Managing Data Creating Customer Insight' Driving Brand Development sic Relationship Marketing June 2

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Managing Data Creating Customer Insight.
Driving Brand Development sic Relationship
MarketingJune 2004
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Presentation Overview

• Situation Analysis for the Pharmaceutical
  Industry
• Why Relationship Marketing
• Enabling an RM Solution
• Direct To Physician Case Study
• Understanding DTC Data Flows
• Direct to Patient Case Study
• New Analytic Product

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The Elephant in the Room

• The Need for Integrated Marketing Efficiency
• 7.0bb feet on the street
• Reasonably Safe Media commitments
• Evolution of DTC techniques
• RM with whom

7.0bb
RM Team
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Insight-Based RM Will Drive Brand Development

• The next knowledge application for an industry
  rooted in the the analytic process

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Conversion and Evolution
Evolution of the Pharma Business Model
Evolution of The Pharma Marketing Model
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Marketing Has Become More Difficult
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Marketing Has Become Better

• Patients - RM represents an extension of
  patients rights into the marketing environment
  its the right thing to do

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RM Drives ROI?

• RM uses marketing insight to transform customer
  touch into profit as it aligns
• The right message
• To the right customer

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Path to Persistency?

• RM drives Patients and or Physicians up the
  advocacy path from Trialer to Persistent
  User/Prescriber to Brand Champion

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Inhibiting The Growth of RM

• Fear of the unknown and overstepping HIPAA
  guidelines
• Comfort with simplicity marketing
• Lack/scarcity of traditional direct marketing
  expertise Inexperience/distrust toward linking
  transactional data to marketing
• ROI measurement has been a premise not a promise

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Facilitating RMs Rapid Adoption in Pharma
Loosening FDA regulations in 1997 against DTP
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Data Information

• MD-based script behavior
• Patient demographics
• Channel redemption
• Rx value
• Customer touch history
• Campaign response data
• Communications spend

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Insight

• Patient
• Patient Tracking Audits (monthly snapshots of
  your market with longitudinal classification
  process)
• Longitudinal Patient Studies/Analysis (cohort
  analysis following a specific group of patients
  over a period of time)
• Value of Patient
• Outcomes Research (Resource Utilization Cost)
• Physician
• Return on promotion investment (media, DTC)
• Promotion Optimization (physician sensitivity
  index)
• Early Adopter detection
• Behavior Attribute Segmentation (Primary
  Research)
• Online, real-time Prescriber Market Insights
• Predictive Modeling (Targeting)
• Sales force alignment/sizing
• Forecasting (econometrics)

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Integrated RM Requires Strange Bed-fellows?

• Data Management
• Hygiene
• Accuracy
• Depth and Scope
• Compliance
• Adverse Events Protocols
• Legal
• HIPAA
• Knowledge Management
• Observation
• Implication
• Recommendation
• Evaluation
• Prediction

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• DrMDsm
• Physician Management and Brand Development
• A Case Study on Insight-Driven
• Direct to Physician Marketing

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Customer Insight Drive Sales Force Optimization

• Situation Analysis
• Average duration of sales call has shrunk to less
  than three minutes in the past five years
  (Forrester Research)
• Simultaneously, cost per call has increased to
  about 150.00- 200.00 per visit (Forrester
  Research)
• Coverage is restricted to P1, P2 drugs and many
  mature products cannot get access to this channel
• Marketing Imperatives
• Pharma companies need to ensure the profitable
  deployment of the scarce sales resource
• Continue to drive revenue from major mature
  products before they come off patent
• Solution Use advanced analytic techniques to
  match sales force organizations to those
  practices most likely to become high writers
  deploy as prescribed

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DrMD Business Cycle

• Database Analysis
• Physician Modeling
• Performance Measurement

• Program Development
• Communication
• Sales PI Training
• Sampling Management

• Program Evaluation
• Physician Targeting
• Channel Effectiveness
• Program ROI

• Monthly Campaign Analysis
• Program Operational Statistics
• Delta In TRx, NRx

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Database Modeling Hypothesis

• Discovery Opportunities
• Erratic script behavior for therapy class
• Absolute changes in target Rx to its class
• NRx to TRx ratios for target Rx and class
• Previous high writer, currently low writer
• New MDs to therapy/class

Promotional sensitivity due to sampling?
Writing much more writing much less?
Likes to try new therapy's?
Fell out of sampling cycle moved?
No established patterns first mover opportunity?
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Traditional Allocations Short of The Mark?

• DrMD opportunity-
• Former high-writers
• New writers
• High writers, same therapy class, competitive
  drug
• Uncovered territories and white space
• Innovators

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Program Development Cycle Planning

• Delivering a creditable perspective from the
  TSR touch-point

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DrMD- Execution

• A multi-phased sales and education process

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What You Need to Know

• Albert Einstein -everything that is important
  cannot be measured everything that is
  measurable is not important
• Your Boss- Measure everything
• Operational Metrics
• Production
• Development
• Execution/ Touch
• Response
• TRx, NRx Business Metrics
• Controls
• Base-lines
• Specialty
• Patient Physician Segments
• ROI

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Touch and Enrollment

• 60 enrolled
• 1/5th of all contacts and 1/3rd of enrollees
  were MDs

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Does the Multi-touch Concept Work?

• gt Touches gt Rx

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How Valuable Is Sampling?

• Sampled MDs Avg. Rx was twice that of the Control
  Group

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Does Detailing Two Products Work?

• As we saw with the DGPs, we reversed the 90 day
  trends and continue to hold on to our gains

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Does Prescriber Level Contact Drive TRx?

• While MDs write higher, the difference between MD
  Avg. Rx and other prescriber/influencers is not
  that significant

Product 1
Product 2
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Case Study Anti-Infective New Indication

• Features
• Physician optimization modeling
• Ten day integrated multi-channel touch cycle
• Direct Mail
• Telemarketing
• Fax
• Sample fulfillment
• POS
• Monthly Rx Analysis
• Benefits
• Physician RM
• Client ROI

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Anti- Infective Market New Indications

• TRx for P1 P2 remained constant and decreased
  for P3 while our target product increased 71.4
  at programs end 81.2 including the six month
  tail

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Another View

• Target product share grew by 87.5 from Launch
  minus 1 month (4.0share) to the 6 month tail
  (7.5 share

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Rx Growth Target MDs vs. All Others

• Prior to Launch, Target Rx was about 2/3rds of
  the Avg. Rx
• Parity was reached after six months of
  tele-detailing
• The tail generated 8 percentage points additional
  lift

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RM and Brand Development

• A tailof time a new brand is born

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Was it Worth The Cost?

• Calculate Incremental Revenue
• Compare the Average Rx for the Target Group to
  the Average Rx for the Control Group and multiply
  that number times the number of MDs in the target
  group multiply that by the Average Wholesale
  Price
• Subtract program costs from the above to
  determine Net Incremental Revenue Dollars
• Divide Net Incremental Revenue Dollars by Cost
  Dollars to get ROI

Cost
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Incremental Rx Transactions

• Teledetailing efforts increased Avg. Rx by an
  average 5.4 each month

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ROI

• For every dollar spent on this effort, the client
  earned 2.58 creating an ROI of 258-

Incremental Revenue 4.6mm Program
Costs 1.3mm Net Incremental Revenue 3.3mm For
Every Dollar Spent, the Client
Earned 2.60 Marketing ROI 254
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The Complete Patient View
And Now Lets Talk About the Patient
Continuum of Complexity
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Healthcare Data Flow Enabling Marketing ROI
Network
Patient
Adjudication
Hospital
Pharmacy
Physician
Payer
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Source Data Overview

• Network Supports
• Ancillary resource profiling
• Dynamic pricing
• Referral management
• Reimbursement edits

Syndicated Intelligence and Mining
Network
Payer Benchmarks
Surveillance
Physician Benchmarks

• Event Triggers Alerts
• Market/network variance
• Reimbursement trend variance
• Patient safety
• Fraud

Claim Denials
Surveillance
Surveillance
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Providing Precise Measures

• Can identify and track targets patients,
  physicians, pharmacies
• Can cross reference actual targeted lists and
  monitor the impact of promotion
• Using a guaranteed source of Longitudinal Patient
  Prescription information

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Patient Analyses Answer These Questions

• Product/therapy efficacy
• How persistent are my patients?
• How many remain on the full course of therapy?
• What is the average length of therapy?
• How many discontinue and switch to another
  product?
• Which products are they switching to?
• DTC Program effectiveness in Developing Brands
• Have programs improved patient LTV ?
• What is my campaign ROI?

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Tracking Persistency by Segment Program
Offer Segment
Campaign Segment
Behavior Segment
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Segment-based Patient Adoption Decision Tree

• Retrospective and Prospective Therapy
  visualizing the affect of patient touch

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Data-based Insight Into Brand Development Trends

• Insight identifies intervention opportunities

• Insight Therapy- 58 of Segment C patients
  stopped their original therapy and never came
  back
• Marketing Intervention Opportunity
• New themes
• New frequencies

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The LTV a New Patient Can Be Forecast
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Promotion Effectiveness Measures

• RX rates
• Conversions
• Compliance
• Persistency
• Long-term Value
• Sales
• Market Share

ROI Brand Development
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What Is My Program ROI?

• Segment-based ROI Measurements
• Pre vs post enrollment total patient starts
• Change in 6 month days of therapy (DOT) post Rx
  start
• Change in pre and post enrollment dollars over
  time

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Media to DTC Hand-off
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Understanding Campaign Efficiency
of Patients Converted to DTC Product By
Promotional Segment
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Patient Persistency
Patient Persistency Forms a Survival Curve
(Actual)
Tracking Patients on Brand A in Jan. 02 for 1 Year
1.00
0.75
Proportion of Patients on Therapy
0.50
0.25
0.00
0
50
100
150
200
250
300
350
400
450
500
550
600
Days on Brand A
Product Limit Estimate Curve
OFF Therapy
ON Therapy
Median and Mean Durations are 276 and 246 Days,
respectively

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A New Product- Something to Think About
Large enough to read, small enough to control
afford
IRI Behavior Scan
Representative Sample Income
levels Household size Purchasing patterns No
therapeutic bias
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IRI BehaviorScan Masked Ad Testing
Invisibly deliver different TV commercials
To distinct household groups in the same city
Broadcast Ad
IRI Cut-In Ad
IRI has its own TV studio connected between the
local cable head end and individual homes
IRIs patented technology enables our studio
technician to replace on-air ad with an ad
residing on our digital server
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BehaviorScan RX Test Types Designed by Strategy
Homogenous groups are established for test and
control segmentation and
Statistical Hypothesis Testing.
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ICT Group Overview

• Leading global provider of Customer Management
  Solutions
• Customer Service
• Marketing Services
• Sales
• Founded in 1983
• 2002 Revenue 299 Million
• 45 centers globally with consistent technical
  infrastructure
• Eight Years of Healthcare Experience
• Multi-national and multi-lingual capability

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ICT Medical Marketing Services
DrMDSM Customer Care Public Affairs Quality
Assurance Regulatory Affairs Database Development
Market Research
I CT Group The CRM Services Company
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NDCHealth provides solutions that address
business issues for pharmaceutical manufacturers
NDCHealth Overview

• Pharmaceutical information for use in sales
  compensation, targeting, and market research
• Custom research and consulting services using the
  most comprehensive patient-linked databases
  available
• Intelligent network and information management
  solutions

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NDCHealth Center of Healthcare

• Leading provider of network based information
  solutions
• Processes over 45 of all U.S. electronic
  healthcare claims, 70 of U.S. electronic
  pharmacy claims, and provides systems to
  pharmacies, hospitals and physicians
• Provider of pharmaceutical market data used to
  compensate over 30 of pharmaceutical detail reps
  in the U.S.
• Provider of patient-level data with over 20 years
  of experience in conducting patient studies
• Full continuum of patient information products to
  fit your needs