across health multichannel maturometer 2017
TRANSCRIPT
27/07/2017Proprietary and Confidential Information© Across Health 1
Across Health is pleased to present you with the state of the multichannel landscape in life sciences in Europe, US and
emerging markets – now in its ninth year.
27/07/2017Proprietary and Confidential Information© Across Health 2
01 02 03 04 05Key Survey Statistics
Strategy & Organization
Business Technology & Processes
Multichannel Integration
Measurement
(After some delays): Ready for take-off?Preface
Fonny SchenckCEO, Across [email protected]
Interestingly, the only exception is the multichannel rep. This is the only space where knowledge and comfort continue to grow – 84% of respondents (vs 74% in 2016) feel quite or very confident here. Also, looking back to 2012, the only two key MCM tactics that continued to increase in prominence are rep-focussed channels (tablet detailing and approved emails). At the other extreme, a very low level of comfort with marketing automation (28% - similar to 2016) confirms this rep-centric trend.
Could this be a case of “Multichannel Myopia”, with the industry widely digitising the old model and considering it ‘solved’, while ignoring other segments and stakeholders, as well as new opportunities (like health tech)? And, could this unidimensional focus (and perhaps ditto strategy) not also explain the low satisfaction levels?
High margins, a complex regulatory environment, and limited competition have long fended off the burning platform for digital transformation in life sciences. Thanks to some of the above trends, however, the industry appears ready for take-off. Do you want to fly high or stay grounded?
Happy reading!
Dear colleague,
I am delighted to present you with the results of our 9th
Across Health Maturometer, the longest running and most widely referenced industrywide snapshot of digital transformation in Life Sciences.
After five years of slow progress, it appears that we have - finally! – got onto the runway for digital in pharma. Indeed, there has been a 20% uptick in digital marketing budgets. This brings digital up to 19% of total marketing spend (and even higher in the US).*
Another glimmer of hope is that boards are (finally) getting behind these programmes – one of the biggest changes this year. In the real world, we see several newly minted CEOs of industry majors and specialty companies taking charge of digital themselves, which is a clear change to the scattered “bottom up” approach seen in most companies so far.
Not all is rosy, however. We see a continuation of the historic low level of satisfaction with digital and multichannel activities. There has been no change since 2015, and only 13% are very satisfied. In addition, the level of expertise in digital in general and channel mix decisions in particular continues to be very low.
* If you look at the total customer engagement budget (marketing, sales, medical and service), digital budgets are probably closer to 6-7% (vs 4-5% last year)…
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01
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Key survey statistics
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01 Key Survey Statistics
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Key survey statistics
• 256 respondents from life sciences (no agencies/consultancies)
• 96% from pharma/biotech; 2% Medtech: 3% OTC & Other
• 48% from Europe
• 47% national scope; 53% int/global
• 35% Digital/Multichannel, 25% Marketing, 10% CRM, 9% Sales
• 48% (senior) manager level; 43% director or C-level
• A variety of TAs: 17% across all areas, 14% Oncology, 8% Neurology….
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5
Strategy & Organization
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02 Strategy &Organization
Only a quarter of respondents have a strong digital vision & strategy, but boards are getting more firmly behind digitalRespondents who ‘completely agree’ about board support up 12% from 2016
n=221European Scope
Please rate your level of agreement with each of the following statements based on the scale below
6%
29%
24%
40%
35%
51%
45%
28%
18%
9%
9%
7%
Staff well-trained in digital
Strong digital/MC team with board support
Strong digital transformation vision & strategy
Completely agree Somewhat agree Somewhat disagree Completely disagree
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02 Strategy &Organization
Digital transformation is moving slowly globally (perceived as slower than 2016) – with more than half (57%) of respondents thinking it is (very) slow
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How would you rate the pace of implementation of digital transformation in your organization?
n=256 (Global);221 (Europe); 45 (US)
2
2
2
16%
14%
14%
24%
26%
28%
49%
46%
44%
9%
13%
13%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
US
Europe
Global
Very fast Fast About right Slow Very Slow
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02 Strategy &Organization
While advanced knowledge of digital may be at an all time high –‘sufficient’ knowledge is down vs. 2016
10%
10%
8%
12%
12%
6%
11%
14%
34%
21%
30%
34%
25%
28%
36%
30%
31%
42%
44%
36%
38%
39%
33%
36%
20%
24%
18%
16%
21%
25%
17%
17%
4%
2
1
2
4%
3%
3%
3%
2010
2011
2012
2013
2014
2015
2016
2017
More than sufficient (expert) Sufficient Between sufficient and insufficient Insufficient Totally insufficient
n=256Global Scope
Do you feel that you have sufficient knowledge of all opportunities offered by the internet for your business activities?
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02 Strategy &Organization
4%
5%
6%
8%
9%
14%
15%
16%
18%
No expert agencies with multichannel pharma background…
Customers are not ready
No senior management support
No budget
No headcount to support this
No clear digital strategy
ROI questions
Not enough internal knowledge
Regulatory / legal / Healthcare compliance issues -0.9%
-1.1%
5.7%
3.2%
2.1%
2.9%
1.4%
1.1%
1.7%
High Increase
Low Increase
Decrease
% Change since 2011
n=237Global Scope
Lack of internal knowledge, ROI questions and lack of budget see biggest increases vs. 2011 – MLR and digital strategy show decreases
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Please allocate 100 points over these potential bottlenecks for digital in your organization (highest number = biggest hurdle)
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Business Processes & Technology
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03 Business Processes& Technology
n=221European Scope
2%
8%
17%
24%
31%
51%
43%
47%
23%
30%
14%
9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
MC campaign automation
Robust process for channel mix
Digital/MC team integrated with Business/IT
Completely agree Somewhat agree Somewhat disagree Completely disagree
Digital teams are (slowly) being more integrated with IT –but channel mix processes and campaign automation still quite immature
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Please rate your level of agreement with each of the following statements based on the scale below
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03 Business Processes& Technology
Big jump in multichannel budgets from 2016 –but the US is pulling away
n=26US Scope
2%
42%38%
11%8%
14%
23%
7%4%
13%
8%
2%
8%
4%
8%
4% 4%
Europe US
less than 5% 5% to 10% 11% to 15% 16% to 20% 21% to 25% 26 to 35% 36 to 45% 46 to 55% more than 55%
n=163European Scope
Year 2016 2017
Average 15.7% 18.9%
If you oversee a product or marketing budget, which percentage of MARKETING budget is allocated to digital initiatives THIS YEAR?
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Year 2016 2017
Average 19.4% 21.6%
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03 Business Processes& Technology
A brisk 20% increase in digital marketing budgets ends a 5-year flatliner for Europe
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
18,0%
20,0%
2011 2012 2013 2014 2015 2016 2017
Average8%
Average15%
Average16%
Average15.6%
Average15.1%
Average15.7%
Average18.9%
n=163European Scope
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If you oversee a product or marketing budget, which percentage of MARKETING budget is allocated to digital initiatives THIS YEAR?
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Multichannel Integration
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04 MultichannelIntegration
26%
7%
14%
45%
30%
37%
18%
38%
27%
11%
25%
22%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Reps equipped with digital tools beyond edetail
Good view of HCP channel acceptance
Integrated customer Db across channels
Completely agree Somewhat agree Somewhat disagree Completely disagree
n=221European Scope
The ‘multichannel rep’ continues to be the only channel integration component in which respondent knowledge is growing….
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Please rate your level of agreement with each of the following statements based on the scale below
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04 MultichannelIntegration
3%4%
7%7%
7%8%8%
13%13%
16%17%
20%20%20%
24%25%
32%32%
34%36%
43%45%
48%50%
55%61%
74%85%
16%16%
13%20%
57%31%30%
14%42%
43%57%
47%45%
33%40%
23%39%
23%39%
28%32%
39%39%
24%16%
29%17%
9%
63%63%
61%56%
57%48%
48%49%
37%36%
20%27%
30%40%
24%38%
23%28%
16%20%
15%11%
9%18%
19%6%
5%3%
17%18%
20%17%
18%13%14%
24%8%
5%6%7%6%
7%11%
14%7%
17%11%
16%11%
4%4%
9%11%
5%4%3%
Artificial Intelligence
ePrescribing advertising and promotion services
Remote patient monitoring
Marketing automation software
e-MSL
Integrated cross-channel campaigns
Social media monitoring
Patient adherence tools
Mobile marketing
Healthcare professional self-service portal
Online medical education
Approved email
Direct marketing
Pharma-owned website*
Standard practice Pilot planned or ongoing Never Do not know / not applicable
n=256
Global Scope
Tablet detailing maintains its 1st position – email marketing overtakes direct marketing - also a big climb for patient adherence tools
* Company, product or disease websites** electronic or personal health record
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Please evaluate how often you use the following channels TODAY to reach your customers
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04 MultichannelIntegration
34%
37%
43%
43%
49%
50%
56%
62%
73%
84%
HCP self-service portal
SEO
Web conference or virtual meeting
Online medical education
Approved email**
Web Banners
Direct marketing**
Email marketing
Pharma-owned website*
Tablet eDetailing
Of the tactics which we have surveyed since 2012, tablet detailing is the only real climber!
European Scope
* Company, product or disease websites
-1
-1
-2
+3
-5
-1
-1
** Not measured in 2012
-1
Changes in rank since 2012
Increase
Slight decrease
Big decrease
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05
18
Measurement
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05 Measurement
n=221European Scope
13%
9%
17%
40%
47%
46%
32%
30%
24%
15%
15%
13%
Good mix qualitative & quantitative KPIs
Measure hcp engagement
Measure results of all channels
Completely agree Somewhat agree Somewhat disagree Completely disagree
Still less than 20% of European respondents are very comfortable with measuring impact – and measuring HCP engagement is at a three-year low
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Please rate your level of agreement with each of the following statements based on the scale below
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05 Measurement
rep (tablet/iPad)
website
eNewsletter
DMbanners
eMail Rep eMedEd webcast
smartph app
promo callpat adherenceeDetail
eMSL
ePrescribing
rep
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Low Medium High
Channels most frequently used by pharma are not always aligned with the impact they have on HCP’s
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% o
f p
har
ma
mar
kets
wh
o
use
So
urc
e: M
atu
rom
eter
20
17
(EU
Sc
op
e)
Impact on HCPsSource: Across Navigator 2017 (EU Physicians)
Low
Med
ium
Hig
h
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06
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Conclusions
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06 Conclusions
0%
10%
20%
30%
40%
50%
60%
2010 2011 2012 2013 2014 2015 2016 2017
Dissatisfied
Neutral
Satisfied
n=256Global Scope
Satisfaction rates dropped in 2014 – and haven’t really grown since
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On a scale from 0 to 5, how satisfied are you with your current digital/multichannel activities?
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06 Conclusions
4%
7%
5%
4%
6%
9%
11%
14%
16%
26%
2%
6%
6%
6%
7%
8%
11%
13%
18%
23%
2%
6%
7%
7%
7%
7%
11%
13%
18%
23%
Healthcare disruption
Big data and artificial intelligence
Maximizing the opportunities of digital health
Developing a strong integrated emedical offering
Moving from HCP-centricity to patient-centricity
Getting robust insights of the omnichannel ecosystem
Upskilling the organization
Moving from product-centricity to customer-centricity
Transforming the fieldforce to multichannel reps
Defining & optimizing the customer journey across multiple touchpoints
Global Europe US
Customer journeys and transitioning to a multichannel fieldforce are the most important topics for next two years – with customer centricity and upskilling the organization in slots 3 and 4…disruption is not yet a key focus area (but perhaps it should be)
Please indicate the importance of these topics to your organization in the next 2 years. Please distribute 100 points over the most important ones
n=256 (Global);221 (Europe); 45 (US)
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06 Conclusions
Rank Company
1
2
3
4
5
6
7
8
9
10
Largest companies generally recognized by peers as the most digitally mature….
24 © Across Health
n=256Global Scope
Rankings are based on a weighted average linked to a selection of the perceived top 3 digitally mature pharma companies.
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06 Conclusions Big jump in equipping reps with more digital tools and board support for digital,– but areas like training, channel mix and marketing automation remain quite weak
n=256 (2017), 275 (2016) - Global Scope
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06 Conclusions The up-down paradox…
26 © Across Health
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06 Conclusions
n=256 (2017), 275 (2016)Global Scope
MLR continues to be the #1 perceived bottleneck, but lack of knowledge and ROI issues are close seconds; effectiveness of local and particularly global digital teams perceived as low and speed of digital transformation too
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Positive change
Neutral
Negative change
Changes since 2016
2017 2016Relative
Change2017 barriers % 2016 barriers %
INT digital team existence 82% 82% 0% Regulatory / legal / Healthcare compl iance issues 18% Regulatory / legal / healthcare compliance issues 20%
INT digital team effectiveness 18% 16% 13% Not enough internal knowledge 16% Not enough internal knowledge 17%
Local digital team existence 71% 66% 8% ROI questions 15% No clear digital strategy 17%
Local digital team effectiveness 30.2% 30.4% -1% No clear digi ta l s trategy 14% ROI questions 11%
Speed of digital transformation 15% 17% -9% No headcount to support this 9% No headcount to support this 10%
Digital Marketing budget 19% 16% 21%
Channel maturity 53% 51% 5%
Channel maturity index 1.05
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06 Conclusions
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channelguides
the missingmanual
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seriousgaming
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06 Conclusions Want to know more? Run your own “Internal Maturometer”
Assess the following 4 key areas to measure the digital maturity of your organization!
Measurement
Develop a compelling business case and measure impact relentlessly with a
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boost your skillset.
Business Processes& Technology
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purpose technologies
Multichannel Integration
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• Raw data for reference & further analysis (upon request)
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06 Conclusions And if you want to enhance your (team’s) digital expertise: buy the bestselling evidence-based multichannel handbook!
The missing manual for pharma marketers…Has your life science company started on the multi-channel journey but found itself in need of a good roadmap?
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Over 1000 copies
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06 Conclusions
Please register to participate in the 2018 edition!
Participants get the FULL results – 50+ slides on key trends in digital transformation in life sciences… AND…
the possibility to win some great prizes, including a copy of our best-selling Omnichannel Cookbook.
Hope to “see” you next year!
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Would you like to participate in 2018?
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Thank you!