Why Does Life Sciences Pay More for CRM?Debunking the misconceptions of mobile SaaS applications for the life sciences industry
In most companies, a significant portion of the budget is allocated to Sales and Marketing, with sometimes millions of dollars going towards CRM software solutions. What’s interesting is that, compared to other industries, life sciences companies pay significantly more for mobile SaaS applications —often more than double.
Why is that?
Conventional wisdom states that the life sciences industry has unique processes and requirements that justify these high costs. However, in reality, there aren’t any obvious technical, regulatory or commercial reason to warrant such a large cost differential.
While there are certainly differences across industries, CRM systems fulfill essentially the same purpose: they allow reps to analyze data, conduct field visits, record activities, and educate and sell products. In general, processes, configurability, and integrations do not change.
Let’s look at the most common reasons for charging twice as much for, what is fundamentally, the exact same application.
#1: Life Sciences CRM Systems are Complex
True, but it’s important to note that life sciences systems aren’t any more complex than those in other industries. For instance, consumer goods systems need to handle hundreds or thousands of SKUs, multiple languages and different currencies, as well as perform complicated algorithms for discounting.
#2: Pharma Companies Need to Manage a Large Amount of Data
The amount of data handled by life sciences CRMs is relatively light when compared to the financial services industry where account records can contain millions of transactions or the consumer goods industry, which have to deal with many more data points on every call.
#3: Industry Regulations Increase Costs
Configuring systems to comply with regulations can add costs, but the regulatory rules for life sciences have been quite stable for some time and have been already built into current systems. Again, other industries, such as financial services, are also highly regulated, but those solutions are still significantly less expensive.
#4: Life Sciences Companies Expect Premium Services
What industry doesn’t expect quality service? Life sciences companies have been led to believe that, in order to receive premium service, they need to invest in “on shore” US-based services, and pay top dollar. However, “off shore” services have proven that it is possible to enjoy the same high quality, but at much lower costs.
So what’s the prescription?
With increased pressure to control and cut costs, accepting the status quo is no longer an option. CRM systems are essential– but they don’t have to be budget-breaking. StayinFront provides life sciences companies with a proven, cost-effective option. With over 20 years of global experience, StayinFront can deliver affordable SaaS solutions and services that enable reps to do more in the field, know more about their customers, and engage and sell customer more effectively.
Check out our infographic on “Why Does Life Sciences Pay More for CRM?” here.