A Pharmaceutical Giant Achieved Highest ROI for Promotional Efforts Worth $150 Million Using a Customer Segmentation Application






Customer Segmentation Application

  • Clearly defined intuitive segments, using which promotional effort of $150 Million was allocated to achieve highest ROI
  • Enabled optimal spend on effort to top 35,000 physicians
  • Removed wasted effort spent on ‘no-see’ physicians
  • Enabled new prescribers to be added to segmentation
  • The drug achieved sales of over $1 Billion

The company was launching a new drug that could potentially be prescribed by up to 400,000 physicians. Since targeting all physicians would cost thrice the allotted budget, there was a need to come up with a solution that would recommend which physicians to target, and how valuable they were.

An exhaustive process was followed to build the tool. This included:

  • Factor Analysis of specialties, referrals, value, potential, etc.
  • Model Building iterated over several algorithms like K-means clustering, hierarchical clustering, etc. to build a combination of rule-based and clustering algorithms
  • Segment validation using test and control groups. The solution was refined based on feedback.


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