Succeeding at Conferences
Carlton Hoyt
We’re no stranger to scientific conferences, myself especially. I’ve attended scientific conferences on all sides – as a scientist, as an exhibitor, and as a business developer targeting the exhibitors. From all this experience, I am certain that one thing, above all else, will determine your level of success if you are at a conference for sales or marketing purposes. This one thing will sound simple. It will sound obvious. But look around at the next conference you attend and see how many people aren’t doing this one thing. So… What is the “magic bullet” for conference success?
Speak with everyone you can.
A conference is a numbers game. There are a fixed amount of scientists at any given conference who will be within your target market. The more people you speak with, the more of those scientists that you’ll identify, and the more leads you’ll generate.
It doesn’t matter how pretty your booth is. You could have a massive, open, wildly elaborate booth or just a table in front of a curtain. Those elaborate, expensive booths don’t do much more to reel scientists in than a large bag of candy dumped into a bowl. All you need is to capture enough of their attention to be able to gracefully say hello and ask them what they work on.
Being successful at a scientific conference really is that simple, yet at least three quarters of the company representatives at the average conference fail to come close to being as successful as they could be because they neglect to be outgoing. If you, or someone in your company, is going to be exhibiting at a conference, be sure to take to heart that one key element for a successful conference: speak with everyone you can.
Reflect Your Priorities
Carlton Hoyt
What do catalogs, websites, and many other general-purpose marketing tools have in common? There are a lot of possible answers to that question, but the answer of the day is that they all contain information on a large amount of offerings. Surprisingly frequently, the order in which these are presented is due to factors such as newness, alphabetical order, legacy documents, or some type of semi-arbitrary organization that seems to make sense to the person creating the document. These layouts do not adequately serve the company.
When creating marketing documents highlighting multiple offerings, be sure to give the most important ones the best “real estate”. While your company may define importance in its own way (it is often measured in profit potential, but may also be based in part or in whole on how central an offering is to the core business, potential for new customer recruitment, or other factors), be sure those most important products and services receive the attention which they merit.
This may seem obvious (it is) and it may seem easy to do (it is) but if you go back and look at any marketing documents your company has which describe many offerings you may be surprised at just how buried some important offerings are.
It is of critical importance that the layout of the document makes sense for the user, but life science marketers should be able to easily divert attention to important offerings while still having a logical flow of information. You should be able to simultaneously prioritize and organize your life science communications with relative ease.
Shed The Problem Customers
Carlton Hoyt
Anyone who has spent time in sales or customer support can recall a few customers who always demand more than others or are just notoriously stingy. Chances are that all life science companies have some, and they’re all cutting into your profits. While a few extra service calls or the occasional negotiated discount might not be that bad, when this type of behavior is repeated or taken to an extreme customers can become unprofitable. This effect is aggravated by a very common practice: cross-selling.
Denish Shah and V. Kumar from the Robinson College of Business at Georgia State University published an article in the Journal of Marketing which analyzed data from five Fortune 1000 companies. Their research showed that while only about one in five customers who cross-buy are unprofitable, those that are account for approximately 70% of companies’ total loss from customers. While cross-selling increases profitability from good customers, it also increases losses from bad ones.
Who are these unprofitable problem customers? There are many types, but in the life sciences we have noticed some that have a history of returning items, not making complete payments, demanding an inordinate amount of time from sales and service personnel, or requesting many demos or free trials before making only a small purchase.
The solution to minimizing the losses from these customers is not to stop cross-selling, and the authors of the aforementioned study note that cross-selling is definitely profitable in the aggregate, but it highlights the fact that there are such things as bad customers and companies need to shed them. However, unprofitable customers need to be flagged by sales, support, and / or marketing (this can be done very simply and easily in just about any CRM system) and these customers should either not be marketed to or should be “upsold” more profitable products to compensate. In some circumstances, especially for service companies, relationships with clients may need to be terminated altogether.
No matter what you do to limit the customer losses, do not cut back on service. It’s better to let unprofitable clients go than to offer poor or lacking service. Letting a customer go effects you one time. Poor service can leave a much larger impact.
Your company almost certainly has some problem clients, but chances are you probably wouldn’t be able to come up with a list. By keeping track of your problem customers and taking appropriate action to mitigate them, you’ll be able to increase your profitability with a very low expenditure of effort.
The Customer’s Perspective
Carlton Hoyt
In most life science companies, marketing and product development work in somewhat close contact. Marketing (as well as sales) frequently relay customer needs to product development and help them to understand those needs and adopt a customer perspective. When it comes to their own craft, however, life science marketers often fail to follow their own advice and adopt that critical customer perspective. Instead, marketers tell the tale of their products, focusing on why the product is great rather than how it fulfills a need.
A while ago, we posted about the end of solution sales; how customers typically will be 60% of the way to completing their purchasing decision before ever contacting a supplier. This means that solution sales are becoming less effective. At 60% of the way through the buying journey, customers know what their problem is, what their needs are, and already have (at least superficially) evaluated a number of options. A sales rep who tries to work through all that all over again with the customer is wasting their time. However, earlier in the decision cycle the customer is far less certain about the nature of their need. In these early stages, customers generally seek information from colleagues or the internet (an unpublished BioBM study showed about 45% of scientists turn to colleagues first when considering a product and about the same number perform an internet search first). Marketers therefore need to engage in a sort of “solution marketing”, helping the customer to frame their own problem and needs and, in the process, showing how their products or services can fulfill those. Simply discussing your product’s technology, features, and benefits does not adequately do that job. Instead, marketers need to take on the perspective of the customer and frame their products and services around their needs.
To help guide you in creating customer-centric communications, ask yourself these questions:
⢠Does this communication ever address the customer? (with second-person language – “you” “your”)
⢠Did we clearly address the needs of the customer? Would our statement of this need still be valid if removed from the context of our product / service?
⢠What do we define first? The product / service or the customer’s problem that we are trying to solve?
⢠Did we clearly state how our product / service solves the problem? Do we offer specific solutions or simply general ones?
Product-centric marketing leaves a disconnect. The customer has a need, and the product provides a solution, but the customer is left on their own to decipher how (and how well) the product would meet their needs. Customer-centric marketing does that math for them by framing your product or service from the perspective of how it provides value and fills their needs. By adopting the viewpoint of the customer and creating customer-centric marketing communications, life science marketers can generate more demand.
Reduce the Risk in Buying
Carlton Hoyt
Life science marketers often hold many simultaneous viewpoints on why customers purchase products. Frequently, the attributed reasons include a hodgepodge of quality, price, ease of use, suitability for their application, adoption by others, various performance metrics and many other reasons that may be general or product-specific. All that gets a bit confusing, and is a bit over-defined if you ask me. I prefer to start from one attribute and then elucidate from there: life scientists make purchasing decisions based on risk.
Considering the scientist as a purchasing decision-maker, risk has two main components: financial and utility. Financial risk can be represented as price, although a more accurate representation is total cost of ownership (TCOO). If a product is very expensive, that makes the purchase more risky since there will be less resources to devote to other important endeavors and also since there are more sunk costs if the product doesn’t perform to the customer’s expectations. Utility risk pertains to the product ability to perform the functions that it is expected to by the customer. In other words, from a customer-centric standpoint: “In my particular application(s), how likely is this product to meet my expectations?”
The risk-based view can answer a question that leaves a lot of companies scratching their heads: why free samples are used so infrequently. It’s common for life science consumables companies, especially smaller companies, to give out free samples when a product is first launched in order to get people to try it. Most often, unless the brand is highly trusted, free samples fail their purpose and are left unused on the shelf. This is because giving away the product only serves to reduce one of the two main components of risk: financial risk. It does nothing to mitigate utility risk.
What life science tools and services companies should aim to do is reduce overall risk by lowering utility risk as much as possible such that financial risk does not need to be reduced and they therefore do not need to discount their product (or perhaps can raise the price on their product!) This gets to the heart of conveying value to the customer – that value should, as much as possible, be something that is experienced rather than something that is simply told. This becomes clear if you ask yourself: “What can we do to minimize utility risk?” Simply claiming that your product works would be pretty far down the list.
If you’re still not convinced, go out and ask a few scientists which of the following they would be more likely to purchase: 1) a product that claims to have better performance but you are unsure if it will work for you, or 2) a product that has lesser performance but you are certain it will work.
Performance metrics are undeniably important, and scientists have different reasons for purchasing different products. At the end of the day, the product with the lowest risk will be able to capture a greater market share than its competition.
Product-Unrelated Value
Carlton Hoyt
At BioBM, we often advocate that companies find ways to create what we call “product-unrelated value” (we first discussed it publicly in a blog post last month). Note that when we say product-unrelated, we don’t mean “has nothing to do with your product” but rather “is not intrinsically linked to your product”. Product-unrelated value should still be something that is relevant to your products, services, or market, but the delivery of value to the customer, as well as the realization of value by the customer, should be completely independent of purchase or use of your products. Product-unrelated value can build trust and strengthen your brand without requiring the user to have participated in the purchasing cycle. Still, many companies scoff at the notion of spending resources to develop value that isn’t intrinsically linked to a product.
It’s good to know that some of the top thinkers agree with our philosophy, though.
Bill Lee, the president of the Customer Reference Forum, Executive Director of the Summit on Customer Engagement, and frequent contributor to the HBR blog network, recently wrote: “It’s always a good idea to look for new ways to create value for customers. But focusing only on doing so through your product or service is entirely one-dimensional. The hard reality is that your product or service, however great it is â however much it helps your customers get a job done or provide an enjoyable experience â is likely just not that important to their lives in the grand scheme of things.”
Companies exist because they are able to provide value to their customers. Companies that cannot do so cease to exist. Life science tools companies, and indeed companies across all industries and sectors, need to realize that they need to focus on creating value for customers in more ways than just through their products. Those that argue that product-unrelated value doesn’t help their bottom line are being shortsighted. Product-unrelated value builds the critical trust and brand value that allows a company and a brand to succeed in the long-term. This is especially true with a highly skeptical audience such as scientists.
User Testing & Conversion
Carlton Hoyt
I did a small study earlier this week to compare prices across six major US life science distributors (you can read about it here). Because of that, I had occasion to go through those companies’ websites and look for products. All of these companies are, by industry standards, fairly large companies, and all of them sell online. For some of them, online sales is a very significant portion of their revenues. I would bet that for most it’s their fastest growing sales channel. Yet most had glaring problems in their website. One had search results that blinded the user with bright yellow highlighted terms all over the page. Another had a high percentage of products that were not identified by their model number. Yet another had an annoyingly persistent “featured product” box that showed up front and center in the search results but never had anything in it. There was a search that seemingly only used “OR” logic for every word in the term – the more terms you added, the less relevant the results became.
These are glaring errors that hurt user experience, and they could be easily identified if these companies did user testing. This is an important point, as anything that takes away from the experience of using your website decreases your competitiveness by driving users away from your website (and likely to your competitors websites).
For those who may not be familiar with it, user testing involves someone who is within your target demographic and recording their interaction with their website. You usually give them a generic task to perform on your site and they speak their thoughts as they perform the task. The output comprises a series of screencasts with voice recordings which are then analyzed to find problems with the user experience or more generally find things that users like and don’t like (there are other techniques and tools that can enhance the output as well).
User testing is very common in many markets, but seems to be relatively uncommon in the life sciences. That may, in no small part, be due to the inherent difficulty in getting a group of scientists to sit down and do a user test, but we find that to be more of an excuse than a reason. User testing may simply not be in the culture of life science marketing, contrasted to it being fairly prevalent in B2C markets. Whatever the reason that it isn’t used, there is no good reason that it shouldn’t be used.
Anything that adversely affects user experience will have a negative impact on the purpose of the website – be it lead generation, sales, or simply progressing users through the purchasing funnel. User testing, especially in conjunction with website analytics, can be a powerful tool to improve user experience and the overall performance of your life science company’s website.
Adapt to Your Customers
Carlton Hoyt
It’s no secret that traditional approaches to life science marketing are becoming less effective. Customer behavior is changing, and returns on advertising dollars are being hit hard. A recent Harvard Business Review article reaffirmed this point, stating:
[…] buyers are no longer paying much attention. Several studies have confirmed that in the “buyer’s decision journey,” traditional marketing communications just aren’t relevant. Buyers are checking out product and service information in their own way, often through the Internet, and often from sources outside the firm such as word-of-mouth or customer reviews.
The days of trying to tell your customers what to buy and why they should buy it are long gone. Replacing that paradigm must be one that respects the scientists’ freedom in their quest for information. Life science marketers must position themselves within the customers buying paths, not try to dictate the paths themselves. We must let the scientists make their own purchasing decisions and act as a courier rather than a candidate. However, in order to be an effective courier, your brand must be trusted by the customers.
How does a brand go about building trust? By providing value. For the purposes of this discussion we can segregate value into two categories: product-related value and product-unrelated value. Note that by related we don’t mean “having anything to do with” but rather “intrinsically linked to”. In this sense, product related value is something that by definition requires affiliation with the product. Examples could include technical or customer support, benefits realized by use of the product itself, or any communication of those benefits. Product-unrelated value is anything that can be completely removed from the context of your product while having its value to the scientist undiminished.
Product related value is somewhat of a catch-22. Unless a scientist has used your product or heard good things through word of mouth, there’s not much you as a marketer can do to build solid product-related value prior to a customer’s interaction with your company (and it’s difficult to get a customer to interact with your company prior to the building value for them). That leaves product-unrelated value.
How can we, as marketers of life science tools, provide value to scientists outside of manufacturing and delivering valuable life science tools? The answer is simple (even if the execution isn’t): look outside your core business. You may be a manufacturer or a service provider, but you need to find ways to deliver unique value that don’t intrinsically depend on your product or service. The most common way of doing so is by providing information and expertise (either novel or curated).
One of my favorite examples of delivering product-unrelated value is, ironically, within a product catalog. However, I’ve found it to be one of the most common product catalogs in life science laboratories specifically because of the product-unrelated value within it. It is the New England Biolabs “Catalog & Technical Reference”. Many molecular biologists keep this catalog – a CATALOG! – close at hand because of its very useful technical reference section with, as they put it, “up-to-date technical charts, protocols and troubleshooting tips to aid experimental design.” That technical reference acts as the courier and delivers their products alongside it. It makes the molecular biologists decision simple: New England Biolabs knows their stuff – after all, look at all these useful protocols and troubleshooting guides – so it’s reasonable to presume that they make quality products.
The combination of a leadership brand position and a courier / decision simplicity marketing style, along with quality products to back it up, is an incredibly powerful combination. The creation of such a combination by life science marketers will allow them to capture market share and, ultimately, dominate their segment.
End of Solution Sales
Carlton Hoyt
In our Marketing of Life Science Tools and Services group on LinkedIn, we recently discussed an article in the Harvard Business Review on “The End of Solution Sales.” While this is an excellent article and I suggest reading it, we’ll focus on one key finding: that “[…] customers completed, on average, nearly 60% of a typical purchasing decision â researching solutions, ranking options, setting requirements, benchmarking pricing, and so on â before even having a conversation with a supplier.” This is just the beginning, but it does highlight something of key importance for marketing that is not discussed in the article.
If 60% of the purchasing decision is concluded before interaction with sales, marketing needs take responsibility (and claim the opportunity) for satisfying customers’ self-driven quests for information.
As the default behavior of B2B consumers is changing to include more self-fulfilled quests for information, life science marketers must make the necessary information to drive their target audience’s purchasing decisions available. The ability to predict the information that will be necessary, as well as the downstream ability to shape content to the audience’s measured behavior, is of increasingly critical importance. Marketing campaigns need to be able to respond dynamically to collected data on prospect behavior if the appropriate content is to be delivered at the appropriate time. A content roadmap becomes an even more critical component of generating demand. These factors collectively drive the importance of performing market research / marketing research, developing a clear marketing strategy, and planning a content-driven campaign.
If B2B purchasing decisions are 60% made by the time a conversation w/ supplier occurs, this places more of a responsibility on life science marketers to shape opinion before that first conversation. More planning is required, however such planning will have an increasingly positive effect on marketing ROI. Furthermore, we can conclude that marketing campaigns driven primarily by awareness-generation efforts will continue to decrease in effectiveness.
Marketing & The Cost of Sales
Carlton Hoyt
Efficient life science sales operations require that opportunities are handed from marketing to sales at the correct point in the buying cycle. When there is a lack of proper marketing support, leads often get handed over to sales too early, creating situations where sales effort is wasted, leading to operational inefficiencies in sales. The symptoms caused by underdeveloped leads are usually three-fold:
- Sales conversion is low because of poor lead quality which is ultimately due to underdeveloped leads. This situation often leads to sales and marketing pointing fingers at each other.
- The sales cycle is prolonged, requiring more overall effort from sales and, therefore, increased costs
- Leads will go cold at a high rate
The opposite effect, where sales effort is insufficient or too much is left to marketing, is also possible. Recent research suggests that it may actually be common and also cause decreased conversion and wasted sales effort. Regardless, the method for diagnosis is similar.
If you are creating a lot of leads but not closing a lot of opportunities then you may be under-nurturing (or over-nurturing) your leads. Compare your marketing contact points to your content roadmap (you may need to design a content roadmap if you do not already have one). A content roadmap based on strategy and market research should provide a complete picture of the information requirements of your target audience. Like a blueprint for a house, the content roadmap will provide a framework for creating leads and, subsequently, nurturing your leads into qualified opportunities. Overlay that framework onto your current marketing campaign and ask: Are you delivering all of the necessary content? Is sales delivering content that marketing should deliver (or vice versa)? At this stage, the difference between what you are doing and what you should be doing should be clear.