Across Health Digital Barometer US 2011

2011US Digital Barometer

for life sciences

Across HealthCEO

Fonny Schenck

Managing Partner, Across Group

CEO, Across Health

For several years now, Across Health has been running a unique digital landscape survey among life sciences leaders. This year’s edition we have reached out to EMEA, US and ASIA. The results of the Asian respondents gives you a 360° view on the status, challenges and future of “The New Normal”, aka digital, in life sciences.

I’m convinced you’ll find these results inspiring and trust they will help you reach the next level…

Thanks again for your participation and enjoy the hot-off-the press findings!

January 2012 Across Health Digital Barometer US 2011 2

Table of contents

• Executive summary

• Key survey statistics

• Digital landscape: as-is situation• Digital satisfaction

• Benchmark against competitors and other industries

• Most common eTactics

• Key challenges• Bottlenecks

• Digital understanding & processes

• ROI measurement

• The future of digital in life sciences• Digital integration & budgets

Across Health Digital Barometer US 20113January 2012

Executive summary

January 2012 4 Across Health Digital Barometer US 2011

Executive summary

“It’s not about being

digital anymore, it’s

now about being

clever with digital.”

Peter Hinssen

Digital Barometer US 2011

• Digital satisfaction is quite low in the US

• The most popular tactics are websites and search

engine optimization. But several new tools, like

mobile marketing and social media are heavily

piloted

• Regulatory or legal issues are the main bottleneck

followed by ROI and healthcare compliance

concerns; 61% feel they do not have sufficient

knowledge

• Digital opportunities are mostly being included in the

marketing process

• Digital budgets continue to be low vs total marketing

spend


Key survey statistics

6January 2012 Across Health Digital Barometer US 2011

Table of contents








• ROI measurement


7 Across Health Digital Barometer US 2011January 2012

Key stats

at a glance

• 46 respondents from US life sciences

companies completed the online survey

between September - October 2011

• Industry spread

Pharma, biotech, medical devices, OTC,

generics

• Functional spread

Marketing, eBusiness/Digital, IT, sales,

medical, other

• Local vs international spread

Global, local

8 Across Health Digital Barometer US 2011January 2012

Most respondents work in a global function in pharma

and have a marketing responsibility

2%

2%

11%

20%

65%

Generics

OTC

Medical devices

Biotechnology

Pharmaceutical


Global57%

US41%

Other2%

Marketing56%Other

18%

eBusiness/Digital10%

IT8%

Sales6%

Medical2%


Digital landscape

Table of contents








• ROI measurement



Executive summaryDigital landscape

• Satisfaction with digital is still very low

• The satisfaction level around activities towards HCPs is 13% while digital patient programmes are even lower at 6%

• Interestingly, the gap with other industries is less pronounced, but still only 24% feel ahead vs 31% who feel behind.

• The most popular tactics are websites and search engine optimization

• But several new tools, like mobile marketing and social media are heavily piloted

• All eTactics will be increasingly used by the end of 2012

“The great thing in the world is not so much where we stand, as in what direction we are moving.”

Oliver W. Holmes


Only 19% is satisfied with current digital activities (Europe even

lower: 12%)

On a scale from 0 to 5, how satisfied are you with your current digital activities?

Extremely

Satisfied

Extremely

DissatisfiedMean: 3,57

7%9%

30%

35%

15%

4%

0 1 2 3 4 5


19%

Only 13% feel they are ahead in using digital towards healthcare

professionals (Europe 15%)

How would you rank your company versus your competitors in using digital marketing

initiatives targeted at healthcare professionals?

13%

HCPs

3%

21%

39%

24%

8%5%

No opinion Far behind Behind Average Ahead Far ahead

January 2012 14 Across Health Digital Survey US 2011

6% feels they are ahead of competition when it comes to digital

marketing to consumers/patients (Europe 17%)

How would you rank your company versus your competitors in using digital marketing

initiatives targeted at consumers/patients?

Patients

5%

16%

53%

21%

3% 3%


6%


How would you rank your company versus leading other industries

in optimally leveraging the internet?

31% feel they are behind the other industries in leveraging the

internet when comparing with other industries (Europe 67%)

Digital vs other industries

31%

3%

13%

18%

42%

21%

3%



The product website is the most important eTactic, shortly

followed by the company website and search engine optimization.

Mobile marketing and social media are heavily piloted


83%

79%

62%

57%

53%

51%

51%

47%

45%

34%

30%

30%

23%

21%

21%

19%

15%

6%

2%

19%

23%

13%

21%

15%

21%

28%

26%

23%

30%

55%

19%

21%

43%

26%

6%

13%

11%

13%

26%

17%

21%

19%

19%

28%

30%

28%

19%

47%

40%

36%

45%

4%

6%

9%

6%

9%

11%

13%

13%

9%

13%

17%

13%

2%

13%

17%

2%

15%

Product website

Company website

Search Engine Optimization

eMail Marketing

Disease webstie

Web conference

Web banners

Search Engine Advertising

Tablet eDetailing

HCP Self-service portal

Online medical education

Virtual eDetailing

Mobile marketing

Online advisory board

eMSL

Social media

eRep

Often / Standard practice Pilot planned or ongoing Never Do not know / NA

How often do you use the following digital tactics TODAY?

By the end of 2012, all eTactics will be used more often. Mobile

marketing, Search Engine Optimization and eMail marketing are

among the fastest growers


64%

53%

53%

53%

49%

47%

45%

45%

45%

40%

40%

38%

36%

34%

34%

28%

28%

15%

30%

26%

15%

30%

13%

15%

28%

21%

45%

36%

28%

43%

40%

51%

19%

23%

2%

4%

6%

2%

2%

9%

2%

4%

4%

4%

4%

6%

2%

4%

2%

2%

2%

19%

13%

15%

30%

19%

32%

38%

23%

30%

11%

19%

28%

19%

21%

13%

51%

47%

Mobile marketing

Search Engine Optimization

eMail marketing

Social media

Web conference

Virtual eDetailing

eRep

Tablet eDetailing

HCP self-service portal

Product website

Web Banners

Online medical education

Search Engine Advertising

Disease website

Company website

eMSL

Online advisory board

Increase no change decrease not used

How often will you use the following digital tactics by the end of 2012?

Key challenges


Table of contents








• ROI measurement



Executive summary

“When you're

finished changing,

you're finished.”

Benjamin Franklin

Key challenges

• Introducing digital is still very challenging

• Regulatory or legal issues are the main

bottleneck followed by ROI and healthcare

compliance concerns

• 85% are measuring ROI in some way or another,

still it remains a major bottleneck

• 61% feel they do not have sufficient knowledge


Regulatory, ROI and healthcare compliance concerns are most

important bottlenecks

51%

10%

10%

10%

3%

5%

13%

23%

13%

15%

3%

13%

8%

3%

21%

5%

5%

10%

15%

10%

13%

5%

5%

5%

Regulatory or legal issues

Healthcare compliance concerns

ROI questions

Pharmacovigilance issues (adverse event …

No budget

No senior management support

Not enough internal knowledge in this area

No clear eBusiness strategy

No headcount to support this

Customers are not ready

No expert agencies with pharma …

Most important bottleneck Second most important bottleneck Third most important bottleneck


2% 2%

10%

44%41%

Never - would love to, but do not know how

Never - not relevant

Rarely

Sometimes

Always

ROI is seen as a major hurdle, however 85% is measuring this in

some way or another

Do you measure the impact of your digital activities?

ROI

85%


4%

20%

37%33%

7%

Totally insufficient Insufficient Between sufficient and insufficient Sufficient More than sufficient (expert)

61% feel they do not have sufficient knowledge

Do you feel that you have sufficient knowledge of all opportunities offered by the internet for

your business activities?

Internal knowledge

61%


69% confirms that SOPs are in place for digital

Does your company have standard operating procedures or other procedures for the use of the

internet in customer-facing activities?

Knowledge sharingJanuary 2012 Across Health Digital Barometer US 201125

Yes69%

No29%

Do not know2%

Only 49% has formal processes to share information about digital

strategies

Are there any formal processes to share the information about digital strategies within your

company?

Knowledge sharingJanuary 2012 26 Across Health Digital Barometer US 2011

Yes49%No, but

should be in place

37%

No, it is not required

12%

Do not know2%

The future of digitalIn Life Sciences


Table of contents








• ROI measurement



Executive summary

“My interest is in the

future because I am

going to spend the

rest of my life there.”

Charles F. Kettering

The future of digital

in Life Sciences

• Digital opportunities are now being included in the

marketing process

• Digital budgets will continue to increase, but the absolute

growth will remain limited due to the low base

• Digital budgets will be released by shifting budget away

from traditional channels: advertising, direct mail and

primary care sales force

• Mobile: most apps are around treatment guidelines and

product info/updates, are directed to physicians, and

are developed on Apple iOS and Android

• Social media: Patients are the most important target

group; most communication is one-way vs two-way

• For digital communication in general, specialists,

patients and GPs are the key target groups

January 2012 Across Health Digital Barometer US 201129

69% of respondents are now including digital opportunities in the

marketing planning process

Are digital opportunities included in the budget and marketing planning processes?

2%

29%

45%

24%

Not at all

No, but it is changing

Yes, this is the case for several brands

Yes, this is the case for all brands


However the digital marketing budgets are on the low side…

If you oversee a product budget, which percentage of it is

allocated to digital marketing this year?

40%

28%

24%

8%

Less than 5%

Between 5 and 10%

Between 10 and 15%

More than 15%


8%

18%

41%

31%

0%3%

0%

Decrease by more than 25% Decrease between 1 and 24%

Stay the same Increase between 1 and 20%

Increase between 21 and 50% Increase more than 50% and 100%

Will more than double

Only 34% thinks their OVERALL marketing budget will increase by

the end of 2012

How do you think your OVERALL budget will evolve BY THE END OF 2012?

(NOTE: this is the marketing budget EXCLUDING salesforce costs)

Overall budget

34%


0%

8%

36%

44%

8%3% 3%

Decrease by more than 25% Decrease between 1 and 24%

Stay the same Increase between 1 and 20%

Increase between 21 and 50% Increase more than 50% and 100%

Will more than double

...while 58% think DIGITAL budget will increase by the end of 2012

How do you think your DIGITAL budget will evolve BY THE END OF 2012?

(NOTE: this is the marketing budget EXCLUDING salesforce costs)

Digital budget

58%


73% plan to increase digital budget by shifting money away from

traditional marketing budgets

How are you planning to fund the increase in digital spending?

Knowledge sharingJanuary 2012 Across Health Digital Barometer US 201134

73%

27%

will increase digital budget by shifting money away from the traditional marketing budget

will increase digital budget but will NOT shift money away from the traditional marketing budget

Advertising, direct mail and primary care salesforce are most

important channels to shift money away from

53%

27%

7%

7%

7%

20%

40%

20%

7%

13%

7%

13%

13%

27%

20%

13%

7%

Advertising

Direct mail

Primary care salesforce

Medical education

Specialist salesforce

Newsletter

Other

Most important channel you intend to shift money away from

Second most important channel you intend to shift money away from

Third most important channel you intend to shift money away from


From which of the following traditional channels will you shift money away to digital?

The delay of FDA guidance negatively impacts digital marketing

Will the delay of FDA guidance limit your use of digital marketing for patient and/or physician

engagement?

FDA guidanceJanuary 2012 36 Across Health Digital Barometer US 2011

Yes63%

No37%

Social media: patients are the most important target group for use

of social media, followed by SPs and GPs; most communication is

one-way vs two-way


In which way are you using the following social media tactics?

Social media

39%

29%

27%

27%

25%

22%

14%

2%

Patients & …

Specialists

General …

Key opinion leaders

Nurses & caregivers

Payers

Pharmacists

others

Listening or talking (1 way)

24%

16%

16%

16%

12%

10%

10%

0%

Patients & consumers

General practitioners

Specialists

Key opinion leaders

Payers

Pharmacists

Nurses & caregivers

others

Engaging (2 ways)

* Percentages in total base (e.g. percentage = # that engage with specialists / # that answered this question)

Most respondents assume a “wait & see attitude” regarding the

recent Facebook decision to allow comments

What impact does the recent Facebook decision to allow comments have on your social media

activities?

FacebookJanuary 2012 38 Across Health Digital Barometer US 2011

16%

13%

42%

29%

Discontinuing Facebook page

Will open page to comments

No impact for now

N/A

Most apps are around treatment guidelines and product

info/updates; more interactive types of apps stay behind


18%

17%

12%

11%

11%

11%

7%

6%

5%

2%

Treatment guidelines

Product info/updates

Medical news/article updates

Adherence/compliance tracker

Diagnosis tool

Dosage calculator

Symptom tracker

CME

Other

Remote monitoring of patients

What types of apps do you develop or have developed?

Mobile


Mobile

63%

46%

20%

Physicians

Patients

Other target group

Mobile: app development is mostly directed to physicians

Which target group do you develop or have developed apps for the following operating systems?

* Respondents that have at developed at least one app (on any OS) for a specific target group

Mobile: app development is mostly for Apple iOS and Android


9%

9%

5%

5%

5%

5%

4%

4%

Apple iOS (iPhone)

Blackberry (phone)

Android (phone)

Apple iOS (iPad)

Blackberry (tablet)

Other OS

Android (tablet)

Symbian

Other

Which target group do you develop or have developed apps for the following operating systems?

Mobile

39%

39%

20%

18%

9%

9%

4%

4%

Apple iOS (iPhone)

Apple iOS (iPad)

Android (phone)

Blackberry (phone)

Android (tablet)

Blackberry (tablet)

Symbian

Other OS

Physicians

34%

21%

16%

14%

7%

7%

5%

5%

Apple iOS (iPhone)

Apple iOS (iPad)

Android (phone)

Blackberry (phone)

Blackberry (tablet)

Other OS

Android (tablet)

Symbian

Patients

* Percentages in total base (e.g. percentage = # that develop for Apple iOS for physicians / # that answered this question)

Which main customer groups will you be targeting most through digital channels TODAY?

Please select your the target group in terms of budget spend.

Specialists, patients and GPs are the key target groups for digital

communication today


38%

21%

23%

11%

4%

2%

23%

23%

23%

19%

2%

6%

2%

6%

17%

9%

9%

15%

11%

13%

13%

4%

4%

Specialists

Patients

GP

KOL

Hospitals

Pharmacists

Payers

Nurses/caregivers

Other

Patient assoc

First Second Third

They will remain key target groups for digital communication by the

end of 2012, with patients & consumers gaining more importance


36%

26%

15%

9%

4%

6%

2%

2%

21%

21%

26%

13%

4%

2%

4%

4%

4%

9%

11%

13%

13%

15%

11%

6%

13%

6%

4%

Specialists

Patients

GP

KOL

Payers

Pharmacists

Patient assoc

Nurses/caregivers

Hospitals

Other

First Second Third

Which main customer groups will you be targeting most through digital channels BY THE END

OF 2012? Please select your the target group in terms of budget spend.

13%

24%26%

8%

13%

8%

Based on experience/gut feelingBased on a conceptual framework on marketing mixBased on market researchBased on customer feedbackBased on last years budgetBased on econometric modeling

24% rely on an actual framework around marketing mix and 8% on

(expensive) econometric modeling, while another 34% has at least

some foundation for their decisions

How do you define your marketing mix / multichannel allocation?

34%


CRM minisurvey


Executive summary

"We've spent the last

30 years focusing on

the T in IT, and we'll

spend the next 30

years focusing on

the I.“

Peter Drucker

CRM minisurvey

• CRM integration is poor

• Still, CRM is considered a strategic asset by the

majority of the respondents

• And even more respondents consider their

organization to be customer-centric, despite the

poor CRM integration

• There are companies all along the spectrum with

regard to the size of email databases, but overall

the score is low

January 2012 Across Health Digital Barometer US 201146

16%

5%3%

8%

26%

32%

11%

Do not know 0 1 2 3 4 5

Most respondents consider their organization to be more or less

customer-centric

Please rate the following statements on a scale from 0 (totally disagree) to 5 (totally agree):

We are a customer-centric organization

Customer-centric organisation

68%


18%

0%

11%

13%

21%24%

13%

Do not know 0 1 2 3 4 5

And they see CRM as as a strategic asset – but opinions still vary

quite a lot...


CRM is a strategic asset in our company and not just an IT tool

CRM strategic asset

58%


11%

34%

26%

11%

18%

0%

do not know

not at all

not yet, but we have plans to do this

project underway

basic integration in place

sophisticated integration in place

If we dig a bit deeper, the “360° vision” is not supported by day-to-day CRM

priorities: only 18% is integrating web initiatives into the CRM system today

Are your web initiatives integrated into your CRM system to ensure a 360°view of your

customers?

CRM integration

18%


29%

5%

18%

13%11%

18%

5%

Do not know 0 1 2 3 4 5

And customer email address databases are still not a reality


We have over 40% of our customer's email addresses in our CRM system

CRM email database

34%


Final thoughts

January 2012 51Across Health Digital Barometer US 2011

So will 2012 be agrand cru for “fusion”?

Fonny Schenck

Managing Partner, Across Group

CEO, Across Health

Clearly, digital is increasingly being seen as a key component of the future business model... Although low, budgets are increasing and companies want to enhance their knowledge around digital.

The key hurdles remain the same however: regulatory/legal concerns and lack of a digital strategy...

So, will 2011 be the digital “turning point”? Will you boost your online budget beyond the symbolic level? Will you spend it on the right digital channels based on a marketing mix assessment and integration with your marketing strategy? Will you integrate digital with offline? And will you go for the right mix of implementation of best practices, improvement of existing initiatives and true innovation?

I wish you every success on this exciting journey!!


About Across Health

COMPANY• 60+ strong consultancy

• Focus on innovative customer-centric approaches

• (e-powering traditional channels– “fusion”)

• From strategy to implementation and success

metrics/KPIs

• Unique offering in the industry

TARGET CUSTOMERS

• Pharmaceuticals

• Devices & Diagnostics

• Hospitals

• Patient & Professional Associations

INTERNATIONAL EXPANSION ONGOING

• Head offices in Belgium

• Offices in the US, Netherlands, France, UK, Switzerland,

Spain, Nordics, Germany, and China

Extensive experience at regional/global level

AND

local execution power


0203

04 01

InnovationIntegrated execution

Impact

Insight

How do we operate?

The 4 Is

We measure the impact of the new

strategy using dashboards,

KPIs,…and create best-practice

documents/tools.

We summarize key trends, best

practices and benchmarks - also from

related and other industries - and

compare them to your current situation.

We support you in the implementationof our recommendations – from project management to website development,

edetailing, dialogue marketing, remote selling & education, change

management, process & organizational design and creative execution

We come up with a 2-3 year

innovative, balanced and integrated

roadmap and strategy to move into

the new space, based on workshops,

customer interviews and Across

insights.


Our international footprint


Some of our key references


http://www.patients-association.com/DBIMGS/image/Amgen.JPG

These results have been compiled by Joshua Caggiula, Yue Feng & Bernard Depaepe

For any question, mail to [email protected]; [email protected];

[email protected]

Make sure also to check out our fields of expertise on

Contact Details

www.a-cross.com/health

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.

Or follow us on

mailto:[email protected]









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Health & Medicine

Across Health Digital Barometer US 2011