Dear Colleagues! This is Asrar Qureshi’s Blog Post #1078 for Pharma Veterans. Pharma Veterans Blogs are published by Asrar Qureshi on its dedicated site https://pharmaveterans.com. Please email to pharmaveterans2017@gmail.com for publishing your contributions here.
Preamble
For decades, businesses have followed a simple yet effective formula: create a product, find customers, and persuade them to buy based on price, features, and perceived value. This traditional “product selling” playbook, while effective in stable markets, is increasingly being challenged by rapid technological advancements, shifting consumer expectations, and market disruptions. In today’s business environment, a purely transactional approach is no longer sustainable. Instead, companies must pivot towards value-driven, relationship-based, and solution-oriented models to stay competitive. My particular focus shall be on Pharma Industry where products are being floated in the market at wholesale rate. Where the targets, achievements, incentives, increments, promotions, everything is measured and rewarded on the basis of number of units of products sold.
Problems with Traditional Product Selling Approach
Commoditization and Price Wars
In an era where products can be easily copied, customers have more choices than ever before. This often leads to price-driven competition, where businesses engage in a race to the bottom rather than differentiating through real value. Generic pharmaceutical industry is the biggest example where one generic product cannot offer any advantage over the other generic products. The formulation is the same, packing is the same and even the approved price is the same. Discounts and bonuses are part of the price war which is raging in the industry.
Increasing Customer Expectations
Customers today expect more than just a product; they seek holistic solutions, personalized experiences, and ongoing support. They prioritize businesses that understand their needs and add value beyond the transaction. As we look at consumer products, this sentiment becomes quite clear.
For pharma industry, the customer expectations are less about products and more about the company services. To create the difference, pharma companies came up with innovative ideas in customer services which they now find difficult to manage.
Technological Disruption
Emerging technologies such as AI, automation, and digital platforms have transformed industries, shifting power to customers. The ability to deliver continuous innovation and adapt to real-time customer insights is more important than simply having a product to sell. We lose count of how many models of mobile phones are launched every month. Previously, it was about camera which started at 2 mega pixels and kept increasing in various brands and models till it crossed hundred mega pixels. iPhone is an exception which is still sticking to one model a year.
In the highly regulated pharma industry, disruption can only come from innovation in the drug or drug delivery. Both are not happening in the generic industry of Pakistan.
Subscription and Service-Based Models
Many industries have moved towards subscription-based and “as-a-service” models, where long-term relationships and continuous engagement matter more than one-time sales. Companies like Salesforce, Netflix, and Spotify thrive on customer retention and experience rather than individual product transactions. In fact, their survival depends on customer retention and customer growth.
Pharma industry has also experimented with such a model but in a different way. Several major pharmaceutical companies have given understanding to their top customers that they would take up all their services requirements in return for continuous prescriptions of their brand(s). Another form of subscription-based model is that the company would buy a large item, such as a car, on lease basis for the customer. The company would keep paying instalments as long as the prescriptions keep flowing. If the prescriptions stop, the instalment shall not be paid, and the leasing company may come and forfeit the item.
The Shift to Value-Driven Engagement
To thrive in today’s complex business environment, companies must move beyond selling products to creating value ecosystems. Here’s how:
Solution-Oriented Selling
Businesses must transition from offering standalone products to integrated solutions that solve customer pain points. For example, IBM no longer just sells software; it provides end-to-end AI-powered business solutions. Pharma companies, with their range of products, can offer packages for solution-oriented selling. In many cases, they may join hands with a third party to provide solutions. Oncology companies are already doing it by offering free diagnostic tests at a partnering lab and offering free goods with every purchase to reduce the burden on the patients.
Customer-Centric Strategies
Modern businesses must focus on understanding customer needs, behaviors, and challenges to offer tailored solutions. Companies like Amazon and Tesla use data-driven insights to personalize experiences and drive customer loyalty.
From pharma customer point of view, there are too many generic versions of every product, and it becomes well-nigh impossible to even remember names. The customer wishes to deal with few products and fewer generic companies, provided they come up with a package of products and services. The usual routine is that this question is asked from the customer, which products and services he/she would like to pick. This needs to change.
Service and Experience Over Transactions
Instead of a one-time sale, companies should build long-term relationships through exceptional service, continuous engagement, and value-added services. Apple’s ecosystem—spanning devices, software, and services—is a prime example. Apple certainly has no parallel to their ecosystem. Others see it but have not been able to copy it so far.
Pharma industry has great opportunity of providing service to customers and their patients. They can collect clinical experience in a more formal way also to
Co-Creation and Collaboration
Forward-thinking companies involve customers in the innovation process, leveraging feedback and insights to refine offerings. This not only enhances customer satisfaction but also creates brand advocates and community-driven loyalty. Pharma companies used to do focus groups to know from customers what they were looking for. However, this process stopped long time ago, and even in the name of focus groups, there is an effort to promote the products.
Sum Up
The era of product-centric selling is fading. In today’s disrupted, highly competitive environment, businesses must evolve into solution providers, customer experience architects, and long-term value creators. Companies that adopt this shift will not only survive but thrive, while those clinging to outdated transactional models risk being left behind. The future belongs to those who understand that selling a product is just the beginning—delivering value is the true differentiator.
Concluded.
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For most blogs, I research from several sources which are open to public. Their links are mentioned under references. There is no intent to infringe upon anyone’s copyrights. If, however, it happens unintentionally, I offer my sincere regrets.
