Across Health Digital Barometer 2013

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For the fifth year running, Across Health is presenting you with its truly unique digital landscape overview among life sciences in Europe, US and emerging markets. The Digital Barometer gives you a 360°view on the status, challenges and future of “The New Normal”, i.e. where digital has become a commodity & is fully integrated in the overall channel mix.

Published in: Health & Medicine, Business

Across Health Digital Barometer 2013

  1. 1. Digital Barometer for life sciences
  2. 2. “ Across Health’s Digital Barometer Trough of disillusionment? Across Health Digital Barometer 2013 2 Fonny Schenck Managing Partner, Across Group CEO, Across Health For the fifth year running, Across Health is presenting you with its truly unique digital landscape overview among life sciences in Europe, US and emerging markets. The Digital Barometer gives you a 360°view on the status, challenges and future of “The New Normal”, i.e. where digital has become a commodity & is fully integrated in the overall channel mix. On the one hand, there is increasing confidence in HCP cross-channel mastery, but on the other, ROI questions have never been more prominent, and the level of satisfaction is lower than before... No surprise then that digital budgets are growing at single-digit rates for the first time in 3 years?! Looking at the results holistically, I believe we have entered into the trough of disillusionment stage, as defined by Gartner. But companies are not abandoning digital – they simply cannot...Rather, they are trying to find a NEW way of integrating digital. I’m convinced you’ll find these results useful and trust they will help you reach the slope of enlightenment and the plateau of productivity.” 6/24/13
  3. 3. Gartner Hypecycle* Across Health Digital Barometer 2013 36/24/13 * This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
  4. 4. Table of contents • Executive summary • Key survey statistics • Current adoption of digital • Benchmark against competitors • Digital satisfaction • Most common eTactics • Key challenges • Key bottlenecks • Digital understanding • The future of digital in life sciences • Priorities for digital • Digital budgets 6/24/13 Across Health Digital Barometer 2013 4
  5. 5. Executive summary Across Health Digital Barometer 2013 56/24/13
  6. 6. Executive summary Across Health Digital Barometer 2013 6 • Companies are pleased with their digital HCP approaches vs. the competition (only 29% feel behind)... but satisfaction with digital is dropping to pre-2012 levels....perhaps nobody is doing it really well? • Websites are still the most popular digital tactics. Overall, the focus seems to lie on “digitizing” the rep (tablet detailing, remote detailing) i.e. an extension of “business as usual”...but not per se the most impactful tactics. • The top 4 bottlenecks for success are regulatory and legal issues, lack of digital strategy, ROI, and lack of internal knowledge. The latter two are rising fast. • Digital budgets continue to be low. The future outlook is positive though, as the majority reports that the digital budget will increase. “It’s not about being digital anymore, it’s now about being clever with digital.” Peter Hinssen 6/24/13
  7. 7. 6/24/13 Across Health Digital Barometer 2013 7
  8. 8. Key survey statistics Across Health Digital Barometer 2013 86/24/13
  9. 9. Key survey statistics • 297 respondents from 100 different life science companies completed the online survey between February 25 and April 3, 2013 • Industry spread • Pharma & Biotechnology, OTC, Medical Devices, other (e.g. nutrition, diagnostics) • Geographic spread • Europe, Middle East & Africa (EMEA), North America (NA), China, Latin America, Asia Pacific • Emerging = Brazil, China, Colombia, Croatia, Hungary, India, Mexico, Poland, Russia, Turkey • Local vs. international spread • Global, Regional, National / Local • Functional spread • Marketing, Medical, Sales, Digital, IT, CRM, other Across Health Digital Barometer 2013 96/24/13
  10. 10. Most respondents come from pharma Across Health Digital Barometer 2013 10 91% 5% 2% 2% Pharmaceutical Medical devices OTC Other 6/24/13
  11. 11. The majority of respondents operate in the EMEA region Across Health Digital Barometer 2013 11 69% 10% 8% 9% 4% EMEA North America China Latin America Other 6/24/13
  12. 12. Across Health Digital Barometer 2013 12 55% work at National / Local level, while 45% have an international role National/local 55% Regional 26% Global 19% 6/24/13
  13. 13. Functional Spread Across Health Digital Barometer 2013 13 39% 27% 9% 7% 4% 4% 3% 7% Marketing eBusiness/Digital Sales CRM IT Market Research Medical Other 6/24/13
  14. 14. Current adoption of digital Across Health Digital Barometer 2013 146/24/13
  15. 15. Current adoption of digital Across Health Digital Barometer 2013 15 • Digital initiatives geared towards HCPs are generally considered more competitive than those for other stakeholders like patients or payors. • On the other hand, respondents realize that “competitive” in pharma is not necessarily great...the gap with other industries is high (only 9% feel ahead). • Confidence in sufficient knowledge of internet opportunities is increasing, but - counterintuitively - satisfaction with digital is declining. • Most popular digital tools are still the classic product/disease/company website triangle, but tablet edetailing has joined...with low satisfaction rates. • Interest in mobile marketing, social media, and cross-channel is high. “The future depends on what you do today.” Mahatma Gandhi 6/24/13
  16. 16. Only 9% rate their companies as (far) ahead of other industries when it comes to optimizing the use of internet. Across Health Digital Barometer 2013 16 Digital vs other industries 9% 1% 8% 28% 35% 26% 1% Far aheadAheadAverageBehindFar behindNo opinion copyright © Across Health, 2013 6/24/13
  17. 17. Life sciences in emerging markets feel further ahead as an industry compared to their counterparts in EMEA and NA. How would you rank your company versus other leading Industries in optimally leveraging the internet? Across Health Digital Barometer 2013 17 9% 7% 18% Note: EMEA: Europe, Middle East & Africa - NA: North America Emerging: Brazil, China, Colombia, Croatia, Hungary, India, Mexico, Poland, Russia, Turkey Digital vs other industries 1% 27% 23% 23% 35% 46% 32% 27% 25% 27% 8% 5% 18% 1% 2% EMEA NA Emerging No opinion Far behind Behind Average Ahead Far ahead copyright © Across Health, 2013 6/24/13
  18. 18. In EMEA, life sciences appear to be catching up to other industries in leveraging the internet but the “ahead” group remains stable at 9%. Across Health Digital Barometer 2013 18 How would you rank your company versus other leading Industries in optimally leveraging the internet? Digital vs other industries EMEA 0% 10% 20% 30% 40% 50% 60% 70% 80% 2010 2011 2012 2013 Behind Equal Ahead copyright © Across Health, 2013 6/24/13
  19. 19. Digital Strategy in the New Normal Across Health Digital Barometer 2013 19 The worst mistake you could make is to take your existing analog interaction patterns with customers and transfer them to the web. We are seeing some of that happening today in pharma…with a strong focus on tablet detailing and the fast rise of erep / teledetailing. While existing channels need to be enriched with digital, this is just an “incremental” step. The real opportunities lie elsewhere…Don’t transfer, but re-think. On the positive side, companies are starting to think beyond the “digital brand /TA” strategy and are starting to realize that the customer should be put at the heart of their business… necessitating a company-wide / cross-functional, integrated strategy & approach. “ Beverly Smet Vice President Europe South 6/24/13
  20. 20. There is more confidence in digital activities towards physicians and the least towards payors (relative to the competition)… Across Health Digital Barometer 2013 20 How would you rank your company versus your competitors in using digital initiatives targeted at stakeholders? *other stakeholders = e.g. nurses, pharmacists 45% 57% 41% 29% 41% 35% 40% 37% 13% 7% 19% 34% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Other stakeholders Payors Consumers/patients Physicians Behind Equal Ahead copyright © Across Health, 2013 6/24/13
  21. 21. …with confidence vs. competition towards HCPs slightly higher in emerging markets… How would you rank your company versus your competitors in using digital initiatives targeted at healthcare professionals? Across Health Digital Barometer 2013 21 HCPs Note: EMEA: Europe, Middle East , Africa - NA: North America - Emerging: Brazil, China, Colombia, Croatia, Hungary, India, Mexico, Poland, Russia, Turkey 33% 36%29% 2% 2% 9% 18% 19% 18% 23% 36% 35% 41% 29% 25% 27% 4% 4% 9% EMEA NA Emerging No opinion Far behind Behind Average Ahead Far ahead copyright © Across Health, 2013 6/24/13
  22. 22. HCPs …and a marked surge of confidence in EMEA. Across Health Digital Barometer 2013 22 How would you rank your company versus your competitors in using digital initiatives targeted at healthcare professionals? 0% 10% 20% 30% 40% 50% 60% 70% 2009 2010 2011 2012 2013 Behind Equal Ahead copyright © Across Health, 2013 6/24/13
  23. 23. In using digital for patients, “ahead” responses are similar across regions, but EMEA and NA feel more behind than emerging markets. How would you rank your company versus your competitors in using digital initiatives targeted at consumers/patients? Across Health Digital Barometer 2013 23 19% 20% 18% Consumers/patients Note: EMEA: Europe, Middle East , Africa - NA: North America - Emerging: Brazil, China, Colombia, Croatia, Hungary, India, Mexico, Poland, Russia, Turkey 4% 10% 12% 29% 33% 32% 38% 35% 50% 16% 18% 18% 3% 2% EMEA NA Emerging No opinion Far behind Behind Average Ahead Far ahead copyright © Across Health, 2013 6/24/13
  24. 24. Consumers/patients In EMEA, the “ahead” group is stable, but a rise in “equal” and fall in “behind” groups suggest increasing confidence. Across Health Digital Barometer 2013 24 How would you rank your company versus your competitors in using digital initiatives targeted at consumers/patients? 0% 10% 20% 30% 40% 50% 60% 70% 2009 2010 2011 2012 2013 Behind Equal Ahead copyright © Across Health, 2013 6/24/13
  25. 25. Pat Thistlethwaite Managing Director, North America “ Digital marketing and pharma’s key stakeholders Across Health Digital Barometer 2013 25 The level of confidence regarding digital interactions with the traditional target group for pharma, physicians, is increasing year by year. Around 70% feels they are on par or better than the competition. However, the key question is: is competitive parity relevant in an industry where only 9% feels they are ahead of other industries? And, similarly, do customers feel the same level of improvement? Are they getting served in a superior fashion vs. in the past? The level of confidence is also increasing in the consumer/patient area, but in a more gradual way, and at a lower overall level. Interestingly, the US does not rate itself as being better at this than Europe or emerging markets, while consumer marketing has a much longer history there. The Holy Grail for digital interactions with this target group is still out there... Last but not least, we included new stakeholder groups for the first time: “payors” and “other stakeholders”. Unsurprisingly, only 7% feels ahead regarding digital payor services and 13% for other stakeholders. More focus is needed here, in view of the rapid shift in the decision-making paradigm. 6/24/13
  26. 26. Almost half of respondents feel confident about their digital expertise (+8% from 2012)… Do you feel that you have sufficient knowledge of all opportunities offered by the internet for your business activities? Across Health Digital Barometer 2013 26 Note: 2009-2011 data EMEA only 4% 4% 2% 1% 2% 24% 20% 24% 18% 16% 27% 31% 42% 44% 36% 31% 34% 21% 30% 34% 14% 10% 10% 8% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2009 2010 2011 2012 2013 Totaly insufficient Insufficient Between sufficient and insufficient Sufficient More than sufficiant (expert) copyright © Across Health, 2013 6/24/13
  27. 27. …but only 16% of respondents are satisfied with their current digital activities. Across Health Digital Barometer 2013 27 Extremely Satisfied Extremely Dissatisfied Average score 2.6 16% On a scale from 0 to 5, how satisfied are you with your current digital activities? 1% 15% 25% 42% 14% 2% 0 1 2 3 4 5 copyright © Across Health, 2013 6/24/13
  28. 28. Satisfaction levels are lowest in NA… Across Health Digital Barometer 2013 28 On a scale from 0 to 5, how satisfied are you with your current digital activities? Note: EMEA: Europe, Middle East , Africa - NA: North America - Emerging: Brazil, China, Colombia, Croatia, Hungary, India, Mexico, Poland, Russia, Turkey Extremely Dissatisfied Extremely Satisfied 42% 58% 41% 42% 32% 45% 15% 11% 14% EMEA NA Emerging Dissatisfied Neutral Satisfied copyright © Across Health, 2013 6/24/13
  29. 29. …and in EMEA, satisfaction levels declined too…and have barely budged since 2010! Across Health Digital Barometer 2013 29 On a scale from 0 to 5, how satisfied are you with your current digital activities? 0% 10% 20% 30% 40% 50% 60% 2010 2011 2012 2013 Dissatisfied Neutral Satisfied copyright © Across Health, 2013 6/24/13
  30. 30. “ Channel mix trends Across Health Digital Barometer 2013 30 The overall picture for the multichannel mix remains quite similar across regions & time...the focus is still on websites, although marketers increasingly (and rightly) question the impact of these and wonder why pharma has so many different web properties vs. other industries. However, also in 2013, tablet detailing continued to gain ground quickly. This is no surprise, as the tools & technology have matured quickly and tablets fit in the “business as usual” thinking. It also demonstrates convincingly that you cannot create a sustainable competitive edge by adopting a new technology...it’s about being clever with it. In the rep-enablement space, the strong growth of erep/remote detailing is noteworthy. After 2 stable years at around 10%, the “often/standard” vote more than doubled to 24% in 2013. This trend is unique for Europe, while in the US and emerging markets, the uptake is much slower (12% and 14%). Will erep continue to grow as fast as tablet detailing in the next few years? If the right strategy & change management is in place, this may well be the case... We also included a few new tactics, which are all in the “emerging” space. Some of these (remote monitoring, electronic health records,...) will prove to be key tactics going forward. Watch this space! Patrick Vidal Managing Director, France 6/24/13
  31. 31. Websites remain the most commonly used digital channel. High interest in mobile, cross-channel, and social and discovery of new tactics: ePrescribing & PHR advertising and remote patient monitoring Across Health Digital Barometer 2013 31 * denotes addition in 2013 * * * 84% 71% 70% 65% 59% 55% 52% 49% 47% 47% 38% 34% 32% 24% 23% 20% 20% 20% 17% 12% 10% 6% 7% 12% 14% 22% 27% 18% 30% 26% 27% 27% 29% 47% 43% 27% 44% 32% 43% 33% 25% 15% 22% 21% 6% 13% 11% 10% 11% 23% 17% 20% 22% 20% 27% 16% 22% 45% 30% 38% 35% 42% 48% 62% 57% 62% 3% 4% 4% 3% 3% 4% 2 5% 4% 5% 6% 2 3% 4% 3% 10% 2 5% 9% 11% 11% 11% Company website Product website Disease website Tablet eDetailing eMail marketing Web banners Web conference Online MedEd HCP self-service portal SEO SEA Mobile marketing Integrated cross-channel campaigns eRep Social media monitoring Patient compliance/adherence Social media marketing Virtual eDetailing e-MSL ePrescribing advertising personal health records advertising Remote patient monitoring Often / Standard Practice Pilot / Ongoing Never Do not know/ NA copyright © Across Health, 2013 6/24/13 * * *
  32. 32. Top eTactics used in: North America Across Health Digital Barometer 2013 32 * denotes addition in 2013 * * * * * * 81% 74% 67% 65% 54% 51% 51% 49% 44% 42% 37% 35% 28% 25% 19% 19% 16% 16% 14% 12% 11% 7% 9% 12% 21% 14% 25% 16% 28% 23% 21% 30% 51% 32% 39% 35% 53% 40% 32% 16% 16% 28% 33% 23% 4% 9% 7% 14% 16% 25% 18% 21% 26% 25% 11% 23% 32% 28% 23% 39% 39% 53% 53% 54% 47% 56% 7% 5% 5% 7% 5% 9% 4% 7% 9% 4% 2 11% 2 12% 5% 2 14% 16% 18% 5% 9% 14% Company website Product website Tablet eDetailing Disease website eMail marketing Web banners Web conference SEO SEA HCP self-service portal Mobile marketing Online MedEd Integrated cross-channel campaigns Patient compliance/adherence Social media monitoring Social media marketing e-MSL personal health records advertising ePrescribing advertising eRep Virtual eDetailing Remote patient monitoring Often / Standard Practice Pilot / Ongoing Never Do not know/ NA copyright © Across Health, 2013 6/24/13 *
  33. 33. Top eTactics used in: Emerging countries Across Health Digital Barometer 2013 33 * denotes addition in 2013 * * * * * * * Note: Emerging: Brazil, China, Colombia, Croatia, Hungary, India, Mexico, Poland, Russia, Turkey 91% 73% 64% 55% 55% 41% 41% 41% 41% 36% 36% 27% 27% 23% 18% 18% 18% 14% 14% 9% 5% 5% 9% 23% 23% 27% 32% 41% 41% 36% 18% 36% 32% 50% 27% 41% 45% 23% 14% 36% 18% 23% 36% 14% 5% 14% 9% 9% 18% 18% 23% 41% 27% 27% 23% 41% 36% 36% 59% 68% 45% 64% 64% 59% 82% 9% 5% 5% 5% 5% 5% 5% Company website Product website Tablet eDetailing Disease website eMail marketing Online MedEd SEO Web conference Web banners Integrated cross-channel campaigns HCP self-service portal SEA Virtual eDetailing Mobile marketing Social media marketing Patient compliance/adherence ePrescribing advertising Social media monitoring eRep e-MSL personal health records advertising Remote patient monitoring Often / Standard Practice Pilot / Ongoing Never Do not know/ NA copyright © Across Health, 2013 6/24/13
  34. 34. Top eTactics used in: EMEA 6/24/13 Across Health Digital Barometer 2013 34 * * * * * * denotes addition in 2013 * * 84% 72% 70% 65% 58% 55% 52% 50% 47% 47% 36% 34% 32% 24% 23% 20% 19% 18% 17% 10% 9% 6% 8% 13% 12% 22% 27% 19% 28% 25% 27% 27% 29% 47% 42% 28% 43% 32% 42% 33% 25% 15% 21% 21% 6% 11% 13% 10% 11% 22% 18% 20% 22% 20% 27% 17% 22% 45% 30% 43% 37% 39% 49% 65% 58% 62% 3 4% 4% 3% 3% 4% 2 5% 4% 5% 7% 2 3% 4% 4% 4% 2 10% 9% 11% 11% 11% Company website Disease website Product website Tablet eDetailing eMail marketing Web banners Web conference Online MedEd HCP self-service portal SEO SEA Mobile Marketing Integrated cross-channel campaigns eRep Social media monitoring Virtual eDetailing Social media marketing Patient compliance/adherence e-MSL ePrescribing advertising Personal health record advertising Remote patient monitoring Often / Standard Practice Pilot / Ongoing Never Do not know/ NA copyright © Across Health, 2013 *
  35. 35. In EMEA, the use of tablet detailing has surged into the top 5 as well as impressive growth for eRep and Online MedEd. Strong entry for new tactics like cross-channel and social media monitoring. Across Health Digital Barometer 2013 35 Often/Standard Practice 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 New questions in 2013 copyright © Across Health, 2013 6/24/13
  36. 36. “ The Mobile Marketing Disruption Across Health Digital Barometer 2013 36 Mobile marketing is rising for the third year in a row (excluding tablet detailing from this trend). With well over 30% of respondents considering this a standard tactic in US and Europe – and only 11 and 17% saying they would “never” use this (sic) – pharma seems to be assessing the disruptive nature of this channel quite adequately. Interestingly, mobile scores much lower in emerging markets (27% “standard”), while arguably they could benefit even more from this channel in view of the mobile penetration rate in these markets. Overall, I am convinced we will see a lot of experiments in this area going forward, ranging from remote monitoring, patient adherence, location- based support and many more... In a recent report, the McKinsey Global Institute puts mobile forward as the most disruptive technology in the next 15 years, with an estimated impact of 4-11 trillion USD per annum on the global economy...and remote patient monitoring is mentioned as a key example, with an estimated 10-20% savings on chronic care... May you live in interesting times, the Chinese proverb says... Jan Keuppens Managing Director, Belgium 6/24/13
  37. 37. “ Engaging in Social Media Across Health Digital Barometer 2013 37 Although it appeared earlier on the scene than mobile, social has been playing catch-up since the beginning. There is some nice growth in 2013, but it is lower than in other industries and arguably than what it deserves in pharma. Regulatory uncertainty, lack of critical mass and poor initial results will certainly have hindered massive investments. Similar to mobile too, emerging markets are adopting social much more reservedly than the mature markets, while these channels are much stronger in these markets, with more physicians & patients flocking to them. This begs the question: when will a smart company leapfrog the competition in those markets regarding social (& mobile)? Across the three regions, social media monitoring scores higher than social media in general. This is of course a safer tactic than social media marketing (although the adverse event reporting process needs to be robust), but we have also seen that it is being used indiscriminately: it does not always yield significant and/or actionable insights. Anyway, pharma will need to get used to the fact that they cannot control the message anymore and will need to start engaging in the conversation, as well as leveraging crowd-sourcing opportunities, patient opinion leaders, online peer-to-peer support and many other opportunities created by social media. The days of “let’’s do a facebook page” are long gone. Eva Velasco Managing Director, Spain 6/24/13
  38. 38. Key challenges Across Health Digital Barometer 2013 386/24/13
  39. 39. Key challenges Across Health Digital Barometer 2013 39 • Regulatory or legal issues, ROI, and lack of digital strategy remain the main challenges globally. ROI concerns is the only main barrier on the rise...reaching second position in 2013 • In emerging markets, ROI is by far the main concern followed by healthcare compliance, while internal knowledge is much less of an issue versus other regions • Lack of internal knowledge concerns have risen sharply while those around headcount have dropped – a sign that companies have finally invested in people and now need to invest in know-how? “To improve is to change; to be perfect is to change often.” Winston Churchill 6/24/13
  40. 40. Regulatory / legal issues are the main bottlenecks to digital, followed by ROI questions and unclear eBusiness strategies… Across Health Digital Barometer 2013 40 % of respondents indicating options as one of the top two main bottlenecks for digital in their organization. 19% 15% 14% 14% 10% 7% 7% 6% 3% 1% 1% 1% Regulatory or legal issues ROI questions No clear eBusiness strategy Not enough internal knowledge in this area Healthcare compliance concerns No headcount to support this No budget No senior management support Customers are not ready No expert agencies with pharma background available Other (please specify) N/Acopyright © Across Health, 2013 6/24/13
  41. 41. …comparable for both EMEA and NA but in emerging markets, the main bottleneck is more profoundly ROI followed by compliance questions. Across Health Digital Barometer 2013 41 % of respondents indicating options as one of the top two main bottlenecks for digital in their organization. Note: EMEA: Europe, Middle East , Africa - NA: North America - Emerging: Brazil, China, Colombia, Croatia, Hungary, India, Mexico, Poland, Russia, Turkey 0% 5% 10% 15% 20% 25% Regulatory or legal issues No clear eBusiness strategy Not enough internal knowledge in this area ROI questions Healthcare compliance concerns EMEA NA Emerging copyright © Across Health, 2013 6/24/13
  42. 42. In Europe, while regulatory/legal issues is still the main barrier, ROI and lack of internal knowledge have increased over the years. Headcount has become less of an issue. Across Health Digital Barometer 2013 42 % of respondents indicating main bottlenecks for digital in their organization. * 2013 data has been adjusted for comparability to previous years 0% 10% 20% 30% 40% 50% 60% 70% NA Others No expert agencies with pharma background available Customers are not ready No senior management support No budget No headcount to support this Healthcare compliance concerns Not enough internal knowledge in this area No clear eBusiness strategy ROI questions Regulatory or legal issues 2013 2012 2011 2010 copyright © Across Health, 2013 6/24/13
  43. 43. “ ROI on the rise: mature vs. emerging markets Across Health Digital Barometer 2013 43 While regulatory issues and lack of strategy are consistent top barriers across mature & emerging markets, ROI is much more important in emerging markets. This seems a bit strange, as the opportunity for cross-channel marketing is even higher in emerging markets with more limited salesforce reach and strong adoption of and trust in digital channels by all stakeholders vs. Europe & US. Possibly, it’s a catch-22 syndrome here: they do not invest a lot in digital as they have not been able to see a strong impact, and as a result, the likelihood of seeing a significant impact remains low...a vicious circle. In general, it is clear that senior management is increasingly pushing for measurable business impact of digital and cross-channel. This offers great opportunities for digital organizations, who can demonstrate impact to management through well-designed pilots and robust company-wide dashboards. Veerle Claerhout Managing Director, Emerging Markets 6/24/13
  44. 44. The future of digital in life sciences Across Health Digital Barometer 2013 446/24/13
  45. 45. The future of digital in life sciences Across Health Digital Barometer 2013 45 • Cross-channel marketing and strategy development remain major priorities for most, joined by tablet detailing success. • Developing and executing a customer-centric strategy and leveraging customer intelligence is in the early stages only • Digital initiatives remain a small percentage of the total marketing budgets vs. other industries. • While marketing budgets continue to be reduced, the growth in digital budgets is slowing significantly too – to single-digit growth for the first time in 3 years...this trend is clearly in contrast with other industries. “As for the future, your task is not to foresee it, but to enable it.” Antoine De Saint- Exupery FUTURE OF DIGITAL 6/24/13
  46. 46. Cross-channel marketing and strategy development remain key priorities in 2013. Training gains attention too, but tablet detailing 2.0 appears first on the agenda. What are priorities in your organization regarding DIGITAL? Across Health Digital Barometer 2013 46 * Tablet detailing option added in 2013. 0% 5% 10% 15% 20% 25% Assessing online trends (customer, technologies,…) Best practice sharing Full-scale execution of tactics Training Impact measurement/reporting/dashboarding Strategy development Cross-channel marketing mix optimization Making tablet detailing a success 2013 2012 copyright © Across Health, 2013 6/24/13 *
  47. 47. EMEA NA Emerging Tablet detailing success scores highest in all regions but differences exist thereafter e.g. emerging markets are less focused on cross-channel. Across Health Digital Barometer 2013 47 FUTURE OF DIGITAL Note: EMEA: Europe, Middle East , Africa - NA: North America - Emerging: Brazil, China, Colombia, Croatia, Hungary, India, Mexico, Poland, Russia, Turkey 21% 12% 15% 12% 14% 15% 6% 5% 21% 9% 13% 15% 15% 9% 9% 10% 19% 14% 14% 14% 13% 10% 9% 7% Making tablet detailing a success Cross-channel marketing mix optimization Strategy development Training Impact measurement / reporting / dashboarding Full-scale execution of tactics Best practice sharing Assessing online trends (customer, technologies,…) copyright © Across Health, 2013 6/24/13
  48. 48. “ The “success” of Tablet Detailing Across Health Digital Barometer 2013 48 Tablet detailing has risen fast through the mix ranks in pharma and is now the second most used tactic besides websites. The “innovation” effect of the first-mover was short-lived, as most pharma companies are now offering tablet detailing and most customers have one or more tablet devices at home or in their practice too. The opportunity of tablet detailing remains high, but pharma will need to move beyond the obvious mass-digitization of existing detail aids and develop segmented offerings with a strong customer intellligence back-end, excellent change management and integration with the other channels, thereby really closing the loop. The scores for customer-centricity & customer intelligence are still quite low, confirming the pain points in tablet detailing. Here too, it is not about the technology – that’ s a commodity - but about being clever with it. That’s where a sustainable competitive advantage can be created. Ruud Kooi Vice President Europe North 6/24/13
  49. 49. Only 7% of respondents have a well-defined and well- executed customer-centric strategy in place… Do you have a customer-centricity strategy in place? Across Health Digital Barometer 2013 49 2% 28% 22% 10% 30% 7% We do not need one We do not have one, but should have one We are thinking of developing one in the next few months We have one, but its validity is questioned We have one, but it is not implemented with rigor We have one, and it is well executed copyright © Across Health, 2013 6/24/13
  50. 50. …while only 13% have robust customer analytics in place, but more than half are starting to utilise multichannel customer data. Do you leverage customer data from your cross-channel initiatives for advanced customer analytics and closed-loop marketing? Across Health Digital Barometer 2013 50 4% 30% 53% 8% 5% 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 13% copyright © Across Health, 2013 6/24/13
  51. 51. The rep is seen as part of a wider and more diverse cross-channel strategy rather than being the singular channel it used to be. Your opinion about the integration between digital channels and sales force? Across Health Digital Barometer 2013 51 3% 20% 26% 50% Other (please specify) The rep should be in the driver’s seat, deciding which parts of the cross- channel offering are relevant to each physician The rep is the most important channel in the cross-channel mix; marketing centrally decides which messages and channels are relevant to each physician The rep is one of the channels in the cross-channel mix reserved for high potentials; marketing centrally decides which messages and channels are relevant to each physician copyright © Across Health, 2013 6/24/13
  52. 52. Setting up the multichannel organization Patric Jarchow Managing Director, Germany, Switzerland, Austria Across Health Digital Barometer 2013 52 In a recent study, Capgemini (The Digital Advantage) finds that pharma is the least developed industry in terms of digital maturity (or “transformation management intensity” as they call it). As long as digital offerings sprung from the product silos and were disconnected from other channels, the organizational issue remained latent. But with the emergence of cross-channel & multifunctional approaches centered around the customer, this model is rapidly showing its weaknesses. It is clear that pharma needs to organize differently for cross-channel or it will continue to play catch-up and never realize the full & impressive returns from cross-channel marketing. So what are we waiting for? Let 2013 be the year of accelerating the move towards the cross-channel organization. Let’s gear up! “ 6/24/13
  53. 53. 5% 6% 13% 17% 19% 29% 77% 75% 56% 37% 31% 43% 39% 43% 44% 24% 25% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 Increase Equal Decrease More marketing budgets are being reduced compared to last year (43% vs. 31%), and double the digital budgets as well. How do you think your overall marketing and digital budget will evolve by the end of 2013? Across Health Digital Barometer 2013 53 Digi Digi Digicopyright © Across Health, 2013 6/24/13
  54. 54. Digital initiatives are still a small proportion of the overall budget… Across Health Digital Barometer 2013 54 Average 15.3% 12% 45% 15% 14% 4% 11% less than 5% 5% to 10% 11% to 15% 16% to 20% 21% to 25% more than 25% copyright © Across Health, 2013 If you oversee a marketing budget, which percentage of it is allocated to digital initiatives THIS YEAR? 6/24/13
  55. 55. …and digital marketing budgets tend to be higher in EMEA and NA than in emerging markets. If you oversee a marketing budget, which percentage of it is allocated to digital initiatives THIS YEAR? Across Health Digital Barometer 2013 55 17% 58% 17% 8% Emerging 4% 59% 19% 11% 7% NA Average 10.8% Average 13.9% Average 16.0% Note: EMEA: Europe, Middle East , Africa - NA: North America - Emerging: Brazil, China, Colombia, Croatia, Hungary, India, Mexico, Poland, Russia, Turkey 10% 43% 15% 15% 4% 12% EMEA less than 5% 5% to 10% 11% to 15% 16% to 20% 21% to 25% more than 25% copyright © Across Health, 2013 6/24/13
  56. 56. In EMEA, the average percentage allocated to digital marketing has continued to increase but at a lower rate than before. If you oversee a marketing budget, which percentage of it is allocated to digital initiatives THIS YEAR? Across Health Digital Barometer 2013 56 FUTURE OF DIGITAL Average 5% Average 8% Average 14.8% Average 16% 0% 4% 8% 12% 16% 20% 2010 2011 2012 2013 copyright © Across Health, 2013 6/24/13
  57. 57. Only 8% of respondents believe that defining an optimal channel mix is easy. How complex is it to define the optimal channel mix? Across Health Digital Barometer 2013 57 8% 19% 52% 22% 7% 1% Very complicated Somewhat complicated Neither complicated nor simple Relatively simple Very simple copyright © Across Health, 2013 6/24/13
  58. 58. Life sciences spending on digital Across Health Digital Barometer 2013 58 For the first time since the start of our Digital Barometer, the growth of digital budgets has dropped to single-digit levels, reaching 16% of the marketing budget….which continues to decline too. In other industries, the average is well above 20%, and marketing budgets are more significant vs. sales budgets there anyway. We believe that part of this hesitation is due to the lack of tangible ROI (see previous section on barriers)…and the lack of robust business metrics overall. With increasing budgets flowing to digital, in line with other industries, executives expect a tangible return – “show me the money” – but most measurements have been anecdotal and “soft”. A strict approach is needed here to help convince top management. A key enabler for ROI optimization is marketing mix modeling, but also here pharma has only started to mine this key opportunity: only 8% find it (relatively) simple. Robust mix modeling coupled with zero-based budgeting, higher investments in digital, and flawless execution are the way forward… “ Edwin de Fouw Managing Director, Netherlands & Nordics 6/24/13
  59. 59. Final thoughts Across Health Digital Barometer 2013 596/24/13
  60. 60. “ 2013: the end of the beginning? Fonny Schenck Managing Partner, Across Group CEO, Across Health Across Health Digital Barometer 2013 60 With satisfaction levels declining, senior management support falling and ROI concerns rising quickly, it is almost inevitable that digital budgets are flat or even decreasing in 42% of our respondents... It is clear that you cannot walk away from digital, despite its mixed track record to date. Getting the right cross-channel team in place, defining the right KPIs, allocating a relevant budget to digital and ensuring buy-in and expertise with the customer-facing teams will be key drivers to help companies reach the slope of enlightenment...which will lead to the “New Normal” level of productivity... Together with you, I trust 2013 will later be seen as a transition year, which will be followed by the fast-paced adoption of powerful cross-channel frameworks with a strong focus on customer centricity and mobility. The opportunity is huge in the US and Europe...but arguably even higher in the emerging markets. I wish you all good luck on your journey towards the New Normal! 6/24/13
  61. 61. Across Health • 60+ strong consultancy • Focus on innovative customer-centric approaches (cross-channel “fusion”) • Holistic approach: from strategy to implementation & success metrics/KPIs • Unique offering in the industry • Global footprint • Life Sciences focus Across Health Digital Barometer 2013 61 Extensive experience at regional/global level AND local execution power 6/24/13
  62. 62. How do we work? Across Health Digital Barometer 2013 62 The 4 i’s 01Insight We summarize key trends, best practices and benchmarks - also from related and other industries - and compare them to your current situation. Landscape analysis & marketing mix assessment04Impact We measure the impact of the new strategy using dashboards, KPIs,… and create best-practice documents/tools. Effectiveness, ROI & customer intelligence The 4 i Methodology 03Integrated execution We handle the project from A to Z as well as support in related activities such as change management, process & organizational development, design, training of sales reps etc. Program management & on-site support 02Innovation We come up with an innovative, balanced and integrated roadmap and strategy for the program that builds on the strengths of your existing channels. Fusion strategy development 6/24/13
  63. 63. Execute We advocate a balanced approach Across Health Digital Barometer 2013 63 Enhance Experiment • Dashboards • Customer experience • Online marketing • Personalization • Search engine optimization • Social media optimization • … • Mobile strategy & tactics • Social strategy & tactics • PHR/EHR strategy • Innovation pilots • (on-site) programme management of large-scale projects: cross -channel projects, teledetailing, self-service portal, … 6/24/13
  64. 64. Our positioning Across Health Digital Barometer 2013 64 Big-5 Consultancies Web Agencies Health Units of MarCom Companies StrategyImplementation Cross Industry Life Sciences 6/24/13
  65. 65. We have a CAGR of 35+% over the past 4 years and have a very loyal customer base Across Health Digital Barometer 2013 65 2008 2009 2010 2011 2012 A customers 250K/yr 2 4 7 8 8 B customers >100 < 250K/yr 4 2 3 8 7 C customers < 100K/yr 16 26 35 23 37 6/24/13
  66. 66. Some of our key references Across Health Digital Barometer 2013 666/24/13
  67. 67. We serve our customers all over the globe Across Health Digital Barometer 2013 67 USA China Australia & New Zealand Spain United Kingdom Germany Switzerland The Netherlands France Belgium 6/24/13
  68. 68. Across Health Digital Barometer 2013 68 DISCLAIMER: Current presentation is confidential. All proposed concepts and ideas presented here are intellectual property of Across Health, and are to be used in collaboration with Across Health. Contact us: boris.chu@a-cross.com www.a-cross.com/health 6/24/13 These results have been compiled by Boris Chu & Fadi Baddur Fusion Marketing for the New Normal

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