key
specialty areas in the US and EU, and others