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 3 6/24/13

* 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 ahead Ahead Average Behind Far behind No 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

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


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?

Digital vs other industries 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/A copyright © 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%




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



ROI questions


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 Digi copyright © 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

01 Insight

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 assessment 04 Impact

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

03 Integrated 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

02 Innovation

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 S

tra

teg

y

Imp

lem

en

tation

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: [email protected]

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

Health & Medicine