A Decade of European Pharma E-Business Less Hype, More Realism,  but Good Reasons to be Optimistic Len Starnes Head of Eur...
<ul><li>Hype and expectations 1996 </li></ul><ul><li>The organizational roller coaster </li></ul><ul><li>Execution and KPI...
Happy birthday European pharma e-business  is 10 years old this month
1996 2006 Hype Raising expectations Early  adopters Disillusionment Trough of despair Enlightenment Productivity Realistic...
The 24 x 7 rep A branded website  will be more  effective than  a rep visit  Sales forces will be cut Revenues will soar D...
Prime motivator to  visit a pharma website will be quality content  Credibility and trust will be crucial  The health info...
Connected &  empowered  customers Metcalfe’s Law Value of a network  equals approximately  the square of the  number of us...
<ul><li>The internet is enabling conversations   among human beings that were simply not   possible in the era of mass com...
1996 2006 Hype Raising  expectations Early  adopters Disillusionment Trough of despair Enlightenment Productivity Realisti...
The organizational  roller coaster
Large  centralized  e-business  departments Disappeared
Smaller  centralized e-business  groups Emerging BU or brand team  e-business  function BU or brand team  e-business  func...
Country  e-business LA e-business Asia e-business USA e-business EMEA e-business E-business infrastructure & processes gro...
E-business must be closely aligned with integrated relationship marketing teams E-business Skill sets evolution Integrated...
Execution and KPIs
‘ The difference between  good e-business and poor  e-business is how well the  initiative is executed’ European managing ...
Mundane things matter Initiating SEM  Addressing credibility, trust & privacy  Providing high-quality content  Ensuring de...
<ul><li>The tyranny of the ROI metric   - Why do senior managers not demand    the same rigour with other channels?   </li...
23%   Consumer, patient & HCP  relationship building 40% Disease awareness & treatment awareness 18% Brand conversion 1% B...
Yes, but difficult Yes Yes Yes Yes Yes Retention on brand (Compliance) Yes, but difficult Yes Yes Yes Most Yes Conversion ...
Where the future  is brightest
E-business Patient relationship marketing Closed-loop marketing Integrated  relationship  marketing CRM/SFE E-business E-b...
Customer value High Medium Low Service  bundles Channels offered Costs D Sales rep Phone Mail Internet A B C D B C D Phone...
E-detailing will be a viable alternative to the sales force arms race
55% Agree 25% Strongly agree 15% Neural 5% Disagree Marketing professionals agree Eyeforpharma Survey December 2005 Based ...
<ul><li>Low awareness by senior management </li></ul><ul><li>Discussing out of CRM/SFE context  </li></ul><ul><li>Knowing ...
14% Disagree 51% Neutral 26% Agree 9% Strongly agree Unproven ROI  Eyeforpharma Survey December 2005 Based on 722 response...
Live detail E-detail Multi-channel CRM application Closed-loop sales & marketing Electronic details Interactive details, t...
HCPs’ relationship portals will  deliver significant business value
<ul><li>Integral to CRM/SFE strategy </li></ul><ul><li>Crucial for delivering personalized  and customized service bundles...
Portals delivering value Key value  drivers Initiative  specifics KPIs Country A Country C Country B Access to KOLs 20% of...
More online patient  support programmes  will emerge  - and regulations will  be revised to enable
<ul><li>Marketing efforts switching from  acquisition to retention </li></ul><ul><li>Compliance is win-win for all stakeho...
DTP is not DTC DTC An offence to issue an advertisement  likely to lead to NRx  DTP Restricted provision of information an...
1 = Low 5 = High Adapted from: Improving Patient Compliance  Datamonitor July 2003 Efficacy of e-channel compliance 5 5 4 ...
Germany Netherlands UK Pan-European online support for Betaferon patients Denmark Norway Sweden International Finland
Web Nurse Direct mail CC or  VAT Pack or  device Patient Database and  patient relationship  management application Next g...
More two-way dialogue and more community building will significantly increase the value of consumer & patient-directed ini...
<ul><li>Manage online relationships professionally with the right tools and skill sets </li></ul><ul><li>Listen to and lea...
First movers GSK France Corporate blog Abbott Global customer inquiry/response system
The end of business as usual Boundaries between e-business, marketing and sales are disappearing Think integrated relation...
<ul><li>Head of European E-Business Schering Germany </li></ul><ul><li>E:  [email_address] T:  + 49 30 4681 4877 M: + 49 1...
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Online Marketing & E-Detailing Europe

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A review of a decade of European pharmaceuticals online marketing and sales. Presented at EyeforPharma's first European Online Marketing and E-Detailing conference, Berlin, May, 2006

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  • Nowadays Internet is a powerful medium in pharma business, good source of medical information for patients and physicians. Of course so called social media are on the top just like closed-loop marketing, edetailing. If you are interested just visit edetailing community on Facebook and discuss with others about future of e-business. The futer is now! Visit: http://www.facebook.com/pages/Edetailing/442599429102782
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Online Marketing & E-Detailing Europe

  1. 1. A Decade of European Pharma E-Business Less Hype, More Realism, but Good Reasons to be Optimistic Len Starnes Head of European E-Business Schering Germany
  2. 2. <ul><li>Hype and expectations 1996 </li></ul><ul><li>The organizational roller coaster </li></ul><ul><li>Execution and KPIs </li></ul><ul><li>Where the future is brightest </li></ul>Agenda
  3. 3. Happy birthday European pharma e-business is 10 years old this month
  4. 4. 1996 2006 Hype Raising expectations Early adopters Disillusionment Trough of despair Enlightenment Productivity Realistic expectations Pharma e-business hype cycle Then
  5. 5. The 24 x 7 rep A branded website will be more effective than a rep visit Sales forces will be cut Revenues will soar Doctors will flock to our sites A one-size fits all branded website will suffice
  6. 6. Prime motivator to visit a pharma website will be quality content Credibility and trust will be crucial The health information seeker Internet will become the most preferred source of medical Information Internet will become a powerful medium for patient acquisition
  7. 7. Connected & empowered customers Metcalfe’s Law Value of a network equals approximately the square of the number of users
  8. 8. <ul><li>The internet is enabling conversations among human beings that were simply not possible in the era of mass communication </li></ul><ul><li>These networked conversations are enabling new forms of social organization and knowledge exchange to emerge </li></ul>‘ The end of business as usual’ The Cluetrain Manifesto The Cluetrain Manifesto R Levine, C Locke, D Searle, D Weinberger 2000
  9. 9. 1996 2006 Hype Raising expectations Early adopters Disillusionment Trough of despair Enlightenment Productivity Realistic expectations Now Pharma e-business hype cycle
  10. 10. The organizational roller coaster
  11. 11. Large centralized e-business departments Disappeared
  12. 12. Smaller centralized e-business groups Emerging BU or brand team e-business function BU or brand team e-business function BU or brand team e-business function BU or brand team e-business function
  13. 13. Country e-business LA e-business Asia e-business USA e-business EMEA e-business E-business infrastructure & processes group Country e-business Country e-business Country e-business Country e-business Country e-business Country e-business Country e-business Country e-business BU or BT e-business BU or BT e-business BU or BT e-business Or?
  14. 14. E-business must be closely aligned with integrated relationship marketing teams E-business Skill sets evolution Integrated relationship marketing specialist E-business specialist CRM/SFE PRM
  15. 15. Execution and KPIs
  16. 16. ‘ The difference between good e-business and poor e-business is how well the initiative is executed’ European managing director, Schering AG
  17. 17. Mundane things matter Initiating SEM Addressing credibility, trust & privacy Providing high-quality content Ensuring design is simple and intuitive
  18. 18. <ul><li>The tyranny of the ROI metric - Why do senior managers not demand the same rigour with other channels? </li></ul><ul><li>Defining the business model - Relationship building, disease or treatment awareness, conversion, retention? </li></ul><ul><li>Tracking appropriate KPIs - Matching KPIs with expected outcomes </li></ul>KPI issues
  19. 19. 23% Consumer, patient & HCP relationship building 40% Disease awareness & treatment awareness 18% Brand conversion 1% Brand retention Disease awareness dominates % business models of all European initiatives 2% Brand conversion & retention 16% Corporate relationship building
  20. 20. Yes, but difficult Yes Yes Yes Yes Yes Retention on brand (Compliance) Yes, but difficult Yes Yes Yes Most Yes Conversion to brand No Yes Yes Yes Most Yes Disease awareness & treatment awareness No Yes Yes Yes Most Yes Consumer/patient relationship building No Yes Yes Yes Yes Yes HCP relationship building (R-C)/C Cost/customer Cost/visit Cost/min visit Satisfaction surveys Email feedback Email requests Hotline enquiries Referrals Print-offs Find a doctor Most accessed Most accessed by segment Frequency Duration Attrition/churn % total acquired % total online acquired KPIs ROI Cost Customer satisfaction Outcomes proxies Engagement Target audience KPI category
  21. 21. Where the future is brightest
  22. 22. E-business Patient relationship marketing Closed-loop marketing Integrated relationship marketing CRM/SFE E-business E-business E-business
  23. 23. Customer value High Medium Low Service bundles Channels offered Costs D Sales rep Phone Mail Internet A B C D B C D Phone Mail Internet Internet €€€ €€ € E-business in CRM context
  24. 24. E-detailing will be a viable alternative to the sales force arms race
  25. 25. 55% Agree 25% Strongly agree 15% Neural 5% Disagree Marketing professionals agree Eyeforpharma Survey December 2005 Based on 722 responses from European marketing professionals E-detailing will become more popular in future
  26. 26. <ul><li>Low awareness by senior management </li></ul><ul><li>Discussing out of CRM/SFE context </li></ul><ul><li>Knowing how to scale up: brand, BU, regional or global? </li></ul><ul><li>High costs, complex vendor business models, uncertain ROI </li></ul>Barriers to e-detailing
  27. 27. 14% Disagree 51% Neutral 26% Agree 9% Strongly agree Unproven ROI Eyeforpharma Survey December 2005 Based on 722 responses from European marketing professionals E-detailing has a proven ROI in key therapeutic areas
  28. 28. Live detail E-detail Multi-channel CRM application Closed-loop sales & marketing Electronic details Interactive details, tracked and fed back to CRM application Enter the digitally-enabled rep
  29. 29. HCPs’ relationship portals will deliver significant business value
  30. 30. <ul><li>Integral to CRM/SFE strategy </li></ul><ul><li>Crucial for delivering personalized and customized service bundles </li></ul><ul><li>Online needs and preferences of doctors better understood </li></ul>Portals in CRM context High Medium Low
  31. 31. Portals delivering value Key value drivers Initiative specifics KPIs Country A Country C Country B Access to KOLs 20% of speciality enrolled Customized & personalized newsletter First mover SF promotion Segmentation 50% of speciality enrolled Streaming video CME CME credits First mover SF promotion CRM integration SF promotion Alliance with leading teaching hospital 80% of speciality enrolled 60% active
  32. 32. More online patient support programmes will emerge - and regulations will be revised to enable
  33. 33. <ul><li>Marketing efforts switching from acquisition to retention </li></ul><ul><li>Compliance is win-win for all stakeholders </li></ul><ul><li>European countries not leveraging the potential of online patient support programmes </li></ul>Compliance in context
  34. 34. DTP is not DTC DTC An offence to issue an advertisement likely to lead to NRx DTP Restricted provision of information and support services to patients already on drug. Will not result in NRx, but RRx
  35. 35. 1 = Low 5 = High Adapted from: Improving Patient Compliance Datamonitor July 2003 Efficacy of e-channel compliance 5 5 4 3 2 1 1 Personalized interventions 4 4 3 4 1 4 1 Patient information 4 4 4 4 3 1 1 Tracking health indicators 4 4 4 4 4 3 2 Refill reminders 4 4 3 3 3 1 1 Appointment reminders 3 3 3 2 4 1 5 Medication reminders Contact centre Nurse support Voice automation technology Internet & email SMS messaging Direct mail Pack & devices  
  36. 36. Germany Netherlands UK Pan-European online support for Betaferon patients Denmark Norway Sweden International Finland
  37. 37. Web Nurse Direct mail CC or VAT Pack or device Patient Database and patient relationship management application Next generation
  38. 38. More two-way dialogue and more community building will significantly increase the value of consumer & patient-directed initiatives - and help engender trust in pharma
  39. 39. <ul><li>Manage online relationships professionally with the right tools and skill sets </li></ul><ul><li>Listen to and learn from consumers/patients </li></ul><ul><li>It’s better to participate than to be excluded </li></ul>Actions and learnings
  40. 40. First movers GSK France Corporate blog Abbott Global customer inquiry/response system
  41. 41. The end of business as usual Boundaries between e-business, marketing and sales are disappearing Think integrated relationship marketing
  42. 42. <ul><li>Head of European E-Business Schering Germany </li></ul><ul><li>E: [email_address] T: + 49 30 4681 4877 M: + 49 175 438 4521 I: www.schering.com </li></ul>Len Starnes

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