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RESEARCH ABSTRACT:
Strategic Benchmarking Research & Analysis
Best Practices, LLC
Pharma Digital Marketing Innovation::
Se...
BEST PRACTICES,
®
LLC
Table of Contents
 EXECUTIVE SUMMARY ……………………………...………..….………5
 Research Overview……………………………………………...
BEST PRACTICES,
®
LLC
Table of Contents (2)
3. Digital Marketing Investment Levels & Trends………………….84
A. Budget……………………………...
BEST PRACTICES,
®
LLC
Table of Contents (3)
7. Deploying Advanced Analytics…………………………………….158
• Analytics Team Structure
•...
BEST PRACTICES,
®
LLC
Topics Included:Study Overview:
Research Objective: This benchmarking
report comprises a series of ...
BEST PRACTICES,
®
LLC
Benchmark Class:
6
Copyright © Best Practices, LLC
Universe of Learning: 42 Top Companies Participa...
SAMPLE INSIGHTS:
Innovation in Customer Engagement
78% of Customer
Channel Activity Aims
at Physicians, Patients
7
Copyrig...
Sample Key Findings: Measuring Customer Impact & ROI
The following key findings and insights on measuring the custom impac...
Average Cost to Deliver Common Digital Tasks:
(Total Benchmark Class)
9
Copyright © Best Practices, LLC
The following key...
BEST PRACTICES,
®
LLC
10
Copyright © Best Practices, LLC
Where Services Sit in the Healthcare Organization
Economies of S...
BEST PRACTICES,
®
LLC
Q. Does your organization use a Center of Excellence for any Digital Marketing Activities?
11
Copyri...
BEST PRACTICES,
®
LLC
Q. Which group is primarily responsible for each core Digital activities listed below on the left?
1...
BEST PRACTICES,
®
LLC
Q. On which of the following online communities and venues is your Digital Marketing team actively e...
BEST PRACTICES,
®
LLC
Q. What percentage of your total Digital FTEs are allocated to each of the following key Digital Mar...
BEST PRACTICES,
®
LLC
Interviewed Digital Marketing leaders described an often gradual process toward successful
performan...
16
Copyright © Best Practices, LLC
EM Provides Best View of Digital Performance, followed by SEO
Benchmark research estab...
BEST PRACTICES,
®
LLC
Q. How impactful are each of the following analysis types within your company?
17
Copyright © Best P...
In many cases, too many variables across the multichannel marketing mix makes it impossible to
determine the return on inv...
BEST PRACTICES,
®
LLC
About Best Practices, LLC
Best Practices, LLC is a research and consulting firm that conducts work b...
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Digital Marketing Innovation in the Health Care Industry: Service, Measurement and Investment Trends to Maximize Customer Impact

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Bio-pharmaceutical organizations are investing in Digital Marketing to effectively maintain relationships with physicians, patients and other customer groups over product and treatment lifecycles. But, with greater investment, Digital Marketing leaders are also experiencing intense pressure to deliver results.

Best Practices, LLC undertook benchmarking research to examine how leading companies maximize the value provided by the Digital Marketing function through efficient service delivery, optimize resource allocation to vital channels, and evaluate productivity and performance for all digital marketing programs.

Download Full Report: http://bit.ly/2d9zGnF

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Digital Marketing Innovation in the Health Care Industry: Service, Measurement and Investment Trends to Maximize Customer Impact

  1. 1. RESEARCH ABSTRACT: Strategic Benchmarking Research & Analysis Best Practices, LLC Pharma Digital Marketing Innovation:: Service, Measurement, & Investment Trends to Maximize Customer Impact
  2. 2. BEST PRACTICES, ® LLC Table of Contents  EXECUTIVE SUMMARY ……………………………...………..….………5  Research Overview……………………………………………………………..6  Participating Companies………………………………………………………7  Key Findings & Insights……………………………………………………….9  DETAILED RESEARCH FINDINGS…..…………..………………..……18 1. Service Delivery Strategy & Execution………………….…………..19 • Management Responsibility for Key Activities • Channel Effectiveness, Outsourcing & Responsibilities Trends 2. Innovative Customer Engagement Approaches……….………….53 • Target Customer Groups • Leading Venues for Online Engagement • Building Online Credibility • Lifecycle Strategy • Tactics to Successfully Target Key Customers • Strategies to Improve Performance 2 Copyright © Best Practices, LLC
  3. 3. BEST PRACTICES, ® LLC Table of Contents (2) 3. Digital Marketing Investment Levels & Trends………………….84 A. Budget…………………………………………………………….85 • Current & Forecasted Investment Levels • Investment across Key DM Channels & Activities B. Staffing………………………………………………………..….98 • Current & Forecasted Headcount • Staffing across Key DM Activities 4. Measuring Digital Impact & Return on Investment…………...112 • Impact of Digital Activities on Customers & ROI Measurement 5. Benchmarks in Digital Productivity…. ………………………….126 • Digital Productivity Benchmarks for Key Activities 6. Effective Metrics for Measuring Performance………………….138 • Performance Measurement Lines of Sight • Leading Approaches to Scorecarding • Effectiveness of Performance Metrics for Core Digital Channels 3 Copyright © Best Practices, LLC
  4. 4. BEST PRACTICES, ® LLC Table of Contents (3) 7. Deploying Advanced Analytics…………………………………….158 • Analytics Team Structure • Effective Activities For High-Impact Analysis 8. Building Strong Brand Relationships…………………………….167 • Top Relationship Building Activities • Top Mobile Support Activities • Supporting Field Teams with iPads 9. Steps Toward Greater Data Governance Effectiveness……….181 • Data Governance Responsibilities & Standards • Strategies to Promote Adherence  APPENDIX………………………….…..…………..………….…………..…188  Benchmark Profile…………………………….....………………………190  About Best Practices, LLC ……………………………..…………………194 4 Copyright © Best Practices, LLC
  5. 5. BEST PRACTICES, ® LLC Topics Included:Study Overview: Research Objective: This benchmarking report comprises a series of Best Practices’ studies designed to establish Digital Marketing performance excellence and innovation in the healthcare industry. This evidence-based research identifies leading metrics and proven tactics for improving functional performance across a host of core Digital activities and programs. Methodology: Best Practices, LLC engaged 48 Digital Marketing leaders at 42 companies through a benchmarking survey instrument. Representatives from 8 companies participated in deep-dive interviews. Research Objectives, Methodology & Results This research examines how successful Digital Marketing groups in the healthcare industry optimize an increasingly critical function for reaching customers. This benchmark analysis is comprehensive in scope, harvesting insights across all key operational, strategic, and management areas. 5 Copyright © Best Practices, LLC Service Delivery Strategy & Execution Innovative Customer Engagement Tactics & Activities Digital Marketing Investment (Budget & Staffing) Digital Performance, ROI, & Productivity Measurement Deploying Advanced Analytics Building Strong Brand Relationships Effective Data Governance
  6. 6. BEST PRACTICES, ® LLC Benchmark Class: 6 Copyright © Best Practices, LLC Universe of Learning: 42 Top Companies Participated in Study Large Companies (Revenue > $10 Billion US in 2013) Mid-Cap Companies ($1-10 Billion US in 2013) Small-Cap Companies (< $1 Billion US in 2013) (n=14) (n=17) (n=11) Forty-eight benchmark survey respondents from 42 companies participated in this study. Responses ranged from large pharmaceutical companies to mid- and small-cap biotech and medical device organizations. Approximately one-third of respondents support U.S. Digital operations, while another third support a Global Digital function.
  7. 7. SAMPLE INSIGHTS: Innovation in Customer Engagement 78% of Customer Channel Activity Aims at Physicians, Patients 7 Copyright © Best Practices, LLC The “3 Ts” - Transparency, Targeting & Timing Opportunity Areas: More Customer Depth & Balanced Lifecycle  Physicians remain the main target of DM efforts (53% on average), followed by patients (25%). Thought leaders (6%), advocacy groups (6%), & payers (2%) receive low attention.  US Digital groups go deeper in engaging customer segments online (especially advocacy groups), devoting 21% of FTEs to engagement as compared to just 12% for global groups.  Global teams allocated double the FTEs to websites (27% global vs. 19 US), where prudent rollout can scale well across diverse regions and markets.  “Transparency” is the highest-rated tactic for building online credibility, followed by “responsiveness.” Preferred channel communication is key to effective two-way interaction.  Effective segmentation is a key driver of engagement: DM teams leverage infrastructure for targeting physicians (CRM databases 84%, opt-ins 71%). Vendors are a key supplement for segmentation capabilities, often used for patient (39%) and payer (21%) campaigns.  Launch is by far the most effective lifecycle stage for customer engagement (75% rating high impact). DM teams should ideally initiate community engagement activities by phase III (63% rating some impact), which demonstrates transparency and customer commitment.  Tighter focus on a single market & regulatory environment allows US teams to engage deeper with both patients (38% of activity) than global teams (16%) as well as advocacy groups.  DM teams should look for ways to develop markets and educate customers earlier on in the product lifecycle. On average, DM teams invest nearly 40% of engagement bandwidth to support products in late phases where support is less effective. US Digital teams risk over- reliance on the launch phase (58% of FTE allocation) versus global teams (34%).
  8. 8. Sample Key Findings: Measuring Customer Impact & ROI The following key findings and insights on measuring the custom impact and return on investment of Digital Marketing activities emerged from this study.  Website/Mobile Optimization Activities Garner High Customer Impact Ratings: Website and mobile optimization programs received the highest possible customer-impact ratings from some 38% of respondents, a higher percentage than any other surveyed activity area. Email marketing (57%), customer service (52%), and online community engagement directed toward physicians (50%) all earned positive impact ratings from a majority of respondents. Overall, large pharma organizations have evolved the most effective Digital structures for achieving high impact with customers.  High-Upside ROI Activities include Advanced Analytics, iPads, & Online Physician Engagement: Benchmark analysis discerned multiple tiers of business benefit relating to various Digital tactics and programs. The activities holding the highest upside potential for delivering clear, significant returns on investment include advanced analytics, iPad support, and online physician engagement – where almost one-fifth of respondents report high returns. A second tier of value is derived from such prevalent Digital programs as email marketing (53% of DM teams reporting at least “some ROI”), customer service (46%), collateral (42%), CRM enhancement (39%), and market screening (39%), and SEO (38%).  Most Social Media Initiatives Yield Only Paltry Returns on Investment: A large percentage of DM teams struggle to connect tactics deployed with business outcomes, with many companies currently unable to show ROI for any activity. The lowest tier of investment returns comes from social media initiatives, especially in the cases of Twitter (73% earn no ROI), Facebook (71%), YouTube (60%), and online patient engagement (55%). 8 Copyright © Best Practices, LLC
  9. 9. Average Cost to Deliver Common Digital Tasks: (Total Benchmark Class) 9 Copyright © Best Practices, LLC The following key findings and insights on Digital Marketing productivity and efficiency emerged from this study. Activity: Average Cost to Execute: Contact emailed $3 Two-way interaction $611 Online community engaged $2,843* Inbound link earned $3,644 Email campaign sent $11,061 Social profile maintained $11,132* Video posted $13,681 Mobile site supported $14,746* * = monthly cost to maintain Sample Key Findings: Digital Productivity Benchmarks
  10. 10. BEST PRACTICES, ® LLC 10 Copyright © Best Practices, LLC Where Services Sit in the Healthcare Organization Economies of Scope (CoE) Economies of Scale (Outsourced, Shared Services) Brand Controlled DM Team Controlled Analytics SEO E-Marketing Second Screen / Mobile Customer Service Collateral Building iPad Support Social Media Below is a map of the functions discussed in the last slide. The horizontal axis reflects the tendency for the function to be owned by either the Digital or Brand team. The vertical axis reflects strategic poles of organization, economies of scope and scale. Video
  11. 11. BEST PRACTICES, ® LLC Q. Does your organization use a Center of Excellence for any Digital Marketing Activities? 11 Copyright © Best Practices, LLC Use of Digital Center of Excellence for Digital: Use of Digital Centers of Excellence Is Growing Centers of Excellence have played a critical role in the evolution of Digital service delivery. Two years ago, fewer than half of healthcare companies used a designated Digital CoE to efficiently deliver services to constituent brands and business units. Today, 79% of companies use them. (n=29) Yes, 39% No, 61% 20142012 (n=28) Yes 79% No 21%
  12. 12. BEST PRACTICES, ® LLC Q. Which group is primarily responsible for each core Digital activities listed below on the left? 12 Copyright © Best Practices, LLC Management Responsibility for Key Activities: Brands Assert More Active Digital Role in Larger Orgs (n=12-15) In Large Companies, most often managed by: In Mid-Cap Companies, most often managed by: In Small Companies, most often managed by: Email marketing Brands- 47% Brands-42% DM Team- 78% Social websites (Facebook, Twitter) DM team- 42% DM Team-50% CoE- 57% Videos (YouTube) and other multimedia Brands-36% DM Team-45% DM Team- 60% Online community engagement DM Team & Brands- 33% DM Team-42% DM Team- 63% Digital analytics DM team- 50% DM Team- 54% DM Team- 100% Scorecard generation DM team- 42% DM Team-42% DM Team- 86% Within the large company segment, brand teams are more likely to lead individual Digital tactics or activities, such as EM, social media, video, and online community engagement. On the flip side, Digital teams at smaller organizations tend to own almost everything under the Digital banner. One notable exception to this trend is social media, which is managed by a CoE at 57% of small-cap companies. (n=11-13)) (n=5-9)
  13. 13. BEST PRACTICES, ® LLC Q. On which of the following online communities and venues is your Digital Marketing team actively engaging in two- way dialogue? 13 Copyright © Best Practices, LLC Online Community Engagement: Social Media Sites Are Top Current Two-Way Engagement Venue Beyond speed and reach, a key advantage of Digital over traditional Marketing is the potential for direct interaction with customers. To achieve strong “two-way” engagement, many Digital teams have moved beyond owned online territory to external venues. Roughly two-thirds use social media (e.g., Facebook, Twitter), while almost half are active on physician websites, industry message boards, and other medical websites. 5% 33% 33% 33% 38% 43% 43% 48% 67% Others Patient health forums Influential blogs Comments sections (i.e., for influential articles / media outlets) Advocacy group websites Leading medical websites Healthcare industry-related message boards Physician websites Social groups / networks (Twitter / Facebook / YouTube) (n=21)
  14. 14. BEST PRACTICES, ® LLC Q. What percentage of your total Digital FTEs are allocated to each of the following key Digital Marketing activities? 14 Copyright © Best Practices, LLC Staffing Allocation % to Key Channels (by Company Size): (n=41-43) Large Co Mid-Cap Co Small Co Email campaigns 11% 11% 20% Company websites 23% 24% 27% Social media websites (Facebook, Twitter) 3% 6% 10% Videos (YouTube) 3% 3% 9% Online community engagement activities 3% 4% 5% Digital analytics 10% 8% 10% Website & mobile "second screen" optimization 9% 8% 4% SEO 5% 5% 4% iPad/Tablet support (for Sales Force & MSL teams) 19% 16% 3% Collateral building 4% 10% 5% Customer service (e.g., call center support, chat) 3% 2% 1% Other Digital Marketing areas 7% 4% 4% Smaller Orgs Seek High Customer Impact via Greater Social Allocations by Percentage Working with fewer resources but also fewer products and approval hurdles, small-cap Digital teams devote almost one-quarter of FTEs to low-cost online engagement activities: social media (10%), video/YouTube (9%), and two-way engagement (5%). Mid-cap and large Digital teams devote greater resources to building infrastructure (e.g., iPad implementation, mobile) and collateral.
  15. 15. BEST PRACTICES, ® LLC Interviewed Digital Marketing leaders described an often gradual process toward successful performance measurement. For multiple companies, arriving at a valid cost per conversion metric served as a critical first step toward effectively tracking multichannel marketing activities. Cost Per Conversion Analysis Enables Evaluation of E-Promotion and Field Follow-up: “We had basically zero tracking and analytics two years ago when I joined the company. Now we heavily track cost per lead and cost per conversion, trying to drive rep conversions up. We use salesforce.com for tracking.” -Interviewed Director, Digital Strategy Cost Per Conversion Is a Favored Metric for Initial Measurement 15 Copyright © Best Practices, LLC “We’ve re-designed our microsites and new patient websites to leverage emergent analytics. Though we’re in our “analytics infancy” we’ve designed our dot.com properties to support new launch. With more detailed sites that can be linked to and clicked through from an EM blast, we have a clearer understanding of how traffic comes in and clicks around and what the cost per conversion might then turn out to be.” -Interviewed VP, Global Marketing INTRODUCE CONNECT ENGAGE *CONVERSION*
  16. 16. 16 Copyright © Best Practices, LLC EM Provides Best View of Digital Performance, followed by SEO Benchmark research established wide variation both in terms of the availability of metrics that DM teams can use to measure performance and also the relative effectiveness of each metric type. It is no surprise that companies invest an average of 14% of DM budget into email marketing, a channel which is both effective and relatively easy to measure. Effectiveness Metrics Used Online Community Engagement Social Media Mobile Optimization SEO Email Measuring Digital Performance: Metric Effectiveness vs. Usage Level
  17. 17. BEST PRACTICES, ® LLC Q. How impactful are each of the following analysis types within your company? 17 Copyright © Best Practices, LLC High-Impact Analysis: High-Impact Analytics Tend to Support Specific Brands or BUs 21% 27% 30% 34% 32% 25% 34% 41% 45% 45% 12% 14% 38% 4% 8% 15% 14% 18% 25% 17% 11% 14% 34% 69% 68% 59% DM performance – payer channel-specific Regulatory support insights Multi-channel attribution / predictive modeling DM performance – patient channel-specific Online user research Closed loop insights DM performance – physician channel-specific Market screening Overall DM team performance Digital analytics Business unit / franchise performance Brand performance Market analytics Medium impact High impact (n=26-29) Top analysis focused on assessing trends and performance, most often at the brand, franchise and market levels. There is opportunity for richer insights based around individualized customer data and modeling, which leading analytics groups are currently attempting to exploit. “With analytics, people strive too much for the bleeding edge and they all try to get too much -- they don't do enough on the leading edge kind of stuff…. I think that the difference between being medium-sized and being large is that you've got your dollars spent. You got to make it count.” -- Director, Digital Marketing
  18. 18. In many cases, too many variables across the multichannel marketing mix makes it impossible to determine the return on investment for any one tactic. As one study participant explained, gauging Digital ROI is possible, but only in scenarios where you can link specific campaigns or activities to specific, measurable customer actions. Some Companies Get Trapped by a Simplistic Approach to Gauging ROI: “That's kind of the big question: ‘How does Digital drive ROI?’ The challenge you have when you're trying to measure that is can you effectively strip it down so that you're properly linking a specific email campaign to a specific end result? When you look at promotional mix across the board, you have to take everything into consideration. There's a ton of different things that you have to take into consideration when you try to measure it. Where you get stuck sometimes is going on the firm ROI measure of: ‘We spent A, we received B (e.ge., new prescription), then therefore this program worked.’ For one of our apps, we just used downloads to measure the ROI. (Because unless your app is engineered to give usage data back to you – with all the personal identifiable information and privacy rigmarole that goes along with that – then the best you can do to measure is just by download.) The app topped out at around 15,000 downloads from the Apple store, which is great. But there are roughly 18,000 [relevant disease state physicians] out there in the United States. Can we say that it was downloaded almost all of the doctors out there? No. In fact, there's 44 of us on the marketing team alone and we all have it on our own devices (maybe multiple times), so possibly 100 of those downloads are just from our internal teams….But all these factors have to weigh into the final ROI calculation.” -Interviewed Associate Director, Marketing Isolate Key Program Variables to Effectively Gauge Digital Benefits 18 Copyright © Best Practices, LLC
  19. 19. BEST PRACTICES, ® LLC About Best Practices, LLC Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics, and winning strategies of world-class companies. 19 Copyright © Best Practices, LLC 6350 Quadrangle Drive, Suite 200 Chapel Hill, NC 27517 (Phone): 919-403-0251 www.best-in-class.com/digital-marketing-consortium www.best-in-class.com

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