Study Multichannel Excellence Europe

CAMELOT management Consultants study

Customizing adds the magic! Is Pharma making headway?

Study results

Multichannel Excellence Europe

Pharmaceuticals & Life Sciences

Chemicals & Petrochemicals


Consumer goods

strategy & Business model Innovation

Business transformation & organization

supply Chain management

operational excellence & lean manufacturing

sourcing & Procurement

logistics & distribution

marketing & sales

strategic Information management

Partner for It applications & solutions

2

Publisher

dr. Josef Packowski

managing Partner, Camelot management Consultants ag

michael Jarosch

Head of Industry Practice Pharmaceuticals & life sciences,

Camelot management Consultants ag

Florian Ranft

managing Partner, taylor Wessing Partnerschaftsgesellschaft

dr. Wolfgang a. Rehmann

Partner, Pharma & life sciences, taylor Wessing

Partnerschaftsgesellschaft

mannheim/munich, 2014

ISBN 978-3-9815328-5-2

Authors

dr. axel sinner

Principal, Head of Competence Center Pharmaceuticals

& life sciences Commercial,


Caroline Burkhardt

Consultant, Pharmaceuticals & life sciences Commercial,


dr. Wolfgang a. Rehmann

Partner, Pharma & life sciences, taylor Wessing


diana Heimhalt

associate, Pharma & life sciences, taylor Wessing


study multICHannel exCellenCe

3

Preface

the global pharmaceutical industry is continuing to evolve from the Blockbuster to the Outcome Era.

this shift entails many changes – from changes in R & d strategies to limited increase of the effective-

ness of the classical sales force setup to changing information needs and behavior of physicians – to

name only a few. to keep pace, pharmaceutical marketing has to adapt. also decreasing marketing

budgets (over the product lifecycle), the need for more sophisticated communications of benefit

argumentations and physician access limitations are affecting how companies market their drugs today

and in the future. Pharma marketing must shift from simply attracting attention to providing value.

Historically, Pharma bet on the traditional sales rep / share-of-voice models relying on brand-centric

promotion strategies. But today – it has been addressed so many times it has almost become a cliché –

Pharma needs to become customer-centric. only, customer-centric marketing must not be mistaken for

simply installing digital channels in addition to traditional ones. Customer-centric multichannel market-

ing is a value-added approach, focusing on delivering customized messages via integrated channels to

meet the needs of individual physicians.

Before the “magic” of multichannel excellence (mCex) can unfold and bear tangible results, the indus-

try needs to further embrace the multichannel mindset. Realizing the full potential of multichannel

excellence requires a holistic change of how pharmaceutical companies go to market. Companies face

transformations on three levels: changes regard strategy, organization & processes and IT systems.

Camelot management Consultants knows these challenges faced by the pharmaceutical industry and

helps companies operating in this sector to recognize changes and use them to their advantage. Value

chain excellence provides them with an all-important competitive edge. With pharmaceuticals being

one of Camelot´s focus industries, Camelot has been specializing in providing tailored industry-specific

solutions for many years – from strategic concepts to realizing visible results.

taylor Wessing with offices in key markets such as germany, the uK and France but also in emerging

markets like Cee and asia has been advising the life sciences industry in its cross-border activities for

many years. experienced in delivering smart answers to complex questions, taylor Wessing is familiar

with the industry’s needs to constantly evolve its strategies to efficiently promote and place its prod-

ucts on the various markets. taylor Wessing supports its clients finding innovative solutions, providing

regional concepts and improving compliance whilst embracing high ethical standards.

the pharmaceutical industry still struggles to embrace multichannel excellence – Camelot management

Consultants and taylor Wessing are ready to accompany you making headway.

Dr. Josef Packowski

managing Partner

Camelot management

Consultants ag

StudyMultichannel Excellence Europe

Michael Jarosch

Head of Industry Practice

Pharmaceuticals & life sciences

Camelot management

Consultants ag

Dr. Wolfgang A. Rehmann

taylor Wessing



4

Table of Contents

Preface

Executive Summary

1 Does Pharma know about the “Magic” of Multichannel Excellence?

1.1 Reach of multichannel marketing

1.2 Impact of multichannel marketing

2 Is Pharma making headway realizing Multichannel Excellence? –

Obstacles to the Adoption of Multichannel Excellence

2.1 organization

2.2 data Intelligence

2.3 legal

3 What exactly is the “Magic” of Multichannel Excellence? – The three C´s of MCEx

3.1 Customer insights

3.2 Channel orchestration

3.3 Campaigns

4 How to achieve Multichannel Excellence?

4.1 Pathway to multichannel excellence

4.2 expert partners in transformation

Conclusion and Outlook

Figures

3

5

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Executive summary

as innovation leaders in the pharmaceutical industry, Camelot management Consultants and taylor

Wessing continuously focus on the analysis of industry trends and the development of cutting-edge

methods to provide companies with pragmatic, industry-specific approaches to deal with present

challenges. this study provides insights into the current state of multichannel management and illus-

trates how to overcome obstacles on organizational, data intelligence and legal levels when setting

out for excellence.

There are many good reasons to have Multichannel Excellence (MCEx) on the agenda:

• Patent cliff and generification of indications

• Marketing and sales costs with 25-30% of sales as high lever for efficiency improvements

• Decreasing Marketing budgets over the product lifecycle

• Allocation of expensive resources in the commercial organization

• Limitedincreaseofeffectiveness of classical sales force setup

• Changingwayofaccessing physicians

• Useofincreasing number of different channels, also digital ones

• New,changingneeds & behavior of physicians and omnipresent digitization

• Transparency – Code of Compliance

• …

the present study by Camelot and taylor Wessing sheds light on the “magic” of multichannel excel-

lence (Fig. 1). the paper provides you with insights into the vast possibilities multichannel excellence

offers and uncovers to what extent Pharma already knows of them. the paper further explores

Pharma´s status quo of mCex and outlines what obstacles keep companies from realizing mCex´s full

potential. the reader will also learn about Camelot´s comprehensive understanding of multichannel

excellence and receive valuable insights how to make headway adopting this integrated concept. taylor

Wessing´s deep level of legal expertise in the pharmaceutical sector has added to this comprehensive

analysis of multichannel excellence. there are no uncontrollable legal risks relating to mCex, but there

are many options to make mCex work. this paper is designed to pave the way for mCex to be rolled out

across the european markets.

Figure 1: the present study by Camelot and taylor Wessing sheds light on the “magic” of multichannel excel-lence, explores ob-stacles and outlines ways for making headway realizing its full potentials

THE AIM OF THIS STUDY IS TO FIND OUT

THE STUDY THEN OUTLINES

Whether pharmaceutical companies uncovered the possibilities offered by multichannel excellence

What ideal multichannel excellence looks like

If Pharma already exploits the full potential of multichannel excellence

How to achieve multichannel excellence

What obstacles prevent Pharma from reaching the full potential of multichannel excellence

How to cope with the legal framework on a multinational basis in this context

about the impact of legal requirements from Pharma’s perspective


6

Dr. Axel Sinner

Principal, Head of Competence

Center Pharmaceuticals & life

sciences Commercial

Camelot management

Consultants ag

You should read this study…

…ifyouwanttoknowhowtobemore responsive to physicians needs and how to leverage

communication through personalized “next-best-offers”

…ifyouareinterestedinhowtointegratethemix of communication channels for interaction

with customers

…ifyouwishtogetan overview of the legal implications and understand how to cope with them

…ifyouareatthebeginningofyourMultichannelExcellencejourney,togetideastosetup

a comprehensive and well-structured project

…ifyouwanttoexplorehowtotransform your multichannel management to a more

customer-centric, integrated model

mannheim/munich, 2014

Caroline Burkhardt

Consultant, Pharmaceuticals

& life sciences Commercial

Camelot management

Consultants ag

Dr. Wolfgang A. Rehmann

taylor Wessing


7

1 Does Pharma know about the “Magic” of Multichannel Excellence?

Pharma companies are facing an ever expanding stakeholder landscape. Its tremendous expansion

ranges from governments, payers and Htas to patient advocate groups. However, physicians still exert

big influence on actual sales and their importance must not be underestimated. yet, in the light of

stagnating or even declining growth in mature markets, squeezed margins and constrained budgets,

especially marketing and sales effectiveness are under review. Companies are forced to find the most

efficient strategies to approach their customers. thus, to achieve greater marketing effectiveness and

better meet the needs of physicians, multichannel marketing and the proper management of various

channels have come into focus.

In today´s world, digitalization is reality – also in doctors’ offices. although the process of establish-

ing multichannel management in the pharmaceutical industry has already started some years ago, the

majorquestiontodayis,ifcompaniesalreadyexploititsfullpotential.

the integration of new digital channels creates valuable opportunities for Pharma companies to

enhance reach and impact of multichannel marketing. Furthermore, modern possibilities of data

analytics enable the identification of physicians’ current state of mind, their activities and needs as

well as their dynamic channel preferences. Pharma needs to seize these opportunities and employ

multichannel excellence (mCex) to direct physicians towards a status of loyalty through customized

“next-best-offers”.

In this regard, strict rules & regulations on EU level are a constant challenge for pharmaceutical market-

ing. the european directive 2001/83/eC sets the framework for product promotion in this sector and

has been incorporated into national legislation throughout the eu. However there are numerous other

regulations that have an impact on the implementation of a multinational mCex concept, such as rules

on data protection, deontological and ethical rules and regulations on advertising and competition.

the present study was designed to identify where the industry expects opportunities, which obstacles

might keep companies from reaching expectations and eventually outlines how they can establish a

powerful multichannel marketing.


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1.1 Reach of Multichannel Marketing

many doctors are notoriously hard to reach. they are incredibly busy and shielded from Pharma sales

reps by the most dismissive receptionists on the planet. But doctors, like the general population, are

following the trend towards using multiple, especially digital, channels for information. the internet

has long been their prime source of information. today, doctors are repetitively online throughout the

day searching for new input to help their patients. and smartphones and tablets have a ubiquitous

presence in their day-to-day work. surveys repeatedly proofed, it is not that doctors do not want any

information from Pharma–theyjustwantitdifferently today.

thus, survey respondents unanimously agree that the reach of those physicians who disapprove of sales

reps visits is significantly increased by using a smart mix of other (not only digital) channels. obviously

pharmaceutical companies clearly recognize the paradigm has shifted and accept the necessity to reach

doctors in their channels of choice (Fig. 2).

Whilethose“hard-to-see”or“no-see”physiciansarejustunwillingtoseesalesreps,therearealso

doctors simply not included in sales force target list. multichannel marketing offers multiple ways to

reachthosephysicians,allcost-adjustablyallowingforthesameinformationaboutthedrugtobe

passed. as those doctors are not being actively managed without multichannel marketing, over 90%

of survey respondents expect valuable sales potential to remain untapped (Fig. 2). the presumption is

obvious: this sales potential is made accessible by using multichannel marketing.

Figure 2: survey respondents almost unanimously agree that multi-channel market-ing significantly increases the reach of physicians

MCEx increases reach

%

10

20

30

40

50

60

70

80

90

100

0using a multichannel excellenceapproach increases reactiveness to physicians´ pull-requests and

enables to precisely serve physicians´ needs

the reach of those physicians who disapprove of sales reps

visits, is significantly increased by using a smart mix of other

channels

Valuable sales potential remainsuntapped, as those doctors not included in sales force target

lists are not activelymanaged

Reactiveness is increased& needs are served

„Disapproving“ physicians are reached

Doctors not included in SF target lists are reached

+3 – strongly agree

-3 – strongly disagree

+2 – agree a lot

-2 – disagree a lot

+1 – mostly agree

-1 – Partly disagree

disagree

agree

9

today´s technologies like the internet, smartphones, video conferencing or remote monitoring allow

Pharma to connect with physicians anywhere anytime. and this is exactly what they expect. Physicians

are no different than today’s consumers in that they figure on immediate satisfaction of informational

requests and appreciation of their unique needs in each of their chosen channels. multichannel mar-

keting meets these demands: almost 100% of survey respondents confirm that using a multichannel

excellence approach increases reactiveness to physicians´ pull-requests and enables to precisely serve

physicians´ individual needs (Fig. 2). of course, precise targeting of their needs also increases efficacy

of push-marketing.

there is no doubt that using multichannel marketing leads to a significant increase in the reach of

physicians. yet, multichannel marketing is not only about reach.


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1.2 Impact of Multichannel Marketing

the key premise of multichannel marketing is about reaching physicians through their preferred

channels, exploiting their receptiveness in ways that impacts them as much as possible.

to exert such an impact, pharmaceutical companies have recognized the need to deliver tailored

messages to physicians. 30.4% “strongly agree” and 52% “agree a lot” that it is Pharma´s goal of

multichannel management to provide customized offerings to each individual physician (Fig. 4).

they also consider today´s possibilities of automatic data survey and analysis permitting such a

customized marketing approach. less than 10% of respondents are not yet fully convinced of these

technical analysis potentials (Fig. 4).

to truly and lastingly impact physicians, the offer is key – comprising of timing, content and channel.

today, the only way to get physicians to pay attention to a brand is to provide value. a skeptic minority

of merely 6% of survey respondents only partly agrees that physician behavior is influenced by provid-

ing a perceived added value generated from an individually orchestrated multichannel mix. But the

vastmajorityof94,6 % agrees multichannel marketing today should be highly customized as well as

preference-based (to make use of doctors´ receptiveness) (Fig. 4).

to give physicians what they want, how they want it and when they want it, significantly increases

the chances that they will react (Fig. 3). Correspondingly, survey respondents all agree that efficiency

and impact are considerably increased when switching from a broad, unspecified, uncoordinated

multichannel mix to a customized, integrated channel selection and “next-best offers” (Fig. 4).

Figure 3: doctor´s real needs and preferences are coming into focus

Statistic physicianStereotype

It’s ME! I’m unique and individual!

FOCUS ONLY ON PRODUCT, COMPANY & SALES REP

STRONGER FOCUS ON INDIVIDUAL DOCTORS

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the “next-best-offer” reflects a customer-centric marketing paradigm which coordinates a company´s

specific product requirementsandbusinessobjectiveswiththeneeds, preferences and behaviors of

individual physicians. In this regard, more than 90% of survey respondents are aware that physicians´

preference & receptiveness for “next-best-offer” vary depending on their current state of mind and

interactions. thus, they agree, their behavioral changes need to be considered when managing the

multichannel mix and “next-best-offers” for maximum impact (Fig. 4).

While survey respondents came to the understanding that customized multichannel marketing signifi-

cantly enhances impact on physicians, plans to adopt in terms of a „next-best-offer“-approach are at

best variable. 43% rather disagree that multichannel marketing already or soon considers changes of

a physician´s activities and state of mind to define individual “next-best-offers” and so far only as little

as 5% of respondents strongly reported in favor of this evolution (Fig. 4).

Figure 4: survey results clearly show that customized mul-tichannel market-ing significantly increases the impact on physicians

MCEx increases impact

%

10

20

30

40

50

60

70

80

90

100

0For Pharma, the goal

of multichannel management should

be to provide customized offerings

to each individual physician

today´s possibilities of automatic data survey and analysis enable acustomized marketing approach even on the

level of individualphysicians

Physician behavior is influenced by providing

a perceived addedvalue which is

generated from anindividually orchestrated

multichannel mix

efficiency and impact are significantly increased when

switching from a broad,unspecified multichan-nel mix to a customized channel selection and

“next-best-offers”

Goal is acustomized offer

Individual levelpossible

Behavior influencedthrough value of MCM

Next-best-offer increasesefficiency & impact



+2 – agree a lot


+1 – mostly agree


disagree

agree


12

Responses to the survey indicate that Pharma is at least attempting to embrace multichannel market-

ing. But, while marketers recognize the opportunities associated with multichannel marketing, they

continue to encounter significant barriers to implementation. Why does it seem to be so difficult for

Pharma to adopt multichannel marketing?

2.1 Organization

so far, most companies have equated multichannel marketing with an operational approach of

establishing digital activities in parallel to traditional sales and marketing channels. But multichannel

is not the same as multiple channels.

simply pushing marketing messages through multiple channels will hardly engage physicians. However,

a fully integrated management of all channels seems to be hindered by the prevailing dominance of

the sales force function, state nearly 80% of the surveyed experts (Fig. 5). the sales force may remain

thenumberoneengagementchannel,butinthefuture,itwillhavetoworkjointlywithallother

channels to optimize physicians´ brand experiences and consequently further results.

great physician experience results from a huge level of cross-functional collaboration between market-

ing, sales, legal, It and management. Coordinating this is difficult work. as cross-functional collabora-

tion is certainly something Pharma companies are not known for. 75.6% of survey respondents there-

fore report low cross-functional collaboration and silo thinking as major obstacles for customer-centric,

individually orchestrated multichannel management (Fig. 5). additionally, with companies being

organized by brands and brand teams being organized by marketing tactics, respondents also consider

the lacking ability to cooperate in and across teams as well as the required change of personal behav-

ior and mindset problematic.

2 Is Pharma making headway realizing Multichannel Excellence? – Obstacles to the adoption of Multichannel Excellence

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Therearemajororganizationalhurdlesthepharmaceuticalindustryneedstoleapovertounlockthe

financial gains multichannel marketing offers. a positive surprise of the survey is that senior manage-

ment support is not one of them. 83.4% of respondents report customer insight-driven multichannel

management receives support from top management (Fig. 5). But despite this support and despite the

realization that the customized orchestration of multiple channels generates a synergistic impact in

terms of “1 + 1 > 2” (18.2% strongly agree, 25% agree a lot, 34.1% mostly agree), the biggest obstacle

for a more courageous, structure changing implementation of multichannel marketing however, is

the fear of losing topline. this result clearly demonstrates once more, achieving MCEx requires solid

change management. It is important to take the anxiety out of exploring new and integrated channel

approaches and to come to the understanding that mCex offers ways to reduce face-to-face contact

without damaging top-line growth.

Figure 5: many organiza-tional hurdles have to be overcome, but top management support is not one of them

a fully integrated management of all channels is hindered by theprevailing dominance of the sales force function

dominance of the sales force

0 % 100 %

Customer-centric, individually orchestrated multichannel management is prevented by low cross-functional collaboration and silo thinking

low cross-functionalcollaboration/silothinking

11.1 13.3 28.9 31.1 15.6

12.8 8.5 31.9 29.8 17

the required change of personal behavior and mindset as well as thedevelopment of a strong ability to collaborate in and across teams hinder multichannel excellence in our organization

Personal behavior/ teamwork

6.42.1 10.6 40.5 25.5 14.9

Customer insight-driven multichannel management receives support fromour top management

top management support

6.3 10.4 20.8 43.9 18.6



+2 – agree a lot


+1 – mostly agree


But there is Top Management support

Majority sees hurdles

78.7

78.8

75.6

83.4


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2.2 Data intelligence

What doctors respond to best cannot be predicted universally. every physician is different. Needs and

channel preferences are situational, not fixed. so, the key requirement for multichannel excellence is

an intimate knowledge of physicians and the ability to use that knowledge to determine the “next-

best-offer” for different physician (micro) segments, or ideally for individual physicians.

more than ever before, comprehensive, real-time data allow truly listening to and understanding

physicians. as mentioned before, respondents are positive about today´s possibilities of automatic data

gathering and analysis. thus, Pharma marketing should be moving towards a highly personalized and

tailored approach. yet, it appears that Pharma organizations are not adequately utilizing the tools they

have at their disposal. only 38.3% of respondents report to have detailed sets of data reflecting the

needs and preferences of the individual physicians in relevant segments. and only 29.8% use rules and

algorhythms to derive the “next-best-offer” for every individual physician based on insights of current

physician state of mind and activities. that means in plain language: 70% said they can’t turn the data

they have into actionable insights (Fig. 6).

What they seem to do, however, is to use secondary data from external parties for multichannel

management purposes (60.8%). and moreover, the use of these data helps them tremendously to

better understand physicians and tailor individual “next-best-offers” (70.2%) (Fig. 6).

Figure 6: 70.2% of respond-ents basically can´t turn available data into actionable insights

No actionable insights derived

In our company, we have detailed sets of data reflecting the needs andpreferences of the individual physicians in relevant segments

detailed data about needs / preferences of physicians

0 % 100 %

Based on our insights of current physician state of mind and activities, we use rules and algorhythms to derive the “next-best-offer” for every individual physician

algorhythm to derive next-best-offer

27.7

13 17.4 8.7 34.9 21.7 4.3

8.7 4.3 13 39.2 26.1 8,7

17 25.5 17 12.8

21.3 17 23.4 23.4 10.6 4.3

our organization uses secondary data from external parties formultichannel management purposes

the use of secondary data from external parties helps us tremendouslyto better understand our customers and tailor individual “next-best-offers”

external, secondary data in use

Quality / extent of support of external, secondary data



+2 – agree a lot


+1 – mostly agree


70.2

61.7

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undoubtedly, analytics and customer understanding are key. marketers seem to have understood the

value of personalization, but much fewer are able to implement it. to achieve multichannel excel-

lence, it is not only relevant to change the mindset within the organization; the technical infrastructure

within the company also has to be adjusted. specifically, this means in a first step defining the relevant

data for customization and then streamlining and aligning all systems (e.g. CRm) and databases (e.g.

customer master data) that include those data relevant for adequately targeting physicians. the indus-

try now needs to better focus on evaluating physician behavior and preferences to actively monitor

and manage the customer experience.


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2.3 Legal

For the pharmaceutical industry compliance with legal and ethical standards is vital. Consequently, a

large number of 82% of respondents assesses the complexity of the legal framework as a hindrance to

an efficient implementation of multichannel marketing (Fig. 7). this particularly concerns data collec-

tion and law variations in the different member states of the eu. the result also expresses the fears of

reputational risks and deep suspicion or even insecurity of management boards about the possibilities

of compliantly employing multichannel marketing.

the truly good news is, whilst mCex still presents challenges on organizational levels and concern-

ing the exploitation of customer insights, the legal challenges to overcome are well manageable. of

course, the design of any multichannel marketing initiative and each of its single tools needs to be

carefully considered with a view to a rather complex legal framework setting the side rails for mul-

tichannel marketing.

Intelligent data collection and use form an integral part of mCex. strict data protection rules, applica-

ble throughout the eu, set the legal framework for data collection and more importantly data sharing.

more than 75% (54.6% strongly agree and a further 25.5% mostly agree) regard legal restrictions as a

hurdle for a greater examination of individual data collection (Fig. 7). and indeed, this poses the first

and foremost legal hurdle for multichannel marketing. However, it needs to be explicitly emphasized,

this hurdle can be overcome.

the main legal issues which need to be considered are data protection rules, the Community law re-

gime on advertisement for pharmaceuticals implemented in the various member states of the eu, rules

of professional conduct, pharmaceutical and competition law. Whilst data protection and advertising

in the pharmaceutical sector follow largely harmonized rules this is not always the case for the rules

ofprofessionalconductandtheimplementationofcompetitionlawbythenationaljurisdictions.Any

Figure 7: the complexity of the legal frame-work and more importantly data protection require-ments as well as national specialties are seen as obsta-cles for an easy role out of multichannel marketing concepts

legal restrictions prevent a greater examination of individual datacollection and its use for a customized multichannel excellence

legal restrictions to individ. data collection

0 % 100 %

data protection requirements are a difficult hurdle to overcome forimplementing an efficient customer multichannel management

data protection as hurdle

10.9 7.3 27.3 38.2 16.3

1.81.87.4 14.5 34.5 40

7.3 12.6 25.5 27.3 27.3

multichannel management is to be rolled out on a country-by-county basisdue to different law concepts even in the eu

Roll-out on country- by-country basis



+2 – agree a lot


+1 – mostly agree


Lacking awareness that challenges are well manageable

80.1

89

83.7

17

multichannel marketing system, if designed for multinational use within the eu, therefore will need

to take some local flavor on board to meet the requirements in the various countries. However, this

does not distinguish multichannel marketing from any “detached” marketing initiative designed to be

rolled out on a Pan-european basis. Compliance1 with the relating legal framework can be achieved

and relating risks are well controllable when managed upfront (Fig. 8).

the solution to the decisive hurdle of data collection and use is the principle of informed consent

(Fig. 8). Informed consent is a prerequisite of any data collection and use. It is relevant for the validity

of customer approval to the storage and use of personal data and provides for thorough information

of the customer prior to his consent. If data protection approval is done smart in advance, even changes

in the collection or use of the data in an evolving mCex system do not necessarily impose new physi-

cian approval (Fig. 8). to deal with the evolution of data intelligence within mCex, taylor Wessing can

support the development of smart solutions regarding efficient wording of data protection approvals

complying with legal standards and the provision of flexibility within customer development programs.

also the mindful introduction of cookies can add to the quality of the gathered information and help

to tailor the next-best-offer. However, the use of cookies obviously requires the buy-in of doctors by

way of explicit approval as well. their consent may be obtained more easily if doctors do see advantag-

es for their personal practice due to multichannel excellence. Hence, survey respondents agree, a better

information and education on the use of data and its added value positively influences physicians´

willingness to share relevant data (11.1% strongly agree, 31.1% agree a lot, 37.8% mostly agree, 8.9%

party disagree, 11.1% disagree a lot, 0.0% strongly disagree). so, excellent information and outstand-

ing services provided by the system on a customized basis can attract physicians to the system and enroll

them with their consent.

1 Compliance with data protection rules and mCex are not like fire and water, but can be brought in line. the directive 95/46/eC to be followed by a general data Protection Regulation as currently drafted by the eu-Commission (Com (2012) 11 final) provide for a harmonized framework setting out eu-wide applicable standards.

Figure 8: the legal challenges to overcome are well manageable

DID YOU kNOW?

one uniform data privacy statement may serve your need throughout the eu!

updating legitimately collected data by using legally available additional data from the market is generally compliant with data protection standards!

using cookies to enhance customer data for delivery in better service is compliant if the customer has bought into the concept!


18

In addition, also the use of legitimately acquired secondary data from the market to upgrade and

complete customer insights is generally compliant with data protection standards.

Regarding the deontological and professional rules dealing with advertising in the pharmaceutical

sector as well as cooperating with professionals, the pharmaceutical industry has already developed

standards that are reflected in the respective codices, which already embrace a large part of the legal

framework applicable throughout the eu in this respect. In the first line these codices therefore give

goodguidance,whichshouldbedeepenedwhensettingupaconcreteproject.Themainprinciples

to be followed are very familiar in the main european markets. still, 89% of survey respondents

agree multichannel management is to be rolled out on a country-by-country basis due to different

law concepts even in the eu. However, this is true for any multinational marketing concept and not

MCEx specific.

Pharma´s uncertainty regarding the legal feasibility of multichannel marketing becomes obvious once

again when asked about legal expertise. Respondents partly spot a lack of legal expertise within the

companies: more than 45% confirmed that the required legal expertise is at hand within their organi-

zation whilst 55% doubted whether this is the case (Fig. 9). more importantly though, there seems to

be a lack of communication between the legal and marketing departments. a better collaboration

would certainly allow a more efficient and constructive use of customer insights with the aim to deliver

solutions rather than spot problems (Fig. 9). Interestingly, more than 60% of the respondents confirmed

that their legal departments are involved rather earlier than later in the development of multichannel

marketing concepts (Fig. 9). nevertheless the communication was observed as a complicating issue rath-

erthanfacilitatingagoodproject.Insuchcasesexternaladvicecanhelptoovercomethoseproblems

and to deliver practical solutions.

Figure 9: Whilst many respondents confirmed specific legal expertise in their organization, communication issues complicate multichannel management

the lack of the specific legal expertise within our company prevents us from exploiting today´s multichannel possibilities the way we would wishto do

legal expertise within company

0 % 100 %

the traditional communication problems between legal and marketingdepartments complicate multichannel management

Communication problems between legal & marketing

5.5 20 10.9 29.1 16.4 18.1

9.1 27.3 14.5 29.1 20

5.5 25.5 14.5 20 23.5 11

legal departments get involved very early in the development ofmultichannel concepts

early involvement of legal



+2 – agree a lot


+1 – mostly agree


19

surveyed Pharma marketers clearly state that multichannel management in their industry by far does

not reach its full potential yet (62.5% strongly agree, 26.8% agree a lot, 10.7% mostly agree). But what

would excellent multichannel marketing actually look like?

Camelot´s multichannel excellence means efficiently serving physicians with highly customized

messages tailored to their current needs and receptiveness through a preference-based mix of

channels.

thus, multichannel excellence is first about the identification of customer characteristics and prefer-

ences. It then has to focus on the development of predictive models to identify their current status

(state of mind) and to anticipate needs and behavioral changes. all this finally leads to the provision of

valuable “next-best-offers” for individual physicians and ultimately establishes a dialogue within

an integrated channel mix.

the “Magic” comes down to the “three Cs” of multichannel excellence: Customer knowledge, Channel

orchestration and Campaigns (Fig. 10)

3 What exactly is the “Magic” of Multichannel Excellence? – The three Cs of Multichannel Excellence

Figure 10: the magic of multi-channel excellence comes down to three Cs – Customer Knowledge, Chan-nel orchestration and Campaigns

Customer knowledge

CampaignsChannel

Orchestration

MULTICHANNEL ExCELLENCE


20

3.1 Customer insights

to find out what a doctor needs and when he needs it, is certainly a challenge. Doctors differ in person-

al preferences, information search and processing behavior, channel selection and use, their preferred

mode and intensity of communication, etc. also other factors like specialty, level of disease understand-

ing, practice setting or patient demographics influence physicians´ preferences for interaction.

Pharma needs to know what sort of information is important to which physicians. It is also crucial to

know which physicians tend to prefer old school face-to-communication and wish to talk with a highly

skilledproductspecialistandwhichphysiciansqualifyasdigitalmediajunkies.Andmostimportantly,

Pharma needs to figure out the circumstances that might trigger a change in (prescribing) behavior.

all these characteristics are essential components to determine the “next-best-offer”.

Fortunately, most of all channels allow feedback on behavior, acceptance and preferences. Conse-

quently, survey respondents vastly agree that ideal multichannel management enables a bi-directional

data exchange between Pharma and physicians and offers third party feedback on relevant physicians´

activities (Fig. 11). But, as previously described, not many companies collect these physician data and

even less are able to derive a “next-best-offer” based on available insights. as every good conversation

starts with good listening, Pharma first needs to develop a deep understanding of their customers.

obviously, Pharma sales reps already have in-depth knowledge of their doctors´ needs, wants, and

challenges today – but this knowledge is often not shared across all relevant parts of the organization.

thus, a common understanding of doctors´ needs, preferences and receptiveness requires new,

sophisticated ways of deriving and using data. on the basis of physician information which should

be centrally collected, analytics / predictive models can apply tactical business rules to select the

optimum channels, offers and messages for individual physicians.

understanding how physicians prefer to interact with Pharma is not a simple but highly effective

approach that increases engagement and optimizes marketing investments.

Figure 11: most channels allow feedback on behavior, accept-ance & preferences of physicians – customer insights are essential to determine the “next-best-offer” and need to be shared across the organization

Ideal multichannel excellence enables a bi-directional data exchange between Pharma and physicians as well as third party feedback on relevant physicians´ activities

mCex enables feedback

0 % 100 %

8.7 19.6 28.3 37



+2 – agree a lot


+1 – mostly agree


2.24.3

Most channels allow feedback

84.9

21

3.2 Channel Orchestration

the ability to pursue differentiated channel strategies for individual segments that reflect physician

preferences and needs seems to be among the biggest challenges Pharma companies face in executing

multichannel marketing. 70% of respondents felt that the orchestration of customized activities across

all channels in use is not excellent in their companies. 0.0% view it as “truly excellent” (Fig. 14).

Ofcourse,thereisaseeminglyinfinitenumberofchannelsavailabletoPharma.Tonavigatethisjungle,

first a company has to preselect a general set of channels. or put in other words, it has to define the

general channel pool it wants to employ. In a second step, to determine the available channel range for

different physician segments from the channel pool, Pharma needs to tailor their resources to micro

segments, or ideally to individual physicians under economic considerations (Fig.12).

once the channel pool has been defined, to shape the individual, adaptive multichannel mix for the

“next-best-offer”, some important internal and external considerations around the company, the prod-

uct and the targeted physicians have to be considered (Fig. 13). on the company side such factors would

include legal considerations / regulatory freedom, suitability for the purpose of the specific campaign,

efficacy and costs of the channel, complexity of the message etc. Concerning physicians, it is once again

all about their preferences, needs and current state of mind.

Figure 12: economic consid-erations have to be taken into account to determine the available channel range for different physician segments

Entire channel pool

Selected channel range

Basic channel range


22

last but not least, also product aspects influence the mix of channels available for customized use.

the channel mix changes over the course of the product lifecycle depending on communication goals

and due to marketing investment considerations. early in a product´s lifecycle, in development and

pre-launch phases, it is important to raise customers´ attention and interest and the marketing invest-

ment curve is on the rise. to this end, the channel mix would e.g. include congresses, specialized press

and intense Kol engagement. during launch, it is all about creating interest and desire. thus, high

reach digital channels could be used to deliver customized information to physicians who are not easily

accessible (to reps). later phases of the PlC would eventually employ call center, mobile applications,

portals, Cme (Continuing medical education) and laser precise targeted rep visits to continuously trig-

ger prescribing.

to effectively coordinate and execute multichannel marketing, channel integration is an imperative.

this integration of all channels and all customer interactions respectively, inevitably requires new

organizational structures. so far, still as much as 40% respondents report the operational multichannel

management responsibility for a consistent and individual customer experience (content and timing)

does not lie with only one, exclusive coordinator for every physician (Fig. 14). this lack of a dedicated

champion or coordinator seems to be a significant stumbling block.

Figure 13: Channel selection takes various fac-tors into account resulting in an individual, adaptive channel mix

PhysicianCompany

Physician state of mind

Physician preferences

Physician needs

Suitability for purpose

Efficacy

Legal / Regulatory compliance

Costs

Physician segments

INDIVIDUALCHANNEL MIx

23

When setting out for multichannel excellence, a company needs to invest in It resources which track

physicianprofilesandjourneys,“next-best-offers”andinteractions.Anditneedstoimplement

clear governance and ownership over each physician account. In tandem, this will allow companies

to realize a coordinated approach ranging from an overarching functional coordination of channel

selection to the coordination of medical, legal, marketing content approval to the timing of the

“next-best-offer” or the management of third parties.

multichannel excellence requires organizational change. a considerable part of 23,9% of survey

respondents seems to have already understood this necessity and clarified who in their company is

ultimately responsible for individual physician accounts (Fig. 14).

Figure 14: 70% of respondents felt that the orches-tration of custom-ized activities across all channels in use is not excellent in their companies

In our company, the orchestration of customized activities across allchannels in use is truly excellent

excellent orchestration

0 % 100 %

In our organization, the operational multichannel management responsibility for a consistent and individual customer experience (content and timing) rests with only one, exclusive coordinator for every physician

one exclusivecoordinator

8.7 17.4 13 37 15.2 8.7

19.6 26.1 23.9 23.9 6.5



+2 – agree a lot


+1 – mostly agree


Need for improvement of orchestration

69.6

39.1


24

3.3 Campaigns

the goal of multichannel excellence is turning insights into a relevant dialogue. the more relevant

and engaging the communication, the more likely it is to be read and responded to.

sending physicians on such an engaging journey and continuously delivering a story of consistent,

valuable content sure is a challenge. 87% of respondents agree, executing multichannel excellence

means campaigns determine product priority and content as well as frequency of “next-best-offer”

across the channels. In other words, each multichannel marketing campaign has to tell one coherent

story (e.g. over the course of one year). each module represents a chapter in the overall story commu-

nicating content to physicians. Cadence and frequency are important to story flow. at the same time,

promotional measures within each campaign chapter also need to be adapted and timed to individual

physician’s needs and interests based on collected feedback (Fig. 15).

Campaigns are designed to achieve a specific purpose, whether it is raising awareness for an upcoming

launch, increasing physician knowledge about a disease state, triggering prescribing to grow market

share, etc. each piece of information needs to be tailored to the channel. something that works as an

e-detail won´t necessarily work in another channel. a set of criteria based on the most important com-

munication requirements helps to identify which channels are appropriate to support which offering.

Both, the offerings and the channels, are profiled along these criteria and evaluated for their fit. How

information is presented then necessitates adaption for each channel. this may require additional

effort but it will pay off over time.

Figure 15: sending physicians on an engaging journeyandcontin-uously delivering a story of consistent, valuable content is a challenge for marketing

COMMUNICATION PLAN

timing February March April May

Infotainment

E-learning

Samples

Webcast

CallCall

Visit

Newsflash

25

once a campaign is launched, the channel/communication mix for each physician can be optimized us-

ing intelligent business rules based on conveyed and observed preferences and needs. such incremental

learning allows multichannel marketing to be more targeted than ever before and to become smarter

about how to connect to physicians. eventually, excellent multichannel marketing is directing physicians

towards a status of loyalty via customized “next-best-offers”.

so far, less than 20% of surveyed respondents indicated to properly capture and analyze data from

different sources in a timely manner to dynamically manage multiple channels. 53.3% rather agree

their company already implemented such an approach. 46.6% disagree. these companies should

beware of adverse effects. Companies must avoid bombarding customers with untargeted offers

or even inconsistent messages. such uncoordinated events (i.e. unnecessary reminder) easily irritate

customers and lead to defensive responses.


26

4.1 Pathway to Multichannel Excellence

It is time to walk the talk of customer-centricity. Hence, the question is how to effectively achieve a

winning multichannel management?

a holistic approach of achieving multichannel excellence considers every dimension affected and

involved – starting with the required internal changes of culture and mindset, to a well-defined

information infrastructure, to product propositioning requirements, to deep insights and customer

knowledge and to the necessary organizational interfaces, reporting requirements etc. the transfor-

mational character of a Multichannel Excellence program must not be underestimated. Implementing

a new business model by rolling out a multichannel approach unconditionally requires change

management.

achieving multichannel excellence is not an “all-at-once” approach – it is a step by step implementa-

tion with incremental learning and value creation.Arobustandsmoothimplementationjourneycre-

ates value in every step of the process. to this end, it is essential to pay attention to important success

factors (Fig. 16).

First of all it is crucial to understand the status quo of multichannel management within the company:

the pathway to excellence obviously depends on a company´s current situation, skills and capabilities.

It depends on the number and types of channels that shall be developed over time. Furthermore

a gradual expansion of scalable data structures is recommended including an early learning of how

to employ them. of course different therapeutic / physician groups might require different implementa-

tion pathways and set ups.

4 How to achieve Multichannel Excellence

Figure 16: Considering success factors in every dimension affected is important when starting a robust and smooth imple-mentationjourneythat creates value in every step of the process

understanding of customers

Productproposition

organization

legal aspects

Culture & mindset

It systems

SUCCESS FACTORS IN AND ACROSS DIMENSIONS

27

upon this understanding, it is then essential to create a long term vision for mCex which will also

serve as the groundwork for the subsequent development of the company´s multichannel strategy.

It can hardly be emphasized enough, the implementation of the developed concepts concerns the

whole organization and thus after the initial transformation, an interative process has to follow in

order to ensure success. With a multichannel vision and strategy clearly defined, it is at this point all

about setting up a roadmap that ensures adequate speed, permanence, organizational buy-in and

consistencywiththeoriginallydesignatedobjectives.

Delimitedbutverystrategicprojectsareusuallyeasiertosellinternally.Butnotonlyforthisreason

thereisalotofsenseinfirstsettingupapilotprojectinadelimitedarea.Ithasprovedtobehelpful

to take a little time and think about aspects like

• Channelscapabilitiesandtherequiredtechnologyforchannelfeedback

• Databases

• Marketingskillsandcontent

• Organizationalalignment

• Predictivemodels&decisionlogicsforthe“next-best-offer”

• MeasuringKPIs,trackingandbusinessimpact

• Legalframeworkandcollectionofoptin

• …

so far, only 28,2% of respondents seem to develop and test their multichannel approaches in delimited,

traceable pilot regions free from established approaches.

From a legal perspective, there are no insurmountable obstacles when setting out for mCex – but of

course the devil is always in the details. legal requirements following from the data protection rules

and other pharmaceutical related regulatory provisions normally can be matched on eu level, whereas

other provisions following from professional, deontological and competition rules may require a more

detailed analysis on a country-by-country basis. early involvement of legal departments and external

legal advice, close collaboration between legal and marketing departments as well as permanent

monitoring of the evolving program are key factors of success. external advice can be particularly help-

ful in developing practical solutions in any design phase or with regard to further enhancements of the

system over the time.

obviously, mCex implementation doesn´t end at go-live of the pilot. a company then has to test,

optimize, adapt and also measure the value creation in the pilot area. When first quick-wins are visible

and buy-in is generated, the program can be extended to further channels, customer groups and/or

regions. of course, those following program phases are influenced by continuous learning, optimiza-

tions and improvements.


28

4.2 expert partners in transformation

achieving multichannel excellence is a challenging process – with broad expertise, both Camelot

ManagementConsultantsandTaylorWessingarereadytosupportyoumasteringthisjourney–either

independentlyorwithourjointforces.

• Camelothelpsitsclientshandsontoholistically transform their go-to-market model: from strategy

to organization & processes to It systems – supported by change management

• TaylorWessingofferscompetent legal advice and puts its clients multichannel management on a

reliable legal foundation

From strategy to results – Camelot´s experienced consultants team up with you in your strategic,

organizational and operational journey to Multichannel Excellence:

• Wecombinecross-functional excellence and unparalleled experience in introducing/ implementing

IT processes and systems

• Wemakeadifferencethroughholistic & integrated business transformation and change

management: from organization to processes and from technology to people & culture

• Wealignconceptual excellence & operational implementation to achieve success, leave more

thanpaperandbeyourreliablepartneronthejob

• Ourconsultantscombinefirst hand Pharma industry experience, marketing success and a

focus on business effectiveness

Taylor Wessing helps its clients master the legal multichannel challenges finding innovative

solutions in two ways:

• Deeplegalandhealthcareknowledgeinnationalandinternationallifescienceenvironments

allow to deliver reliable legal Multichannel concepts

• TaylorWessingalsohelpstosolve specific challenges concerning e.g. the integration of channels,

data protection requirements or national specialties

Figure 17: Pathway to multichannel excellence

MULITCHANNELExCELLENCE

Vision

Strategy

Pilot Trans- formation

Optimiza-tion

1 2 3 4

Concept Legal Expertise Individual Assessment

strategy Processes Functions Culture It-systems

Change Management

29

Conclusion and Outlook

Pharma marketers are increasingly challenged to find efficient ways to interact and engage with their

customers. In order to make a real connection, marketing needs to be right and relevant to physicians –

in terms of content, timing and channel.

Collecting relevant physician information and feedback from every interaction, companies need to

create a reservoir of analytical insight about each customer. equipped with these insights, Pharma can

serve physicians with highly customized messages tailored to their alterable needs and receptiveness

through a preference-based mix of channels. to derive the “next-best-offer”, multichannel excellence

alsointegratesproductandbusinessobjectives.

multichannel excellence requires a different way of thinking. It describes a transformation affecting

almost all dimensions of an organization. this unconditionally requires change management.

the main findings of this study show that Pharma marketers are well aware of the “magic” of mul-

tichannel excellence. they know that in today´s multichannel world, Pharma can and has to reach its

target physicians when and where they’re most receptive to exert maximum impact. thus, they also

expect multichannel excellence to unlock additional sales potential. the surveyed experts also pointed

out that Pharma does not exploit the full potential of mCex. so, while marketers do recognize the

huge potentials of multichannel excellence, survey results also show they face significant barriers to

implementation including organizational and data intelligence aspects. legal hurdles, however, can be

overcome and appear well manageable (Fig. 17).

Figure 18: Pharma recognizes mCex´s enourmes potential but also encounters sig-nificant barriers to implementation

Pharma encounters significant barriers to implementation

Pharma recognizes MCEx´s enourmes potential

mCex allows highly customized marketing

mCex significantly increases reach of & impact on physicians

mCex unlocks substantial sales potential

mCex maximizes synergiesbetween channels

Low cross-functionalcollaboration & silo thinking

dominance of the sales force

Personal behavior & teamwork

no / insufficient customerinsights

No means to turn data intoinsights

early and continuous in-volvement of legal concepts

MULTICHANNELExCELLENCE


30

Fully and successfully implementing mCex requires complex transformation of strategy, organization,

processes and It systems. as with any large transformation success is not easily achieved (Fig. 18).

the study unambiguously showed, setting up and implementing multichannel excellence means facing

many and varied challenges. But it is time to take action. our experienced experts at Camelot manage-

ment Consultants and taylor Wessing are ready to support you making headway towards multichannel

excellence.

Methodology

In an effort to better understand the extent to which multichannel marketing is being embraced and

effectively implemented by Pharma companies, as well as the obstacles to doing so, Camelot manage-

ment Consultants and taylor Wessing teamed up to survey senior industry experts on their experiences

and views. the survey was conducted online in 2013. after the representative number of >50 respond-

ents had answered, the survey was interpreted.

survey participants were selected by groups and personally addressed. Furthermore, the informa-

tion regarding this survey was posted and shared in relevant groups and discussion forums in profes-

sional networks like linkedIn. thus, it can be assumed, results represent the prevailing opinion of the

relevantprofessionalsintheindustry.ThemajorityofrespondentsworkinGeneralManagementor

Marketing.TheyrepresentPharmacompaniesofallsizeswithamajoritybeinglocatedintheEUTop5.

Figure 19: Call for action

think about the big picture first–don´tjustadddigital on top

Customer insights – gather, analyze & share across the organization

select, integrate & orchestrate channels

Align your organization. Implement clear governance & ownership over each physician account

steadily progress building analytic capability & predictive models

turn insights into relevant dialogue – deliver consistent, valuable content

do not underestimate the transformational character of MCEx – take all dimensions into account

accompany your mCex with thorough change management – create organizational buy-in & top-management support

CALL FOR ACTION:

MULTICHANNELExCELLENCE

Tran

sfo

rm –

Mo

nit

or

– Le

arn

– Im

pro

ve –

Iter

ate

31

Figures

Figure 1: the present study by Camelot and taylor Wessing sheds light on the “magic” of

multichannel excellence, explores obstacles and outlines ways for making headway

realizing its full potentials

Figure 2: survey respondents almost unanimously agree that multichannel marketing

significantly increases the reach of physicians

Figure 3: doctor´s real needs and preferences are coming into focus

Figure 4: survey results clearly show that customized multichannel marketing significantly

increases the impact on physicians

Figure 5: many organizational hurdles have to be overcome, but top management support

is not one of them

Figure 6: 70.2% of respondents basically can´t turn available data into actionable insights

Figure 7: the complexity of the legal framework and more importantly data protection

requirements as well as national specialties are seen as obstacles for an easy role

out of multichannel marketing concepts

Figure 8: the legal challenges to overcome are well manageable

Figure 9: Whilst many respondents confirmed specific legal expertise in their organization,

communication issues complicate multichannel management

Figure 10: the magic of multichannel excellence comes down to three Cs – Customer

Knowledge, Channel orchestration and Campaigns

Figure 11: most channels allow feedback on behavior, acceptance & preferences of physicians

– customer insights are essential to determine the “next-best-offer” and need

to be shared across the organization

Figure 12: economic considerations have to be taken into account to determine the available

channel range for different physician segments

Figure 13: Channel selection takes various factors into account resulting in an individual,

adaptive channel mix

Figure 14: 70% of respondents felt that the orchestration of customized activities across

all channels in use is not excellent in their companies

Figure15: Sendingphysiciansonanengagingjourneyandcontinuouslydeliveringastoryof

consistent, valuable content is a challenge for marketing

Figure 16: Considering success factors in every dimension affected is important when starting

arobustandsmoothimplementationjourneythatcreatesvalueineverystepof

the process

Figure 17: Pathway to multichannel excellence

Figure 18: Pharma recognizes mCex´s enourmes potential but also encounters significant

barriers to implementation

Figure 19: Call for action

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Your contact for further information:

Camelot Management Consultants AG

dr. axel sinner · Phone +49 89 741185-445

[email protected]

Taylor Wessing Partnerschaftsgesellschaft

dr. Wolfgang Rehmann · Phone +49 89 21038-0

[email protected]

Camelot

Management Consultants AG

theodor-Heuss-anlage 12

68165 mannheim

germany

www.camelot-mc.com

Taylor Wessing


Isartorplatz 8

80331 münchen

germany

www.taylorwessing.com

Documents

Study Multichannel Excellence Europe