Across Health Digital Barometer 2013

Digital Barometer
for life sciences

“
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

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.

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

Executive summary

Executive summary
• 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

Key survey statistics

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

Most respondents come from pharma
91%
5%
2%
2%
Pharmaceutical
Medical devices
OTC
Other
6/24/13

The majority of respondents operate in the EMEA region
69%
10%
8%
9%
4%
EMEA
North
America
China
Latin
America
Other
6/24/13

55% work at National / Local level, while 45% have an
international role
National/local
55%
Regional
26%
Global
19%
6/24/13

Functional Spread
39%
27%
9%
7%
4%
4%
3%
7%
Marketing
eBusiness/Digital
Sales
CRM
IT
Market Research
Medical
Other
6/24/13

Current adoption of digital

Current adoption of digital
• 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

Only 9% rate their companies as (far) ahead of other
industries when it comes to optimizing the use of internet.
Digital vs other industries
9%
1%
8%
28%
35%
26%
1%
Far aheadAheadAverageBehindFar behindNo opinion
copyright © Across Health, 2013
6/24/13

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?
9% 7% 18%
Note: EMEA: Europe, Middle East & Africa - NA: North America
Emerging: Brazil, China, Colombia, Croatia, Hungary, India, Mexico, Poland, Russia, Turkey
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
6/24/13

In EMEA, life sciences appear to be catching up to other industries in
leveraging the internet but the “ahead” group remains stable at 9%.
How would you rank your company versus other leading
Industries in optimally leveraging the internet?
EMEA
0%
10%
20%
30%
40%
50%
60%
70%
80%
2010 2011 2012 2013
Behind Equal Ahead
6/24/13

Digital Strategy
in the New Normal
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

There is more confidence in digital activities towards physicians and
the least towards payors (relative to the competition)…
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
6/24/13

…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?
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
6/24/13

HCPs
…and a marked surge of confidence in EMEA.
digital initiatives targeted at healthcare professionals?
0%
10%
20%
30%
40%
50%
60%
70%
2009 2010 2011 2012 2013
Behind Equal Ahead
6/24/13

In using digital for patients, “ahead” responses are similar across
regions, but EMEA and NA feel more behind than emerging
markets.
digital initiatives targeted at consumers/patients?
19% 20% 18%
Consumers/patients
4%
10%
12%
29%
33%
32%
38%
35%
50%
16%
18% 18%
3% 2%
EMEA NA Emerging
6/24/13

Consumers/patients
In EMEA, the “ahead” group is stable, but a rise in “equal” and fall
in “behind” groups suggest increasing confidence.
digital initiatives targeted at consumers/patients?
0%
10%
20%
30%
40%
50%
60%
70%
2009 2010 2011 2012 2013
Behind Equal Ahead
6/24/13

Pat Thistlethwaite
Managing Director, North America
“
Digital marketing and pharma’s key stakeholders
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

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?
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)
6/24/13

…but only 16% of respondents are satisfied with their current
digital activities.
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
6/24/13

Satisfaction levels are lowest in NA…
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
6/24/13

…and in EMEA, satisfaction levels declined too…and have barely
budged since 2010!
0%
10%
20%
30%
40%
50%
60%
2010 2011 2012 2013
Dissatisfied
Neutral
Satisfied
6/24/13

“
Channel mix trends
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

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
* 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
6/24/13
*
*
*

Top eTactics used in:
North America
*
*
*
*
*
*
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
Mobile marketing
Online MedEd
e-MSL
eRep
Virtual eDetailing
6/24/13
*

Emerging countries
*
*
*
*
*
*
*
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
SEA
Virtual eDetailing
Mobile marketing
eRep
e-MSL
6/24/13

EMEA
*
*
*
*
*
*
*
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
SEO
SEA
Mobile Marketing
eRep
Virtual eDetailing
e-MSL
Personal health record advertising
*

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.
Often/Standard Practice
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011
2012
2013
New questions in 2013
6/24/13

“
The Mobile Marketing Disruption
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

“
Engaging in Social Media
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

Key challenges

Key challenges
• 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

Regulatory / legal issues are the main bottlenecks to digital,
followed by ROI questions and unclear eBusiness strategies…
% 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

…comparable for both EMEA and NA but in emerging markets, the main
bottleneck is more profoundly ROI followed by compliance questions.
% 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
6/24/13

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.
% 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
6/24/13

“
ROI on the rise: mature vs. emerging markets
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

The future of digital
in life sciences

The future of digital
in life sciences
• 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

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?
* 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
6/24/13
*

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.
FUTURE
OF DIGITAL
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,…)
6/24/13

“
The “success” of Tablet Detailing
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

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?
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
6/24/13

…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?
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%
6/24/13

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?
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
6/24/13

Setting up the multichannel organization
Patric Jarchow
Managing Director, Germany,
Switzerland, Austria
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

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?
Digi Digi Digicopyright © Across Health, 2013
6/24/13

Digital initiatives are still a small proportion of
the overall budget…
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%
If you oversee a marketing budget, which percentage
of it is allocated to digital initiatives THIS YEAR?
6/24/13

…and digital marketing budgets tend to be higher in
EMEA and NA than in emerging markets.
17%
58%
17%
8%
Emerging
4%
59%
19%
11%
7%
NA
Average
10.8%
Average
13.9%
Average
16.0%
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%
6/24/13

In EMEA, the average percentage allocated to digital marketing
has continued to increase but at a lower rate than before.
FUTURE
OF DIGITAL
Average
5%
Average
8%
Average
14.8%
Average
16%
0%
4%
8%
12%
16%
20%
2010 2011 2012 2013
6/24/13

Only 8% of respondents believe that defining an
optimal channel mix is easy.
How complex is it to define the optimal channel mix?
8%
19%
52%
22%
7%
1%
Very complicated Somewhat complicated Neither complicated nor
simple
Relatively simple Very simple
6/24/13

Life sciences spending on digital
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

Final thoughts

“
2013: the end of the beginning?
Fonny Schenck
Managing Partner, Across Group
CEO, Across Health
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

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
Extensive experience at
regional/global level
AND
local execution power
6/24/13

How do we work?
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

Execute
We advocate a balanced approach
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

Our positioning
Big-5 Consultancies
Web Agencies
Health Units of MarCom
Companies
StrategyImplementation
Cross Industry Life Sciences
6/24/13

We have a CAGR of 35+% over the past 4 years
and have a very loyal customer base
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

Some of our key references

We serve our customers all over the globe
USA China
Australia &
New Zealand
Spain
United Kingdom Germany
Switzerland
The Netherlands
France
Belgium
6/24/13

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

Across Health Digital Barometer 2013

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