DKI Email & Website

Engagement Report

Published August 2012

Background

Relationship marketing (RM) programs are a powerful educational tool that empowers patients to make educated decisions about their treatment. Programs are usually driven by an email component that either contains informative material or drives them to a personal space where they can review content. DKI has been creating and measuring RM programs for over 15 years. Since the beginning, we have placed an emphasis on measuring results to ensure that programs are successful and provide robust ROIs. To that end, we have created and shared annual Normative Data reports with our clients since 2006. The reports, released in Q4 of each year, have focused on results over the previous 12 months and provided much needed benchmarks for email engagement that are specific to the pharmaceutical industry. This year, we have enhanced and expanded our normal report to align to the calendar year and encompass multiple data points. We feel that the information is too valuable to keep to ourselves, so we are sharing it with the wider community to help shed light on expected norms and set meaningful goals for future programs.

Using the past to guide the future

A new approach

What’s New for 2012

RM Program Analysis

Aligned to calendar year

Longer time frame – look across six years of data (2006-2011)

New metric definitions

Unique clicks per link (clicks are based on unique clicks per link)

Additional slices to provide context

Oncology vs. Specialty Care

Metrics by media source (co-reg vs. paid, natural)

Launch year vs. year 2 and year 3

Time of day tendencies

Omniture/Google web metric trends

Review of 2011 data across multiple websites

Visit trends

Overview of smart phone and tablet usage

Larger Sample Size & Broader Scope

21 RM Programs

877,000 Patients

9.3 million emails

1.3 million interactions*

*opens and clicks

DKI RM program metrics for 2006-2011 calendar years. All programs are U.S. based.

Topline Findings:

base email metrics

Results from longitudinal

analysis is consistent with

reports from previous years

Oncology programs have the

highest response rates,

driven by higher urgency of

patients to seek out

information due to fears

about cancer

Specialty care programs

have lesser engagement,

likely due to their more

chronic nature and generally

higher patient populations

Five learnings that will improve your business

Metrics can be predicted

Strong correlation exists between email metrics and disease state and media tactics. Set goals accordingly, and aim to

educate based on the competitive environment.

Email actions occur within 24

hours

People don’t wait to open emails. 47% of opens occur within 12 hours. Time emails to coincide with important patient events.

Open & Click rates moderate

over time

Multi-year programs are prone to engagement decline due to outside competition for patients and new treatment news. Strive to refresh subject lines and program content on a regular basis.

Website traffic dips in the Spring

Traffic dips in spring, early summer and in December as people spend time on vacation and with friends and family. Plan events

around high traffic periods the fall and winter.

Mobile is growing fast

Though still a fraction of overall pharmaceutical site visits, traffic grew by 83% over a 12 month time period. Now is the time to

optimize your sites for mobile.

Fact Action

Median Open and Click Rates

• Oncology = 28.0%

• Specialty Care = 13.6%

Open Rate = 20.0% Click Rate = 5.3%

• Oncology = 7.5%

• Specialty Care = 3.1%

Based on data from 21 programs (11 Oncology + 10 Specialty Care). Data collected from 2006 – 2011.

Median Open Rate for DKI programs is 20%. Median Click Rate is 5.3%. Oncology programs consistently have higher open and click rates than Specialty Care.

Median Open and Click Rates by media source

Based on data from 15 programs where media deployment data was available (2.6 million co-reg emails and 4.3 million emails from other sources) Data collected from 2006 – 2011.

Non co-reg enrollments have Open and Click Rates that are over 2.5x higher than leads from co-reg sources.

Source Open Rate Click Rate

Co-Reg 11.5% 2.7%

Other 29.7% 7.3%

Median 21.0% 4.8%

Open and Click Rates by Media Mix

Median metrics for programs with primary emphasis on a particular media source. Co-reg programs have 60% or more enrollments from co-reg sources. Low co-reg have 25% or fewer enrollments from co-reg sources. Data collected from 2006 – 2011.

Media source has a significant effect on engagement at the program level. Co-reg sources bring in a high volume of enrollees in desired segments at low cost, however leads from these sources generally have lower levels of engagement. Note: Co-reg rates are much stronger for Oncology vs. Specialty Care due to more specific parameters used for pre-screening patients.

28.0%

13.6%

20.0%20.0%

12.9% 13.6%

30.6%32.5% 31.6%

Oncology Median Speciality Care Median Overall Median

Median Open Rate by Media Mix

Open Rate Co-Reg Open Rate Low/No Co-Reg Open Rate

7.5%

3.1%

5.3%5.3%

2.6% 3.0%

12.5%

9.1%10.4%

Oncology Median Speciality Care Median Overall Median

Median Click Rate by Media Mix

Click Rate Co-Reg Click Rate Low/No Co-Reg Click Rate

11

Brings in high lead

volume at low cost

Goals should be set

based on program

design such as:

Condition type

Size of patient

population

Target demographics

Media strategy

The Case for

Co-Reg

Charts and slides on the previous pages refer to lower engagement metrics provided by co-reg leads relative to paid or natural search. This is not intended to disparage the importance or effectiveness of co-reg driven programs. It is our position that co-reg can be a very effective driver of large quantities of leads at efficient costs per enrollment. Oftentimes, the resulting “cost per action” (cost per enrollment divided by total opens & clicks per enrollment) is lower than that of other media sources. Benchmark metrics are useful to set expectations for engagement based on the media-mix that is in place for the program. Program goals should be set based on an analysis of various factors including condition, patient population, and media mix.

Programs show variance in engagement by condition

52.1%

36.4% 32.7% 32.3% 30.9% 30.4% 28.2% 28.0%23.5% 22.0% 20.0% 20.0% 19.7% 16.3% 15.5% 14.2% 12.9% 12.8% 11.8% 10.2% 10.2% 9.5%

O4 O11 S9 S7 O3 O6 O1 O8 O5 O7 Median O2 S1 O9 S4 S2 S3 S8 S5 S10 S6 O10

Open Rate by Program

23.7%

19.0%15.1%

10.9% 9.8%7.9% 7.5% 7.3% 6.9% 6.8% 5.3% 5.3% 4.3% 3.8% 3.4% 3.2% 2.8% 2.6% 2.5% 2.2% 2.1% 2.0%

O3 O4 O11 S9 O8 O5 O1 S7 O6 O7 Median O2 S1 S6 S3 O9 S5 S4 S10 O10 S8 S2

Click Rate by Program

A correlation of .826 is noted between email open and click rates. High open, low click rate programs should consider optimizing email content. Low open, high click rate programs should incorporate subject line testing to maximize engagement.

Two Examples

Low Open / High Click Rate

O3 program, modified version of an traditional RM program for a rare type of cancer

Patient acquisition driven primarily by paid search

Moved to a Web RM model to improve engagement

3 Segments, 8 communications per segment Emails featured streamlined text

with links driving to a personal page

High Open / Low Click Rate

S2 program, for widespread chronic condition with a very large patient population

Patient acquisition driven by co-reg sources

5 Segments, 18 communications for the largest segments Some emails offered few links

Few call outs were featured outside of the main body text

Additional emails were added to existing streams as program progressed

Insight: New strategy was created based on original program results. More focused communications with strong calls to action drove high click-rates.

Insight: Successful program ran for multiple years. Opportunity to improve email results by focusing on fewer communications with more dynamic links.

The majority of email actions

occur within 24 hours of

deployment

People don’t wait around to

open emails

The growth of Smartphone

usage makes it easy to

check emails any time of the

day

69% of opens occur within

24 hours of deployment

86% of opens occur within 3

days of deployment

The above data show that

delivery of information can

be timed around important

events

Close to 50% of opens occur within 12 hours of

email deployment

Almost 70% of opens occur within 24 hours of deployments

10.0%

19.7%

26.7%

40.3%

46.8%

60.3%

68.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

<1 <2 <3 <4 <5 <6 <7 <8 <9 <10 <11 <12 <13 <14 <15 <16 <17 <18 <19 <20 <21 <22 <23 <24

% Emails Opened From Time Sent

Action: email deployments can be timed to coincide with important enrollee events such as doctor’s appointments or treatment milestones.

Initial emails are opened more quickly than

the 2nd email in a stream

Hours to

OpenEmail #1 Email #2

<1 10.2% 9.3%

<2 20.7% 19.0%

<3 28.1% 26.0%

<4 34.0% 31.7%

<5 38.8% 36.3%

<6 42.5% 39.9%

<12 49.6% 46.3%

<18 62.8% 59.8%

<24 71.1% 68.5%

Action: subject line testing is a must to ensure that the maximum number of emails are opened. Urgent calls to action will cause people to open emails in a timely fashion.

Over 90% of emails are opened within 5 days of

deployment

68.8%

79.9%85.5%

90.8%95.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

<1 <2 <3 <4 <5 <6 <7 <8 <9 <10

% Emails Opened From Day Sent

Insight: messages from emails deployed within 7-14 days of each other will not overlap.

Over 95% of opens occur within 10 days of

deployment

Days to

OpenEmail #1 Email #2

<1 71.1% 68.5%

<2 82.0% 79.8%

<3 87.2% 85.5%

<5 92.2% 90.8%

<10 96.0% 95.3%

Insight: It is very unlikely that an email will be opened if no action has been taken within the first few days.

Open and Click rates moderate from launch

to subsequent years

Metrics moderate as patients fill out their streams , media expands, and competitors

enter the market

Click to Open Rate remains steady, illustrating that active enrollees remain

interested in program content

Median values by calendar year for programs that have been active for 3+ years.

26.8%

22.3%

16.6%

6.3% 4.9%4.4%

29.0% 31.1% 31.3%

Year 1 Year 2 Year 3

Engagement - Launch to year 3Open Rate Click Rate Click to Open Rate

Insight: refresh value propositions and subject lines, continue to modify media plans to fight for your fair share of active patients.

Traffic to pharmaceutical

websites and enrollment

forms show distinct trends

Seasonality patterns were

noted across sites with

distinct declines during

spring and summer months

Mobile represents a small

portion of total visits, but

volume grew 83% over a 12

month time period

A clear opportunity exists to

optimize websites for mobile

Review of data across 22 sites shows a

wide range of volume for web visits

Median data shows the norm is between 6,000 to 8,500 visits per month

Visitors typically view between 2.2 to 3.3 pages per visit

Source: Omniture/Google – median monthly visits across 22 pharmaceutical websites. Review of all visit data.

8,5966,397 7,495 7,011

6,752 6,552 5,954 5,911 6,436 7,829 9,8676,517

263 218 257 273 253 438 498 1,157 684 579 583 834

47,653

62,478

62,87349,083

55,701 62,05460,527

66,37869,506

66,103 70,787

47,441

Jan 2011

Feb 2011

Mar 2011

Apr 2011

May 2011

Jun 2011

Jul 2011

Aug 2011

Sep 2011

Oct 2011

Nov 2011

Dec 2011

Web Traffic (visits)

Median Min Max

Review of natural traffic data shows seasonal

influences, especially during Spring and Holiday

time periods

Traffic decline in late spring and summer

months is most likely due to a decline in web

traffic as people across the country take

summer holidays

December drop is likely due to reduced traffic

during the holidays as many people are on

vacation or with family at this time

Data closely mirrors traffic trend information

from Google.com for sites such as cancer.org

and heart.org

Source: Omniture/Google – change in natural page views across multiple websites from January 2011 through February 2012.

F M A M J J A S O N D J

N + - N - - + + N N - +

Month Over Month Normalized Page View Change

Key: + = positive change -= Negative change N = not conclusive

Jan 11

Feb 11

Mar 11

Apr 11

May 11

Jun 11

Jul 11

Aug 11

Sep 11

Oct 11

Nov 11

Dec 11

Jan 12

Paid Search Included 0% -17% 18% -2% -16% 1% 7% -4% -3% 7% 9% -29% 39%

Paid Search Excluded 0 -6% 33% -2% 17% -11% -17% 9% 10% 0% 16% -18% 2%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Pct

. Ch

ange

Month Over Month Page View Change

Insight: many people surf the web at work. Traffic declines are noted during holiday month. Typical builds occur during back to school timer periods.

1.8%2.1%

2.4%2.2%

2.4%

2.8%

2.3% 2.5%

3.0% 2.9%

3.4% 3.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Feb 2011

Mar 2011

Apr 2011

May 2011

Jun 2011

Jul 2011

Aug 2011

Sep 2011

Oct 2011

Nov 2011

Dec 2011

Jan 2012

Percent Mobile Visits

The percent of mobile visits has risen by 83% over

a 12 month time period

Mobile is becoming a more important method to view web content

We expect mobile share of visits to continue to grow significantly in the coming months

Source: Omniture/Google - median value of mobile visits divided by total visits across 16 pharmaceutical websites. (12 months from 2/2011 to 1/2012).

Google predicts that 26% of all Rx searches in 2012 will be from Mobile devices*

Insight: low share of visits across pharmaceutical sites is due to lack of website optimization for mobile

* Data from 2012 custom Google report. Information provided by Convergence Point Media.

78%

18%

4%

% Mobile Device Usage

Mobile Phone

Tablet

Other

Tablet devices now account for almost 20% of mobile

visits to websites

The explosive growth of tablet computers will continue in the coming years as

people increasingly consume information away from their desktops

Source: Omniture/Google - median value of mobile visits divided by total visits across 16 pharmaceutical websites. (12 months from 2/2011 to 1/2012).

Action: failure to optimize websites for mobile will lead to missed opportunities to educate and inform visitors

Appendix

Methodology

Data collected over a 6 year time period

Twelve the Twenty-one programs reviewed were active for at least 3

of the 6 years covered

Omniture/Google website data was reviewed for 22 websites across

multiple pharmaceutical companies

Email open data based on unique opens

Email click data based on unique clicks per link

Median values were used across program types to eliminate bias

based on program size

Glossary

Open Rate – measure of unique opens over emails delivered

Click Rate – measure of unique clicks per link over emails opened

Click to Open Rate – measure of unique clicks per link over emails opened

Website Visits – total number of visits to a website over a given time period

Paid Search – method of lead acquisition based on ads served based on keywords

used on search engines

Co-Registration – method of lead acquisition based on a flat cost per lead; partner

sites find prospects and offer them a chance to join a program after answering

qualifying questions

RM program – relationship marketing based on serving customized content to user

segments; most communications are email based

Web RM program – a modified version of relationship marketing where a patient is

provided content on a personal web page; visits are prompted by invitation and

reminder emails

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