across health multichannel maturometer 2017

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.


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)…

Proprietary and Confidential Information

01

3

Key survey statistics

© Across Health


01 Key Survey Statistics

© Across Health 4

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….


02

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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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



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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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)


03

10

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


Digital teams are (slowly) being more integrated with IT –but channel mix processes and campaign automation still quite immature

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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%



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?


04

14


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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


n=221European Scope

The ‘multichannel rep’ continues to be the only channel integration component in which respondent knowledge is growing….

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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

© Across Health 16

Please evaluate how often you use the following channels TODAY to reach your customers



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

© Across Health


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


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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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


06

21

Conclusions

© Across Health


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

© Across Health 22

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


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)

© Across Health 23


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.


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

© Across Health 25


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

© Across Health 27

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


06 Conclusions

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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…

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Hope to “see” you next year!

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