Healthcare Relationship Marketing This page has been left blank intentionally Healthcare Relationship Marketing Strategy, Design and Measurement IRa J. HaIMowItz © Ira J. Haimowitz 2011 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publisher. Ira J. Haimowitz has asserted his moral right under the Copyright, Designs and Patents Act, 1988, to be identified as the author of this work. Published by Gower Publishing Limited Gower Publishing Company Wey Court East Suite 420 Union Road 101 Cherry Street Farnham Burlington, Surrey, GU9 7PT VT 05401-4405 England USA www.gowerpublishing.com British Library Cataloguing in Publication Data Haimowitz, Ira J. Healthcare relationship marketing : strategy, design and measurement. 1. Pharmaceutical industry--Management. 2. Drugs-- Marketing. 3. Relationship marketing. 4. Brand loyalty. I. Title 615.1'0688-dc22 ISBN: 978-0-566-09217-6 (hbk) 978-1-4094-3196-1 (ebk) Library of Congress Cataloging-in-Publication Data Haimowitz, Ira J. Healthcare relationship marketing : strategy, design and measurement / Ira J. Haimowitz. p. cm. Includes bibliographical references and index. ISBN 978-0-566-09217-6 (hbk.) 1. Drugs--Marketing. 2. Relationship marketing. 3. Pharmaceutical industry. I. Title. HD9665.5.H35 2010 615.1068'8--dc22 2010043842 I Contents List of Figures ix List of Tables xi List of Abbreviations xiii About the Author xv Acknowledgements xvii Preface xix 1 Healthcare Trends and Relationship Marketing’s Role 1 The Increasing Importance of Healthcare Marketing to Consumers 1 Focus of This Book 2 Consumer Relationship Marketing in Pharmaceuticals versus Other Industries 3 Influences on Consumer Health Decisions 5 The Rise of Online Social Networks as a Consumer influence 7 Industry Expert Perspective 7 Influences for Healthcare Professionals 10 The Changing Healthcare Professional Promotional Landscape 12 Who This Book is For 14 Author’s Notes on Technical Depth 17 2 Foundations of Relationship Marketing 19 The Patient Journey 19 How Consumer Relationship Marketing Affects the Patient Journey 22 Components of the Consumer Relationship Marketing Program 26 The Physician Journey 31 Components of a Professional Relationship Marketing Program 32 Issues in Developing Relationship Marketing Programs 37 The Phases of a Relationship Marketing Project 37 Framing the Rest of This Book 39 Case Study in Consumer Relationship Marketing 40 Exercises for Chapter 2 41 vi HealtHcaRe RelatIonSHIp MaRketIng 3 Discovery: Situation Assessment 43 Product Lifecycle Considerations 44 Sales Forecasts in the Therapeutic Category 45 Secondary Prescription and Sales Data 48 Upside Potential for Pharmaceutical Relationship Marketing Programs 54 Primary Market Research Results 60 Researching Media Consumption Habits 63 Search Engine Patterns 65 Social Media Analysis for Healthcare 68 Operational Needs Assessment for Healthcare Relationship Marketing 72 Exercises for Chapter 3 75 4 Strategy: Planning the Relationship Marketing Program 77 Business and Brand Objectives 77 Special Consideration: Product or Portfolio Relationship Marketing? 79 Segmentation Strategy Development 80 Professional Segmentation For Relationship Marketing 86 Personas and Experiences by Segment 90 Developing a Strategic Insight for Consumer Relationship Marketing Campaigns 96 Media Planning and Selection 100 Creative and Message Development 106 Exercises for Chapter 4 111 5 Analytics Planning for Relationship Marketing 113 Measuring Versus Goals: The Relationship Marketing Learning Plan 113 Selecting the Best Information Sources for Measurement 119 In-Market Testing and Experimental Design 122 Full Factorial Test Design 124 Pro-Forma Analysis of Relationship Marketing Impact 125 Promotion Response Rates and Curves 127 Estimated Response Rates By Channel 128 Forecasting Responders to Consumer Relationship Marketing Acquisition Tactics 129 Operations Resource Planning Based on Forecasts 131 Continuing Case Study with ABC Pharmaceuticals and ABCOS 132 Exercises for Chapter 5 134 contentS vii 6 Execution: Placing in the Marketplace 137 The Movement Toward Digital Relationship Marketing 138 Selecting Consumer Relationship Marketing Touch Points Based on Personas and Experiences 140 Professional Relationship Marketing Touch Point Strategy 141 Touch Points at the Patient and Provider Crossroads 142 Executing the Professional Relationship Marketing Feedback Loop 143 Design Principles of Websites for Relationship Marketing 145 Communication Contact Stream 146 Consumer Relationship Marketing Database Development 147 Source Coding of Acquisition Media and Responses 148 Operations and Campaign Management for Pharmaceutical Relationship Marketing 152 Exercises for Chapter 6 159 7 Measurement of Healthcare Relationship Marketing Programs 161 The Various Measurement Objectives 162 Industry Expert Perspective: Online Measurement in Pharmaceuticals 163 Defining Online Engagement 164 Website Path Analysis 169 Measuring Improvement in Awareness 171 Measuring Acquisition 172 Dashboards for Tracking Relationship Marketing Acquisition Responses 176 Direct Response Email Campaign Analysis 183 Evaluating Patient Conversion 184 Evaluating Lift in Patient Adherence 185 Measuring Consumer Relationship Marketing Patient Advocacy 186 Measuring Healthcare Professional Awareness and Engagement for Professional Relationship Marketing 187 Measuring Healthcare Professional Acquisition for Professional Relationship Marketing 188 Evaluating Professional Relationship Marketing Trial and Adoption 190 Special Professional Relationship Marketing Analyses on Promotional Channels 191 Return on Investment for Healthcare Relationship Marketing 199 Exercises for Chapter 7 202 viii HealtHcaRe RelatIonSHIp MaRketIng 8 Optimization and the New Cycle 203 Operational Improvements 203 Media Optimization 204 Promotional Tactical Changes 205 Favoring Test Outcomes 206 Adjusting Segmentation 206 Rethinking the Campaign Strategy 207 9 Conclusions and the Future 209 Tactics Come and Go, But Strategies Endure 209 The Present and Future 210 Keeping Up to Date 211 Appendix A: Solutions to Exercises 213 Bibliography 227 Index 231 List of Figures Figure 1.1 Healthcare influences upon consumers 4 Figure 1.2 Influences on healthcare professionals 10 Figure 1.3 Book focus areas by job specialty 16 Figure 2.1 The patient journey 20 Figure 2.2 Consumer relationship marketing and the patient journey 23 Figure 2.3 Consumer relationship marketing overview 27 Figure 2.4 The healthcare professional journey 32 Figure 2.5 Professional relationship marketing system 33 Figure 2.6 Relationship marketing process by phase 38 Figure 3.1 The branded pharmaceutical product lifecycle 44 Figure 3.2 Five-year global therapeutic forecast 47 Figure 3.3 Using analogues for peak market share forecasting 48 Figure 3.4 Retail prescription data (NRx) showing market dynamics 53 Figure 3.5 Patient persistence curve 57 Figure 3.6 Persistence curve improved through CRM 58 Figure 3.7 Search patterns for pre-diagnosis fibromyalgia 67 Figure 3.8 Fibromyalgia social media results, illustrated 71 Figure 3.9 Operational needs assessment during relationship marketing discovery 73 Figure 4.1 Segmentation for consumer relationship marketing programs 81 Figure 4.2 Schematic of quantitative primary market research 83 Figure 4.3 Prioritizing segments for consumer relationship marketing 85 Figure 4.4 Professional segmentation for a new product launch assists go-to-market strategy 88 Figure 4.5 Persona of a target consumer segment, fibromyalgia category 91 Figure 4.6 Patient persona and experience map related to conversion and adherence 93 Figure 4.7 Personas and experience maps in professional relationship marketing 95 Figure 4.8 Consumer media planning channels for CRM 102 Figure 4.9 Annual layout of a media plan 105 Figure 5.1 Learning plan framework 114