Digital trends and implications for Australian healthcare marketers

February 23rd,2016

Stan BilinskiMulti Channel Marketing ConsultantNew Age MarketingStan@newmarketing.com.au0448 700 755

Some slides created by WiTHCollective digital agency based in Sydneywww.withcollective.com

Plenty of examples of organizations ignoring digital trends

Kodak ignored digital

imagery to focus on the

film business – leaving

the door open for

competitors.

Borders ignored online

shopping trends and

continued to invest in bricks

and mortar stores instead of

ecommerce.

Until 2 year ago Sony was a

leader. But lack of

innovation and vested

interest in many categories

weakened the brand.

Uber have turned Taxi industries

the world over upside down. Uber

provides a service lead experience

to the user, resulting in more

control and a more personalised

experience.

Airbnb gave users access to a

new type of accommodation,

again with an experience lead

service layer, taking users away

from traditional online hotel

booking sites.

iTunes revolutionised the music

industry with software and devices.

Creating a new way to consume

digital music, a trend the music

industry was fighting against.

1 - http://people.bu.edu/zg/publications/airbnb.pdf

Pharma has been one of the slowest industries to fully adopt digital marketing-it’s now adopting digital at a much slower rate than what customers are!

How are Australian

consumers behaving

differently online

70% of

consumers expect

a personalised

experience with a

brand they

interact with3.

Seamless

experience

across any

device and on /

offline at anytime.

In 2015, 90% of

users will have a

smart phone1.

One in every four

Australians will

own a tablet

computer2.

CONSUMER EXPECTATIONS

Consumers

expect an

immediate

response from

brands and

quickly move on if

there’s a delay or

they aren’t

satisfied with the

response.1. https://www.telsyte.com.au/?page_id=706

2. http://admablog.com/2011/10/24/2015-marketing-predictions-adapt-to-the-digital-future/

3. http://www.agilone.com/wp-content/uploads/2014/11/AgilOne-Consumer-Survey-Report.pdf

In 2014 – consumers

used the internet more

on their mobiles than

their desktop, shifting

the way we need to

engage consumers2

M-commerce –

Australians spent $22

billion in 2014, and it’s

expected to reach $54

billion by 20191

87% of Australians

own a smart phone

(19% up on 2012)1

Mobile is now consumers primary channel

1- http://www.rustreport.com.au/issues/latestissue/australia%E2%80%99s-mobile-commerce-market-hits-22-billion-in-2014-frost-and-

sullivan/

2 - http://searchenginewatch.com/sew/opinion/2353616/mobile-now-exceeds-pc-the-biggest-shift-since-the-internet-began#

CONSUMERS AND THEIR HEALTH

19% of smartphone

owners have at least one

health app on their

phone.1 Exercise, diet, and

weight apps are the most

popular types.

30% of adults are likely

to share information

about their health on

social media sites with

other patients3.

Over 28% of patients seek

health information online2.

1 - http://www.pewinternet.org/fact-sheets/health-fact-sheet/

2 - http://www.racgp.org.au/afp/2014/december/patient-use-of-the-internet-for-health-information/

3 - https://getreferralmd.com/2013/09/healthcare-social-media-statistics/

WHAT ARE CONSUMERS SEARCHING FOR

1 in 20 of all Google searches are related to health1

1 - http://www.digitaltrends.com/web/google-to-start-highlighting-health-information-in-search-results/

Patient centricity is a concept talked a lot about but few Pharma companies are doing much about it

Health Care

professionals (Doctors,

Specialists, nurses,

Pharmacists)

DOCTORS ARE USING TECHNOLOGY TO BETTER CARE FOR PATIENTS1

1 - http://www.racgp.org.au/afp/2014/december/technology-in-practice-%E2%80%93-gp-computer-use-by-age/

DOCTORS ARE USING TECHNOLOGY TO BETTER CARE

60% The national e-health

transformation authority

(nehta) is helping create a

connected health system that

interweaves all health records

helping provide easier access

to information and services.

of GPs now have

access to the internet

in their consult

rooms1

of doctors say social

media helps improve the

quality of care delivered

to patients through better

communication and

service1

1 - http://www.racgp.org.au/afp/2014/december/technology-in-practice-%E2%80%93-gp-computer-use-by-age/

95%

0

10

20

30

40

50

60

70

80

90

100

2010 2011 2012 2013 2014

SEAMLESS ELECTRONIC HEALTHCARE

• Electronic scripts (ERX) are paving the way for integrated health solutions

• Since launching in 2009 penetration of ERX has radically increased

72% of Doctors

have issued e-scripts

87% of Pharmacies have used or fulfilled

an ERX script

http://issuu.com/erxscriptexchange/docs/erx_report_2014_v0711?utm_source=conversion_success&utm_campaign=Transactional&utm_medium=email

SEAMLESS ELECTRONIC HEALTHCARE

• Over 783 million e-prescriptions have been issued since 2009

• ERX growth was 14% between 2013 and 2014

0

50

100

150

200

250

2009 2010 2011 2012 2013 2014

Sept 2014 –22 Million e-scripts per

month

Mill

ion

pre

scrip

tio

ns

http://issuu.com/erxscriptexchange/docs/erx_report_2014_v0711?utm_source=conversion_success&utm_campaign=Transactional&utm_medium=email

Doctors are increasingly using digital to communicate with

their peers and patients, Pharma brands should be

doing same with the Doctors

EXPERIENCE IS THE

NEW PRODUCTUBER users pay a 30% higher fare to

receive more convenience, better service

and a more reliable ride.

Airbnb gives users access to over 1.5

million properties around the globe. With

over 40 million guests Airbnb is now the

new holiday accommodation site of

choice for many millions of travellers.

EXPERIENCE IS THE PREMIUM

Facebook the

world’s most

popular media

owner creates no

content.

Uber, the world’s

largest taxi

company owns no

vehicles.

Alibaba, the most

valuable retailer

has no inventory.

In 2015…

And, Airbnb the

world’s largest

accommodation

provider owns no

real estate.

Tech Crunch – The Battle is for the Customer Interface. Tom Goodwin, Mar 2015.

Customer portals should focus first on experience and quality customer centric content second…product information next

RISE IN DATA UTILISATION / PERSONALISATION

• The new ‘P’ in the marketing mix is Personalisation.

• Consumers want personalisation. 22% of consumers happy to share some data to receive a more personalisedexperience and 1 in 5 consumers prepared to pay an additional 20% for it.1

• Benchmarks indicate that personalised experiences are likely to increase ROI by 10-25% for pharmaceutical companies2.

1 - http://www2.deloitte.com/uk/en/pages/consumer-business/articles/made-to-order-the-rise-of-mass-personalisation.html

2 – Furey, D. Why personalization matters for pharma brands, April 2015. Accessible through Warc.

A PERSONALISED WEB EXPERIENCE

Personalisation creates a dynamic experience based on a visitor’s previous experience (declared or undeclared). It includes changes to content and even content formats:

• Amazon customises content on its homepage based on products you’ve viewed in the past.

• Netflix prioritises content on their homepage based on previous history, genres and ratings.

WEARABLES / CONNECTIVITY

Wearables have seen unprecedented growth in 2015

• 72.1 million wearable devices are expected to be shipped in 20151.

• Up 173% on 2014, expected to reach 155 million by 20191.

1 - http://www.wildacre.com.au/component/filecabinet/?task=download&fid=187

SELF SERVICE

• Customers and companies both benefit from the rise in self service.

• It enables customers to easily find the information right for them, when it suits and companies to reduce costs.

• Gartner predicts that by 2020, customers will manage 85% of the relationship with an enterprise without even interacting with a human.1

• Live chat has become a core staple of the new customer service / self service model.

• Live chat has the highest customer satisfaction levels of any direct contact channel2.

1 - https://fonolo.com/blog/2015/02/whitepaper-10-growing-customer-service-trends-for-2015/

2- http://www.bandt.com.au/media/want-happy-customers-live-chat-is-the-way-forward-says-new-report

25

Pharmaceutical trends

CUSTOMER CENTRICTY

"We talk about customer-centricity and customer focus, yet you look at our organisationalstructures and we're still organised largely around products. I'm not saying we should do away with that structure, but we need balance.

Craig DeLarge, global leader/multichannel marketing strategy and innovation at Merck

WHY PHARMA COMPANIES NEED TO PROVIDE BETTER SERVICE

• For so many years the focus for Pharmaceutical companies has

been the product and channel, but not the customer

• But as we see more drugs go ‘Off patent’

• The differentiation opportunity exists in service or experience – which many are now

calling ‘Pill-Plus service’

KEY TRENDS IN PILLS PLUS

• US research has shown that healthcare providers want pharma manufacturers to:

• Help boost patient adherence to medication.

• Ally with them in determining how best to save and share data.

PILLs PLUS EXAMPLES

For Chlorestroel management, AstraZeneca set out to build patient medication compliance

• They created the Vein Guy app, to build gamifationinto a patients treatment

• With 25,000 customisable appearance options

• User can pick their preferred vein guy alert time

• Users then rate each vein guy tip they receive with future tips customised to their feedback

Sanofi-Aventis created the ‘Get well kit’

• A pill phone case together with an app that

allows users to track medications and

dosage

• Users can set alerts for each medication

• And use packaging QR codes to sync

medication information

WHO’S LEADING THE WAYTechnology companies are racing to capture the market

In 2014 Verizon introduced

telemedicine for cheaper,

quicker access to doctors for

non-urgent medical care.

http://fortune.Com/2014/06/25/verizon-virtual-visits/

Telstra’s ehealth division

expects to be one of

company’s top revenue

generators within five

years.

Medibank Private is

investing in virtual tools to

improve its offering and

member’s dependency on

services.

Apple health enables health

tracking through your phone

and other devices and

medical id allow you to store

critical information about

medical conditions.

THE CHANGING FACE OF HEALTHCARE

http://www.forbes.com/sites/ciocentral/2014/04/03/virtual-health-care-visits-will-revolutionize-the-industry-if-we-let-it/

http://blog.callcarenet.com/telehealth-growth-skyrocketing-video-consultations-to-exceed-130-million

Doctor-patient video consultations will nearly triple from 5.7million in

2014 to over 16 million in 2015 and will exceed 130 million in 2018.

2013 =

< $100 million

2018 =

$13.7 billion

22 million US household (almost 17%) will use virtual care by 2018 with a predicted 6 consults per annum

17% uptake in

Australia = 3.19

million pop.

THE CHANGING FACE OF HEALTHCARE

In the Kaiser Permanente Northern California (KPNC) health service –they have approved 3.5 million members and 8,000 physicians

By 2016 KPNC

expects that email,

telephone and video

encounters will exceed

in person visits.

2008

4.1 million virtual visits

2013

10.5 million virtual visits

http://healthcarinformatics.com

HEALTH SEARCH RESULTS

Google has started to highlight approved health information in search results in the US

Helping users better navigate and view content with confidence

http://www.digitaltrends.com/web/google-to-start-highlighting-health-information-in-search-results/

DEVICES2014/15 has brought a new wave of medical devices, changing the way consumers interact with their health

TEMPTRAQ

Is a BandAid like sticker that

wirelessly monitors your

child’s temperature, sending

notifications to your mobile

device.

SCANAFLO HOME URINE TESTING KIT A home urine testing kit which guides users through the process with a smartphone app, performing a urinalysis and providing the results direct to your doctor.

SCANADU SCOUT

A scanner packed with

sensors that captures and

provides valuable data, such

as temperature, blood

pressure and heart rate. You

can share with your doctor or

others.

CUE MEDICAL DIAGNOSTICSA device that allows users to run medical diagnostics from the comfort of their own home. It tests for five key health indicators; inflammation, vitamin D, fertility, influenza and testosterone.

LIVE CHAT

• Live chat isn’t new, but the capabilities of the platform have progressed significantly.

• Tools such as LivePerson can identify site users most in need of a chat and trigger a targeted invitation.

• Provide other targeting options, with content and ad units to guide consumers on a journey.

NEW CUSTOMER CHANNELS

• What’s App (the world’s largest messaging platform – 800million active monthly users)announced in May 2015 that it was exploring Business to consumer messaging – this could revolutionise customer service

http://www.businessinsider.com.au/whatsapp-passes-800-million-monthly-active-users-2015-4

BEACONS

• Beacons are revolutionisinggeo-targeted communication

• You can set their range and then change messaging on the fly

• It’s estimated there will be 4.5 million active beacons in the US by 2018

• Big opportunity for targeted messaging in pharmacy & wating rooms

http://www.businessinsider.com.au/beacons-are-the-most-important-new-retail-tech-2014-7

IN SUMMARY

• To stay ahead of the competition – service and experience need be core differentiators

• Being relevant & personalised to all audiences is crucial in the ever changing technological landscape

• There are many new channels available, first we mustto focus on the needs of the consumer to define the best

approach

Who am I?

• Marketing professional with more than 17 years experience driving multi channel and digital marketing communication strategies with leading global organisations such as Pfizer, Allergan, Johnson and Johnson, Ciba Vision and LG. Extensive experience driving digital transformation with large complex organisations as well as medical practices.

What do colleagues say about me?