The reason why I’m here today to talk about fusion marketing is because the traditional pharma rep based business model as we knew it for many years is slowly sinking...
Several factors play an important role in this.First of all physician access has become a real issue today for some countries. It has become such an issue that in some countries, like for example the Nordics, reps can only see doctors during lunch meetings while for the rest of their day is idle timeWhile this is one of the most important factors impacting the current business model, also other factors like increased healthcare cost control initiatives, the rise of the generics and increasing R&D costs negatively impact budgets. Furthermore, also new stakeholders will become increasingly important in the decision making process. according to a report from PWC, called Pharma2020, as a result of the rise of electronic health records, the value chains of patient, hcps and payors will intertwine. Thanks to these online records, large populations of patients can be monitored by R&D departments. On the payor side, reimbursement will become much more outcome based and it is the payors that eventually will determine what product needs to be prescribed.
Despite all these changes that are happening right now, we see that in Europe, the sales rep is still king of the marketing mix.
So when times get really though , downsizing the salesforice is the first thing that comes into mind as it is the most visual expenditure and most easy to control
With the percentage of “digital” in the mix rapidly coming to the fore...
So what is fusion marketing ?As the word “fusion” indicates by itself, you could see it as a matrix of technology, tactics and channels which be set up in such a way that you can both speak and listen to your customers in a way that is valuable for bothIt really about bringing together the old world with the new world.What fusion marketing is not, is purely substituting offline channels by digital channels. For example, I don’t think that sales reps will ever disappear in pharma. There will always be customers that like for example the social aspect of the interaction. However the role this fullfil as part of the overall marketing mix can evolve over time.
In essence, Fusion marketing represents a shift from simply pushing messages to allowing customers to get in contact with you for what really interests them.It represents a shift from doing a one way monologue to having a two way conversation with your customer. We need to Listen to what our customers have to say.It’s not only about targeting individuals but also about anticipating how that individual is networking with others and broadcasting your messages in that networkIt’s a shift from the physician centric organisation as we knew it to the patient centric organisation. The rise of online patient health records that basically connect patients with companies, payers and physicians, will definitely facilitate this.It is also a shift from purely selling products to a way of selling that adds value for your customersAnd finally it represents a shift from the traditional offline world to a succesfull integration of on- and offline
So one could wonder why all of this is happening right now ?Well, I think there are 3 factors that trigger it : Currently there is a true marketing revolution going on, also the technology has exploded in the last decade and older generations are being replaced by new ones
Let’s start with marketing revolution.What we see today is that time spent by our customers on traditional advertising is eroding in favour of online channels.Thanks to the web, pharmaceutical industry has also become much more transparent. Our customers can find information online everywhere and can discuss it with whoever they want.As a result of this online explosion, marketing channels have become more fragmented which results in a decrease of consumers attention span. As a result of the transparency, our customers have also become more savvy, sceptical and demandingOn the other hand, new opportunities are popping-up. We have reached a point where email addresses have become more available than phone numbers. As most of us see the internet today as an opportunity because of its high penetration, we can say that mobile phone penetration is even higher, presenting an even bigger future opportunity. Look at the current explosion of widgets, also in health, that are being launched for the iphone. With current recession and resulting budget cuts, we simply need to see how we can do thing cheaper and more effectively in the future
Another reason why fusion marketing is happening right now is the explosion of technology.There exists a law being referred to as Moore’s law. This law dictates that the capacity of technological devices doubles every 2 years. So the speed of computers as there are today will double every 2 years.Furthermore, there is web 2.0. For a lot of websites out there content is being generated by the users themselves. Furthermore people connect with eachother online via a variety of social networking sites. It’s becoming increasingly hard to ignore what doctors or patients are saying about your brand on these websites
A last factor facilitating marketing fusion, is the change in audience.I’m sure that most people in this room will remember the days when the videorecorder was introduced.As long as I lived with my parents, I’ve always seen 4 digits blinking on the display. Why ? Because my parents were genetically incapable to program the damn thing. This would be unimaginable for the new generation today that has grown up with a computer.
The truth is, that everyone in this room today is a digital immigrant
There are big differences between our generation and the new one.While we tend to get our information from a few sources like television and newspapers, the digital natives like to receive information as quickly as possible from as many sources as possibleThey are also the multitaskers by excellence. They can go online, watch TV and listen to their iPod at the same time.While we were raised with textbooks, the new generation prefers multimedia before text.And finally the digital natives like to network and interact with as many people as possible while we tend to work more independently.
All these ingredients are pushing marketeers today to no longer ignore the online environment but start thinking about how you can succesfully integrate both worlds
Not only doctors are online, also patients and caregivers. Today the internet has not only become the most used source for retrieving health information, it’s also considered to be a very reliable source, almost equal to medical staff. Furthermore patients are influenced by the internet and even a third of them states their personal health decisions depend on it.
So how to measure success ? Well, for fusion marketing I think there are 3 areas of measure.The traditional ones are process metrics like campaign response rate, conversion, clickthrough.Next to process metrics, also ROI is relevant. In this respect it’s important not only to measure the ROI for individual channels but instead to measure effectiveness of how they are working in concertIn a fusion marketing world, I also think 2 other metrics can be relevant. The first category are feedback metrics. We need to learn to listen to our customers. Not only via sales reps, but also via the buzz that is happening online.The other category of metrics are influence metrics. In the networked world of today it is important to anticipate what the effect will be of your campaign not only on a certain individual but also on that individual’s network as you can expect that people will be talking about it.
So to end my presentation I would say...
Fusion marketing in Oncology
Fusion marketing in Oncology :Leading through Innovation<br />Beverly Smet, Managing Director Across Health Belgium<br />+32 478 64 28 46<br />Beverly.email@example.com<br />Linkedin.com/in/beverlysmet<br />a-cross.com/across-health/people/beverly-smet<br />
Across Health<br />Innovative customer-centric approaches<br />30+ strong consultancy<br />360° approach: from strategy to implementation and success metrics/KPIs<br />Unique offering in the life sciences industry<br />Rapid international expansion<br />Headquarters in Belgium<br />Offices in 6 countries, incl US<br />Strong client base<br />6 of top 10 pharmacos<br />Several upstart companies with new product launches<br />International and local level<br />
We help companies FUSE their traditional channel & customer approaches with proven innovative strategies and tactics, as a key component of the new commercial model.<br />Where do we play?<br />Fusion<br />Meded/Affairs<br /> Fusion<br />marketing<br />New channels<br /> Fusion<br />sales<br />New stakeholders<br />Fusion<br />PR<br />Traditional <br />strategies & customers<br />
The Global warming of the Pharma business model<br />Add picture of global warming<br />Global warming of the traditionalpharma business model<br />
Factors impacting the traditional business model<br />Increased competition for physician time<br />Healthcare cost control initiatives in all major markets<br />Development of the generics industry and generic competition<br />Rising costs of pharmaceutical R&D<br />Intertwining value chains <br />
Nevertheless in Europe, the rep is still king of the mix<br />
So, when times get really tough, rep downsizing is the first thing that comes into mind<br />
Like in most other industries, the channel mix for HCPs is fragmenting...<br />
Title<br />The art of fusion<br />summary:<br /><ul><li>text</li></li></ul><li>Definition of Fusion marketing<br />AMATRIX of technology, tactics and channels which can be quickly, dynamically configured in different ways to both speak AND listen to customers and prospects in a way that is appropriate for both the company and target audience<br />
Why is it happening right now ?<br />Marketing (R)evolution<br />Technology explosion<br />New audience<br />
Marketing (R)evolution<br />Time spent on traditional advertising channels is eroding in favour of online channels<br />Pharmaceutical industry has become much more transparent for the general public thanks to the internet<br />Customers are savvy, sceptical, more demanding and have attention deficit<br />E-mail addresses have become more available than phone numbers.Forrester predicts annual email volume to double between now and 2013<br />Even with a very high at-home internet penetration today, mobile phone penetration is even higher <br />Given the recession, most marketeers intend to increase digital marketing spend<br />
Technology explosion<br />The capacity of technological devices doubles every 2 yearsMoore’s law<br />WEB 2.0 <br />Social media explosion<br />
The ingredients for Marketing Fusion<br />Marketing Fusion<br />
Agenda<br /> <br />Strategy first?! How to translate product strategy into fusion execution<br />Defining the new channel and stakeholder mix<br />Some fusion business models and their metrics<br />
Next to Reps, the web has become a very important channel<br />* All European Physicians, as defined in this study, refers to physicians in the UK, Germany, France, Spain, and Italy<br />Average time online per week : 10,9 hours !<br />Among all physicians in segment<br />21<br />Source: Manhattan Research : Taking the Pulse® Europe v7.0<br />
Percentage of Time Online for Professional Purposes<br />Approximately what percent of your total weekly online time is for professional or business-related purposes?<br />Average percent of time<br />60 % of Oncologists spends 75% or more of their time online for professional purposes !<br />Among those who are online<br />Source: Taking the Pulse® v9.0<br />
“The Internet Is <br />Essential to My Practice”<br />BASE : Medical Oncologists<br />94%<br />20%<br />Source: Taking the Pulse® v9.0 (2009)<br />The tipping point has been reached...<br />Vs 89%<br />All physicians<br />
However, digital is certainly not an “instant success”….next to the usual suspects of ROI & regulatory…<br />strategy makes it to the list of top hurdles for success in digital…and lack of knowledge is not helping either<br />Across Health emarketing survey 2009<br />
Throwing things at the wall and see what sticks?<br />
Very often, digital is still seen as a “nice to have”, “check the box” or “let’s be innovative” thing<br />Due to this lack of fusion thinking & knowledge... <br />digital is still seen as a<br />“nice to have”<br />“check the box”<br />“let’s be innovative/2.0”<br />
While in reality, it should be tightly embedded into the strategic marketing pillars...the buying process<br />Origination<br />What is the buying process for your product? <br />Which behavioural objective(s) will you focus on?<br />For which audience?<br />Presentation<br />Market expansion<br />Evaluation<br />Diagnosis<br />Treatment Choice<br />Share gain<br />Brand Choice<br />Fulfillment<br />Sales opt.<br />Compliance/Persistence<br />
The principle is as simple as this...(Forrester 2008)<br />P<br />O<br />S<br />T<br />PeopleAssess your customers’ digital activities<br />Objectives Decide what you want to accomplish<br />StrategyPlan for how relationships with customers will changeand what the effect of your actions will be in your customers’ networks<br />TechnologyDecide which technologies to use<br />
Agenda<br /> <br />How to translate product strategy into multichannel execution<br />Some fusion business models and their metrics<br />
eRep definition : what is it ?<br />eRep or Virtual Rep is a live, interactive webpresentation between<br />a (medical) representative and an HCP. A date and time is set prior to the actual call<br />
Contact 1 : recruitment by telephone <br />Contact 6 : ‘Thank you letter’ and distribution of leaflet <br />Contact 2 : if refusal, record in DB and send info by mail<br />Contact 3 : first telephone contact by e-rep<br />Contact 5 : Satisfaction survey <br />Contact 4 : Interactive online call (15 min)<br />eRep: the process<br />
eRep potential<br />How would you describe your use or interest in conducting an online meeting via videoconference or video chat at a scheduled time<br />36 %<br />68 %<br />I already use this service<br />I am very interested in using this service<br />I am somewhat interested in using this service<br />I am not interested in using this service<br />Sales reps<br />Medical opinion leaders<br />Base : Medical oncologists<br />Source: Taking the Pulse® v9.0<br />
eMSL : a recipe for success !<br />Pull instead of Push<br />Ratio 5:1<br />Increased productivity :- higher number of calls- lower costs- vacant or remote areas<br />
This is confirmed by market research<br />With whom are you interested in communicating via videoconference or call center?<br />Source: Taking the Pulse® v9.0<br />
-<br />+<br />-<br />-<br />+<br /><ul><li>Human/ social aspect
Communication route (telephone/web) most common reason of non acceptance
Easy to bring up information</li></ul>eRep/ MSL pro’s and cons<br />
5 Key KPIs used to evaluate campaign success <br />Promotor score<br /><ul><li> willingness to recommend eRep technology and product vs control group and rep group</li></ul>Channel value<br />validity of eRep as part of the mix compared to traditional Rep channel<br />ROI<br />D sales(eRep area – Control group area)<br />eRep project cost <br />(MSL Productivity rate)<br />Message Recall<br />% of eRep HCPs that recall product message compared to control group and Rep group<br />IMS<br /><ul><li> Sales increase for eRep group vs control group and rep group</li></li></ul><li>Realtime and on-demand broadcasting of scientific events<br />
realtime web Q&A</li></li></ul><li>Annual growth of Medical education mainly due to Online MedEd<br />According to ACCME Annual Report data, participation in CME is up year over year<br />+12% <br />+14% <br />+7% <br />+12% <br />Participation in Millions<br />Average CME done online = 36%<br />Source: ACCME 2002-2006 Annual Report Data, <br />
Frequency of Professional Activities Conducted Online<br />Please indicate how frequently (if ever) you attend online conferences for product, condition or treatment information.<br />41%<br />57%<br />Source: Taking the Pulse® v9.0<br />
convenient (distance/ time zones)</li></li></ul><li>Realtime and on-demand webcasting process<br />Step 1:set-up of a registration microsite<br />Step 2: distribution of invitation e-newsletter <br />43<br />
Realtime and on-demand Web conferencing<br />Automated process after registration<br />- 1 week<br />- 1 day<br />Event<br />2hrs<br />Start broadcast at 17 CET<br />Broadcasting detailsreminder<br />Broadcasting details<br />Live Q&A<br />Evaluation survey + (Accreditation)<br />+2 days<br />On-demand notification<br />Evaluation survey<br />On-demand notifications<br />
Example of an online Oncology debate – Metrics captured<br />Type: live + on-demand<br /># total registrations: 648<br /># countries : 51<br /># company reg. : 153<br /># oncologist reg.: 495<br /># Part. on-line: 491<br />Online participation rate: 76%<br /># Live part. : 276<br /># On-demand part.: 215<br />Overall evaluation : 8,6/10<br />Recommendation score : 8,8/10<br />Average viewing time : 71%<br />
What about other stakeholders and how toconnect them ?<br />
For patients and caregivers, the tipping point has been reached too<br />The question is not who is searching for health information online but rather who isn’t<br />Over 100 million<br />today!<br />54 million<br />26 million<br />Millions of U.S. Adults Looking for Prescription Drug Info Online<br />2009<br />2005<br />2002<br />Source: ePharma Physician, Manhattan Research<br />
Also patients and caregivers are online...<br />Source : Manhattan Research, Cybercitizen Europe<br />
Community Mash-ups connecting different stakeholders <br />Worldwide community about<br />Gastrointestinal Stromal Tumors<br />Worldwide community about<br />Chronic Myelotic Leukemia<br />
Joining the community<br /><ul><li> Role selection (patient –caregiver- professional – patient group)
Option to find patient groups or specific profiles
Continuous opinions monitoring</li></li></ul><li>Use of Online communities<br />“How would you describe your interest or use of Online communities or networks when looking for pharmaceutical or health information?”<br />Q2.1<br />Source: Cybercitizen® Health Europe v8.0<br />
If YouTube were a country, it would be the 3rd largest after China and India<br />FrancePopulation: 65.0M<br />JapanPopulation: 127.6M<br />Unique Visitors: 426.1M<br />USAPopulation: 307.0M<br />BrazilPopulation: 191.6M<br /><ul><li> YouTube is localized in 23 different countries/territories</li></ul>YouTube is available in 17 different languages<br />Sources: comScore, May 2009 <br />53<br />Using YouTube for Patient & Caregiver Activation<br />
Activating patients<br />Insight : More verbal patients get the better treatments<br /><ul><li>‘Branded’ channel aligned with disease portal branding
Call-to-action testimonial from patient advocacy group
Patients/ Caregivers can upload testimonials about QoL, Stigma’s, daily challenges, etc.