Across Health Digital Barometer EMEA 2011

84
2011 EMEA Digital Barometer for life sciences

Transcript of Across Health Digital Barometer EMEA 2011

2011 EMEA Digital Barometer

for life sciences

Across Health Managing Partner

May 3, 2011 Across Health Digital Barometer EMEA 2011 2

Fonny Schenck

Managing Partner, Across Group

CEO, Across Health

For several years now, Across Health has been running a unique digital landscape survey among life sciences leaders. This year‟s edition reached a record amount of respondents and gives you a 360° view on the status, challenges and future of “The New Normal”, aka digital, in life sciences. I‟m convinced you‟ll find these results inspiring and trust they will help you reach the next level… Thanks again for your participation and enjoy the hot-off-the press findings!

Executive summary

May 3, 2011 3 Across Health Digital Barometer EMEA 2011

Table of contents

• Executive summary

• Key survey statistics

• The digital landscape: as-is situation • eBiz satisfaction

• Benchmark against competitors and other industries

• Most common eTactics

• Key challenges • Bottlenecks

• Digital understanding & processes

• ROI measurement

• The future of digital in life sciences • Digital integration & budgets

• Trends in eTool adoption & new stakeholders

• CRM minisurvey

May 3, 2011 Across Health Digital Barometer EMEA 2011 4

Executive summary

“It‟s not about being

digital anymore, it‟s

now about being

clever with digital.”

Peter Hinssen

Digital Barometer EMEA 2011

• Digital satisfaction is still very low

• Digital activities continue to be fragmented and

stand-alone

• Regulatory/legal issues and lack of digital

strategy remain the 2 key bottlenecks for success

• Lack of internal knowledge is moving up quickly as

a hurdle, while ROI questions are losing importance

• Digital budgets continue to be low, and the rate of

growth is only marginal

• eMarketing, eMedical and eSales are the top value

generators

• CRM is gradually being embraced by the business,

but it will be a long and winding road...

May 3, 2011 Across Health Digital Barometer EMEA 2011 5

Key statistics

May 3, 2011 6 Across Health Digital Barometer EMEA 2011

Table of contents

• Executive summary

• Key survey statistics

• The digital landscape: as-is situation • eBiz satisfaction

• Benchmark against competitors and other industries

• Most common eTactics

• Key challenges • Bottlenecks

• Digital understanding & processes

• ROI measurement

• The future of digital in life sciences • Digital integration & budgets

• Trends in eTool adoption & new stakeholders

• CRM minisurvey

May 3, 2011 Across Health Digital Barometer EMEA 2011 7

Key stats

at a glance

• 196 respondents from EMEA life

sciences companies completed the

online survey between Feb – Mar 2011

• Industry spread

Pharma, biotech, generics companies, medical

devices

• Functional spread

Marketing, medical, sales, digital, IT, CRM,

other

• Geographic spread

Across EMEA

• Local vs international spread

Global, regional/EMEA, local

May 3, 2011 Across Health Digital Barometer EMEA 2011 8

Most respondents from traditional pharma

0,5%

2%

5%

6%

87%

OTC company

Generics company

Biotechnology company

Medical devices company

Pharmaceutical company

May 3, 2011 Across Health Digital Barometer EMEA 2011 9

Participant

profile

• Good representation of all levels,

with exception of the most senior

functions

• Predominantly top-10 company

stakeholders joined the survey

Local

43%

EMEA/ International

23%

Global

34%

Leading

company 60%

Medium-

sized company

26%

Small

company 13%

Start-up

company 1%

Reporting to manager

21%

Manager49%

Director26%

VP or higher

4%

May 3, 2011 Across Health Digital Barometer EMEA 2011 10

Functional

spread

• Marketing and digital represent

65% of all answers

• 3 major segments can be defined:

• Sales, Marketing and Medical

• eBiz

• CRM, IT

May 3, 2011 Across Health Digital Barometer EMEA 2011 11

Marketing

44%

Medical

3%

Sales

8%

eBusiness/

Digital21%

CRM

5%

IT

9%

Other

11%

Current adoption

May 3, 2011 12 Across Health Digital Barometer EMEA 2011

Table of contents

• Executive summary

• Key survey statistics

• The digital landscape: as-is situation

• eBiz satisfaction

• Benchmark against competitors and other industries

• Most common eTactics

• Key challenges • Bottlenecks

• Digital understanding & processes

• ROI measurement

• The future of digital in life sciences • Digital integration & budgets

• Trends in eTool adoption & new stakeholders

• CRM minisurvey

May 3, 2011 Across Health Digital Barometer EMEA 2011 13

Executive summary

Current adoption of digital

• Satisfaction with digital is still very low

• The sentiment around activities towards

HCPs goes down, while digital patient

programmes are inching up, so that both

reach around 15% satisfaction

• The gap with other industries is huge and is

only hesitantly being closed

• Most investments in the eTool mix still go to

“websites”, and particularly the

product/disease/company site triangle...

• But several new tools, like mobile marketing

and tablet eDetailing are rising fast

May 3, 2011 Across Health Digital Barometer EMEA 2011 14

“The great thing in the world is not so much where we stand, as in what direction we are moving.”

Oliver W. Holmes

Only 12% are satisfied with their current digital activities …

May 3, 2011 Across Health Digital Barometer EMEA 2011 15

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

2%

18%

34% 34%

11%

1%

Total EMEA

0 1 2 3 4 5

Extremely

Satisfied

Extremely

Dissatisfied Average

score 2,4

... and satisfaction has not changed much compared to last year

May 3, 2011 Across Health Digital Barometer EMEA 2011 16

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

Extremely

Dissatisfied

5%

4%

24%

18%

18%

26%

34%

34%

35%

32%

34%

8%

10%

11%

0% 20% 40% 60% 80% 100%

2009

2010

2011

0 1 2 3 4 5

Extremely

Satisfied

7%

13%

26%

39%

13%

2%

No opinion Far behind Behind Average Ahead Far ahead

15% feel they are ahead in using digital towards healthcare

professionals

How would you rank your company versus your competitors in using digital marketing

initiatives targeted at healthcare professionals?

15%

May 3, 2011 Across Health Digital Barometer EMEA 2011 17

HCPs

The 2011 overall sentiment strengthens the negative trend of 2010

How would you rank your company versus your competitors in using digital marketing

initiatives targeted at healthcare professionals?

25%

17% 13%

1% 2% 2%

0%

10%

20%

30%

40%

50%

2009 2010 2011

No opinion Far behind Behind Average Ahead Far ahead

26%

19%

15%

May 3, 2011 Across Health Digital Barometer EMEA 2011 18

HCPs

In terms of digital consumer/patient activities, 17% feel they are

ahead

May 3, 2011 Across Health Digital Barometer EMEA 2011 19

How would you rank your company versus your competitors in using digital marketing

initiatives targeted at consumers/patients?

7%

13%

33% 30%

15%

2%

No opinion Far behind Behind Average Ahead Far ahead

17%

Patients

... and the number has been increasing year by year ...

May 3, 2011 Across Health Digital Barometer EMEA 2011 20

How would you rank your company versus your competitors in using digital marketing

initiatives targeted at consumers/patients?

3% 4%

7%

23%

14% 13%

32%

36%

33% 32% 31% 30%

8%

13% 15%

1% 2% 2%

0%

10%

20%

30%

40%

2009 2010 2011

No opinion Far behind Behind Average Ahead Far ahead

9%

15% 17%

Patients

… reaching similar scores for consumers/patients as for HCP

activities in 2011

May 3, 2011 Across Health Digital Barometer EMEA 2011 21

How would you rank your company versus your competitors in using digital marketing

initiatives targeted at consumers/patients? (% ahead + % far ahead)

26%

19%

15%

9%

15% 17%

0%

20%

40%

2009 2010 2011

HCP Consumer

How would you rank your company versus leading other industries

in optimally leveraging the internet?

67% of the participants feel they are behind in leveraging the

internet when comparing with other industries

May 3, 2011 Across Health Digital Barometer EMEA 2011 22

Digital vs other industries

3%

31%

36%

17%

12%

1%

No opinion Far behind Behind Average Ahead Far ahead

67%

4% 3% 3%

33% 31% 31%

33%

41%

36%

24%

15% 17%

6% 8%

12%

0% 1% 1% 0%

10%

20%

30%

40%

50%

2009 2010 2011

No opinion Far behind Behind Average Ahead Far ahead

How would you rank your company versus leading other industries

in optimally leveraging the internet?

But, although very limited, the positive feeling is increasing year by

year…while the “far behind” group stays stable, hinting at a market with 2

dynamics: the leaders are ramping up fast, while the laggards stay behind?

May 3, 2011 Across Health Digital Barometer EMEA 2011 23

6% 9%

13%

Digital vs other industries

Digital Strategy in the New Normal

Across Health Digital Barometer EMEA 2011 24

Peter Hinssen

Managing Partner, Across Health

For more information on Peter’s recent book “The

New Normal”, click to neonormal.com.

Once we cross over into the times where digital is the New Normal, the way we interact with our customers will change completely. The worst mistake you could make is to take your existing analog interaction patterns with customers and transfer them to the web. Don‟t transfer, but re-think. It‟s all about intelligence. It‟s all about the contact, it‟s all about “you”. As the master of marketing, Philip Kotler, once said: “Marketing takes a day to learn. Unfortunately it takes a lifetime to master.” You‟ve got a couple years, max.

May 3, 2011

8%

9%

12%

12%

13%

15%

28%

33%

34%

34%

35%

36%

39%

44%

44%

45%

50%

54%

65%

67%

83%

23%

44%

31%

27%

31%

34%

26%

39%

23%

32%

19%

29%

24%

24%

29%

21%

24%

24%

16%

17%

10%

59%

45%

52%

55%

53%

44%

37%

23%

33%

31%

40%

30%

27%

24%

21%

29%

22%

17%

16%

13%

5%

10%

3%

6%

7%

3%

6%

9%

5%

11%

4%

6%

5%

10%

7%

6%

5%

4%

5%

3%

2%

2%

eMSL

Mobile marketing

eRep

Online advisory board

Social media

Online eDetailing

eCME

Tablet eDetailing

SEA

OnlineMedEd

Online slide library

HCP self-service portal

SEO

Web banners

Online market research

Web analytics

Web conference

eMail marketing

Disease website

Product website

Company website

Often / Standard practice (3&4) Pilot planned or ongoing (2)

Never (1) Do not know (0)

Similar to the previous years, most respondents still think about “a website”,

when asked about digital tools… but web conferencing is moving up fast and

relatively new tools like mobile & tablet detailing are intensely being piloted

May 3, 2011 Across Health Digital Barometer EMEA 2011 25

Search engine marketing: US vs Europe

May 3, 2011 Across Health Digital Barometer EMEA 2011 26

Craig Parnell

Managing Partner, North America

Search engine advertising (SEA) is a key component of the marketing mix in the United States, also in life sciences. In Europe, this high-impact tactic is used much less often... It has been in the lower half of key tactics for 3 years in a row and surprisingly seems to drop even further this year... High time for marketers and their digital consultancy or agency to explore this option more fully... if you build it, they will NOT come!

No significant changes in experience between 2010 and 2011,

except for tablet detailing ...

May 3, 2011 Across Health Digital Barometer EMEA 2011 27

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Often / Standard Practice

2010 2011

… while mobile marketing and tablet detailing are being piloted

even more intensively than in 2010, next to Online MedEd and eMSL

May 3, 2011 Across Health Digital Barometer EMEA 2011 28

0%

10%

20%

30%

40%

50%

Pilot Planned or Ongoing

2010 2011

eRep and eMSL in the mix

May 3, 2011 Across Health Digital Barometer EMEA 2011 29

Beverly Smet

Managing Director, Belgium

More and more often, HCPs don‟t have enough time for a decent visit by a sales rep or medical advisor. This endangers the main channel through which life sciences companies currently communicate with their customers. Through the internet, an innovative and convenient alternative way emerges for reps and MSLs to connect with their doctors. A webcall is not only more flexible: the overall attention span and thus message recall is also higher.

Key challenges

May 3, 2011 30 Across Health Digital Barometer EMEA 2011

Table of contents

• Executive summary

• Key survey statistics

• The digital landscape: as-is situation

• eBiz satisfaction

• Benchmark against competitors and other industries

• Most common eTactics

• Key challenges

• Bottlenecks

• Digital understanding & processes

• ROI measurement

• The future of digital in life sciences • Digital integration & budgets

• Trends in eTool adoption & new stakeholders

• CRM minisurvey

May 3, 2011 Across Health Digital Barometer EMEA 2011 31

Executive summary

“When you're

finished changing,

you're finished.”

Benjamin Franklin

Key challenges

• Introducing digital is still very challenging

• Regulatory or legal issues and lack of digital

strategy are still the main issues. ROI stills holds

the 3rd spot, but is gradually losing in

importance...

• Interestingly, lack of internal knowledge is

quickly moving up, while also lack of internal

staff to support digital is moving up slightly

• These results may reflect a more widespread

adoption of digital, leading to the realization that

the internal organization is not ready, pointing to a

need for an integrated approach in digital training.

May 3, 2011 Across Health Digital Barometer EMEA 2011 32

53% find it challenging to extremely challenging to adopt digital

May 3, 2011 Across Health Digital Barometer EMEA 2011 33

1%

6%

14%

27%

44%

9%

0 1 2 3 4 5

Not at all

challenging Extremely

challenging

On a scale from 0 to 5, how challenging is it to adopt digital activities in your organization?

… and this stays at a quite constant level in time

May 3, 2011 Across Health Digital Barometer EMEA 2011 34

On a scale from 0 to 5, how challenging is it to adopt digital activities in your organization?

Avg score

3,2

3,3

2%

7%

6%

17%

19%

14%

32%

22%

27%

35%

39%

44%

14%

11%

9%

0% 20% 40% 60% 80% 100%

2009

2010

2011

0 1 2 3 4 5

3,4

Not at all

challenging Extremely

challenging

Setting up the digital organization

May 3, 2011 Across Health Digital Barometer EMEA 2011 35

Ruud Kooi

Chief Operations Officer

There are no silver bullets in adjusting an organization to the digital age. It requires the right knowledge and the right mindset. It needs setting up new business and technology processes. A good integration of channels in marketing/sales activities is essential, and only a correct measurement of the results enables us to generate valuable learning insights. Think long term, act short term!

Regulatory issues, strategies and ROI questions are the three

main bottlenecks for digital within organizations

May 3, 2011 Across Health Digital Barometer EMEA 2011 36

2%

4%

5%

2%

3%

4%

5%

8%

8%

12%

19%

28%

2%

2%

4%

3%

4%

7%

5%

6%

14%

11%

13%

12%

17%

3%

3%

4%

3%

7%

6%

11%

10%

6%

11%

11%

14%

11%

0% 10% 20% 30% 40% 50% 60%

No expert agencies with pharma background …

Other (please specify)

Customers are not ready

No senior management support

No budget

Pharmacovigilance issues (adverse event …

N/A

No headcount to support this

Healthcare compliance concerns

Not enough internal knowledge in this area

ROI questions

No clear eBusiness strategy

Regulatory or legal issues

Most important Second most important Third most important

While some structural bottlenecks are losing importance, lack of

internal knowledge is quickly moving up

May 3, 2011 Across Health Digital Barometer EMEA 2011 37

2%

8%

9%

12%

17%

18%

18%

18%

24%

25%

41%

45%

63%

5%

7%

11%

16%

20%

13%

11%

20%

28%

30%

36%

45%

57%

0% 10% 20% 30% 40% 50% 60% 70%

No expert agencies with pharma background …

Other

Customers are not ready

Pharmacovigilance issues

N/A

No budget

No senior management support

No headcount to support this

Healthcare compliance concerns

Not enough internal knowledge in this area

ROI questions

No clear eBusiness strategy

Regulatory or legal issues

2011

2010

Barriers to digital adoption

May 3, 2011 Across Health Digital Barometer EMEA 2011 38

Hans-Fredrik Gustafsson

Director, France

Digital adoption is an organization-wide process. Not only marketing and sales are changing the way they operate, but also regulatory and legal have to adapt. Defining a well-rounded and comprehensive digital strategy linked to the business objectives, as well as building the right competences and setting up specific processes are essential steps towards moving to the “New Normal”, and being clever with digital (v.s. just “being there”).

68% feels NOT having sufficient knowledge about digital

Do you feel that you have sufficient knowledge of all opportunities offered by the internet for

your business activities?

May 3, 2011 Across Health Digital Barometer EMEA 2011 39

Internal knowledge

2%

24%

42%

21%

10%

Totally insufficient Insufficient

Between sufficient and insufficient Sufficient

More than sufficient (expert)

68%

The need for more internal knowledge increased dramatically in

the past year

Do you feel that you have sufficient knowledge of all opportunities offered by the internet for

your business activities?

May 3, 2011 Across Health Digital Barometer EMEA 2011 40

Internal knowledge

4%

4%

2%

24%

20%

24%

27%

31%

42%

31%

34%

21%

14%

10%

10%

0% 20% 40% 60% 80% 100%

2009

2010

2011

Totally insufficient Insufficient

Between sufficient and insufficient Sufficient

More than sufficient (expert)

There is still quite some room to improve knowledge sharing

Are there any formal processes to share the information about digital strategies within your

company?

May 3, 2011 Across Health Digital Barometer EMEA 2011 41

Knowledge sharing

Do not know 11%

No, it is not required

7%

No, but should be in

place 37%

Yes 45%

This did not significantly change in the past years

Are there any formal processes to share the information about digital strategies within your

company?

May 3, 2011 Across Health Digital Barometer EMEA 2011 42

Knowledge sharing

8%

11%

9%

6%

7%

43%

47%

37%

48%

39%

45%

0% 20% 40% 60% 80% 100%

2009

2010

2011

Do not know No, it is not required No, but should be in place Yes

Although ROI is a major hurdle, 77% of respondents do measure it

sometimes or always

Do you measure the impact of your digital activities?

May 3, 2011 Across Health Digital Barometer EMEA 2011 43

ROI

77%

4% 6%

14%

47%

30%

Never - not relevant Never - would love to, but do not know how

Rarely Sometimes

Always

3% 4% 2% 6%

13% 14%

48% 47%

34% 30%

2010 2011

Never - not relevant

Never - would love to, but do not know how

Rarely

Sometimes

Always

Which also did not significantly change compared to last year

Do you measure the impact of your digital activities?

May 3, 2011 Across Health Digital Barometer EMEA 2011 44

KPI measurement and analytics

May 3, 2011 Across Health Digital Barometer EMEA 2011 45

Edwin de Fouw

Managing Director, The Netherlands

Most often the metrics used for digital projects

stay very standard: views, clicks, average

time on a page, .. These are some perfect

metrics for improving a website, but don‟t

necessarily reflect its success.

One needs to go back to the business goals

of the project to establish the right KPIs and

then look for a way to (approximately)

measure this.

HITS : How Idiots Track Success.

The future of digital In Life Sciences

May 3, 2011 46 Across Health Digital Barometer EMEA 2011

Table of contents

• Executive summary

• Key survey statistics

• The digital landscape: as-is situation

• eBiz satisfaction

• Benchmark against competitors and other industries

• Most common eTactics

• Key challenges

• Bottlenecks

• Digital understanding & processes

• ROI measurement

• The future of digital in life sciences

• Digital integration & budgets

• Trends in eTool adoption & new stakeholders

• CRM minisurvey

May 3, 2011 Across Health Digital Barometer EMEA 2011 47

Executive summary

“My interest is in the

future because I am

going to spend the

rest of my life there.”

Charles F. Kettering

The future of digital

in Life Sciences

• Digital opportunities are now being included in the

marketing process

• Digital budgets continue to be low vs total marketing

spend (around 7%)

• Digital budgets will continue to increase, but the

absolute growth will remain limited due to the low

base: 20% growth on 7% will yield only 8.4% next year.

• Digital budgets will be released by shifting budget away

from traditional channels: advertising, direct mail and

primary care sales force

• eMarketing, eMedical and eSales are the top value

generators

• Specialists, KOLs and GPs are the main target groups,

with payers on the rise

May 3, 2011 Across Health Digital Barometer EMEA 2011 48

78% of respondents are including digital opportunities in the

marketing planning process

May 3, 2011 Across Health Digital Barometer EMEA 2011 49

4%

18%

53%

26% Not at all

No, but it is changing

Yes, this is the case for several brands

Yes, this is the case for all brands

Are digital opportunities included in the budget and marketing planning processes?

This is more and more often the case for all brands, pointing to an

significantly improving integration of digital in marketing

Are digital opportunities included in the budget and marketing planning processes?

6% 4%

23%

18%

52% 53%

19%

26%

2010 2011

Not at all

No, but it is changing

Yes, this is the case for several brands

Yes, this is the case for all brands

May 3, 2011 Across Health Digital Barometer EMEA 2011 50

eMarketing, eMedical and eSales are the top 3 value generators for

digital

In which areas do you believe that digital could generate the highest value to you and your

customers?

May 3, 2011 Across Health Digital Barometer EMEA 2011 51

27%

25%

38%

8%

15%

19%

17%

31%

8%

10%

15%

19%

25%

15%

0% 50% 100%

Other

e-R&D initiatives

e-Medical initiatives

Health Economics

Market access

e-PR initiatives

e-Sales initiatives

e-Medical education initiatives

e-Marketing initiatives

Highest value Second highest Third highest

Digital marketing budgets are still low compared to other

industries

If you oversee a product budget, which percentage of it is allocated to digital marketing

THIS YEAR?

May 3, 2011 Across Health Digital Barometer EMEA 2011 52

30%

46%

24%

EMEA

Less than 5%

Between 5 and 10%

More than 10%

Although more and more companies are slowly closing the gap

and crossing the 5% or 10% level

If you oversee a product budget, which percentage of it is allocated to digital marketing

THIS YEAR?

52%

30% 31%

46%

17%

24%

0%

20%

40%

60%

2010 2011

Less than 5%

Between 5 and 10%

More than 10%

May 3, 2011 Across Health Digital Barometer EMEA 2011 53

Life sciences spending on digital

May 3, 2011 Across Health Digital Barometer EMEA 2011 54

Patric Jarchow

Managing Director, Germany

Life science companies are spending about 8% of their overall marketing budget on digital activities, and intend to increase this by less than 20% in 2012 – bringing the total to less than 10%. More importantly, the marketing budgets are quite small vs the sales budget (30% vs 70%, on average). Hence, digital budgets are less than 2.5% of the total sales & marketing budget... In other industries, 15 tot 20% of total marketing budgets are the rule rather than the exception...and the marketing budgets there represent a much higher % of the total sales & marketing spend. Clearly this spend trend does not reflect the interest in and value of these channels for physicians and consumers...we expect to see more disruptive spend trends in digital going forward with companies that NEED to change as well as innovator companies that WANT to change.

4%

33%

39%

21%

3% 0% 0% 1%

4%

17%

58%

14%

4% 1%

Decrease (> 25%)

Decrease (1-24%)

No change Increase (1-20%)

Increase (21-50%)

Increase (50-100%)

Increase (> 100%)

Overall

Digital

The overall marketing budget will decline, while digital budgets will

increase…but the rate of increase is still limited in view of the low base

(8% of marketing budget for digital)

How do you think your overall marketing budget and digital budget will evolve?

May 3, 2011 Across Health Digital Barometer EMEA 2011 55

The digital budget increase is funded by shifting money away from the

traditional marketing budget…there is no “free” pilot money anymore!

How are you planning to fund the increase in digital spending?

May 3, 2011 Across Health Digital Barometer EMEA 2011 56

91%

9%

We will increase digital budget by shifting money away from the traditional marketing budget We will increase digital budget but will not shift money away from the traditional marketing budget

Digital’s share of the marketing budget is steadily increasing, but

still stays rather small

How do you think your overall marketing budget and digital budget will evolve? *

2009 2010 2011 2012

-5% -2% -2%

+10% +16% +14%

* Graph calculated using averages of expectations and estimations

classified in intervals; for illustrative purposes only

May 3, 2011 Across Health Digital Barometer EMEA 2011 57

The budget shift is mostly at the expense of advertising, direct

mail and the primary care sales force

From which of the following traditional channels will you shift money away to digital?

May 3, 2011 Across Health Digital Barometer EMEA 2011 58

13%

19%

26%

13%

29%

3%

6%

6%

10%

16%

6%

26%

26%

3%

6%

10%

16%

3%

13%

23%

26%

0% 20% 40% 60% 80% 100%

Public relations

Medical education

Newsletter

Other

Specialist salesforce

Primary care salesforce

Direct mail

Advertising

Most important Second most important Third most important

Only 26% rely on an actual framework around marketing mix, while

another 37% has at least some foundation for their decisions

How do you define your marketing mix?

May 3, 2011 Across Health Digital Barometer EMEA 2011 59

2%

13% 14%

23% 26%

16%

6%

EMEA

Based on econometric modeling Based on last year's budget Based on customer feedback Based on market research Based on a conceptual framework on marketing mix Based on experience/gut feeling Other

37%

Marketing mix assessment

May 3, 2011 Across Health Digital Barometer EMEA 2011 60

Bernard Depaepe

Senior Management Consultant

Albeit slowly, companies are shifting budgets away from traditional channels to digital. The key question then becomes: which channels can I safely reduce and to which new channels should I allocate those budgets? And how much should I invest in each channel to ensure I have at least the same impact as before at a lower cost? In times of change, it is very tricky to rely on experience or “gut feeling”, as this may lead to the wrong investments or, possibly even worse, underinvestment. A marketing mix assessment is an objective and powerful basis for making these crucial decisions, as many of our clients have already realized.

Growth is expected across the board, while the outliers are

product websites, mobile marketing & tablet eDetailing

How often will you use the following tools to by end of 2012?

May 3, 2011 Across Health Digital Barometer EMEA 2011 61

Tablet eDetailing

Mobile marketing

eRep eMSL

HCP self-service portal SEA Online eDetailing

Web conference Social media

Online advisory board OnlineMedEd

Online market research

SEO Web banners Web analytics

eCME eMail marketing

Online slide library

Disease website

Company website

Product website

1,5

2,0

2,5

3,0

3,5

2,5 3,0 3,5 4,0

Me

an s

core

CU

RR

ENT

USE

(0

-4 r

atin

g)

Average GROWTH (0-5 rating)

0 (Not used)

1 (Strong decrease)

2 (Slight decrease)

3 (No change)

4 (Slight increase)

5 (Strong increase)

High use

High growth

Medium use

Medium growth

Low use

High growth

Medium use

No/low growth

Social media strategy

May 3, 2011 Across Health Digital Barometer EMEA 2011 62

Gary Monk

Managing Director UK

Many pharma companies have experimented with social media, but most efforts are still piecemeal and opportunistic. As a result, the true value of social media has not been tapped yet, witness the “medium investment/medium growth” category it is in. Using social media is not a strategy in itself. Which social media to use? How to interact? Where does the use of social media serve brand value? Does it make sense altogether to use social media for these goals and target group in view of the buying process priorities? With the internet becoming social it is important not to blindly fall for this „shiny object‟, but to challenge our thinking and use it for the better. .

Mobile strategy

May 3, 2011 Across Health Digital Barometer EMEA 2011 63

Koen Pellegrims

Digital Consultant and Mobile Expert

In February of last year Google revealed its new strategy: mobile first. Why? Because mobile internet will overtake desktop internet usage by 2013. Indeed, smartphones and tablets are finding their ways at an incredible pace to HCPs, patients and sales reps. Mobile websites, smartphone apps, different platforms, location-based opportunities, real-time connectivity between stakeholders.. Our 2011 digital survey reveals the same trend: you are seeing high growth in mobile for the future...but what is your mobile strategy and how are you going to take advantage of the mobile opportunity?

Specialists and GPs remain top 3 target groups for digital

communication, and its use for KOLs has significantly increased

Who are the main customer groups that you target using digital channels today?

May 3, 2011 Across Health Digital Barometer EMEA 2011 64

7%

14%

23%

49%

6%

11%

23%

15%

36%

5%

7%

7%

8%

14%

21%

15%

15%

6%

0% 20% 40% 60% 80% 100%

Other

Payers/Policy makers/Health authorities

Patient associations

Hospitals

Nurses & caregivers

Pharmacists

Patients & consumers

Key opinion leaders

General practitioners

Specialists

First Second Third

from 35 to 52.6 %

compared to last year

The outlook for the near future is quite similar, with the exception

of a large increase for digital channel use towards payers

Which main customer groups will you be targeting most through digital channels BY THE END

OF 2012?

May 3, 2011 Across Health Digital Barometer EMEA 2011 65

12%

15%

20%

43%

4%

4%

7%

14%

19%

16%

33%

5%

6%

10%

11%

10%

17%

15%

12%

13%

0% 20% 40% 60% 80% 100%

Other

Patient associations

Hospitals

Payers/Policy makers/Health authorities

Nurses & caregivers

Pharmacists

Patients & consumers

Key opinion leaders

General practitioners

Specialists

First Second Third

from 7 to 16 %

compared to last year

Patient awareness & adherence

May 3, 2011 Across Health Digital Barometer EMEA 2011 66

Janne Pamsgaard

Managing Director Denmark (Nordics)

The key target groups for digital in our 2011 survey confirm that pharma still sees the internet very much as an online extension of the offline world: offline, we focus on specialists, so we should do the same online... I agree that some of our digital budget should be spent on specialists (“incremental innovation”), but I would argue that we are leaving huge transformational opportunities on the table, particularly with regard to massively “underserved” audiences, including GPs (significant salesforce reduction), pharmacists and... patients. Indeed, thanks to the ubiquity of the (social) internet & mobile, a myriad of channels is available to communicate with patients along the buying process – from awareness through to patient adherence... So, what is your patient strategy for digital?

CRM minisurvey

May 3, 2011 67 Across Health Digital Barometer EMEA 2011

Table of contents

• Executive summary

• Key survey statistics

• The digital landscape: as-is situation

• eBiz satisfaction

• Benchmark against competitors and other industries

• Most common eTactics

• Key challenges

• Bottlenecks

• Digital understanding & processes

• ROI measurement

• The future of digital in life sciences

• Digital integration & budgets

• Trends in eTool adoption & new stakeholders

• CRM minisurvey

May 3, 2011 Across Health Digital Barometer EMEA 2011 68

Executive summary

"We've spent the last

30 years focusing on

the T in IT, and we'll

spend the next 30

years focusing on

the I.“

Peter Drucker

CRM minisurvey EMEA 2011

• CRM integration is poor

• Still, CRM is considered a strategic asset by the

majority of the respondents

• And even more respondents consider their

organization to be customer-centric, despite the

poor CRM integration

• There are companies all along the spectrum with

regard to the size of email databases, but overall

the score is low

May 3, 2011 Across Health Digital Barometer EMEA 2011 69

CRM minisurvey EMEA 2011

May 3, 2011 Across Health Digital Barometer EMEA 2011 70

Dina Rey

Director, Switzerland

At Across Health, we firmly believe that digital is just part of the solution... true impact can only be generated by “fusion marketing”, i.e. integrating online & offline. Indeed, if done well, 1+1 should equal more than 2. Digital campaigns are often standalone initiatives. Still they could be so much more powerful when linked to customer profiles, integrated multichannel approaches,... Think about it when you launch your next campaign! To achieve this, a customer-focused strategy should be put in place, supported by an agile and high-performing CRM platform, with clear business KPIs... CRM is the key to orchestrating touch points throughout a range of channels in a customer-centric way. Let‟s see what the state of the industry is in the next few slides...

Most respondents consider their organization to be customer-

centric

Please rate the following statement on a scale from 0 to 5: We are a customer-centric

organization

May 3, 2011 Across Health Digital Barometer EMEA 2011 71

Customer-centric organisation

5% 3%

11% 11%

31% 28%

12%

EMEA

Do not know 0 1 2 3 4 5

Totally

Disagree

Totally

Agree

3,0 Average

And they see CRM as as a strategic asset – but opinions still vary

hugely...

Please rate the following statement on a scale from 0 to 5: CRM is a strategic asset in our

company and not just an IT tool

May 3, 2011 Across Health Digital Barometer EMEA 2011 72

CRM strategic asset

7% 4%

7%

12% 15%

20%

34%

EMEA

Do not know 0 1 2 3 4 5

Totally

Disagree

Totally

Agree

3,2 Average

If we dig a bit deeper, the “360° vision” is not supported by day-to-day

CRM priorities: only 25% is integrating web initiatives into the CRM

system today

Please rate the following statement on a scale from 0 to 5: Are your web initiatives integrated

into your CRM system to ensure a 360° view of your customers?

May 3, 2011 Across Health Digital Barometer EMEA 2011 73

5%

31% 29%

10%

21%

4%

EMEA

Do not know Not at all Not yet, but we have plans to do this Project underway Basic integration in place Sophisticated integration in place

25%

CRM integration

And customer email address databases are still not a reality

Please rate the following statement on a scale from 0 to 5: We have over 40% of our customer's

email addresses in our CRM system

May 3, 2011 Across Health Digital Barometer EMEA 2011 74

CRM email database

16%

11%

14% 15% 15%

12%

15%

EMEA

Do not know 0 1 2 3 4 5

Totally

Disagree

Totally

Agree

2,2 Average

Please rate the following statement on a scale from 0 to 5: Averages

May 3, 2011 Across Health Digital Barometer EMEA 2011 75

CRM strategic asset

Still, some progress is being made, especially with regard to the

customer email databases

1,4

2,4

3,2

2,2

3,0 3,3

0

1

2

3

4

5

We have over 40% of our customer's email addresses in

our CRM system

We are a customer-centric organization

CRM is a strategic asset in our company and not just an IT tool

2010

2011

Totally

Disagree

Totally

Agree

Final thoughts

May 3, 2011 76 Across Health Digital Barometer EMEA 2011

So will 2011 be a grand cru for “fusion”?

May 3, 2011 Across Health Digital Barometer EMEA 2011 77

Fonny Schenck

Managing Partner, Across Group

CEO, Across Health

Clearly, digital is increasingly being seen as a key component of the future business model... Although low, budgets are increasing and companies want to enhance their knowledge around digital. The key hurdles remain the same however: regulatory/legal concerns and lack of a digital strategy... So, will 2011 be the digital “turning point”? Will you boost your online budget beyond the symbolic level? Will you spend it on the right digital channels based on a marketing mix assessment and integration with your marketing strategy? Will you integrate digital with offline? And will you go for the right mix of implementation of best practices, improvement of existing initiatives and true innovation? I wish you every success on this exciting journey!!

About Across Health COMPANY

• 60+ strong consultancy

• Focus on innovative customer-centric approaches

• (e-powering traditional channels– “fusion”)

• From strategy to implementation and success

metrics/KPIs

• Unique offering in the industry

TARGET CUSTOMERS

• Pharmaceuticals

• Devices & Diagnostics

• Hospitals

• Patient & Professional Associations

INTERNATIONAL EXPANSION ONGOING

• Head offices in Belgium (Ghent)

• Offices in Netherlands (Breda), France (Paris), UK

(London), Switzerland (Basel), Nordics (Copenhagen),

Germany (Munich), New Europe (Prague), China

(Shanghai) and North America (New Jersey)

Extensive experience at regional/global level

AND

local execution power

January 2012

Across Health Expertise Overview

INSIGHT BE NL FR GE SW IT SP UK Nordics TU USA ASIA EMEA

Landscape Analysis

Marketing Mix Assessment

CRM/Ebiz Benchmarking Projects coordinated at EMEA level, but taking place in different EU countries

Buzz Monitoring Projects coordinated at EMEA level, but taking place in different EU countries

INNOVATION BE NL FR GE SW IT SP UK Nordics TU USA EMEA

Fusion Strategy

Social Media Strategy Projects coordinated at EMEA level, but taking place in different EU countries

Mobile Strategy Projects coordinated at EMEA level, but taking place in different EU countries

Innovation Bootcamps

IMPACT BE NL FR GE SW IT SP UK Nordics TU USA EMEA

Dashboards

Web Analytics

Rep equivalent model

Customer-centricity metrics

1 project finished + learnings

>2 projects finished + learnings

1 proposal

1 project ongoing

January 2012 79

IMPLEMENTATION BE NL FR GE SW IT SP UK Nordics TU USA ASIA EMEA

iPad detailing

Other iPad projects

Teledetailing

eRep/Hybrid Rep

Vdetailing

HCP Portal

Mobile Marketing HCP

Mobile Marketing CONS

Social Media for HCPs

Social Media for CONS

Patient website

Multichannel HCP Marketing

Change Mgt & on-site consulting

Across Health Expertise Overview

1 project finished + learnings

>2 projects finished + learnings

1 proposal

1 project ongoing

January 2012 80

02 03

04 01

Innovation Implementation

Impact

Insight

How do we play?

The 4 Is

We measure the impact of the new

strategy using dashboards,

KPIs,…and create best-practice

documents/tools.

We summarize key trends, best

practices and benchmarks - also from

related and other industries - and

compare them to your current situation.

We support you in the implementation of our recommendations – from project management to website development,

edetailing, dialogue marketing, remote selling & education, change

management, process & organizational design and creative execution

We come up with a 2-3 year

innovative, balanced and integrated

roadmap and strategy to move into

the new space, based on workshops,

customer interviews and Across

insights.

May 3, 2011 Across Health Digital Barometer EMEA 2011 81

Our international footprint

Across Health Digital Barometer EMEA 2011 82 January 2012

Some of our key references

May 3, 2011 Across Health Digital Barometer EMEA 2011 83

Contact Details

These results have been compiled by Jeroen Corthout &Bernard Depaepe

For any question, mail to [email protected]

Make sure also to check out our fields of expertise on

www.a-cross.com/health

DISCLAIMER:

Current presentation is confidential. All

proposed concepts and ideas

presented here are intellectual property

of Across Health, and are to be used in

collaboration with Across Health.

Or follow us on