What Pharma Can Learn from Retail · (Brands, trademarks, trade names, product names, banners and...

What Pharma Can Learn from Retail

Ed KlebanPartner

Where we’re headed todayPersonalizationCustomer Lifetime ValueCustomer-Centric Maturity

0%

5%

10%

15%

20%

25%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Percentage of Enterprise Value

BRAND VALUE(Brands, trademarks, trade names, product names, banners and mastheads, publishing titles, domains, and other similar items acquired by the business)

CUSTOMER VALUE(Gauge of the worth of existing repeat customers who are known in person)

Source: HBR.org

More data6x increase in data points per consumer

Changing preferences5x increase in mobile e-commerce buying

More options6x increase in Shopify storefronts

Increasingly disloyal5x increase in disloyal millennials 1) IDCDataAge2025study,2017

2) Statista3) Shopify

4) CivicScience

Every Customer has become more valuable

25%

53%Top Performers Focus on Customers

No extensive use of customer insights

Extensive use of customer insights

*McKinsey,“Whycustomeranalyticsmatter”

Personalization

Personalization

“Personalizingcontenthasbeenshowntogeneratea7.8%increase inconversions,soit’s,y’know,probablyworthtrying.”- eConsultancy

Broadcast

•Same to almost everyone

Macro-Segmentation

•Same message to 2/3 broad groups

Micro-Segmentation

•Different message by group w/intent

1:1 Trigger

•Different message to everyone by trigger

Dynamic

•Different message/format at different times to everyone

Source:McKinseynamesofstagesanddefinitions

Levels of Personalization

Use Cases

•Classification of Behavior

Email Click-thru

•Pass ID

Log-in Registration

•Plant cookie

Hardwire Fingerprint

•IP + Browser Config + Geolocation

Techniques to Digitally Identify Anonymous People

Accuracy

Trust Actions Over Demos

· Male (famous)

· Born in 1948

· Grew up in England

· 2 Children

· Very wealthy

· Married for the 2nd time

· Vacations in the Alps

· Real estate owner

· Likes dogs

· Male (famous)

· Born in 1948

· Grew up in England

· 2 Children

· Very wealthy

· Married for the 2nd time

· Vacations in the Alps

· Real estate owner

· Likes dogs

HRH Prince Charles Prince of Darkness

Yes {FIRSTNAME},The personalization strategy for {COMPANY NAME} needs to be more than tokenizing emails.

1. Collect data from all channels2. Utilize across all channels3. Base on behavior 4. Constantly measure and optimize

Making Personalization work for you

Building to Personalized1. Listen2. Infrastructure for measurement and delivery3. Establish identity 4. Measure anonymous data

1:1 Personalization Example

April 9Read publications about diabetes and high blood pressure.

April 19Read publications about treatment efficacy for obstructive lung disease.

April 26Read publications on diabetes.

May 17Read branded content about diabetes.

Triggered-Campaign email opportunities

Dr. LGeneral Practitioner, Family MedicineLives in CaliforniaLight Web UsageLight Writer for Diabetes Rx

25-40% / Trigger based open rates range benchmark

Dr. TGeneral PractitionerBased in CALight Rx Writer

Dr. T is fairly selective with her email reading, but she is very inclined to engage with it once she does.

Dr. T tends to primarily interact with email communications for publications, but is interested in CME, hospital, and some pharmaceutical content.

345 Opens

154 Clicks

Click Propensity

44%

Dr. AOncology SpecialistBased in NYHeavy Rx Writer

Dr. A is very focused on the latest news and offers from pharmaceutical companies, with little interest in any other communications.

Dr. A will read many emails, but he only really engages with a small set number of them, regardless of how many he reads.

1,182 Opens

82 Clicks

Dynamic Personalization Example

Click Propensity

6%

Not all customers are equal.

Not all customers are equal.

Customer Lifetime Value

Why CLV?

Percentage of Customers Percentage of Revenue

Work to make more High Value Customers

Impact

10%

Top “Gold” Customers Revenue

11%

5%

Moved from a CPG sell-in company to a sell-thru company. Limited view into their end-user behavior and valueDigital player data since 2013. Was sitting unused.

Mined Battlefield 4 to build Battlefield 1Lowered Marketing cost from 22% to 12%Built a virtuous cycle guided by Customer Value, engagement and voice. Designed games and communications around High Value Customers

CLV Focus

1. Connect CLV to big decisions in the company. Start with a problem to solve.

2. Invest. In people. In tech. In IP.

3. Plan to scale. Consider scale early or you’ll be chasing it.

4. Interact across the organization. Executive support to cross boundaries

But it’s hard. We know.

Fragmented systems, different identifiers

Dirty data, building models, talent, continuous updates

Ticketing queues, different analyses for every team

Data access, SQL skills, experiment design

Sharing data via email, injecting data into channels

KPI selection, deciding where to focus

Data Unification

Machine Learning

Data Exploration

Segmentation

Channel Integrations

Measurement & KPIs

What do I do next?

What do I do next?

The Customer-Centric Maturity Curve

Stage 1Do you trust your data?Stage 2Did you make at least one impactful decision based on your data this month?

Pit of ReportingYou have an overwhelming number of reports that do not fit together.

Stage 3 All your marketing channels appear in one report using the grain of the customer or proxies of customers for both identified andunidentified people. Stage 4Do you know who your good customers are … and what they do in sales, marketing, business intelligence, finance, call center and support … and what they represent in future CLV?Pit of DataIs there a fast connected system that pulls each piece of customer data together from every corner.. and allows enrichment?

Stage 5Has each member of the executive team agreed to run by a small set of metrics that illuminate the company strategy while aligning to customer-centric tactics?Stage 6Does everyone in every department understand they are responsible for these same metrics which are continuously monitored and ladder from tactic to customer equity?

What Listeners Need

1. Executive long-term view of value. 2. Plant the seeds of connectivity.3. Shape anonymous data around customers. 4. Monitor and maintain quality.5. Push for comprehensive customer data view.6. Begin report > analysis > recommendation > action cycle

“We need to focus on executing in order to drive growth – making smart product decisions, cranking up our distribution channels, and building our brand. We should probably be doing more with our customer data. But honestly that’s not a top priority right now.”

– CEO

“We spent millions of dollars on a data warehouse and fancy technology tools. But we’re not doing anything smart with any of them. We need to start extracting customer intelligence and using it to power our organization – or else we’re going to become obsolete.”

– VP of Strategy

1. C-level leadership vision is critical.2. Seek company challenge to anchor initial customer-centric win

w/ single owner. 3. Tie to cost savings (easier) to show value.4. Make IT a strong partner.5. Document learnings to lock-in knowledge.

What Learners Need

“We place the customer – and a test-and-learn approach around maximizing customer lifetime value – at the center of every decision we make, from the architecture of our loyalty program to the location and design of our properties.”

– Chief Customer Officer

1. Cross-company KPI alignment2. Accountability for success from tactical to leadership3. Algorithmic mining (AI) fast and secure4. Rapid CLV calculations for monitoring, assessment and insight.

What Leaders Need

1) Organizing your business around the customer pays dividends. But it’s HARD.

2) Each organization is unique, but scaling challenges are nearly universal – the maturity curve maps out the next best step at each stage.

3) Technology is a prerequisite, but most orgs that succeed do so because they’ve mobilized people, analytics, and leadership around a critical business need.