Radically Customer-centric Marketing November 2008 (Presentation abstract)
PARTNERS+simons Background Brand communications company in the outcomes business Brand 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 customers Common 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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PARTNERS+simons Serving clients throughout the health economy
Patient Health AdvocacyPlans Biotech Groups Health Hospitals and Systems Patient Advocacy Groups
Drug Discovery Companies
Biotech Companies
Health Insurance Plans
Medical Device/ Technology Companies
Pharmacies
Hospitals and Health Systems
Pharmaceutical Companies
Diagnostics
Diagnostic Companies
Health Informatics
Medical Supply Providers
-B -D -D -H -H -H -H
Physician Practices
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PARTNERS+simons Our Clients
Smart rttPo Power 4
PARTNERS+simons Situation Analysis Increasing global competition Pricing Pressures Managed Care Provider Contracts Government Contracts Competition
R&D Slowing Development trends such as miniaturization Tighter manufacturing tolerances affecting design, cost & timelines Capital availability decreasing
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PARTNERS+simons Situation Analysis Regulatory constraints Long FDA approval times State regulations on ethics and compliance requiring operational changes, even capital outlays
Increasingly restricted access to decision makers Healthcare professionals Centralized purchasing departments
Customers demand more for less MedTech CEOs/CFOs demand more with less
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Challenges in Reaching Decision Makers
PARTNERS+simons Universal Trends Media Fragmentation
Communication plans become more complex
Rise of Social Networks
Power shifts from companies to individuals
Buyers in Control
Brand Managers become Brand Aggregators
Choice
Buyers expect personalized/ customized offers
Increased Accountability
Improved marketing resource allocation is required 8
PARTNERS+simons Increasingly Complex Communications Landscape 1980s
1960s • • • • • • • • •
Newspapers Magazines Broadcast TV Broadcast Radio Telephone Direct Mail Sales Reps Out-of-Home Eight Track Tapes
• • • • • • • • • • • • • •
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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PARTNERS+simons Media Fragmentation What media do business decision makers (B2B Buyers) use to do their jobs? Which do they say are most effective at informing or validating purchase decisions?
Email or e-newsletters
76%
Industry-specific business magazines
69% 67%
Peer advice, word of mouth
66%
Vendors’ Web sites Industry-specific conferences
65%
Industry-specific trade shows
62%
Web portals (e.g., Google)
55%
Industry-specific magazine Web sites
55%
Newspapers
45%
45%
51% 40%
Specialized biz sites (e.g. IT Toolbox) Online Video or RIAs
40%
Online communities/social nets
35%
TV
34%
Mobile/wireless devices
34%
B2B Blogs
31%
Source: “The Digital Transformation” by Laura Ramos, Forrester Research, October 2007
44%
45%
General business magazine sites
Podcasts
48%
54%
Direct mail
RSS Feeds
48%
52%
Web-based events
Outdoor
40%
57%
General business magazines
Radio
40%
27% 21% 20% 19%
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PARTNERS+simons Media Fragmentation Which are the most common ways you learn about vendors and their products and services? 62%
Catalogs mailed to my lab Scientific meetings
58%
Peer advice, word of mouth
58%
Direct mail
48%
Email
42%
Vendor websites
38%
Sales reps
31%
Vendor “mini shows” at my institution
29%
Vendor technical newsletters
25%
Information portals
20%
Print ads
15%
Vendor-sponsored workshops Online banner ads Telesales
Traditional channels are still highly influential
13% 5%
68% of scientists spend up to 2 hours/week looking for product info online
Word of mouth is big - this target is wary of unfamiliar products which elevate their perception of risk
3%
Source: “Marketing to Life Scientists” BioInformatics, LLC March 2006
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PARTNERS+simons B2B buyers adopt emerging media faster than B2B marketers BDMs:
Source: “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%
21%*
N/A
14%*
N/A
29%
47%
24%
37%
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PARTNERS+simons Emerging media adoption continues to grow 99% 95% 66% 52% 33%
of physicians surveyed use the Internet, use search engines to find medical information access blogs, webcasts, streaming video and podcasts use PDAs, smart phones or other mobile computing devices of online physicians use blogs, professional networks, forums, and message boards to connect with other physicians 22% use the Internet during patient consultations 45K US physicians regularly get live video details from sales reps (and 300K more have expressed interest)
Sources: Manhattan Research, Jupiter Research 13
PARTNERS+simons Social Networks
Physicians
Physicians & Nurse Practitioners
Research Scientists
Clinicians
Scientists
Physicians 14
PARTNERS+simons Groups
697
28,383
1,226
374
3,193
4,159
773
1,162
6,960
8,194
2,067
178 15
PARTNERS+simons Virtual Worlds & Trade Shows, Online Video & Tours
Cardio Live IBM Healthcare Island
Agilent Metabolomics Lab 16
PARTNERS+simons Virtual Worlds & Trade Shows, Online Video & Tours
RocheExchange.com PfizerPro.com
MerckServices.com 17
PARTNERS+simons Branded HCP Portals
massbio.org
massmedic.com
thehcma.org
lifescienceexec.com
devicelink.com
biocompare.com 18
PARTNERS+simons Varied Audiences How do you find the right communications mix? Nurses Pharma/Biotech Employees Lab Directors Purchasing Agents IS Manager Medical Center
CRO
Lab Technicians Group/Private Practice
Partners
Medical Technologists Commercial Testing Lab Consumers Investors
Government Staff Scientists
Academia Pharmacists QA/QC
Media
Physicians
Principal Investigators
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Radically Customer-centric Marketing
PARTNERS+simons High-level view of radically customer centric marketing Customers Behavioral Data
Modeling/Analysis
Personas
Strategic Analysis
Geo-demographicData Psychogr aphic/Attitudinal Data
Tactical Analysis
Media Consumption Data
Targeting Universe
Results 4,032 47%
1,454 17%
2,144
613
25%
7%
306 4%
% of sales goal reached Current month
Tactical Implementation ! Media planning/selection ! List selection/scoring ! Events planning ! Sponsorships ! Channel ! Messaging ! Timing
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PARTNERS+simons 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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PARTNERS+simons 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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PARTNERS+simons 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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PARTNERS+simons Persona example Tyler Nichols, MD GYN/ONC 45 years old Married, 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.
Compelling Needs Assessmentnarrative, sounds on best practices, protocols, like a latest realinformation person – is a real person. • Wants techniques, cost savings • Demands evidence-based materials - straight-forward, Calls key attributes, including factualout info - not marketing speak! motivations and goals. • Patient education materials
Channel Habits
Enables design decisions by focusing • Internet power-user; online 15+ hours/week on •what Email would be useful/usable. • Medical, Sports, Travel web sites • Professional Looks like acommunities professionally produced Relies on smart phone for quick access to PDR an • deliverable…and therefore Moderate journal consumption • important symposia • Frequent conference, element of the design process. • OOH & radio exposure while commuting in from suburbs • Minimal TV 25
Measurement Tools
PARTNERS+simons Radically Customer Centric Marketing: Recap Marketplace 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 tactics More impactful messaging and positioning will give relevancy to your brand and help drive sales Traditional 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 marketplace And, fiscal and marketing and sales responsibility demand the need for rigorous measurement and ongoing optimization for all programs and campaigns 27
Thank You Contact: Jesse Strawbridge Director of Prospect Development
[email protected] 617-330-9393