Radically Customer-centric Marketing
November 2008
(Presentation abstract)
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Background
Brand communications company in the outcomes businessBrand strategy, contact planning, interactive, demand generation, creative and measurement as core competencies
Boston-based, 70 senior-level employees, $170,000,000 annual billings
Blend deep audience understandings with channel insights, technology and relentless measurement to help companies acquire, convert, retain, grow loyal customersCommon client denominator is quantification of outcomes
Data generated through any available means, by any capable source
Work exclusively in broader health, technology and financial services
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Serving clients throughout the health economy
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- Biotech - Medical Device/Technology- Diagnostics - Medical Supply Providers- Drug Discovery - Patient Advocacy Groups- Health Informatics - Pharmacy Benefit Managers- Health Plans - Pharmacies- Health Practices - Pharmaceutical Companies- Hospitals and Health Systems
Health Plans
Patient Advocacy Groups Hospitals and Health SystemsDiagnostics
BiotechCompanies
DiagnosticCompanies
Drug DiscoveryCompanies
Health Informatics
HealthInsurance
Plans
PhysicianPractices
Hospitals and Health Systems
Medical Device/
TechnologyCompanies
Medical Supply
Providers
Patient Advocacy Groups
Pharmacies
Pharmaceutical Companies
Biotech
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Our Clients
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SmartrttPoPPower
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Situation Analysis
Increasing global competitionPricing Pressures
Managed Care Provider Contracts
Government Contracts
Competition
R&D SlowingDevelopment trends such as miniaturization
Tighter manufacturing tolerances affecting design, cost & timelines
Capital availability decreasing
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Situation Analysis
Regulatory constraintsLong FDA approval times
State regulations on ethics and compliance requiring operational changes, even capital outlays
Increasingly restricted access to decision makersHealthcare professionals
Centralized purchasing departments
Customers demand more for lessMedTech CEOs/CFOs demand more with less
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Challenges in Reaching Decision Makers
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Universal Trends
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Media Fragmentation
Rise of Social Networks
Buyers in Control
Choice
Increased Accountability
Communication plans become more complex
Power shifts from companies to individuals
Brand Managers become Brand Aggregators
Buyers expect personalized/customized offers
Improved marketing resource allocation is required
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Increasingly Complex Communications Landscape
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1960s
• Newspapers• Magazines• Broadcast TV• Broadcast Radio• Telephone• Direct Mail• Sales Reps• Out-of-Home• Eight Track Tapes
1980s
• Newspapers• Magazines• Broadcast TV• Cable TV• VCR• Broadcast Radio• Walkman• Telephone• Fax Machines• Direct Mail• Sales Reps• Out-of-Home• Personal Computer• PC Video Games
2000s
• Newspapers• Magazines• Broadcast TV• Cable TV• Satellite TV• DVD Player• DVR• Slingbox• Online Video• Broadcast Radio• Satellite Radio• Compact Discs• MP3 Player• Podcasts• Telephone• Mobile Phones• Mobile Web• Text Messaging• Fax Machines• Direct Mail• Email• Sales Reps• Out-of-Home• Personal Computer• PC Video Games• Console Video Games• MMORP Games• Internet• Blogs• Instant Messaging• Social Networks
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Media Fragmentation
What media do business decision makers (B2B Buyers) use to do their jobs?
10Source: “The Digital Transformation” by Laura Ramos, Forrester Research, October 2007
Which do they say are most effective at informing or validating purchase decisions?
Email or e-newsletters
Industry-specific business magazines
Peer advice, word of mouth
Vendors’ Web sites
Industry-specific conferences
Industry-specific trade shows
Web portals (e.g., Google)
General business magazines
Industry-specific magazine Web sites
Newspapers
Web-based events
Direct mail
General business magazine sites
Specialized biz sites (e.g. IT Toolbox)
Online Video or RIAs
Online communities/social nets
TV
Mobile/wireless devices
B2B Blogs
Radio
Outdoor
Podcasts
RSS Feeds
69%
67%
65%
62%
55%
54%
51%
34%
27%
21%
76%
66%
57%
55%
52%
45%
40%
40%
35%
34%
31%
20%
19%
48%
48%
45%
45%
44%
40%
40%
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Media Fragmentation
Which are the most common ways you learn about vendors and their products and services?
11Source: “Marketing to Life Scientists” BioInformatics, LLC March 2006
Catalogs mailed to my lab
Scientific meetings
Peer advice, word of mouth
Direct mail
Vendor websites
Sales reps
Vendor “mini shows” at my institution
Vendor technical newsletters
Information portals
Print ads
Vendor-sponsored workshops
Online banner ads
Telesales
58%
58%
42%
38%
29%
20%
13%
62%
48%
31%
25%
15%
5%
3%
Word of mouth isbig - this target iswary of unfamiliar
products whichelevate their
perception of risk
Traditional channelsare still highly
influential
68% of scientistsspend up to 2hours/weeklooking for
product infoonline
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B2B buyers adopt emerging media faster than B2B marketers
12Source: “The Digital Transformation” by Laura Ramos, Forrester Research, October 2007 *”Harnessing the Power of New Media Platforms” by Guideline for BtoB Magazine & ANA, August 2007
B2B Marketers’ Usage*
2007 2009
20% 34%
36% 52%
24% 37%
29% 47%
24% 37%
21%* N/A
14%* N/A
BDMs:
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Emerging media adoption continues to grow
99% of physicians surveyed use the Internet, 95% use search engines to find medical information 66% access blogs, webcasts, streaming video and podcasts 52% use PDAs, smart phones or other mobile computing devices 33% of online physicians use blogs, professional networks, forums, and message
boards to connect with other physicians 22% use the Internet during patient consultations45K US physicians regularly get live video details from sales reps (and 300K
more have expressed interest)
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Sources: Manhattan Research, Jupiter Research
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Social Networks
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Physicians Physicians & Nurse Practitioners
Research Scientists
Clinicians PhysiciansScientists
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Groups
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697 28,383 1,226 374
3,193 4,159 773 1,162
6,960 8,194 2,067 178
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Virtual Worlds & Trade Shows, Online Video & Tours
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Cardio Live
Agilent Metabolomics Lab
IBM Healthcare Island
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Virtual Worlds & Trade Shows, Online Video & Tours
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RocheExchange.com
MerckServices.com
PfizerPro.com
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Branded HCP Portals
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massbio.org massmedic.com thehcma.org
lifescienceexec.com devicelink.com biocompare.com
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Varied Audiences
How do you find the right communications mix?
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Employees
Investors
Partners
Media
Staff Scientists
Principal Investigators
Lab Directors
Academia
Lab Technicians
QA/QC
Physicians
Medical Technologists
Nurses
PurchasingAgents
Pharmacists
Consumers
IS Manager
Medical Center
Government
CRO
Pharma/Biotech Group/Private Practice
Commercial Testing Lab
Radically Customer-centric Marketing
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High-level view of radically customer centric marketing
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Behavioral Data
Geo-demographicData
Psychographic/Attitudinal Data
Media Consumption Data
Modeling/Analysis Personas
Targeting Universe
Customers
Strategic Analysis
Tactical ImplementationResults! Media planning/selection! List selection/scoring! Events planning! Sponsorships! Channel! Messaging! Timing
Tactical Analysis
4,032 47%
2,144 25%
306 4%
613 7%
1,454 17%
% of sales goal reached% of sales goal reachedCurrent monthCurrent month
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Introducing: Personas
A model based on primary research into users’ goals, attitudes, and behaviors……used to guide the design of products, channels, and messaging…which describes key user attributes, goals, and behaviors in the form of a vivid, narrative description of a single person representing a
behavioral segment.– Forrester Research
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Persona research
“A persona that isn’t based on primary user research is like a sociopath: charming, convincing, and dangerously misleading.”
– Harley Manning, Forrester Research
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The key insight questions
Who are your customers?What have they bought from you?Why have they bought from you?What are they seeking in a solution/partner?Where do they seek information about solutions and partners?What do they do? What is their role in the purchase process?
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Persona example
Tyler Nichols, MD GYN/ONC
45 years oldMarried, with 2 teenagers$350K HHI
“I wake each morning focused on extending
the lives of my patients, improving their quality
of life, and making my staff and hospital the
best available.”
Personal Profile
Outgoing, but also serious, competitive, and impatient, Tyler likes to be leader of the pack. He believes in himself and in what he does. He is the go-to guy, the man they come to when no one else dares to operate. He’s sharp, quick-witted and likes being successful. Tyler cannot remember a time when he wasn’t interested in science and medicine. He was a resident at the University of Vermont and trained at Sloan-Kettering Cancer Center in gynecologic oncology. He currently performs 8 surgeries per week, serves on two hospital committees, and speaks at medical meetings - particularly on the topic of advancing minimally invasive surgery. He loves knowing how things work, and affecting how things work - especially in the human body.With a voracious appetite for information, Tyler spends a fair amount of time reading journals and medical web sites, as well as attending educational events and symposia, to stay abreast of the latest topics and advancements in his field. He prefers a hands-on approach to new products; there must be a clear benefit and ease of use relative to cost before he’ll adopt them.In his very limited free time, Tyler enjoys active vacations with his family, including skiing, running, mountain climbing, and geocaching. Work hard. Play hard.
Needs Assessment
• Wants latest information on best practices, protocols, techniques, cost savings
• Demands evidence-based materials - straight-forward, factual info - not marketing speak!
• Patient education materials
Channel Habits
• Internet power-user; online 15+ hours/week• Email• Medical, Sports, Travel web sites• Professional communities
• Relies on smart phone for quick access to PDR• Moderate journal consumption• Frequent conference, symposia• OOH & radio exposure while commuting in from suburbs• Minimal TV
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Looks like a professionally produced deliverable…and therefore an important element of the design process.
Compelling narrative, sounds like a real person – is a real person.
Calls out key attributes, including motivations and goals.
Enables design decisions by focusing on what would be useful/usable.
Measurement Tools
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Radically Customer Centric Marketing: RecapMarketplace chatter and competition continue to grow which necessitates the need to start with customer insights Upfront spend to develop Personas can save money downstream with more impactful messaging and positioning as well as tacticsMore impactful messaging and positioning will give relevancy to your brand and help drive salesTraditional marketing and sales tactics/sacred cows may no longer be needed when you look at your customer’s Persona
E.g. If Tyler is spending most of his time online, then direct mail might be a waste of time
New tactics and new media are needed to reach the ever evolving customer in an ever evolving marketplaceAnd, fiscal and marketing and sales responsibility demand the need for rigorous measurement and ongoing optimization for all programs and campaigns
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