Using Customer Loyalty and Engagement to

Guide Personal and Non-Personal

Promotion Strategies
Scott Brunetto, Shire Pharmaceuticals
& Thomas Hartley, GfK Healthcare

Agenda
1. CustomerLoyalty/EngagementandtheChanging
CustomerExperience

2. HowBigIsTheImpactOfLoyalty?
3. MakingLoyaltyActionable:WhichChannelsDrive
Loyalty?

4. BringingtheDatatoLife:TakingActionInYour
Company

1. CustomerLoyalty/Engagementandthe
ChangingCustomerExperience

Pharma Company Channels

Striving to Increase Channel Reach and Engagement

% Exposed to Channel (any pharma company) in Past Year

Source: GfK 2012 benchmark 2012 GfK

New Channels

Outside of Pharma Company Direct Control

% Exposed to Channel (any pharma company) in past year

Source: GfK 2012 benchmark 2012 GfK

Customer Loyalty and Engagement

Attitudes That Drive Business

Lessloyaltyinpharmathaninotherindustries
Pharmaceuticalcompanieshavefocusedonthebrand,notthecompany

Give preference to
companys products
when possible
Not loyal because
Key Enhancers are
not being provided
Prescribe products
only when there is
no other choice

Source: Largest companies measured in GfK 2012 benchmark. GfK 2012

Customer Experience Management

The Classic Model

Pharmacompanieshaveusedthisclassicmodelverysuccessfully; itfocuseson
theproductandthereptocreateloyaltytothebrand(andsometimesthe
company)todrivesales
Products
Efficacy, safety

Sales Reps

Current
Behavior

Actions, qualities

Support & Service

Access
Conferences
Scientific information

GfK 2012

Intended
Behavior
Plus

Loyalty
Score
Emotional
Ties

Rational
Ties

ROI
(TRx)

Customer Experience Management

The New Model

Theemerginggotomarketstrategyissupplementing(andsometimes
integrating)therepswithamatrixofnonpersonalpromotionchannels
Products
Efficacy, safety

Sales Reps
Actions, qualities

Current
Behavior

Non-Personal Channels
Service and Promotion

Support & Service

Access
Conferences
Scientific information
GfK 2012

Intended
Behavior
Plus

Loyalty
Score
Emotional
Ties

Rational
Ties

ROI
(TRx)

What Will the Role of the Rep Be?

Oneofseveralchannels:Competingwithotherchannelsforimpact
Underminedandreplaced:Drivingphysicianstoselfservicechannelsthat
reduceaccessandtheneedforreps

IntegratedCommercialModel:Withrepsasthelynchpinthathelpstheir
HCPsusethemostappealingandhelpfultools

GfK 2012

Benchmark Data Suggest

Percent Loyal Prescribers

Company Benefits From Reps and Multichannel

Satisfaction with Non-Personal Promotion

Source: GfK 2012 benchmark. 2012 GfK

2. HowBigIstheImpactofLoyalty?

Measuring Customer Loyalty and Engagement

There Are Many Metrics

Alternative Loyalty Metrics
PromoterDetractor*

Satisfaction

Commitment

GfK
Loyalty Plus

Survey questions:
Likely to recommend
medications to colleague
Overall satisfaction with
brand or company

9
9

Likely to use more of

brand/companys products
Emotional & rational ties

9
9

* Percent highest rating (9-10) percent lower ratings (0-6).

Proprietary analysis 2012 GfK

Choosing a Loyalty or Engagement Metric

Analyze Survey Data Merged with Behavioral Data

47%

33%

24%

22%

Not Loyal
Loyal

% Very sat (9-10) vs.

% Dissatisfied (0-6)

% 9-10 vs.
% 0-6

Results from practitioner survey data merged with prescription behavior.

Proprietary analysis 2012 GfK

% Satisfied (7-10) vs.

% Dissatisfied (0-4)

3. MakingLoyaltyActionable:Which
ChannelsDriveLoyalty?

Choosing Channel Investments

A Long List of Options

Overall Channel Experience
Industry Average %

Source: GfK 2012 benchmark.

2012 GfK

Significantly greater than

one competitor

Co.#1

Co.#2

Co.#3

Co.#4

Co.#5

Co.#6

66

66

68

64

65

66

59

59

64

61

60

61

58

56

61

59

58

59

56

55

59

56

56

58

56

53

57

55

55

56

55

53

56

53

55

57

53

51

56

51

54

55

57

54

56

55

57

56

55

52

55

55

55

55

54

51

52

52

53

54

Significantly greater than

two+ competitors

Significantly lower than

two+ competitors

Focus Investments On Building Loyalty

Loyalty Plus

Best Accomplished in Two Steps

Proprietary analysis 2012 GfK

Loyal
Advocate

Use more when possible,

recommend, emotionally
and rationally attached

Ambivalent

No reason to be
loyal

Disloyal

Will avoid doing business

with you when possible

Based on KANO Theory

How We Make Loyalty Actionable: Where to Invest

Key Enhancers
Customer delight with some
performance areas leads to
strong customer loyalty

Ambivalent
Disloyal

Loyal
Advocate
Ambivalent

Key Dissatisfiers
Customer disappointment with
some performance areas leads
to overall disloyalty

The two lists of priorities are not the same.

Proprietary analysis 2012 GfK

Take-Aways: Avoiding Disloyalty

Which Channels Cause Disloyalty?

Loyal

What
What Leads
Leads
Customers
Customers to
to
Become
Become Disloyal?
Disloyal?
Ambivalent

% Disloyal

Source: GfK 2012 benchmark. 2012 GfK

Disloyal

Take-Aways: Avoiding Disloyalty

Which Investments Will Reduce Disloyalty?

Disloyalty
12%

63%

25%

Relative Impact
The rep

250

Direct
mail

201

Email

192

Call
Center
All other
attributes

Source: GfK 2012 benchmark and analysis. 2012 GfK

Relative importance of attributes in predicting disloyal customers

150

66

Take-Aways: Avoiding Disloyalty

Invest Enough to Eliminate Disloyalty

Disloyalty
12%

63%

25%

Performance Rating

Relative Impact

% Poor Ratings

The rep

250

Direct
mail

201

Email

192

Call
Center
All other
attributes

150

66

Source: GfK 2012 benchmark and analysis. 2012 GfK

Action
Priority
Fix
Monitor
Fix
Monitor
Top priority is to
fix Key Dissatisfier
with a large number
of poor ratings.

Take-Aways: Avoiding Disloyalty

Create Competitive Advantage By Eliminating

Weakness
Performance Ratings
% Poor Ratings

The rep

Direct
mail
@
Email
Call
Center
Average

Co.
#1

Co.
#2

Source: GfK 2012 benchmark and analysis. 2012 GfK

Co.
#3

Co.
#4

Co.
#5

Co.
#6

Insights and Action

Which Channels Create Loyalty or Engagement?

% Loyal

What Leads
Customers to
Become Loyal?

Source: GfK 2012 benchmark and analysis. 2012 GfK

Loyal

Ambivalent

Disloyal

Insights and Action

Which Investments Create Loyalty?

Loyal
12%

63%

25%

Relative Impact
The Rep

247

Video
Details
Samples
Pharma Web

225

197

Company
Website
All other
attributes

Source: GfK 2012 benchmark and analysis. 2012 GfK

Relative importance of attributes in predicting disloyal customers

185

66

Insights and Action

Place These Bets To Create More Loyalty

Loyal
12%

63%

25%

Performance Rating

Relative Impact

% Excellent Ratings

The Rep

247

Video
Details

225

Samples
Pharma Web

197

Company
Website
All other
attributes

185

66

Source: GfK 2012 benchmark and analysis. 2012 GfK

Action
Priority
Promote
Improve
Improve
Promote
Priority is to improve
Key Enhancers with
few excellent ratings.

Insights and Action

Performance on Key Enhancers

Performance Ratings
% Excellent Ratings

The Rep

Video
Details
Samples
Pharma
Web

Company
Website
Average

Co.
#1

Co.
#2

Source: GfK 2012 benchmark and analysis. 2012 GfK

Co.
#3

Co.
#4

Co.
#5

Co.
#6

4. BringingtheDatatoLife:TakingAction
inYourCompany

Performance

Best Practices
SetandCommunicatetheObjectives
Howwillthisinformcommercialstrategy
Howdoesitfitinwithotherstudies
DetermineSeniorleadershipareasofinterest/participation

Collaboration EarlyandOften
Participation:Brandteam,MarketingCommunications,SalesManagement
LeverageacrossBusinessUnitsandgeographies

ShareResults andAccountability
Prebriefamongintegratedanalyticsgroup
IdentifyareaofindividualinterestforBrandteamandotherkeystakeholders
Assignaccountabilitytobringinsightsandrecommendationforwardwithkey

stakeholders
DetermineKeyPerformanceIndicators(KPIs)
Determinebestapproachfornextmeasurement