The Pharma industry typically tends to be a good leading indicator for things about software and enterprise software in particular. So I was naturally inclined to read this piece on CNNFN about Pity the poor pharma sales rep.
Here is a synopsis:
“It’s hard out there for drug sales reps–particularly if they work in places where gaining access to doctors is becoming increasingly difficult.”
“Sales reps are facing massive layoffs and falling incomes as
commissions drop. Drug companies, meanwhile, are scrambling to come up
with new ways to get their medications in front of the doctors who
would prescribe them.”
“Increasingly, however, doctors are slamming the door on such visits.
Doctors who work in group practices don’t have the freedom they once
did to listen to sales pitches: They have to adhere to company policy,
which nowadays can bar sales reps from doctors’ offices. Compounding
the problem for sales reps are managed care policies that favor
low-cost generics over reps’ name-brand drugs.”
“Jennifer Norton Wilson, clinical pharmacist for Everett Clinic, said
the 250-physician group instituted a closed-door policy against drug
reps in 1998 out of concern for the increasingly aggressive tactics
that drug sales reps were using.”
“Kindler did not explain how the rep would win this coveted half-hour
with the doctor. But Joseph Tooley, analyst for A.G. Edwards &
Sons, said the best way for a rep to get a doctor’s attention is to
have a new product that’s demonstrated, through credible clinical
tests, to have an edge over its rivals.”
So lets review:
1. Sales reps use hard sell tactics – Same for software
2. Generics are preferred by many – Open source movement in software
3. Doctors are slamming their doors on pushy sales reps – Same for an enterprise sale rep
The one interesting thing is that new products that have demonstrated success and have a good product.
That is the easy part. But the other part is to get that information to doctors from other doctors.
That’s where you community comes in. Assuming you have a great product (big assumption) and your “problem” is getting the message about it to potential customers, the biggest champions would be your existing customers.
So if you are talking to the VP of Sales and want to get him to buy into online communities (especially if you are in an enterprise software company) the value of the community as a great door opener (based on the content and based on referrals from other customers) should be obvious.