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Do you know how much a customer is worth to you? If you don’t you should. It results in one of the biggest breakthroughs my clients have.

Once you

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

know what an average customer is worth, one of the first things you’ll notice is that there is likely more than one type of customer coming to you

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

.

We reviewed the average value of a customer for one of my clients, discovered that there were at least 3 different types of customers, each buyi

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

g a significantly different average amount, some were buying only one time, and others were becoming repeat customers. Now we could clearly define

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

who these people were, how to find them, and decided that some were not worth our time, others were our ideal target.

One of my customers, a const

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

uction franchise, had only done $60K of business his first year. It went to $500K the next just by finding the right customer based on customer wor

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

th.

When we started looking at what his customers were worth to him, the first figure was $1,500, an average of all customers. Then we saw that th

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

ere were groups of different customers, some buying less than $1,000, some buying $1,000-$3,000 and some buying well over $3,000.

The ones buying

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

nder $1,000 were the hardest to deal with and had the lowest profit margin. The ones over $3,000 were coming back over and over, had the best profi

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

t margin, and referring lots of other customers. Their total lifetime worth was approaching $10,000.

This company had defined their customers acco

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ding to the national franchisor’s suggestion, targeting a homeowner with total family income averaging $50,000. But the customers buying the most f

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

rom them lived in a neighborhood where the average income was over $75,000. So, I suggested that they send their next mail only to those targets.

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

Another thing we saw was that the people buying less than $1,000 were the $50,000 average income neighborhoods. The $3,000 customers were from $75,

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

00 neighborhoods, and the higher the income the more they bought, the more they came back, and they made more referrals.

They stopped mailing low

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

income zip codes; these also had a very low response to their previous mail. They started targeting only higher income zip codes, and only to the $

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

5,000 and up families.

The result: the immediate response was a 9 times increase in revenue on the very next mailing. The mail response rate went

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

up 4.5 times, so they had 4.5 times more leads for the same dollars spent only a week before. And, those customers were buying more than twice as m

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

uch. The total was 9 times more sales in just a week for a small change.

I’ve seen this happen over and over as a company starts to define how muc

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

a customer is worth to them.

So, define your average customer worth. Then track the actual results and see if there isn’t something you might lea

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

rn from being able to segment your customers by their worth to you, total dollars on one purchase, total lifetime dollars, number of purchases, etc

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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