Leading Pharma Companies Leverage Powerful Combinations of Data and Analytics to Maximize Marketing Effectiveness/ROI Optimization
The changing pharmaceutical marketing landscape is having a big impact on the promotion strategies of pharmaceutical companies. While personal sales channels still dominate investments, the use of non-personal channels has increased to supplement personal sales as well as to fill the gap created by the physician access challenge. At the same time, proliferation of digital and social channels in the promotion mix have created new communication opportunities but also added to complexity. In this scenario, it has become more important than ever to understand how these promotional channels interact with each other as well as how they impact product usage.
Pharma marketing effectiveness focuses companies on how to optimize existing Patient/Caregiver marketing, HCP marketing, salesforce, and operational investments at the territory, DMA, region and national level, while at the same time identifying where the ‘next dollar’ can be best invested to drive maximum growth and profits.
Answering the tough business questions…
- What is the value and ROI of my Patient/Caregiver and HCP marketing vehicles and integrated campaigns?
- How much should I invest in DTC vs. HCP focused marketing and how can I optimize these investments to drive physician acquisition, NBRx, RRx and TRx by physician segment and geography?
- How to take advantage of cross-media interactions? Synergies of salesforce with MCM and Speaker Programs?
- What is the optimal allocation of investment across my portfolio of brands?
- What is the impact of external factors (competition, formulary, Obama Care, PR, health news, etc…) on business performance?
- How can I maximize the effectiveness of my new product launches?
- How do I measure the short and long term impact of my investments?
Optimizing and Billions of Investment Dollars to Drive Millions in Incremental Value for Pharmaceutical Companies
Commercial Effectiveness for pharmaceutical companies leverages large and diverse data sets to create predictive investment scenarios that enable executives to optimize patient/caregiver marketing, HCP marketing, salesforce, and operational investments in core disease states and across indications:
Case Study Global Pharmaceutical Company
The Company was seeking to optimize its multi-billion dollar salesforce, marketing and operations budget supporting a portfolio of four (4) brands in order to drive improved revenues and operating profits. Each brand was at a different stage in its lifecycle. Company executives were seeking to determine and quantify the impact of key business drivers of NBRx, RRx and Physician Acquisition in order to re-allocate investments to achieve target financial objectives.
MMA worked with the Company to collect the data and build physician-level statistical models that quantified the historical and projected future impact of growth drivers of NBRx and RRx for each brand and across the portfolio. The granular detail of the results enabled fact-based decision making at the territory, sales area, DMA and national level across brands and by business objective and physician segment.
The Company took steps to optimize Commercial Investments (salesforce, DTC media, HCP marketing) consistent with the recommendations. Significant re-allocations were made within specific commercial tactics shifting funds from oversaturated and underperforming activities to those with higher ROI potential. Following the first year the Company saw improvements in operating profits of over $110, 000, 000 within the portfolio. It is projected the impact of the ongoing program will produce over $400, 000, 000 in incremental profits over a three (3) year period.
- Sales Force: Enable pharmaceutical companies to understand optimal size, call frequency, targeting and next best action across geographies and support them with the most effective campaigns and promotional tactics.
- Portfolio General Managers: Optimize sales, marketing, product and operational investments to support the concept of where “my next dollar should be invested” in order to maximize revenues, profits and share.
- Marketing/Media: Understand what the key marketing drivers are, their past and projected ROIs, what works, what doesn’t, and when, where and how tactics and strategies can be optimized and deliver higher value in the future.
- Finance: Gain a better understanding of how to implement and measure cost-effective and efficient marketing plans to drive growth and profitablity.
- Logistics and Forecasting: Understand the impact of operational and non-marketing factors in driving profitable growth. Leverage improved predictability of results to better optimize all business drivers.
- Value Proposition & Roadmap – A path to value from the process that supports the organization recognizing, understanding and implementing the results in order to unlock and achieve incremental value from the initiative
- Improved Financial Results – Support in implementing the results to achieve higher revenue, profits and/or share, depending upon Company objectives.
- Simulation & Optimization Software and Scenario Planning Tools – Real-time simulation/“what if” scenario planning and marketing budget optimization capabilities.
- Historical “Due To’s” – Ability to attribute why, how and where the business grew or declined as a result of specific marketing, media, promotion, operational, competitive, economic and other relevant variables.
- Predictive Stats-based Models – Custom client models are created to understand what happened as well as what will happen when, where and how due to specific market and marketing activities.
- Data Management Platform – “Big Marketing Data” is collected, cleansed and harmonized to support the analytics as well as client and tracking needs.
- Expert Consultants – Senior consultants support integration of analytics into client business process to drive usage, value, assimilation and transformation.