Can Pharma Make a Business Case for Social Media

Can Pharma Make a Business Case for Social Media? Shwen Gwee Founder & Host Med 2.0 Blog and Podcast

Disclaimer
The opinions and ideas expressed in this presentation are strictly my own and are not screened by my employer.
Everything mentioned or presented is strictly my personal opinion and does not necessarily represent the views of Vertex Pharmaceuticals.
!

Overview
What is Social Media?
What are the main hurdles?
Why is it important?
Where does it fit in?
How do I get started?
What strategies can we use?
How about regulatory concerns?
What about ROI?
Final Thoughts

#1 What is Social Media?

Working Definition
Web 2.0
= New/Social Media
= Groundswell

Shift Happens
A cultural shift…
FROM TO PUSH Broadcasts PULL Content Monologue Conversation Individual Consumption Group Participation Sales & Marketing Pitch Authenticity/Transparency Attracting Publicity Pursuing Interaction

Shift Happens
Authentic Interaction
Genuine Engagement Trust Influence

Models of Influence are Changing Image by armanz on Flickr: http://www.flickr.com/photos/7855449@N02/2828883082/in/set-72157606844282993/

#2 What are the Main Hurdles?

Hurdles: Overview
IT
Marketing
Executives
Legal/Regulatory
Federal regulations (FDA, DDMAC, etc.)
Corporate/ Enterprise Pharma

Hurdles: IT
Questions/Statements:
Social Media? You mean, like MySpace!?!
But we have no control over the servers or software – how can this work?
It does not comply with enterprise standards!
Issues:
Traditional, enterprise thinking
No experience with new/social media
No ownership or “power” to drive business
Used to implementing, not strategizing

Hurdles: Marketing
Where does it fit in?
No way regulatory will allow it!
Who owns it anyway? Can’t IT just do it?
Where do we start?
Issues:
Lack of exposure/experience with social media
Traditional marketing mentality
Over reliance on traditional agencies
Don’t know where to start or how to justify

Hurdles: Executives
What is this social media thing anyway?
Where’s the ROI?
What about negative comments/feedback?
Company XYZ has a blog – we need one too!
Issues:
Unclear who should own this process
ROI, ROI, ROI ???
Follow the (pharma) leader

Hurdles: Legal & Regulatory
What about fair balance?
What about AE reporting?
What if you get off label discussions!?!
Issues:
No defined federal/industry regulations
Associate social media with lack of control (e.g. My Space, random blogs, etc.)

Image by karynsig on Flickr: http://www.flickr.com/photos/karynsig/752728221/ Image by wetwebwork on Flickr : http://www.flickr.com/photos/wetwebwork/2606928063/

#3 Why is it Important?

More Customers Consume Media Online Source: Manhattan Research Cyber Citizen Health v7

Consumers Shifting Online for Health Information

Consumers More Satisfied with Health Information from the Internet Source: Manhattan Research Cyber Citizen Health v7

Online Video Experiencing Significant Growth Source: Manhattan Research Cyber Citizen Health v7 In Millions

More Physicians Moving Online for Professional Resources

But Most Importantly…

#4 Where does it fit in? (And who should be in charge?)

Basic Objectives of Social Media Listen Engage/Embrace Energize Support OBJECTIVES Market Research Marketing/PR Sales/Marketing Customer Service ROLES

Other Possible Goals…
Internal
“ Knowledge management”
Rapid sharing & dissemination
Executive & senior leadership visibility
Sales training & development
Market & customer feedback
Internal alignment & collaboration
Recruiting and HR
Corporate “kumbaya”
External
Awareness raising
Branding & messaging “testing”

Social Media Strategy Throughout Lifecycle Source: http://www.web-strategist.com/blog/2007/09/12/web-strategy-advanced-applying-a-social-computing-strategy-to-the-entire-product-lifecycle/

Who Should Be In Charge?
Put someone important in charge
Director and above (higher is better)
Preferably with experience or interest
Understands legal and regulatory framework
Should be housed within group that can influence and align strategy
Should be a significant or entire part of the person’s objectives (not a BTW experiment)
Should have access to appropriate resources, including executives and agencies

#5 How do I get started?

Think Outside the Bun
Don’t just look within the industry
Learn from those who are innovating and pushing the limits with new/social media
Bring the outside in and adapt to our regs
Don’t forget: Some of these people could even be your customers

Listen and Learn
Subscribe to blogs and read daily
Within Pharma/Healthcare:
EyeOnFDA, PharmaMarketingBlog, THCB, HealthCareVox, Pharmalot, IgniteBlog, JNJBTW, etc.
Outside Pharma/Healthcare:
ChrisBrogan, Web-Strategist, Altimeter Group, Logic+Emotion, TechCrunch, etc.
Subscribe to podcasts and listen
Use (free) tools to monitor trends
Google Trends, Technorati, TechMeme, etc.
Read industry whitepapers and research studies, participate in webinars, etc.

Join the Conversation
Rate and review content/products
Comment on blogs, podcasts, videos, etc.
Be part of a social network
e.g. LinkedIn, Facebook, Plaxo, Twitter*, etc.
Attend meetings and conferences
Grassroots
PodCamp, Social Media Club, Meetups, etc.
New/Social Media Industry
Web 2.0, New Media Expo, BlogWorld, SXSW, etc.

Experiment and Participate

Educate, Educate, Educate…
Learn and be a social media evangelist
Create programs to educate everyone
e.g. lunchtime lectures, informal BOF meetups
Make sure execs hear about it and attend
Start internally
Get proof of concept
Get legal, regulatory, execs, etc. involved
Form working group or Social Media Committee
Energize and enthuse!!!

Case Study: Energize & Enthuse
Microsoft Academy Mobile…

Case Study: Academy Mobile – Results
Exceeded Targets (2008)…
Success led to development of public release, called Podcasting Kit for Sharepoint (PKS)
Sits on Sharepoint server platform
Download for FREE at: www.codeplex.com/pks
3,107 3,000 # of Profiles on Academy Mobile 1,034 1,000 Total # of Unique Podcast Publishers 2,344 1,800 Total # of Podcasts on Academy Mobile 10,203 8,000 Total # of Unique Individuals Downloading Podcasts 95,900 60, 000 Total # of Podcast Downloads YTD # Target # Reach & Awareness

#6 What Strategies Should We Use?

Organic vs. Paid Search

Groundswell: Li and Bernoff

4 Step Process for Getting Started P O S T People Assess your customers’ social activities Objectives Decide what you want to accomplish Strategy Plan for how relationships with customers will change Technology Decide which social technologies to use

Ladder of Participation Creators Critics Collectors Joiners Spectators Inactives Publish a blog/Podcast Publish your own Web pages Upload video you created Upload audio/music you created Write articles or stories and post them Post ratings/reviews of products/services Comment on someone else’s blog Contribute to online forums Contribute to/edit articles in a wiki Use RSS feeds Add “tags” to Web pages or photos “ Vote” for Web sites online Maintain profile on a social networking site Visit social networking sites Read blogs Watch video from other users Listen to podcasts Read online forums Read customer ratings/reviews None of the above

Social Technographics Profile
http://www.forrester.com/Groundswell/profile_tool.html

Other Sources of Customer Data
Research data
Market research data and segmentation studies
eHealth and ePharma research
Manhattan Research (consumer and HCP)
Social Media Research
Forrester, Pew/Internet American Life Project, Universal Mccann (Wave 3), eMarketer, etc.

Determine Your Objectives Help customers work with each other to come up with ideas to improve products/services Embrace Support customers and enable them to support each other Support Make it possible for customers to help you and each other Energize Participate in 2-way conversations Engage Monitor your customers’ conversations Listen Description Objective

Determine Strategy & Technology
Listening (Market Research)
Social Measurement/Monitoring Agencies
TNS Cymfony, BuzzMetrics, Radian6, etc.
Engaging (Talking)
Blogs, Podcasts, Online Viedo, etc.
JNJBTW blog
“ National Spotlight on Migraines” podcast sponsored by Ortho McNeil,
YouTube Videos (JNJ, GSK, Abbott, etc.),

Energizing
Professional Social Networks
Sermo, Physician Connect, Clinician 1, etc.
Other Social Networks
Facebook, CommuniSpace, Powered, etc.
Ratings and reviews (e.g. Digg)
Supporting
Wiki’s, Support Forums, Twitter, Yammer, etc.
e.g. Pfizerpedia, VIKI, etc.
SalesForce Effectiveness
Internal knowledge sharing/management

Embracing
Social networks
Idea Exchange; “Suggestion Box”, etc.
Ratings and reviews for brand messaging

Don’t Think Conventionally Image by armanz on Flickr: http://www.flickr.com/photos/7855449@N02/2936653440/in/set-72157606844282993/

Case Study: DigiRedo
Company:
Top 3 in veterinary pharmaceutical industry
Issue:
Lack of effective communication tools to implement new company strategy
Objective:
Use new/social media tools to see it can increase the effetiveness of the message roll-out
Technology:
Podcasting (and iPod Touch)

Case Study: DigiRedo – Strategy

Case Study: DigiRedo – Results
Participation & Consumption:
100% participation (viewers and listeners)
57% consumed content on Day 1
Consumption device: 40% PC, 60% iPod
Location: 70% @ home , 17% in car, 13% elsewhere
Qualitative Survey: “Do you agree that the podcast…”
Gives more insight in the strategy? 90%
Gives more insight in what my colleagues do? 90%
Is an effective communication tool? 90%

Case Study: DigiRedo – Reactions

#7 How about regulatory concerns?

Define Policies and Processes
Educate your team and ensure they are supportive… Then educate key stakeholders
Try brown-bag lunches, thought-leader presentations, vendor demos, etc.
Treat it like you would traditional media
Stick with the FDA and PhRMA Guidelines
Don’t do anything you wouldn’t do normally (i.e. content)
Work with legal & regulatory to:
Determine an SOP for each strategy
Develop an escalation policy for each strategy

Define Policies and Processes
Be willing to compromise and adapt
e.g. Review comments before posting
Explicitly state “rules of engagement” so customers will understand
e.g. JNJ
If unsure, experiment internally before moving externally

Example 1: JNJBTW.com

Example 1: JNJBTW.com
All comments will be reviewed before posting.
Comments that don’t directly relate to the Company or to topics covered on this blog won’t be posted
Some comments may be forwarded … for follow-up as appropriate
We generally won’t post comments about products that are sold by the Johnson & Johnson operating companies
Johnson & Johnson and its operating companies work within highly regulated industries
Comments that pertain to ongoing legal matters or regulatory issues are unlikely to be posted
Further information about our policies…can be found in our Privacy and Legal Notice

Example 2: Adderall XR YouTube Video

Example 2: Content , NOT Context
Warning letter contents:
“… overstate the efficacy”
“… omits important information regarding the risks”
“… broadens the indication … suggesting uses that have not been approved”
“… overstatement of efficacy and omission of important safety information”
Not any different than if content had been in a DTC television or print ad

#8 What About ROI?

Can You Measure the Value Of… Image by Damien Roue on Flickr: http://www.flickr.com/photos/damienroue/2581992080/

Can You Measure the Value Of… Image by Mulad on Flickr: http://www.flickr.com/photos/mulad/143851399/

Can You Measure the Value Of… Image by b_d_solis on Flickr: http://www.flickr.com/photos/briansolis/2676945109/

Can You Measure the Value Of… Image by Duke Green on Flickr: http://flickr.com/photos/duke_geren/124379253/

It All Depends On Your Objectives
Determine what you want to measure
Corporate reputation?
Conversations among target audience?
Awareness in naïve group?
Relate objectives to traditional media…
How do you measure the effectiveness of your PR campaigns (press mentions) ?

But More Importantly… Are You Listening? Image by Orange Beard on Flickr: http://www.flickr.com/photos/metrojp/92038203/

Free “Listening” Tools Google Analytics AideRSS FeedBurner

Social Media Monitoring Services

Calculating ROI: GM Fastlane Blog Source: http://blogs.forrester.com/groundswell/2007/01/new_roi_of_blog.html $283,000 TOTAL COST (year one) $20,000 Review and redirection $150,000 Content production (incl. Exec time) $3,000 IT Support $50,000 Brand-monitoring service $25,000 Blogging platform Ongoing Costs (annual) $10,000 Training for blogging executive $25, 000 Planning and Development Costs Startup Costs

Calculating ROI: GM Fastlane Blog Source: http://blogs.forrester.com/groundswell/2007/01/new_roi_of_blog.html +$110,000 $393,000 TOTAL BENEFITS (year one) $40,000 Research Value: Customer insights - est. comments equivalent to 5 focus groups @ $8K each $69,000 Support Value: Support calls avoided - est. 50 daily calls @ $5.50 each $37,000 WOM Value: Refering posts on other blogs - est. 370 posts @ $100 each $240,000 PR Value; Press stories about/driven by blog - est. 24 stories @ $10K each $25, 000 Advertising Value (Visibility/traffic) - est. 7,500 daily page views @ $2.50 CPM Value Benefit Analysis (annual)

Final Thoughts
It’s about people!
Listen, learn, experiment, participate and educate, educate, educate…
Start small (internal), but think outside the bun
Put someone important in charge
Setup an SOP and escalation policy
Determine what is considered success
Social Media is a full time job… And more
Generate enthusiasm and encourage participation

Marc Monseau Editor, JNJBTW.com OCT 2nd, 2008 And so what we have ended up doing in many cases is take some small steps to get more comfortable with getting involved. We are also making sure we have processes in place to handle adverse event reports and that we have responsible people involved who can respond quickly to questions. At the same time, [ these projects ] are giving us some great experience.

Resources
Groundswell
Blog – http://blogs.forrester.com/groundswell
Book – http://tinyurl.com/6bab6n
Web Strategist – Jeremiah Owyang’s Blog
http://www.web-strategist.com
Altimeter Group – Charlene Li’s Blog
http://www.charleneli.com/blog
Chris Brogan’s Blog
http://www.chrisbrogan.com

~ Thank You ~ Shwen Gwee Founder & Host Med 2.0 Blog and Podcast Health Informatics and New Media Lead Vertex Pharmaceuticals EMAIL: shwen@med20.com TWITTER: @shwen BLOG: www.Med20.com PODCAST: www.Med20radio.com COMMUNITY: www.SocialPharmer.com Some Rights Reserved (2008) Shwen Gwee - http://creativecommons.org/licenses/by-sa/3.0/us -

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Can Pharma Make a Business Case for Social Media

by Shwen Gwee

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Can Pharma Make a Business Case for Social Media Presentation Transcript