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Across Health Multichannel Barometer 2014

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Across Health 2014 Multichannel Barometer survey shows Pharma’s painful progress towards digital productivity. …

Across Health 2014 Multichannel Barometer survey shows Pharma’s painful progress towards digital productivity.
The 2014 Multichannel Barometer survey from Across Health paints a picture of a Life Sciences industry still struggling to come to terms with the realities of multichannel marketing.
The survey, now in its sixth year, shows digital spend plateauing compared with 2013 (15.6% vs 16% of total marketing budgets). This is in stark contrast to other industries, where spending on multichannel initiatives is already well over 20% and set to increase by 10% in 2014.


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  • 1. 01 02 03 04 05 Across Health is pleased to present you with the state of the multichannel landscape in life sciences in Europe, US and emerging markets – for the sixth year already. Find out whether multichannel has reached its full potential in life sciences or not… yet! Click for preface by CEO Fonny Schenck KEY SURVEY STATISTICS EXECUTIVE SUMMARY ADOPTION OF MULTICHANNEL KEY CHALLENGES FUTURE OF DIGITAL LIFE SCIENCES
  • 2. 01 02 03 04 05 10/06/14 Across Health Multichannel Barometer 2014 2 302 LIFE SCIENCES LEADERS COMPLETED THE BAROMETER, MAKING IT THE LARGEST OF ITS KIND. WHAT ARE THE KEY DYNAMICS? SATISFACTION, CHANNEL USE, HURDLES AND BUDGET TRENDS. BUDGETS PLATEAU AT A LOW LEVEL; MIX OPTIMIZATION AND CUSTOMER ANALYTICS REMAIN AN ISSUE. LEGAL-REGULATORY ISSUES REMAIN THE KEY HURDLE, BUT ROI AND LACK OF KNOWLEDGE MOVE UP. MOBILE & CROSS-CHANNEL ON THE INCREASE… SEVERAL HIGH-IMPACT CHANNELS REMAIN UNDERUSED. Preface Last year, we saw satisfaction, knowledge and spend levels in multichannel plateauing and suggested that pharma was entering the trough of disillusionment, as defined by Gartner. This hypothesis is confirmed by this year’s results... overall, satisfaction levels are down vs 2013, and the importance of ROI evidence and internal skills is rising. In addition, there is a clear mismatch between what respondents feel is very impactful vs what they do. Most strikingly, digital spend is plateauing vs last year, from 16 to 15.6% of marketing spend... while other industries are already over 20% and intend to up that by 10% or more in 2014. Setting up the right organization (companywide strategy, processes & technology, organization...), focusing on the right set of multichannel tactics, rolling them out at scale and measuring for performance are key steps to move beyond the trough of disillusionment. We are seeing an increasing focus on such strategic efforts – maybe 2015 will be the first year of the“plateau of productivity”... and 2014 the last year of the long fuse?   Fonny Schenck Managing Partner, Across Group CEO, Across Health KEY SURVEY STATISTICS EXECUTIVE SUMMARY ADOPTION OF MULTICHANNEL KEY CHALLENGES FUTURE OF DIGITAL 2011 2012 2013 2014 2015? The long fuse?
  • 3. 01 10/06/14 Across Health Multichannel Barometer 2014 3 Key survey statistics 302 RESPONDENTS FROM 100 LIFE SCIENCE COMPANIES COMPLETED THE ONLINE SURVEY BETWEEN FEB. 25 AND APRIL 3, 2014 PHARMA RESPONDENTS MAKE UP THE BULK GLOBAL SPREAD, BUT MOST RESPONDENTS FROM EUROPE ONE THIRD HAVE INTERNATIONAL ROLE MOST FUNCTIONS IN MARKETING & DIGITAL
  • 4. 01Key survey statistics 1% 2% 5% 92% Other OTC Medical devices Pharmaceutical Pharma respondents make up the bulk of the participants* 10/06/14 Across Health Multichannel Barometer 2014 4 KEY STATISTICS
  • 5. 01Key survey statistics 4% 5% 6% 8% 9% 68% Other Japan China Latin-America US Europe Most respondents come from the European region* 10/06/14 Across Health Multichannel Barometer 2014 5 KEY STATISTICS
  • 6. 01Key survey statistics 69% work at National / local level, while 31% have an international role* 10/06/14 Across Health Multichannel Barometer 2014 6 KEY STATISTICS National/local 69% Regional 18% Global 13%
  • 7. 01Key survey statistics Functional Spread 10/06/14 Across Health Multichannel Barometer 2014 7 KEY STATISTICS 7% 2% 3% 5% 6% 11% 21% 44% Other IT Marketing Research Medical CRM Sales Digital Marketing
  • 8. 02 LEGAL-REGULATORY ISSUES REMAIN THE TOP HURDLE, ROI & LACK OF KNOWLEDGE RISING FAST WEBSITES ARE MOST POPULAR TACTIC, CROSS-CHANNEL AND MOBILE RISING FAST SATISFACTION LEVELS REMAIN BELOW 20% MULTICHANNEL BUDGETS HAVE PLATEAUED 10/06/14 Across Health Multichannel Barometer 2014 8 Executive summary
  • 9. 02 Websites remain the top digital tactic. Tablet detailing is a strong second, and mobile and multichannel are rising quickly. In terms of impact vs use, there is clearly a mismatch, with several high-impact tactics just being piloted, while highly-used tactics receive a medium impact score. Executive summary REGULATORY ISSUES REMAIN TOP HURDLE, ROI & LACK OF KNOWLEDGE ARE RISING WEBSITES ARE MOST POPULAR TACTIC, CROSS-CHANNEL AND MOBILE RISING FAST SATISFACTION LEVELS REMAIN BELOW 20% MULTICHANNEL BUDGETS HAVE PLATEAUED The top 4 bottlenecks for success are regulatory/legal/ compliance issues, lack of digital strategy, ROI, and lack of internal knowledge. The latter two continue to rise fast. Multichannel budgets seem to have plateaued – at least for now. Pharma continues to underspend on digital vs other industries and vs customer needs…as business pressures increase, we expect a strong growth in the next few years. Satisfaction with multichannel edges higher in 2014 – but is still below 20%...although respondents continue to believe that their multichannel HCP efforts are on par with the competition…perhaps nobody is doing it really well? 10/06/14 Across Health Multichannel Barometer 2014 9 Full infograph
  • 10. 02 Executive summary 10/06/14 Across Health Multichannel Barometer 2014 10
  • 11. 03 DO WE STILL HAVE INSUFFICIENT KNOWLEDGE & SKILLS IN DIGITAL? IN THE MIX: WHAT IS HOT? & WHAT IS NOT? WE CAN’T GET NO SATISFACTION? 10/06/14 Across Health Multichannel Barometer 2014 11 Current adoption of multichannel
  • 12. 03 Current adoption of multichannel STRATEGY, PEOPLE, SKILLS: ROOM FOR IMPROVEMENT! SEVERAL HIGH-IMPACT CHANNELS ARE UNDERUSED RESPONDENTS DO NOT FEEL VERY CONFIDENT •  Around 60% of respondents has a multichannel brand/ company strategy in place, but only around 25% of those consider it well executed (ie, 15% of all respondents)… •  More than 60% have a local and/or international team in place; but less than 50% of those feel it is very effective – local teams score significantly better than international ones •  Multichannel skill sets continue to be low – and are even lower vs 2009 (45% vs 37% with at least sufficient knowledge) •  Confidence in reaching patients & payers is even lower, and for patients too, confidence levels are dropping (Europe)... this correlates well with the limited use of high-impact patient channels (adherence, monitoring) •  As last year, multichannel initiatives targeted at HCPs are considered more competitive vs other customer groups....but only 24% feels this way...and in Europe, confidence is dropping. As in most other overviews, emerging markets score higher, but that may be due to the earlier stage of adoption (“hype” phase) •  Pilot focus continues to be on cross-channel & mobile mkt, while also patient adherence is rising through the ranks •  There is also limited use of third-party marketing & education opportunities (“fish where the fish are”) – less than 50% have included such channels so far. •  Pharma-owned websites still remain the most popular tactic, followed closely by tablet detailing. Mobile marketing is picking up, along with cross- channel •  Focused patient tactics are just emerging, with patient adherence tools scoring 26% standard use (quantified, self, social media and remote monitoring scoring much lower) •  Interestingly, the most used tactics are not always seen as the most effective… there is only 1 tactic in the high use/ impact box, and highly effective tactics like multichannel and patient tools are hardly used. 10/06/14 Across Health Multichannel Barometer 2014 12
  • 13. 03Current adoption of multichannel 20% 56% 24% We have one, but its validity is questioned We have one, but it is not implemented with rigour We have one, and it is well executed Most companies have issues with execution of their company-wide digital strategy or have not implemented one at all… 10/06/14 Across Health Multichannel Barometer 2014 13 Do you have a company-wide digital strategy in place (i.e. across all brands & functions)? copyright © Across Health, 2014 57%   41%   2   No No  need   Yes
  • 14. 03Current adoption of multichannel 26% 47% 27% We have one, but its validity is questioned We have one, but it is not implemented with rigour We have one, and it is well executed No 62%   36%   2   …the result is similar for digital brand strategies 10/06/14 Across Health Multichannel Barometer 2014 14 How robust is your digital brand strategy today (i.e. at the brand level – NOT the company level)? copyright © Across Health, 2014 Don’t have one We have one No  need  
  • 15. 03Current adoption of multichannel 77%   16%   8%   Yes Don’t  know   Not  sure   No 25% 56% 19% Yes, just being created Yes, but the impact is low Yes, and it is highly effective Most organizations have dedicated digital teams at international level but their effectiveness is questioned… 10/06/14 Across Health Multichannel Barometer 2014 15 Do you have a central digital team at the INTERNATIONAL level? copyright © Across Health, 2014
  • 16. 03Current adoption of multichannel 21% 39% 40% Yes, just being created Yes, but the impact is low Yes, and it is highly effective …while digital teams at local level are seen as more effective 10/06/14 Across Health Multichannel Barometer 2014 16 Do you have a central digital team at the LOCAL level? copyright © Across Health, 2014 67%   29%   4%   No Yes Don’t  know   Not  sure  
  • 17. 03Current adoption of multichannel The level of internal expertise is dropping again – and arguably has not moved ahead since 2009 10/06/14 Across Health Multichannel Barometer 2014 17 Do you feel that you have sufficient knowledge of all opportunities offered by the internet for your business activities? KEY CHALLENGES Note: 2009-2011 data EMEA only 4% 4% 2% 1% 2% 4% 24% 20% 24% 18% 16% 21% 27% 31% 42% 44% 36% 38% 31% 34% 21% 30% 34% 25% 14% 10% 10% 8% 12% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2009 2010 2011 2012 2013 2014 Totally insufficient Insufficient Between sufficient and insufficient Sufficient More than sufficient (expert) copyright © Across Health, 2014
  • 18. 03Current adoption of multichannel 80% 71% 62% 61% 59% 48% 46% 42% 41% 34% 33% 29% 26% 25% 23% 21% 20% 18% 11% 11% 11% 9% 8% 8% 7% 5% 11% 14% 21% 13% 17% 34% 33% 32% 22% 41% 25% 22% 36% 40% 28% 34% 35% 31% 12% 28% 18% 16% 22% 12% 19% 21% 4% 9% 11% 19% 16% 15% 16% 19% 26% 21% 30% 38% 25% 25% 40% 39% 39% 43% 54% 48% 60% 59% 47% 61% 54% 57% 5% 6% 6% 8% 9% 3% 5% 7% 11% 4% 12% 11% 12% 10% 9% 6% 6% 9% 23% 13% 11% 16% 23% 20% 20% 17% Pharma-owned website* Tablet eDetailing Email marketing Direct marketing Web Banners Web conference or virtual meeting Online medical education HCP self-service portal SEO Mobile marketing SEA Outbound call centre Patient adherence tools Integrated cross-channel campaigns Virtual eDetailing Social media marketing Social media monitoring eRep e-sampling e-MSL Mobile advertising e- or PHR** ad & promo services Marketing automation software ePrescribing advertising & promo services Quantified self / self-tracking devices Remote patient monitoring Standard practice Pilot planned or ongoing Never Do not know / not applicable Websites still remain the most popular tactic, followed closely by tablet detailing. Mobile marketing is picking up, along with cross-channel 10/06/14 Across Health Multichannel Barometer 2014 18 CURRENT ADOPTION*Company, product, or disease website. **electronic or personal health record. copyright © Across Health, 2014
  • 19. 03Current adoption of multichannel 80% 72% 63% 60% 59% 48% 48% 43% 41% 35% 33% 30% 25% 25% 22% 22% 21% 17% 11% 11% 10% 9% 8% 8% 8% 6% 11% 13% 21% 12% 17% 34% 33% 32% 23% 41% 26% 20% 41% 38% 34% 28% 36% 31% 29% 18% 16% 11% 20% 12% 20% 21% 4% 9% 10% 20% 15% 14% 14% 19% 25% 20% 30% 39% 23% 24% 39% 41% 38% 43% 47% 59% 59% 55% 47% 60% 52% 56% 5% 6% 5% 8% 9% 3% 5% 6% 11% 4% 12% 11% 10% 13% 5% 9% 6% 9% 13% 12% 16% 25% 24% 20% 20% 17% Pharma-owned website* Tablet eDetailing Email marketing Direct marketing Web Banners Web conference or virtual meeting Online medical education HCP self-service portal SEO Mobile marketing SEA Outbound call centre Integrated cross-channel campaigns Patient adherence tools Social media marketing Virtual eDetailing Social media monitoring eRep e-MSL Mobile advertising e- or PHR** ad & promo services e-sampling Marketing automation software ePrescribing advertising & promo services Quantified self / self-tracking devices Remote patient monitoring Standard practice Pilot planned or ongoing Never Do not know / not applicable Top tactics used in: Europe 10/06/14 Across Health Multichannel Barometer 2014 19 *Company, product, or disease website. **electronic or personal health record. copyright © Across Health, 2014
  • 20. 03Current adoption of multichannel Top tactics used in: United States 10/06/14 Across Health Multichannel Barometer 2014 20 CURRENT ADOPTION 86% 66% 61% 61% 61% 55% 45% 41% 39% 36% 34% 32% 30% 27% 27% 27% 20% 20% 16% 16% 14% 11% 11% 11% 11% 2 2% 16% 20% 14% 14% 25% 18% 36% 27% 16% 39% 36% 36% 30% 23% 16% 39% 32% 27% 25% 25% 50% 18% 16% 16% 23% 2% 11% 14% 18% 14% 7% 23% 20% 25% 32% 23% 23% 23% 34% 39% 39% 36% 41% 50% 30% 43% 34% 59% 64% 52% 59% 9% 7% 5% 7% 11% 14% 14% 2% 9% 16% 5% 9% 11% 9% 11% 18% 5% 7% 7% 30% 18% 5% 11% 9% 20% 16% Pharma-owned website* Web Banners Tablet eDetailing Direct marketing SEO Email marketing SEA Web conference or virtual meeting Online medical education Outbound call centre Mobile marketing HCP self-service portal Integrated cross-channel campaigns Patient adherence tools Virtual eDetailing e-sampling Social media monitoring eRep Mobile advertising Marketing automation software Quantified self / self-tracking devices Social media marketing e-MSL e- or PHR** ad & promo services ePrescribing advertising & promo services Remote patient monitoring Standard practice Pilot planned or ongoing Never Do not know / not applicable *Company, product, or disease website. **electronic or personal health record. copyright © Across Health, 2014
  • 21. 03Current adoption of multichannel 82% 71% 71% 59% 59% 53% 47% 47% 41% 29% 29% 29% 29% 29% 24% 18% 18% 18% 12% 6% 6% 6% 6% 6% 24% 12% 29% 29% 18% 41% 29% 47% 47% 41% 35% 35% 29% 41% 71% 18% 6% 24% 24% 24% 12% 12% 18% 18% 12% 6% 6% 18% 12% 12% 24% 12% 18% 12% 18% 18% 29% 24% 35% 29% 6% 53% 65% 59% 59% 59% 65% 59% 65% 53% 71% 6% 6% 6% 6% 12% 6% 12% 6% 6% 6% 12% 12% 6% 12% 12% 18% 24% 18% 29% 18% Pharma-owned website* Tablet eDetailing Web Banners Web conference or virtual meeting Email marketing Direct marketing HCP self-service portal SEO Online medical education Integrated cross-channel campaigns SEA Outbound call centre Patient adherence tools Virtual eDetailing Social media monitoring Mobile marketing Social media marketing Mobile advertising eRep Marketing automation software e-MSL ePrescribing advertising & promo services e- or PHR** ad & promo services Quantified self / self-tracking devices e-sampling Remote patient monitoring Standard practice Pilot planned or ongoing Never Do not know / not applicable Top tactics used in: Emerging countries 10/06/14 Across Health Multichannel Barometer 2014 21 CURRENT ADOPTION *Company, product, or disease website. **electronic or personal health record. copyright © Across Health, 2014 Emerging: Brazil, China, Colombia, Hungary, Mexico, Poland, Russian Federation, South Africa, Turkey, Uruguay
  • 22. 03Current adoption of multichannel 11%   11%   12%   12%   13%   16%   17%   18%   20%   20%   20%   21%   21%   23%   26%   28%   29%   31%   32%   33%   34%   34%   36%   38%   41%   41%   0%   5%   10%   15%   20%   25%   30%   35%   40%   45%   e-Sampling Pharma-owned website* Direct Marketing ePrescribing advertising Tablet eDetailing personal health records advertising Web banners Mobile Advertising Outbound Call Center Quantified self / self-tracking devices Marketing automation software Remote patient monitoring eMail marketing SEO SEA Virtual eDetailing eMSL eRep HCP self-service portal Online MedEd Social media marketing Web conference Social media monitoring Patient compliance/adherence Mobile marketing Integrated cross-channel campaigns In Europe Integrated cross-channel is the top piloted initiative along with mobile marketing while patient adherence is picking up from last year. Online MedEd, Web conferences and HCP self- service portals are moving up too. 10/06/14 Across Health Multichannel Barometer 2014 22 Pilot planned or ongoing *Company, product, or disease website. copyright © Across Health, 2014 5% -1% -7% -7% 6% -8% 8% 5% 3% -4% 4% -3% -5% -6% = % change since 2013 Increase Decrease No change= Tactic added in 2014 -2% -6% -8% -2% =
  • 23. 03Current adoption of multichannel 27% 25% 21% 14% 16% 48% 47% 48% 27% 30% 25% 25% 27% 49% 44% 3 4 9% 9% EPG Mdlinx Docguide Medscape Elsevier Poor Neutral Good Excellent Third-party offerings are less often used. Medscape and Elsevier are leading the pack. 10/06/14 Across Health Multichannel Barometer 2014 23 How would you rate the value for money of the following third-party digital channels to communicate with your physicians? copyright © Across Health, 2014 78%   75%   72%   49%   48%   22%   25%   28%   51%   52%   Never  used  it   Used  it   Have you worked with these third parties?
  • 24. 03Current adoption of multichannel Integrated cross-channel campaigns score the highest impact in all regions along with e- MSL and patient adherence tools yet they are all under utilized by pharma 10/06/14 Across Health Multichannel Barometer 2014 24 Impact scale from 0 (not impactful) to 10 (very impactful) *Company, product, or disease website. **electronic or personal health record. *** Weighted Impact score based on results from previous question “How impactful do you feel these channels are?” **** Adoption is based on % of respondents who answered (Standard practice) to “How often do you use the following multichannel Marketing tools TODAY?” •  Integrated cross-channel campaigns •  Patient adherence tools •  e-MSL •  Remote patient monitoring •  Web conf/virtual meeting •  Online MedEd •  SEO •  HCP self-service portal •  Mobile MKT •  SEA Adoption**** Perceivedimpact*** 10 0 0% 100%copyright © Across Health, 2014 •  Tablet eDetailing •  Pharma-owned website* •  Email MKT •  Web Banners •  Direct MKT 4 •  e/PHR** promotion •  e-sampling •  MKT automation •  ePrescribing promo •  Quantified self •  Call centre •  Social media MKT •  Virtual eDetailing •  SM monitoring •  eRep •  Mobile Ad 6 30% 60% Global
  • 25. 03Current adoption of multichannel Respondents are most confident in use of multichannel initiatives towards HCPs and least towards payors… 10/06/14 Across Health Multichannel Barometer 2014 25 How would you rank your company versus your competitors in using digital initiatives targeted at stakeholders? copyright © Across Health, 2014 35% 53% 64% 41% 32% 28% 24% 15% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HCPs Consumers/patients Payors Behind Equal Ahead
  • 26. 03Current adoption of multichannel 2% 11% 0% 8% 7% 12% 25% 34% 18% 41% 32% 24% 21% 14% 41% 3% 2% 6% Europe US Emerging No opinion Far behind Behind Average Ahead Far ahead …with the emerging markets showing most confidence 10/06/14 Across Health Multichannel Barometer 2014 26 How would you rank your company versus your competitors in using digital initiatives targeted at healthcare professionals? HCPs Emerging: Brazil, China, Colombia, Hungary, Mexico, Poland, Russian Federation, South Africa, Turkey, Uruguay 24% 47% 16% copyright © Across Health, 2014
  • 27. 03Current adoption of multichannel 0% 10% 20% 30% 40% 50% 60% 70% 2009 2010 2011 2012 2013 2014 Behind Equal Ahead HCPs …while a drop in confidence occurred in Europe vs. 2013 10/06/14 Across Health Multichannel Barometer 2014 27 CURRENT ADOPTION How would you rank your company versus your competitors in using digital initiatives targeted at healthcare professionals? copyright © Across Health, 2014
  • 28. 03Current adoption of multichannel 3% 9% 12% 17% 9% 18% 34% 27% 29% 32% 36% 18% 11% 11% 18% 3% 7% 6% Europe US Emerging No opinion Far behind Behind Average Ahead Far ahead Emerging markets also declare the greatest confidence in initiatives towards consumers/patients 10/06/14 Across Health Multichannel Barometer 2014 28 How would you rank your company versus your competitors in using digital initiatives targeted at consumers/patients? 14% 18% CURRENT ADOPTION Consumers/patients 24% copyright © Across Health, 2014 Emerging: Brazil, China, Colombia, Hungary, Mexico, Poland, Russian Federation, South Africa, Turkey, Uruguay
  • 29. 03Current adoption of multichannel 3% 12% 24% 44% 17% 1% 0 1 2 3 4 5 Overall, only 18% are satisfied with their current digital activities 10/06/14 Across Health Multichannel Barometer 2014 29 Extremely Satisfied Extremely Dissatisfied 18% CURRENT ADOPTION On a scale from 0 to 5, how satisfied are you with your current digital activities? copyright © Across Health, 2014
  • 30. 03Current adoption of multichannel 38% 43% 29% 44% 41% 47% 19% 16% 24% Europe US Emerging Dissatisfied Neutral Satisfied As last year, satisfaction rates were highest in emerging markets and lowest in US… 10/06/14 Across Health Multichannel Barometer 2014 30 CURRENT ADOPTION On a scale from 0 to 5, how satisfied are you with your current digital activities? copyright © Across Health, 2014 Emerging: Brazil, China, Colombia, Hungary, Mexico, Poland, Russian Federation, South Africa, Turkey, Uruguay
  • 31. 03Current adoption of multichannel 0%   10%   20%   30%   40%   50%   60%   2009   2010   2011   2012   2013   2014   Dissatisfied Neutral Satisfied …in Europe, satisfaction rates edged up slightly (but still less than 20%!!) 10/06/14 Across Health Multichannel Barometer 2014 31 On a scale from 0 to 5, how satisfied are you with your current digital activities? copyright © Across Health, 2014
  • 32. 04 What are the key challenges in applying multichannel? 10/06/14 Across Health Multichannel Barometer 2014 32 KEY HURDLES ROI KNOWLEDGE
  • 33. 04 Key challenges 10/06/14 Across Health Multichannel Barometer 2014 33 KEY HURDLES ROI KNOWLEDGE •  As last year, regulatory, legal, and compliance issues, ROI, and lack of digital strategy remain the main challenges globally. •  In emerging markets, regulatory, legal, and compliance issues are by far the main concern (as opposed to ROI last year). In Europe, ROI issues are almost as important as regulatory concerns and in the US, the most advanced multichannel market, ROI has taken the top spot. •  Overall, ROI concerns and lack of internal knowledge have increased the most since 2010. Interestingly, also lack of management support is going up (perhaps they have been disappointed by the business impact of the current programs) •  Interestingly, only about 33% of respondents feel they have a poor understanding of ROI...so the framework is there...but the results are underwhelming?
  • 34. 04Key challenges 3% 4% 4% 10% 12% 12% 18% 28% 31% 36% 42% N/A Other No expert agencies with pharma background available Customers are not ready No budget No headcount to support this No senior management support Not enough internal knowledge No clear digital strategy ROI questions Regulatory / legal / healthcare compliance issues Regulatory, legal and compliance issues remain the top bottlenecks, followed by ROI questions and unclear multichannel strategy 10/06/14 Across Health Multichannel Barometer 2014 34 KEY CHALLENGES % of respondents indicating options as one of the top two main bottlenecks for digital in their organization. copyright © Across Health, 2014
  • 35. 04Key challenges 0% 10% 20% 30% 40% 50% 60% 70% Regulatory / legal / healthcare compliance issues ROI questions No clear digital strategy Not enough internal knowledge No senior management support Europe US Emerging Regulatory, legal and compliance issues are the largest bottlenecks in emerging countries and Europe, while US is mostly challenged by ROI questions 10/06/14 Across Health Multichannel Barometer 2014 35 KEY CHALLENGES % of respondents indicating options as one of the top two main bottlenecks for digital in their organization.copyright © Across Health, 2014 Emerging: Brazil, China, Colombia, Hungary, Mexico, Poland, Russian Federation, South Africa, Turkey, Uruguay
  • 36. 04Key challenges 6% 14% 16% 19% 28% 40% 51% 52% 61% No expert agencies with pharma background available Customers are not ready No budget No headcount to support this No senior management support Not enough internal knowledge in this area No clear eBusiness strategy ROI questions Regulatory or legal issues In Europe, ROI questions, lack of strategy and internal knowledge are rising in importance vs 2010…and even lack of senior support is on the increase. 10/06/14 Across Health Multichannel Barometer 2014 36 KEY CHALLENGES % of respondents indicating main bottlenecks for digital in their organization. * 2013 and 2014 data has been adjusted for comparability to previous years copyright © Across Health, 2014 % change since 2010 High increase Low increase Decrease -2% 5% 1% -2% 10% 15% 6% 11% 4%
  • 37. 04Key challenges 5% 28% 31% 23% 13% 4% 30% 28% 29% 9% Very poor Poor OK Well Very well 2013 2014 More than 1/3 of all respondents state that they do not have sufficient understanding of ROI from their digital channels…. 10/06/14 Across Health Multichannel Barometer 2014 37 How well do you understand the ROI from digital channels? copyright © Across Health, 2014 34%
  • 38. 04Key challenges 4% 7% 30% 32% 29% 28% 25% 41% 29% 30% 12% 8% 7% 18% Europe US Emerging Very poor Poor OK Well Very well US and Europe feel they have an OK understanding of ROI; Emerging markets are behind 10/06/14 Across Health Multichannel Barometer 2014 38 How well do you understand the ROI from digital channels? copyright © Across Health, 2014 Emerging: Brazil, China, Colombia, Hungary, Mexico, Poland, Russian Federation, South Africa, Turkey, Uruguay
  • 39. 05 10/06/14 Across Health Multichannel Barometer 2014 39 BUDGET CHANNEL MIX & CUSTOMER INTELLIGENCE What holds the future for digital in life sciences?
  • 40. 05 The future of digital in life sciences 10/06/14 Across Health Multichannel Barometer 2014 40 BUDGET CHANNEL MIX & CUSTOMER INTELLIGENCE In view of the weak results on key parameters like strategic and organizational excellence, skill level, use of high-impact channels and overall satisfaction level, it should not come as a surprise that the investment in multichannel has plateaued vs last year – at a much earlier point than other industries. Little progress is also being made on these 2 key areas •  Channel mix: For 9 out of 10 respondents, defining the optimal channel mix is not a simple task •  Customer intelligence: More than 4 of 5 respondents have not implemented a robust framework to leverage customer data for closed- loop marketing yet
  • 41. 05The future of digital in life sciences 5% 6% 13% 7% 17% 19% 29% 36% 77% 75% 56% 57% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 2014 Increase Equal Decrease Substantially fewer respondents see a digital budget increase vs 2011…and the “no change” group increases… 10/06/14 Across Health Multichannel Barometer 2014 41 How do you think your digital budget will evolve by the end of 2014? copyright © Across Health, 2014
  • 42. 05The future of digital in life sciences 9% 24% 19% 41% 16% 38% 17% 16% 19% 13% 20% 19% 12% 16% 6% 8% 8% Europe US Emerging less than 5% 5% to 10% 11% to 15% 16% to 20% 21% to 25% more than 25% Average multichannel marketing budgets tend to be higher in the US and Europe than in emerging markets 10/06/14 Across Health Multichannel Barometer 2014 42 If you oversee a marketing budget, which percentage of it is allocated to digital initiatives THIS YEAR? Average 10.9% Average 15.8% Average 15.6% copyright © Across Health, 2014 Emerging: Brazil, China, Colombia, Hungary, Mexico, Poland, Russian Federation, South Africa, Turkey, Uruguay
  • 43. 05The future of digital in life sciences For the first time since 2010 in Europe, the average percentage allocated to digital marketing has plateaued – the average does not deviate a lot from 2012 figures… 10/06/14 Across Health Multichannel Barometer 2014 43 If you oversee a marketing budget, which percentage of it is allocated to digital initiatives THIS YEAR? copyright © Across Health, 20140% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2010 2011 2012 2013 2014 Average 5% Average 8% Average 15% Average 16% Δ +6% Δ -2.6% Average 15.6%
  • 44. 05The future of digital in life sciences 36% 36% 7% 14% 7% If you oversee a MEDICAL* budget, which percentage of it is allocated to digital initiatives THIS YEAR? 46% 38% 8% 8% less than 5% 5% to 10% 11% to 15% 16% to 20% 21% to 25% more than 25% Despite limited data, we can see an even lower average budget allocation to digital within sales and medical departments 10/06/14 Across Health Multichannel Barometer 2014 44 If you oversee a SALES* budget, which percentage of it is allocated to digital initiatives THIS YEAR? Average 8.1% Average 6.2% copyright © Across Health, 2014 *Limited data collected copyright © Across Health, 2014
  • 45. 05The future of digital in life sciences 2% 32% 51% 11% 4% We do not see the need for collecting or using customer data We are not collecting useful customer data yet, but we should We have started doing some analysis on our multichannel customer data We have already implemented some robust customer analytics frameworks We leverage this data consistently With little change from last year, more than 4 of 5 respondents have not implemented a robust framework to leverage customer data for closed-loop marketing yet 10/06/14 Across Health Multichannel Barometer 2014 45 Do you leverage customer data from your cross-channel initiatives for advanced customer analytics and closed-loop marketing? 15% copyright © Across Health, 2014 % change since 2013 Increase Decrease 2% -2% -2% 3% -2%
  • 46. 05The future of digital in life sciences 2% 2% 32% 27% 12% 52% 52% 59% 11% 14% 12% 4% 5% 18% Europe US Emerging We do not see the need for collecting or using customer data We are not collecting useful customer data yet, but we should We have started doing some analysis on our multichannel customer data We have already implemented some robust customer analytics frameworks We leverage this data consistently The same can be observed in US while emerging countries show more focus at 30% 10/06/14 Across Health Multichannel Barometer 2014 46 Do you leverage customer data from your cross-channel initiatives for advanced customer analytics and closed-loop marketing? copyright © Across Health, 2014 Emerging: Brazil, China, Colombia, Hungary, Mexico, Poland, Russian Federation, South Africa, Turkey, Uruguay
  • 47. 05The future of digital in life sciences 24% 51% 16% 7% 2% Very complicated Somewhat complicated Neither complicated nor simple Relatively simple Very simple For 9 out of 10 respondents, defining the optimal channel mix is not a simple task 10/06/14 Across Health Multichannel Barometer 2014 47 How complex is it to define the optimal channel mix*? 9% *Allocating the right amount of budget to digital versus offline channels. copyright © Across Health, 2014 5% -1% 1% -6% Emerging: Brazil, China, Colombia, Hungary, Mexico, Poland, Russian Federation, South Africa, Turkey, Uruguay % change since 2013 Increase Decrease No change= =
  • 48. 01 02 03 04 05 Final thoughts 2014… the long fuse? Digital will have a major impact on the outlook of healthcare, with empowered patients/caregivers, real-time clinical trials, the rise of the EHR & PHR 2.0, tight patient-physician connectivity and sophisticated payor programmes to name but a few key trends. Yet healthcare has traditionally been a slow adopter of new technologies at scale, which also reduces the business pressures on pharma to take the leap of faith. In life sciences, multichannel is very much evolutionary, rather than revolutionary. The comparison with the long fuse is therefore quite adequate…it may still take a while before the healthcare market “explodes”, but it is high time to start preparing for this transformational event and to jockey for position. As Marissa Meyer (Yahoo) puts it: Don't look for the "right" answer. There's a lot of good choices and then there's the one you pick, commit to, and make great.”… We hope we have given you some handles to improve your multichannel programme and wish you continued success in your journey! Fonny Schenck Managing Partner, Across Group CEO, Across Health LOREM IPSUM DOLOR SIT AMET, CONSECTETUR ADIPISCING ELIT. IN NIBH TELLUS, FRINGILLA AT LOREM IPSUM DOLOR SIT AMET, CONSECTETUR ADIPISCING ELIT. IN NIBH TELLUS, FRINGILLA AT LOREM IPSUM DOLOR SIT AMET, CONSECTETUR ADIPISCING ELIT. IN NIBH TELLUS, FRINGILLA AT LOREM IPSUM DOLOR SIT AMET, CONSECTETUR ADIPISCING ELIT. IN NIBH TELLUS, FRINGILLA AT LOREM IPSUM DOLOR SIT AMET, CONSECTETUR ADIPISCING ELIT. IN NIBH TELLUS, FRINGILLA AT KEY SURVEY STATISTICS EXECUTIVE SUMMARY ADOPTION OF MULTICHANNEL KEY CHALLENGES FUTURE OF MULTICHANNEL 10/06/14 Across Health Multichannel Barometer 2014 48 2011 2012 2013 2014 2015? “Chance favours the prepared mind” Find us at a-cross.com/health