TO THE PATIENTPOWER SHIFT

Digital strategy in aPost-Rx marketplace

I’M LEIGH HOUSEHOLDER @LEIGHHOUSE

Depth in Healthcare Catalyst for Innovation

LET’S START AT THE START…What’s changing and how will it impact expectations?

SO ARE OUR CONSUMER LIVES

OUR INDUSTRY IS CHANGING DRAMATICALLY

THAT’S CREATED A NEW EXPECTATION

THAT’S CREATED A NEW GOAL

STRUGGLES WITH CROWDED AND COMMODITIZED MARKETS

5th, 6th, 7th to marketLimited feature differentiationOff-label realitiesGeneric erosion

A NEW FOCUS ON PATENT STRATEGY AND DEFENSE

Lipitor’s test of post-expiry marketingMore compounded compoundsGrowth of authorized genericsEmerging generic brands

BIOLOGIC INNOVATION DRIVING THE NEXT GEN OF MONEY MAKERS

Two leading categories for the decade ahead: Auto immune and oncology

HUMAN CONNECTIONS MORE AND MORE REMOTE

Explosion of specialty pharmacyNew payer interventionsGrowth of digital consultations and auto-delivered test results

SO ARE OUR CONSUMER LIVES

OUR INDUSTRY IS CHANGING DRAMATICALLY

THAT’S CREATED A NEW EXPECTATION

THAT’S CREATED A NEW GOAL

LASTING GOAL NEW FOCUS

nRx tRxBuying awarenessEarning trial

Activating sidelinersEarning commitment

SO ARE OUR CONSUMER LIVES

OUR INDUSTRY IS CHANGING DRAMATICALLY

THAT’S CREATED A NEW EXPECTATION

THAT’S CREATED A NEW GOAL

THINK BACK FIVE YEARS

Imagine the leap that people, you and me included, have made in these last years.

The internet was a wall of webpages you had to visit.Hyperlinking was the most impressive thing it did.

Phones were something we used to talk to people. The buttons were numbers and did nothing more than present a digit

The world we live in now is full of novel, engaging experiences

A NEW ERA OF PLAY

Redesigned to bring people togetherA center of the living room entertainmentEven more addictive on mobileEveryone-can-do-it easy

THE DIVIDED ATTENTION ECONOMY

A new multi-tasking normMulti-device living rooms and officeNew value in real attention

THE END OF NORMAL

xxxx

Choice has created micro culturesWith shared experiences in life and healthWho expect brands to know their “normal”

SO ARE OUR CONSUMER LIVES

OUR INDUSTRY IS CHANGING DRAMATICALLY

THAT’S CREATED A NEW EXPECTATION

THAT’S CREATED A NEW GOAL

THINK ABOUT THE BRANDS PEOPLE LOVE AND TALK ABOUT

CONNECTED to meaning that matters

to us

DELIGHTFUL interfaces and tools

BETTERways to do the same old things

EVERY BRAND EXPERIENCEHAS TO BE SPECIAL

In a crowded world where time and attention are more precious

than ever,

THIS NEW REALITY HAS LED LEADING BRANDS TO MAKE AN ESSENTIAL SHIFT – ESPECIALLY IN DIGITAL

Promoting the product benefit

Making promises

For the life of the product

ASKING FOR ATTENTION

OFFERINGVALUE

Creating or adding a marketing benefit

Delivering on promises

For the life of the relationship

FROM: TO:

THEY’RE BLURRING THE LINES BETWEEN MARKETING AND PRODUCT

TO ENGAGE PEOPLE IN UNIQUE MULTI-DIMENSIONAL EXPERIENCES

AND ULTIMATELY CREATE MEANING OR VALUE PEOPLE REALLY WANT

THE GOOD NEW IS: HEALTH CARE HAS LONG THOUGHT THIS WAY

WE JUST CALLED IT ADDING VALUE BEYOND THE PILL.

Get-startedkits

Adherencesupport

In-office tools

Specialservices

Immersiveexhibits

EVERY BRAND EXPERIENCE HAS TO BE SPECIAL

nRx tRx

WE CAN BUILD ON IT TO MEET OUR NEW GOAL AND NEW EXPECTATION

LET’S SHIFTA new mindset: one that costs less and does more

LOYALTY COUNTS MORE

AND COSTS LESS

As our new “blockbusters” begin to have smaller populations and larger price tags, we need to shift our marketing thinking:

THAT CHANGES THE VALUE DISTRIBUTION

PROSPECT PATIENT

FROM: TO:

Increasingly the special experiences we create – the ones that foster loyalty –

will be focused on our current customers

Not just around the act of purchasing (pre-relationship)

OWNUSE

LOVE

BUY

But for the life of ownership: Creating loyalty, satisfaction and equity around both why you want the product and how you use it every day.

IT CALLS FOR EXPERIENCES THAT STIMULATE THE MARKET

0 1 2 3 4 5 6 7 8 9 10 11 120

50

100MS

High Cholesterol

Hypertension

Osteoporosis

Depression

Asthma

Antipsychotics

Months

% A

dher

ence

Source: Adheris, Braun Analysis

YOU’VE SEEN OUR ADHERENCE CURVE, RIGHT?

THEN YOU KNOW WHAT THE OPPORTUNITY IS

Help more people live healthier livesThrough lasting commitment

And ongoing support

HOW ARE WE DOING ON

THAT TODAY?

EVERY BRAND EXPERIENCEHAS TO BE SPECIAL

In a crowded world where time and attention

are more precious than ever,

WE BRING THE ICKIEST BODILY FUNCTIONS INTO THE LIVING ROOM

Diarrhea, constipation, gas,

bloating – that’s me

WE MAKE ADS THAT LOOK LIKE CONTRACTS

WEBSITES THAT LOOK LIKE ADS

WE MAKE SOCIAL ANTI-SOCIAL

CREATE CAUSES THAT NO ONE CARES ABOUT

AND SPEAK WITH A VOICE ABOUT AS HUMAN AS THIS GUY

They may all increase the chance of heart attack or stroke that can lead to death. This chance increases if you have heart disease or risk factors for it, such as high blood pressure or when NSAIDs are taken for long periods. CELEBREX should not be used right before or after certain heart surgeries. Serious skin reactions, or stomach and intestine problems such as bleeding and ulcers, can occur without warning and may cause death. Patients taking aspirin and the elderly are at increased risk for stomach bleeding and ulcers.

AND, THAT’S NOT EVEN THE BAD STUFF…

THE WAY WE TALK ABOUT LIFE-CHANGING SCIENCE AND HABIT IS AT BEST AN AFTER THOUGHT AND AT WORST A BARRIER

THE INTERFACE IS BROKEN

A CRITICAL ROLE FOR DIGITALRe-imagining the interface for adherence and commitment

MOST WAITING ROOMS

INSTANT RECOGNITIONSAME OLD FORMS

RPDF CANCER CENTER

CREATE THINGS PEOPLE CAN USE(not just read)

1

We need an APP!HAVE YOU EVER SAID:

RIGHT MINDSET. WRONG OUTLET.

Information powers decisions

Interaction fosters commitment

The new opportunity is creating brand experiences people

really want to use

NOT LIKE THIS: LIKE THIS:

NOT LIKE THIS: LIKE THIS:

BRANDS SERVING PEOPLE WITH DIABETES ARE ALREADY THINKING THIS WAY

Support habit change at just the right momentWork with the devices people already carryHave the simplest possible interface

BUILD VERTICAL DEPTHThat’s right, content marketing

2

A MARKETER’S (TRUE) HORROR STORY:• 86% of people skip some TV ads• 99.9% of banner ads are never clicked• 90% of emails are never opened• More than 200 million Americans have

signed up for the Do Not Call List• Buyers complete 60 – 80% of their

research before reaching out to sellers/brands

Consumers are bombarded with 2,000 – 5,000 marketing messages every day

Why?

THEY’RE NOT ONLINE TO SEE MORE MESSAGES. THEY’RE ONLINE TO FIND ANSWERS.

ANSWERS = CONTENT

Content strategy: Having the content your audiences needs, delivered in all the places they go

CREATED CURATED SYNDICATED

IT’S MARKETING THAT EXTENDS BEYOND THE FIRST SALE

PROSPECT LOYALTYACTIVE CONSIDERATION

To support people and relationships over time

Understanding a health challenge

Interpreting test results

Valuable questions to ask

Customer reviews and experiences

Complementary care advice

Whole life planning and support

CONTENT PEOPLE WILL SEEK OUT

Doesn’t sound like this guy

Is shareable and repeatableTeaches you how to make the idea or issue your own

Is fresh and responsiveFrequently updated with a POV on new news

Is unique in some recognizable wayVoice, perspective, insight, authority

IN OUT

1. AmEx OPEN Forum• 200 experts give 2 million

people/month ideas and advice • 100% year over year growth• Biggest source of new cards and

new fans

TWO MEMORABLE EXAMPLES

2. Salix Dummies book• Answered every question in the

long tail• 30,000 requests for printed copies,

200 hospital requests, 2,000 healthcare professional requests

MEET PEOPLE WHERE THEY AREThen leverage the principles of change

3

WHEN WE CREATE FOR AVERAGE, WE CREATE AVERAGE

You’ve just been

diagnosed

Change your entire life

Diet and exercise

Identity

Work and lifestyle

Relationships

Medical routine

This is actually a really long line. One with bumps and deviations. One changed by learning style, by income, by family dynamic. It’s hard, personal stuff.

CAN WE REALLY MAKE IT WORK WITH ONE SERIES OF EMAILS? OR DO WE NEED TO RETHINK WHAT IT MEANS TO BE PERSONAL?

THREE STRATEGIES FOR DIGITAL

Choose your ownCreate or curate sets of tools for critical steps along the way. Invite people to choose what best fits their needs right now. Invite them back with recommendations.

Stratify needUse a questionnaire or behavioral analysis to spot the people who need the most help getting to next. Create a targeted comm plan for each hurdle.

Connect peopleSometimes the only one who can really get it is someone like you. So, take the brand out of equation and let people support one another.

1 2 3

KNOW WHEN TO GIVE UP YOUR BRANDAnd earn new kinds of commitment

4

RETHINKING “UNBRANDED” ROI

Conventional wisdom: Unbranded marketing may grow the market, but it’s hard to measure and evaluate.

Latest research: Unbranded tactics executed digitally can serve as a powerful way to attract prospects already treating in category. While they may convert slightly more slowly, the lower cost and broader appeal of unbranded makes it a compelling second marketing stream.

Source: Crossix RxMarketMetricsTM March 2011. Research conducted by aggregating hundreds of actual Rx matchback analyses over a broad range of media tactics, brands and therapeutic categories.

STEP 1: FILLING THE FUNNEL

UNBRANDED DRIVES MORE QUALIFIED PROSPECTS

80%

60%

40%

20%

0%

Prospects treatingin category

Existing patients

46%

53%

11%

5%

The median unbranded tactic generates 7% more qualified prospects

Why? Branded tactics often attract existing patients (current customers)

Branded Unbranded

STEP 2: EARNING CONVERSION

UNBRANDED HAS A SLOWER BURN TO CONVERSION

• Key branded digital tactics earn over 50% of their total conversion benefit in just the first month

• In search, unbranded tracks at a similar, slightly lower rate for the first several months

• The bigger gap in website results may be the Rx-in-hand effect (newly prescribed patients going online to research the named drug)

Search Website

UNBRANDED + BRANDED MAY FOSTER STRONGER CONVICTION

• Sense of discovery• Answer to a new question• Empowered decision

UNBRANDED TACTICS

BRANDED MESSAGING

IMPROVED CONVERSION=

LOYALTY COUNTS MORE

AND COSTS LESS

This is how we earn it in digital:

Create things people can use, not just read1

Go vertically deep with great content 2

Meet people where they are3

Know when to give up our brands4

HOW TO GET STARTEDWhat you can do right away

Healthcare isn’t like other things we buy. So, why do we act like other advertisers?

Maybe it’s time to redefine DTC

Do.

THINK ABOUT THE LASTING IMPACT OF DTC

Teach. Connect.

How would your work be different if you created something unique for just that place, that moment?

RESIST THE URGE TO REPURPOSE

HOW ARE WE DOING ON

THAT TODAY?

EVERY BRAND EXPERIENCEHAS TO BE SPECIAL

In a crowded world where time and attention are more precious than ever,

REVIEW YOUR STRATEGY THOUGH THE EXPERIENCE LENS

You don’t have to change everything all at once to make an impact

Make a 10% budget commitment to a best-in-class experience

The BBC’s biggest hit came from a gamble fund. The Office would have never aired without the risk.

COMMIT TO 10%

Download a copy of this presentation at:GSWInnovation.com

THANK YOU, DPEAre there any questions?