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September 30, 2016

Pharma Marketing Managers Must Regain Control Of Their CX By Investing In Measurement Methods by Peter Reeves with Tim van Tongeren and Dennis van Rooij

Executive Summary

Marketing managers at large pharmaceutical companies are currently unable to determine how well-received their digital initiatives are by their intended target audience—their customers. To improve their online brand experience, marketing managers face two main challenges: they lack a systematic approach to measurement and fail to make full use of the measurement tools available to them. Marketers eager to outperform the competition must use the right measurement tools, for the right purposes, to fully understand and improve their customer experience.

Table of Contents

Marketing Managers Are in the Dark as To Their Brand’s Digital CX Performance

2 Methodology Online survey of thirty-two marketing managers and subject-matter experts at global pharmaceutical companies Companies Surveyed For This Report AstraZeneca, Bayer, Boehringer-Ingelheim, Ferring, Lilly, Merck, Novartis, Pfizer, Roche, and ViiV Healthcare Endnotes

6 6 9

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Marketing Managers Are in the Dark as To Their Brand’s Digital CX Performance

Senior digital leaders at pharmaceutical firms rate customer experience (CX) design as one of the biggest business opportunities in their industry.1 Interactions that customers need and find easy to use drive positive impressions about the company that designed them, which eventually develops into a transactional relationship that customers won’t give up on easily. Pharma’s marketing managers share the views of their digital leaders: of the thirty-two marketing managers we interviewed for our study of CX measurement, twenty-nine find it very important to know how well their digital initiatives meet customer needs and contribute to business goals (see Figure 1). However, understanding whether marketing managers can put their money where their mouth is and measure their brand’s digital performance is still unclear. The survey revealed that:

• Marketing managers don’t know how good or bad their digital CX is. We asked if marketers could confidently answer a series of specific questions using any data they currently had relating to various aspects of their brand’s digital CX performance (see Figure 2). None of the thirty-two marketers could answer all of the questions; only eleven were able to answer more than two of them (see Figure 3). And while many marketers felt that they could confidently answer how user-friendly their CX is, only five could compare their design quality with those of their peers.

• Lack of measurement discipline jeopardizes digital brand investments. The survey reveals two reasons why marketers are in the dark regarding the performance of their digital CX. Firstly, many marketers do not collect any data to track their customers’ experiences (see Figure 4). Secondly, those who are collecting data use just one or two tools to do so—which is insufficient to answer all of the important questions and perceive the larger picture (see Figure 5). There was a positive correlation between the number of tools marketers use and the number of questions they were able to answer—suggesting that using more methods gives marketers greater insight and clarifies which solutions will help improve digital CX (see Figure 6).

• Marketers need to regain control and select the right measurement tools. To understand if they’re meeting customer needs, marketers must apply the same discipline and rigor to measuring CX as they do to determining the effectiveness of traditional interactions such as rep visits or congresses. In addition, marketers must know how and when to use the various measurement tools. Luckily, they don’t have to look far; most pharmaceutical firms have core measurement capabilities in place.2 Any marketers who can’t tap into a centralized capability can use basic digital analytics and expert evaluations to jump quickly into CX measurement (see Figure 7).

Figure 1: Marketing managers want to know how well their digital initiatives meet customer needs

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Figure 2: Marketers know how user-friendly their CX is but not if it’s better than their competitors’

Figure 3: Few marketers can answer critical questions regarding their brand’s digital CX

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Figure 4: Many marketers don’t measure their customer experience

Figure 5: Marketers prefer the analytics and customer feedback methods of CX measurement

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Figure 6: The more methods marketers use, the more they know about their brand’s digital CX

Figure 7: The pros and cons of six different customer experience measurement tools

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Methodology

DT Consulting fielded its Q2 2016 Brand Planning survey to thirty-two marketing and brand team members selected based on two criteria. Respondents demonstrated interest in and familiarity with digital capabilities as part of their role in a pharmaceutical organization and had direct or indirect ties to their firm’s brand planning and marketing departments.

We fielded the survey from April 2016 to June 2016. Respondent incentives included a copy of a report containing the collected survey data prior to publication.

Our sample is not guaranteed to be representative of the population. Unless otherwise noted, data is intended for descriptive purposes. DT Consulting fielded its survey using an online survey tool following a personal invitation by email.

Companies Surveyed For This Report

AstraZeneca Bayer Boehringer-Ingelheim Ferring Lilly Merck Novartis Pfizer Roche ViiV Healthcare

©2016 DT Consulting. All rights reserved. Reproduction or sharing of this content in any form without prior written permission is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

About the Authors

Peter Reeves Peter is a consulting analyst at DT Consulting. In this role, he manages part of DT’s research data program, benchmarking companies’ digital capabilities and analyzing industry data trends within “digital medicines”. Peter also supports DT’s bespoke consulting projects and workshops.

Peter received a master’s degree (M.Sc.) in marine biology from the University of Southampton. Here he successfully funded, designed, and led his own research projects abroad, which has resulted in his thesis being earmarked for academic publication in conjunction with the University of Southampton and the Reef Life Survey.

Tim van Tongeren For more than fifteen years, Tim has worked with commercial leaders to navigate their strategic and organizational transformations required to thrive on digital technology change. In his current role as Managing Partner, he leads DT’s Solutions and Consulting offerings to advise the world’s largest pharmaceutical firms on how to best achieve customer experience success through digital transformation. He also directs DT’s ongoing effort to provide the pharma industry with the most relevant insights on digital strategy, digital health, and organizational change.

Tim’s recent client engagements include digital excellence maturity assessments, customer experience strategy definition, digital capability road maps, embedding CXQ® into the fabric of company-wide customer experience measurement, and training (global) marketing teams on reviewing and improving the customer experience of their digital presence.

Prior to joining DT Consulting, Tim served as senior advisor at Eli Lilly’s Digital Hub in Europe and had leadership roles at GlaxoSmithKline’s Digital Centre of Excellence to transform its customer experience and digital analytics capability. Before that, he served in SapientNitro’s Strategy Consulting, helping firms across industries develop and execute their digital marketing strategies and multichannel presence. Tim started his career at Forrester Research as lead analyst of the Customer Experience practice in Europe.

Tim holds a bachelor’s degree (B.Sc.) in business economics and a postgraduate degree (M.Sc.) in international business and economics from Tilburg University.

Dennis van Rooij Dennis is a recognized expert on how pharmaceutical executives can take full advantage of new digital technologies to bolster their business objectives. He brings a strategic yet pragmatic perspective on digital transformation for the pharmaceutical industry. In his current role as Managing Partner, Dennis is responsible for managing DT’s network of senior pharmaceutical executives who are leading their firm’s digital transformation, multichannel marketing, or customer engagement efforts, and spends a significant portion of his time working directly with clients.

Recently, Dennis has supported numerous pharmaceutical companies in benchmarking and improving their digital maturity, helped a leading tier-1 pharmaceutical company to assess its digital factory organization, and guided senior executives to understand the business impact of digital by addressing their operating models.

Prior to joining DT Consulting, Dennis was the Global Head of Digital Transformation at Novartis in Switzerland. He also served as an interim advisor for AstraZeneca, supporting its global digital marketing capabilities and engagement team. Prior to that, Dennis led the digital marketing strategy for Asia Pacific, Japan, and emerging markets for GlaxoSmithKline, where he earned the prestigious President’s Award for innovative marketing in emerging markets. Dennis also has seven years of digital transformation experience outside the global pharmaceutical industry as a senior consultant at MetrixLab and Forrester Research, where he worked with many of the world’s top companies.

Dennis received a bachelor’s degree (B.Sc.) in business economics and a postgraduate degree (M.Sc.) in international business and economics from Tilburg University.

©2016 DT Consulting. All rights reserved. Reproduction or sharing of this content in any form without prior written permission is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

About DT Consulting

We help pharmaceutical firms differentiate through customer experience powered by digital excellence. As a specialist consulting firm, we use fact-based insights from carefully crafted research, peer networking for executives in digital or related areas, assessments, benchmarks, and bespoke consulting projects to address digital excellence transformation in the pharmaceutical industry. Learn more at http://www.dt-consulting.com.

DT Consulting’ Solutions: The Customer Experience Review Our solutions leverage assessments and benchmarking data to provide tailored insights into critical aspects of your organization’s digital transformation efforts.

For directors of medical, marketing, and brand; heads of digital, multichannel marketing, and customer engagement.

The Customer Experience Review provides a thorough, objective, expert review of the customer experience of websites, mobile/tablet apps, electronic details, online meetings, and social media, email, and cross-channel campaigns. In addition to conducting an in-depth review of these customer experiences, we can benchmark your performance against best practices, your direct competitors, or the industry in general.

DT’s Customer Experience Review helps pharma companies:

• Determine whether your customer experience is facilitating or hindering your opportunities in the digital space.

• Thoroughly assess how you can engage more customers and strengthen those engagements. • Put in place an action plan to boost your customer and business value above those of your peers. • Monitor progress over time and steer your design efforts.

If you would like to understand how the Customer Experience Review will help you improve your customer experience, please contact us at enquiry@dt-consulting.com for a free demonstration.

© 2016 DT Consulting. All rights reserved. Reproduction or sharing of this content in any form without prior written permission is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

Endnotes

1 See the July 5, 2016 DT Consulting report “The State of Digital Excellence in the Pharmaceutical Industry, 2016: Organizational Readiness”.

2 See the April 2, 2015 DT Consulting report “The State of Digital Excellence in the Pharmaceutical Industry, 2015: Capabilities”.