Across Health Multichannel Maturometer 2015

Across Health is pleased to present you with the state of the multichannel landscape in life sciences in Europe, US and

emerging markets – for the seventh year already.

01 02 03 04 05

2 © Across Health

Key Survey Statistics

Strategy & Organization

Business Technology & Processes

Multichannel Integration

Measurement

Multichannel @ Multispeed?I am pleased to present you with the 7th Across Health survey on multichannel in life sciences, previously known as the Barometer.

We renamed it to the Maturometer, to reflect the content more aptly. Indeed, we have revamped and simplified the Barometer, by clustering all questions around 4 key dimensions of digital maturity: strategy & organization, business processes & technology, multichannel integration and measurement. We trust this will give you a structured view and will provide you with actionable input to take your company to the next level.

Generally speaking, the 2015 results are in line with 2014 – with historically low satisfaction levels and the 4th consecutive year of plateauing budgets (at a low level). US and Europe are most pessimistic; emerging markets appear to be more positive overall – but that may be due to their relatively new entry into this space.

We do see however a difference in speed in the market – around 14% is implementing multichannel very quickly, is spending significantly more than the average, and feels comfortable with impact measurement etc…multichannel @ multispeed!

We trust that these early leaders will soon be followed by the early majority…my guess is that 2015 REALLY is the end of the beginning!

Fonny SchenckCEO, Across [email protected]

Preface

01

3 © Across Health

Key survey statistics

01

Key Survey Statistics Pharma / biotech makes up the bulk of

respondents

4

Other

OTC

Medical devices

Pharmaceuticals/biotech

2%

3%

6%

89%

N = 260Global scope

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5

01

Key Survey Statistics Most respondents hail from Europe

Lat-Am overtakes US for the first time

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Other

Japan

China

US

Latin-America

Europe

5%

6%

6%

8%

10%

65%

N = 260Global scope

6

01

Key Survey Statistics 55% work at national/local level,

while 45% have an international role

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National/local56%Regional

26%

Global19%

N = 259Global scope

7

01

Key Survey Statistics Most respondents are at the (senior) manager level

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N = 253Global scope

other

Senior Director

Associate Director

Director

Manager (Senior)

19%

8%

9%

16%

48%

8

01

Key Survey Statistics A strong focus on Digital & Marketing

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Other

Medical

IT

Marketing Research

CRM

Sales

Marketing

Digital/Multichannel

11%

3%

4%

5%

8%

8%

29%

34%

N = 260Global scope

9

01

Key Survey Statistics Most respondents have a multibrand role, but the

leading TA’s are well represented too

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Other

Vaccines

Psychiatry

Pain

Gastro-intestinal

Rare diseases

Diabetes

Respiratory

Neurology

Immunology

Cardiology

Oncology

Across all therapy areas

7%

3%

4%

4%

4%

6%

8%

8%

8%

8%

9%

10%

22%

N = 260Global scope

02

10


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02

Strategy & Organization Only around 1 in 4 European respondents has a

strong digital vision and a leadership team; skill levels are even lower

11

staff well-trained in digital

strong digital/MC team with board support

strong digital transformation vision & strategy

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

15%

9%

8%

36%

30%

15%

40%

40%

50%

9%

20%

27%

Completely disagree Somewhat disagree Somewhat agree Completely agree

N = 222European scope

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12

02

Strategy & Organization The digital transformation process is slow overall,

but 14% of European companies are racing ahead

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US

Europe

Global

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

6%

5%

6%

57%

55%

53%

29%

25%

24%

6%

1%

2%

3%

14%

15%

Very Slow Slow About right Fast Very fast

How would you rate the pace of implementation of digital transformation in your organization?

13

02

Strategy & Organization Most organizations have dedicated international

teams, but their effectiveness continues to be questioned as much as in 2014…

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Yes, just being created Yes, but the impact is low Yes, and it is highly effective

22%

61%

17%

Don’t know / not sure

5%No13%

Yes82%

N = 260Global scope

Do you have a central digital team at the INTERNATIONAL level?

14

02

Strategy & Organization Fewer respondents have digital teams at the local

level, but they are seen as are much more effective

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23%

38% 39%

N = 260Global scope


2%

No26%

Yes72%

Do you have a central digital team at the LOCAL level?

15

02

Strategy & Organization Central healthcare innovation teams are becoming

more established, but the impact is perceived low

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26%

54%

20%


11%

No35%

Yes54%

N = 260Global scope

Do you have a central Healthcare Innovation team?

16

02

Strategy & Organization Central patient engagement teams are starting to

emerge, but their effectiveness is seen as low

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25%

50%

26%


15%

Yes43%No

42%

N = 260Global scope

Do you have a central Patient Engagement team?

17

02


Regulatory, legal and compliance issues remain the top bottlenecks, followed by unclear multichannel strategy and not enough internal knowledge

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N/A

Other

No expert agencies with pharma background available

Customers are not ready

No senior management support

No budget

No headcount to support this

ROI questions

Not enough internal knowledge

No clear digital strategy

Regulatory / legal / healthcare compliance issues

2%

4%

3%

5%

5%

6%

12%

12%

13%

16%

24%

N = 260Global scope

18

02

Strategy & Organization Regulatory, legal and compliance issues are the

biggest bottlenecks across regions. Emerging countries are mostly challenged by ROI questions

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No clear digital strategy Not enough internal knowledge ROI questions No headcount to support this0%

5%

10%

15%

20%

25%

30%

24%

16%

13%11% 11%

21%

14% 14%

7%

13%

21%

14% 14%

19%

5%

Europe US Emerging

19

02

Strategy & Organization In Europe, regulatory issues and insufficient

headcount are significantly rising in importance vs 2011 … only ROI questions show a decrease.

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No expert agencies with pharma background available

No senior management support

No budget

Customers are not ready

No headcount to support this

ROI questions

Not enough internal knowledge

No clear digital strategy


3%

5%

5%

6%

11%

11%

13%

16%

24%

N = 223EU scope

% change since 2011

High increase

Low increase

Decrease

No change=

5%

1%

2%

1%

4%

2%

=1%

1%

20

02

Strategy & Organization Knowledge of digital remains low...and is not

increasing over time

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2010

2011

2012

2013

2014

2015

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

4%

2%

1%

2%

4%

2%

20%

24%

18%

16%

21%

17%

31%

42%

44%

36%

38%

41%

34%

21%

30%

34%

25%

33%

10%

10%

8%

12%

12%

8%

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

N = 260Global scope

Do you feel that you have sufficient knowledge of all opportunities offered by the internet for your business activities? (historical)?

03

21

Business Processes & Technology

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03

Business Processes & Technology In Europe, the level of IT-business integration is

acceptable, but channel mix processes and campaign automation technology are quite immature

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MC campaign automation

robust process for channel mix

digital/MC team integrated with business/IT

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

29%

17%

10%

36%

43%

31%

30%

32%

47%

6%

8%

13%



23

03

Business Processes & Technology For 9 out of 10 respondents, defining the optimal

channel mix is not an obvious process

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Very complicated Somewhat complicated Neither complicated nor simple

Relatively simple Very simple

20%

49%

24%

6%

2%

N = 259Global scope

1%

-3%

2%

-1%

1%

% change since 2013

Increase

Decrease

No change=

How complex is it to define the optimal channel mix, i.e. allocate the right amount of budget to digital vs. offline channels?

24

03

Business Processes & Technology No single region excels at channel mix optimization, yet

Europe appears to be slightly ahead

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Europe US Emerging

20%23%

10%

50%

60%62%

22%

17%

24%

6% 5%

Very complicated Somewhat complicated Neither complicated nor simpleRelatively simple Very simple

How complex is it to define the optimal channel mix, ie allocate the right amount of budget to digital vs. offline channels?

25

03

Business Processes & Technology

Average multichannel marketing budgets are low vs other industries – even more so in emerging markets…but around 20% spends over 20% in Europe

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Europe US Emerging

7%4%

22%

48% 48%

67%

14%17%

6%

12%

17%

13%

4% 6%7% 9%

less than 5% 5% to 10% 11% to 15% 16% to 20% 21% to 25% more than 25%

Average15.1%

Average15.2%

Average8.2%

% of MARKETING budget allocated to digital

26

03

Business Processes & Technology Despite the uncertainty around channel mix,

substantially more respondents see digital budgets increase again by 2016…

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2012 2013 2014 20150%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

6%13%

7% 5%

19%

29%36%

22%

75%

56% 57%

74%

IncreaseEqualDecrease

N = 260Global scope

How do you think your digital budget will evolve next year?

27

03

Business Processes & Technology Yet, overall investment in digital has been relatively

flat for the past 4 years

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2011 2012 2013 2014 20150.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Perhaps the high % of “increase” intents in 2015

(74%) will lead to new growth in 2015, similarly to 2012

(75%)

?

8%

15%

16%15.6% 15.1%

Δ +85%

Δ +6%Δ -2.6% Δ -3.1%


28

03

Business Processes & Technology Despite limited data, we can see an even lower

average budget allocation to digital within sales and medical

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12%

71%

6%12%

Series1

40% 40%

20%

SALES* Average8.2% MEDICAL* Average

5.0%

N = 28Global scope

N = 12Global scope

*Limited data collected

04

29


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04

Multichannel Integration The “multichannel” rep is gaining traction in

Europe, but omnichannel customer knowledge remains quite low

30

reps equipped with digital tools beyond edetail

good view of HCP channel acceptance

integrated customer Db across channels

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

15%

24%

27%

23%

38%

34%

43%

31%

28%

18%

8%

11%



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31

04

Multichannel Integration Tablet eDetailing overtakes websites as the most

popular tactic

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Tablet eDetailingPharma-owned website*

Email marketingDirect marketing

Web BannersWeb conference or virtual meeting

Online medical educationSEO

HCP self-service portalMobile marketing

SEAOutbound call centre

Integrated cross-channel campaignsPatient adherence tools

Virtual eDetailingSocial media marketingSocial media monitoring

eRepe-sampling

e-MSLMarketing automation software

e- or PHR** ad & promo servicesePrescribing advertising & promo services

Quantified self / self-tracking devicesRemote patient monitoring

79%74%

60%57%

54%45%44%

42%38%

34%33%

31%25%

22%22%21%

18%15%14%

11%11%

8%8%

6%6%

12%18%

29%15%

27%39%

35%28%37%43%

27%24%

51%41%

35%37%

37%39%

15%36%

29%23%

18%26%

23%

5%4%

7%18%

13%12%

13%19%

17%17%

28%34%

20%25%

34%37%

38%37%

43%42%

46%51%

53%50%

53%

4%5%4%

10%6%4%

8%10%9%

6%12%11%

5%12%

9%5%

7%10%

28%11%

15%18%

22%18%19%

Standard practice Pilot planned or ongoing Never Do not know / not applicable

*Company, product, or disease website. **electronic or personal health record.N = 260Global scope

32

04


Top tactics in Europe: similar to global, and lots of piloting ongoing in integrated cross-channel; same for mobile marketing (and much less so for social)

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Tablet eDetailing

Email marketing

Web Banners

Web conference

HCP self-service portal

SEA

Integrated cross-channel campaigns

Social media marketing

Social media monitoring

e-sampling

eMSL

personal health records advertising

Remote patient monitoring

78%75%

61%60%

55%45%44%

42%36%

33%31%

29%23%

21%21%21%

19%15%

13%11%9%

7%6%6%

4%

12%17%

29%12%

26%34%

41%29%

39%44%

27%26%

53%41%

37%35%

36%39%

13%29%

35%16%

21%24%

23%

6%4%

7%18%

13%13%

10%19%

16%17%

30%34%

19%26%

38%35%38%

37%43%

45%43%

55%54%

51%52%

4%4%4%

10%6%

8%4%

10%9%

6%12%11%

4%12%

4%9%

7%10%

30%15%

12%22%

19%19%

20%

Standard practice Pilot planned or ongoing Never Do not know / not applicable N = 223EU scope

*Company, product, or disease website. **electronic or personal health record.

33

04


Top tactics in United States: similar pattern, but higher levels of “standard practice” almost everywhere, and more acceptance of social media marketing

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Pharma-owned website*Tablet eDetailingEmail marketing

Web BannersSEO

Web conference or virtual meetingOnline medical education

SEADirect marketing

HCP self-service portalMobile marketing

Patient adherence toolsOutbound call centre

Social media marketinge-sampling

Social media monitoringVirtual eDetailing

Integrated cross-channel campaignse-MSL

eRepQuantified self / self-tracking devices

e- or PHR** ad & promo servicesePrescribing advertising & promo services

Marketing automation softwareRemote patient monitoring

86%86%

69%66%66%

63%57%

54%51%51%

43%34%

31%31%

29%29%

23%17%17%

14%9%9%9%

6%6%

9%6%

23%17%

23%29%

29%31%

14%29%

51%31%

31%40%

17%40%

40%54%

40%37%

31%29%29%

43%29%

3%3%3%

11%6%

9%9%11%

14%14%

3%20%

20%29%

31%26%

23%23%

29%37%

40%43%

34%40%

49%

3%6%6%6%6%

6%3%

20%6%

3%14%

17%

23%6%

14%6%

14%11%

20%20%

29%11%

17%

Standard practice Pilot planned or ongoing Never Do not know / not applicableN = 35US scope


34

04


© Across Health

Top tactics in emerging countries

Tablet eDetailingPharma-owned website*

Email marketingOutbound call centre

Web conference or virtual meetingHCP self-service portal

Web BannersIntegrated cross-channel campaigns

SEOVirtual eDetailing

Social media marketingDirect marketing

Online medical educationSEA

Mobile marketinge-MSL

Social media monitoringeRep

Marketing automation softwareRemote patient monitoring

Patient adherence toolsePrescribing advertising & promo services

e- or PHR** ad & promo servicesQuantified self / self-tracking devices

e-sampling

86%67%

62%57%

52%43%

38%38%

33%33%

29%24%24%24%24%24%

14%14%14%14%

10%10%10%10%10%

14%24%

29%14%

33%38%

43%48%

29%33%

19%38%

62%24%

57%43%

19%71%

24%14%

33%19%

24%14%

24%

5%10%

29%14%

19%19%

14%33%

29%52%

29%14%

43%19%

33%62%

14%52%

67%52%

62%57%

71%52%

5%

5%5%

10%

10%

5%

10%5%5%

10%10%

5%14%

Standard practice Pilot planned or ongoing Never Do not know / not applicableN = 21Emerging scope


35

04

Multichannel Integration Respondents are most confident about their

multichannel HCP initiatives and least towards payors…

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HCPs

Consumers/patients

Payors

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

30%

52%

66%

45%

30%

29%

25%

18%

5%

BehindEqualAhead

N = 258Global scope

Using digital initiatives targeted at stakeholders vs competition

04

Multichannel Integration And the customer perspective: physicians are not

satisfied with the digital offerings from pharma

36 © Across Health

33% 42% 25%

Across Health GP Navigator 2015 – EU5+US+BE

Our Navigator DB of 5500+ respondents tells us:

1. reps with tablets are rated as similarly impactful as reps without

2. HCPs want much more medical & service offerings online (vs promo)

05

37

Measurement

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05

Measurement Less than 20% of European respondents feel very comfortable with measuring impact & engagement

38 © Across Health

good mix qualitative & quantitative KPIs

measure customer engagement

measure results of all channels

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

14%

15%

13%

37%

34%

33%

40%

39%

39%

9%

12%

15%



39

05

Measurement Around 40% of our Europe & US respondents have a poor to very poor understanding of ROI – and around 25% is (very) comfortable with this concept. Emerging markets are more positive

© Across Health

Europe US Emerging

7%6% 5%

31% 31%

38%

35%37%

29%

20%

14%

24%

7%

11%

5%

Very poorPoorOKWellVery well

40

05

Measurement Almost 4 of out 5 respondents have not implemented a robust framework to leverage customer data for closed-loop marketing yet…hardly any change since 2013

© Across Health

2%

28%

53%

13%4%

% change since 2013

Increase

Decrease

No change=

-2%

-2%

=

5%-2%

17%

Do you leverage customer data from your cross-channel initiatives for advanced customer analytics and closed-loop marketing?

41

05

Measurement And Europe appears to be lagging in this space vs US & emerging markets

© Across Health

Europe US Emerging

2%

27%

20%

24%

57%

51%

48%

11%

23% 24%

4%6% 5%

We do not see the need for collecting or using customer data We are not collecting useful customer data yet, but we shouldWe have started doing some analysis on our multichannel customer data We have already implemented some robust customer analytics frameworksWe leverage this data consistently

42 © Across Health

43

CONCLUSION

Overall, only 13% are satisfied with their current digital activities

© Across Health

0 1 2 3 4 5

2%

16%

28%

40%

12%

1%

N = 258Global scope

13%

44

CONCLUSION

…in Europe, satisfaction rates drop to the lowest percentage since 2011…similar trend in US…

© Across Health

2010 2011 2012 2013 2014 20150%

10%

20%

30%

40%

50%

60%

DissatisfiedNeutralSatisfied

N = 222EU scope

45

CONCLUSION

As in previous years, satisfaction rates were highest in emerging markets…

© Across Health

Europe

US

Emerging

47%

43%

50%

41%

46%

20%

12%

11%

30%

Dissatisfied Neutral Satisfied

CONCLUSION

2015 analysis of satisfaction drivers…a comparison of satisfied vs dissatisfied respondents

46 © Across Health

CONCLUSION

Effectiveness of local/INT teams• 27% vs 12% find their

local & international digital teams effective

Impact of digital• 45% vs 25% say

they understand the ROI of digital well or very well

Companywide vision• 70% vs 20% fully

agree

MCM programmes• Satisified group use

MCM 20% more often than dissatisfied group

RIVALRYDigital satisfaction

4 key drivers for digital satisfaction in 2015…the same factors as in our 2011-2014 historic analysis!

47 © Across Health

BUT: no significant difference in budget, channel mix understanding & legal/regulatory

CONCLUSION

Digital pharma in 2015: (another) Catch-22?

48 © Across Health

Limited investment (digital budgets & internal change)

Limited satisfaction

CATCH-22

01 02 03 04 05

49 © Across Health

Key Survey Statistics


Business Technology & Processes


Measurement

Just do it!Our final thoughts for the 2015 Maturometer could almost be a copy of the 2014 endnote...Indeed, the industry seems to have cornered itself in a catch-22 situation: satisfaction with digital is low, therefore budgets do not increase, which in turn leads to suboptimal programmes with limited impact and back to lower satisfaction...creating a plateau of improductivity...for 4 years already.

Physicians are not satisfied either, with only 25% rating pharma’s digital offering 4 or 5/5. And yet, 70% of pharma respondents feel ahead of or on par with the competition in this space...clearly some work needs to be done here re customer channel affinity...

So how can we move out of the catch-22? By analyzing what highly satisifed respondents do differently from the dissatisfied ones, we can start to identify some key success factors: having a robust strategy, skilled resources, a well-rounded impact framework and...a high level of cross-channel implementation are key differentiators. Also, a select set of respondents is moving ahead quickly, with 14% rating their digital roll-out programmes as very fast...so clearly the digital pharma landscape is up for pervasive change.

We hope to have given you some handles to improve your organization’s digital maturity. Good luck on your omnichannel journey! Just do it!

Fonny SchenckCEO, Across [email protected]

Final thoughts

Across Healthkey numbers 2014

© Across Health 50

• Focus on enhancing customer engagement through optimizing & integrating the channel mix (“fusion”) in healthcare

• over 70 consultants

• Physical presence in 10 markets

• Over 500 projects (40% in customer insight & strategy)

• Channel affinity of 5500 HCPs

• 35+% CAGR since 2007

• www.a-cross.com/health

http://www.a-cross.com/health