A common mistake made by many Contract Research Organisations (CROs) and Contract Development and Manufacturing Organisations (CDMOs) is targeting the largest pharmaceutical companies in the world in hopes of landing a life-changing contract. While it’s understandable to want to work with industry giants like Pfizer and AstraZeneca, this strategy often backfires. Not only is the competition fierce, but these behemoth clients require immense resources that most CROs and CDMOs simply can’t provide.
Rather than chasing unicorns, CROs and CDMOs would be better served identifying their unique strengths and niching down. By specializing in a specific stage of drug development or manufacturing, these organizations can hone their expertise and consistently deliver excellent results for clients. This builds credibility and trust – key factors for winning new business.
Niching down also helps streamline the sales process. When a CRO or CDMO has a laser focus on ideal customers, they understand those customers’ needs and pain points intrinsically. This makes it easier to quickly articulate the value they provide and close deals faster. No time is wasted fishing in ponds where they don’t belong.
The key is identifying the “sweet spot” – the intersection of the organization’s greatest capabilities and skills with the needs of specific customer segments. This requires taking an honest look inward to determine what the CRO or CDMO does exceptionally well. What do they do better than anyone else? What unique value can they offer? The answers to these questions will reveal the niche.
From there, thought leadership content can be created to connect with and attract the right-fit clients. Case studies, whitepapers, and blog articles that demonstrate expertise in the niche provide social proof and position the organization as an authority. This content fuels the sales funnel by capturing the attention of ideal prospects.
Rather than chasing elusive mega contracts with massive pharmaceutical corporations, CROs and CDMOs should focus their efforts on their core competencies. Niching down allows them to cement their reputation, tightly align with customer needs, shorten sales cycles, and ensure they have the bandwidth to deliver. The result is an ability to carve out a profitable, specialized segment of the market.