Closed-loop Marketing SolutionAligning the Pharmaceutical Closed-loop Market Offering

with the Needs of the Prospect

For Pharma Closed-loop Marketing to become a legitimate business category the market offerings of the principle CLM vendors will

have to evolve.

FAD TREND

Will Pharma Closed-loop Marketing be a FAD or TREND?

or

Will Closed-loop Marketing be a...

Why the Pharma Closed-loop Marketing Category May Have a Traction Challenge

• ~10-15% market penetration (of companies) over 12 years - poor• Fewer RFPs – market expansion stalled• Lack of a compelling business case from vendors• Lack of Differentiation among vendors = RFP• Long sales cycle – Sell CLM then Sell Solution (currently year selling for next year)• The current need for Tablet Computers = expense• Bad Experience with CRM – no measurable impact on revenue side• Conversion of paper-based to electronic = expense• Rep Channel Contracting - Reduced access• Key Business Processes ignored by CLM Installations• Lack of usable/actionable data produced by CLM Systems• Analytics (vs. Reporting) – metrics that impact the business?• Has CLM changed anything – smart versus dumb bombing (Messaging)• Demonstrating Impact on – Sales, Expenses or Efficiencies (Why people buy)• Next CLM sales targets buying dynamics will change (Early & Late Majority)

CLM Companies Description from Website

Pharma CLM Vendors – What’s the Difference?

Proscape Technologies is the innovator and global leading provider of Closed Loop Marketing software for the Tablet PC.

Exploria SPS specializes in tablet PC software solutions that optimize the sales representative/prescriber interaction.

Our vision is to become the predominant technology platform for optimizing promotional content delivery to customers.

Pharma CLM Vendors – What’s the Difference?

CLM Lite CLM Lite

Pharma CLM Buying Dynamics are Changing

2010“How about some Steak

with that Sizzle?”

1998 to 2009“Buy the Sizzle”

2.5% 13.5% 34% 34% 16%

Decreased perceived opportunityIncreased perceived risk

Increased perceived opportunityDecreased perceived risk

Technology Enthusiasts

Visionaries Pragmatists Conservatives Skeptics

The

Chas

mBored with the

Simplicity - New Functionality

Won’t buy the Sizzle -

Will need to see the Steak

Pharma CLM is at the Chasm

Pharma CLM Buying Dynamics Will Change:Key Characteristics of Next Sales Targets

Technology Enthusiasts & Visionaries

Pragmatists& Conservatives

Adventurous

Early buy-in

Go it along

Think big

Spend big

Prudent

Wait and see attitude

Expect relationships

Management expectations

Spend to budget

These 2 groups are not compatible

Have bought into CLM Have yet to buy-in into CLM

… use technology that helps extend average call time from 96 seconds to 5 minutes

… bring a core visual aid “to life” for Physicians who just don’t get how our product is differentiated

… provide instantaneous feedback to the brand team and sales leadership on all calls

… significantly reduce the administrative burden associated with recording actions/outcomes for each call?

… receive new information or materials from the brand team to be shared with the physician as soon as available

… reduce the hassle of ordering, carrying, and delivering paper-based materials

… rapidly deliver different messages to multiple target audiences without confusing the sales force

… effectively deliver differentiated promotional aids/materials/reprints to specific physician segments

… be absolutely certain about field compliance and accuracy in recording calls

… ask a target group of 1000 physicians a specific market research question, and get the answer from them within a day

… receive insight/feedback in near real time

Reasons to Buy – Be More Compelling

Pharma CLM Buying Dynamics Will Change:Selling to the Next Sales Targets

Crossing the Chasm Strategies

• Segment - vertical applications / target customer

• Refine & understand - target customer’s whole problem - providing a compelling reason to buy

• Define and Develop Whole Product - (and how you can do it better than the competition)

Whole Product Strategies

CoreProduct

CoreProduct

CoreProduct

CoreProduct

Technology Enthusiasts &

VisionariesPragmatists Conservatives Skeptics

Current Pharma Targets

Pharma CLM Buying Dynamics Will Change:Selling to the Next Sales Targets

Pharma CLM Vendors Must Evolve From Technology to a Holistic CLM Solution

• Closed-loop Marketing is defined too narrowly

Plan TargetAct

Learn

Core Product: Tablet-based Detailing

Key Deficiencies: ...Physician Targeting ...Message Delivery ...Channel Options ...Data Capture

The Law of Division...

...with time, a given category will split, and become two, or more categories.

Time for the Pharma CLM Category to Split?

Other Category Splits – Profound Impact?

Expanded from hardware to services88 acquisitions 1999-2010stock price ($49.31 - $129.26)

Forcing others to follow:

Expanding the Pharma CLM OpportunityA Model for Developing The Whole Product

Customer Portfolio Management

Value Proposition

Reward/Risk Sharing

Value-added Role

Refers to the creation of, and management of, customer relationships.

Your contribution to the customer’s value chain or total experience.

How buyers and seller interact in the relationship.

How you create added value and deliver it to the customer.

Source: Customer Connections: New Strategies for Growth

Expanding the Pharma CLM Opportunity:Plotting the Current Pharma CLM Model

Current

Potential

Expanding the Pharma CLM OpportunityPlotting the Potential Pharma CLM Model

Customer Portfolio Management:

• Cross-sell/Up-selling existing clients

• Lifecycle specific approaches to CLM

• CLM system switching prospects

• Proactively pursuing CLM business

• Problem-based sales strategy

Expanding the Pharma CLM OpportunityPlotting the Potential Pharma CLM Model

Value Proposition:

• Enhance the CLM experience:

E-detailing augmenting tablet

detailing

Web included as a CLM touch

point

Bundled CLM Technology and

CLM Business Processes solutions

CLM utilization training

Automated Reporting

Expanding the Pharma CLM OpportunityPlotting the Potential Pharma CLM Model

Value-added Role:

• Change Management

• Actionable Analytics/Reporting

• Consulting – Applying an evidence-

based decision-making model

Strategic review sessions

Ad Agency consultation – CLM

technology utilization

Expanding the Pharma CLM OpportunityPlotting the Potential Pharma CLM Model

Risk & Reward Sharing:

• Enhancing efficiency of commercial

operations supporting promotional

activity and tracked by CLM system

CLM Vendor looking to create a clear and quantifiable point of differentiation?

or

Pharmaceutical/Biotech Company considering Closed-loop Marketing?

We Can Help

QUESTIONS

David Delong, Chief Customer EvangelistThe Customer Management Group(800)-477-0907ddelong@cmg-pharma.com