Market Segmentation: Where are you headed?

Every company has an inherent wish to grow. 

Some grow organically, by doing what they do well, building a reputation, and having repeat customers. Some grow by bringing in the right talent recruiter who hires The Best in Class, and then attract new business with their Subject Matter Experts. Some grow by acquiring other companies. In any scenario, LeadGeneration and Inside Sales (LGIS) remains a critical piece to achieve success.

There are Best Practices related to LGIS that I have observed over the last 6 years in the Contract Research Organization space. I have worked LGIS at three small to mid sized multinational CROs, and before then as an Account Manager at Global CRO that grew from 150 employees when I started to >16,000 today.

Brand Identification as a critical piece to organizational growth. Identifying those key targets on which to focus, and naming what makes those targets ideal is the next step. 

Markets are huge. Identifying key targets will distill the market, and allow for keen focus on the right targets. Don’t knock at every door unless you have a heart for rejection. Instead, narrow the focus and attract leads to your best company attributes.

Expertise

In the CRO model, therapeutic focus and experience are important factors in Sponsor selection. Often times, deals don’t close because of these two factors. It is important to clearly define the company’s best strengths. The first step is to review all of the work that the company has done, then define key focus areas. This may be therapeutic areas for CROs, or it may be particular building models in the case of construction.

Key Questions may include:

• What experience and resources are my strongest and most compelling?
• Am I at the cutting edge with my Data Stack, and how do I leverage that?
• How does the SWOT analysis the company has done drive decisions?

Funding

In the service industry, funding is critical. It is not unusual to have a company built around one compound/idea. The founders are hustling to get funding from a variety of sources including investor conferences, private angel funding, and institutional funding.

Use the best resources you have available to research funding activity, but if that proves slow or without results, here are some suggested questions to ask:

• How is the work being funded? What are the expectations and/or contingencies?
• What collaborations or partnerships are you relying on?
• What commitments have been made to the investors or BOD relative to your development timelines?
• Many times, there are constraints placed on the outsourcing and contracting processes; are there such constraints or considerations to be aware?

Timelines

The finance team will always want to know when to expect revenue. Project delays are common for reasons which may include funding (see above), manufacturing delays, product shortage, political climate or other issues. Consider the following questions that may assist this process:

• What commitments have been made to the investors or BOD relative to your development timelines?
• What is your pathway to advance the product from its current position?
• Specific to this product, what are the critical milestones for the organization and the investors? (hurdles, plan, accountable & timing)
• Are there any regulatory hurdles to completing the work? What is the regulatory pathway?
• Have you had delays in previous programs? What caused the delays?
• What is the timeline associated with your outsourcing activities?

Preference

One of the most important questions to ask a potential partner is, “Who is your best match?” And more importantly, how and by whom will be the final decision be made. I observed a very difficult loss a couple of years ago when my company was the #1b...at the end of the day, the #1a company won the work. The Sponsor liked both of us, but at the end of the day, still took the L.

Know the whole team and make sure to ask the right questions.

• Describe your company culture? What is most important to your organization? 
• What is your experience with outsourcing providers? Who were some of your favorites, and why?
• How will you and your team be measured on performance?
• What are the top 3 attributes that you are looking for in a service provider?

It is tough to grow a small business. However, appropriately targeting the right potential customer base and holding to your truth will allow your group to grow.

Kristi Walke leads an Inside Sales team for a multinational Contract Research Organization. She lives in Union, KY with her husband Lee and three children, ages 17, 16, and 14. This article is the second installment of an 8 part series about Best Practices in Inside Sales and LeadGen.