can pharma make a business case for social media

Can PharmaMake a Business Casefor Social Media?

Shwen GweeFounder & Host

Med 2.0 Blog and Podcast

Disclaimer

The opinions and ideas expressed in this presentation are strictly my own and are not screened by my employer.

Everything mentioned or presented is strictly my personal opinion and does not necessarily represent the views of Vertex Pharmaceuticals.

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Overview

What is Social Media? What are the main hurdles? Why is it important? Where does it fit in? How do I get started? What strategies can we use? How about regulatory concerns? What about ROI? Final Thoughts

#1

What is Social Media?

Working Definition

Web 2.0= New/Social Media

= Groundswell

Shift Happens

FROM TO

PUSH Broadcasts PULL Content

Monologue Conversation

Individual Consumption Group Participation

Sales & Marketing Pitch Authenticity/Transparency

Attracting Publicity Pursuing Interaction

A cultural shift…

Shift Happens

Authentic Interaction

Genuine Engagement

Trust

Influence

Models of Influence are Changing

Image by armanz on Flickr: http://www.flickr.com/photos/7855449@N02/2828883082/in/set-72157606844282993/

#2

What are the Main Hurdles?

Hurdles: Overview

IT

Marketing

Executives

Legal/Regulatory

Federal regulations(FDA, DDMAC, etc.)

Corporate/Enterprise

Pharma

Hurdles: IT

Questions/Statements:– Social Media? You mean, like MySpace!?!– But we have no control over the servers or

software – how can this work?– It does not comply with enterprise standards!

Issues:– Traditional, enterprise thinking– No experience with new/social media– No ownership or “power” to drive business– Used to implementing, not strategizing

Hurdles: Marketing

Questions/Statements:– Where does it fit in?– No way regulatory will allow it!– Who owns it anyway? Can’t IT just do it?– Where do we start?

Issues:– Lack of exposure/experience with social media– Traditional marketing mentality– Over reliance on traditional agencies– Don’t know where to start or how to justify

Hurdles: Executives

Questions/Statements:– What is this social media thing anyway?– Where’s the ROI?– What about negative comments/feedback?– Company XYZ has a blog – we need one too!

Issues:– Lack of exposure/experience with social media– Unclear who should own this process– ROI, ROI, ROI ???– Follow the (pharma) leader

Hurdles: Legal & Regulatory

Questions/Statements:– What about fair balance?

– What about AE reporting?

– What if you get off label discussions!?!

Issues:– Lack of exposure/experience with social media

– No defined federal/industry regulations

– Associate social media with lack of control(e.g. My Space, random blogs, etc.)

Image by karynsig on Flickr: http://www.flickr.com/photos/karynsig/752728221/

Image by wetwebwork on Flickr: http://www.flickr.com/photos/wetwebwork/2606928063/

#3

Why is it Important?

More Customers Consume Media Online

Source: Manhattan Research Cyber Citizen Health v7

Consumers Shifting Online for Health Information

Consumers More Satisfied with Health Information from the Internet


Online Video Experiencing Significant Growth


In Millions

More Physicians Moving Online for Professional Resources

But Most Importantly…

#4

Where does it fit in?(And who should be in

charge?)

Basic Objectives of Social Media

Listen

Engage/Embrace

Energize

Support

OBJECTIVES

Market Research

Marketing/PR

Sales/Marketing

Customer Service

ROLES

Other Possible Goals…

Internal– “Knowledge management”– Rapid sharing & dissemination– Executive & senior leadership visibility– Sales training & development– Market & customer feedback– Internal alignment & collaboration– Recruiting and HR– Corporate “kumbaya”

External– Awareness raising– Branding & messaging “testing”

Social Media Strategy Throughout Lifecycle

Source: http://www.web-strategist.com/blog/2007/09/12/web-strategy-advanced-applying-a-social-computing-strategy-to-the-entire-product-lifecycle/

Who Should Be In Charge?

Put someone important in charge– Director and above (higher is better)– Preferably with experience or interest– Understands legal and regulatory framework

Should be housed within group that can influence and align strategy

Should be a significant or entire part of the person’s objectives (not a BTW experiment)

Should have access to appropriate resources, including executives and agencies

#5

How do I get started?

Think Outside the Bun

Don’t just look within the industry– Learn from those who are innovating and

pushing the limits with new/social media

Bring the outside in and adapt to our regs Don’t forget: Some of these people could

even be your customers

Listen and Learn

Subscribe to blogs and read daily– Within Pharma/Healthcare:

• EyeOnFDA, PharmaMarketingBlog, THCB, HealthCareVox, Pharmalot, IgniteBlog, JNJBTW, etc.

– Outside Pharma/Healthcare:• ChrisBrogan, Web-Strategist, Altimeter Group,

Logic+Emotion, TechCrunch, etc. Subscribe to podcasts and listen Use (free) tools to monitor trends

– Google Trends, Technorati, TechMeme, etc. Read industry whitepapers and research

studies, participate in webinars, etc.

Join the Conversation

Rate and review content/products Comment on blogs, podcasts, videos, etc. Be part of a social network

– e.g. LinkedIn, Facebook, Plaxo, Twitter*, etc.

Attend meetings and conferences– Grassroots

• PodCamp, Social Media Club, Meetups, etc.

– New/Social Media Industry• Web 2.0, New Media Expo, BlogWorld, SXSW, etc.

Experiment and Participate

Educate, Educate, Educate…

Learn and be a social media evangelist Create programs to educate everyone

– e.g. lunchtime lectures, informal BOF meetups

Make sure execs hear about it and attend Start internally

– Get proof of concept

– Get legal, regulatory, execs, etc. involved• Form working group or Social Media Committee

Energize and enthuse!!!

Case Study: Energize & Enthuse

Microsoft Academy Mobile…

Case Study: Academy Mobile – Results

Exceeded Targets (2008)…Reach & Awareness Target # YTD #Total # of Podcast Downloads 60, 000 95,900

Total # of Unique Individuals Downloading Podcasts 8,000 10,203

Total # of Podcasts on Academy Mobile 1,800 2,344

Total # of Unique Podcast Publishers 1,000 1,034

# of Profiles on Academy Mobile 3,000 3,107

Success led to development of public release, called Podcasting Kit for Sharepoint (PKS)– Sits on Sharepoint server platform– Download for FREE at: www.codeplex.com/pks

#6

What Strategies Should We Use?

Organic vs. Paid Search

Groundswell: Li and Bernoff

4 Step Process for Getting Started

POST

People Assess your customers’ social activities

Objectives Decide what you want to accomplish

Strategy Plan for how relationships with customers will change

Technology Decide which social technologies to use

Ladder of Participation

Creators

Critics

Collectors

Joiners

Spectators

Inactives

Publish a blog/PodcastPublish your own Web pagesUpload video you created Upload audio/music you createdWrite articles or stories and post them

Post ratings/reviews of products/servicesComment on someone else’s blogContribute to online forumsContribute to/edit articles in a wiki

Use RSS feedsAdd “tags” to Web pages or photos“Vote” for Web sites online

Maintain profile on a social networking siteVisit social networking sites

Read blogsWatch video from other usersListen to podcastsRead online forumsRead customer ratings/reviews

None of the above

Social Technographics Profile

http://www.forrester.com/Groundswell/profile_tool.html

Other Sources of Customer Data

Research data– Market research data and segmentation studies

– eHealth and ePharma research• Manhattan Research (consumer and HCP)

– Social Media Research• Forrester, Pew/Internet American Life Project,

Universal Mccann (Wave 3), eMarketer, etc.

Determine Your Objectives

Objective DescriptionListen Monitor your customers’ conversations

Engage Participate in 2-way conversations

Energize Make it possible for customers to help you and each other

Support Support customers and enable them to support each other

Embrace Help customers work with each other to come up with ideas to improve products/services

Determine Strategy & Technology Listening (Market Research)

– Social Measurement/Monitoring Agencies• TNS Cymfony, BuzzMetrics, Radian6, etc.

Engaging (Talking)– Blogs, Podcasts, Online Viedo, etc.

• JNJBTW blog

• “National Spotlight on Migraines” podcast sponsored by Ortho McNeil,

• YouTube Videos (JNJ, GSK, Abbott, etc.),

Determine Strategy & Technology Energizing

– Professional Social Networks• Sermo, Physician Connect, Clinician 1, etc.

– Other Social Networks• Facebook, CommuniSpace, Powered, etc.

– Ratings and reviews (e.g. Digg)

Supporting– Wiki’s, Support Forums, Twitter, Yammer, etc.

• e.g. Pfizerpedia, VIKI, etc.

• SalesForce Effectiveness

• Internal knowledge sharing/management

Determine Strategy & Technology Embracing

– Social networks

– Idea Exchange; “Suggestion Box”, etc.

– Ratings and reviews for brand messaging

Don’t Think Conventionally

Image by armanz on Flickr: http://www.flickr.com/photos/7855449@N02/2936653440/in/set-72157606844282993/

Case Study: DigiRedo

Company: – Top 3 in veterinary pharmaceutical industry

Issue:– Lack of effective communication tools to implement

new company strategy

Objective:– Use new/social media tools to see it can increase

the effetiveness of the message roll-out

Technology:– Podcasting (and iPod Touch)

Case Study: DigiRedo – Strategy

QuickTime™ and a decompressor

are needed to see this picture.

Case Study: DigiRedo – Results

Participation & Consumption: – 100% participation (viewers and listeners)

– 57% consumed content on Day 1

– Consumption device: 40% PC, 60% iPod

– Location: 70% @ home, 17% in car, 13% elsewhere

Qualitative Survey:“Do you agree that the podcast…”– Gives more insight in the strategy? 90%

– Gives more insight in what my colleagues do? 90%

– Is an effective communication tool? 90%

Case Study: DigiRedo – Reactions

#7

How about regulatory concerns?

Define Policies and Processes

Educate your team and ensure they are supportive… Then educate key stakeholders– Try brown-bag lunches, thought-leader

presentations, vendor demos, etc. Treat it like you would traditional media

– Stick with the FDA and PhRMA Guidelines– Don’t do anything you wouldn’t do normally

(i.e. content) Work with legal & regulatory to:

– Determine an SOP for each strategy– Develop an escalation policy for each strategy

Define Policies and Processes

Be willing to compromise and adapt– e.g. Review comments before posting

Explicitly state “rules of engagement” so customers will understand– e.g. JNJ

If unsure, experiment internally before moving externally

Example 1: JNJBTW.com

Example 1: JNJBTW.com

All comments will be reviewed before posting. Comments that don’t directly relate to the Company or

to topics covered on this blog won’t be posted Some comments may be forwarded … for follow-up as

appropriate We generally won’t post comments about products that

are sold by the Johnson & Johnson operating companies

Johnson & Johnson and its operating companies work within highly regulated industries– Comments that pertain to ongoing legal matters or regulatory

issues are unlikely to be posted Further information about our policies…can be found in

our Privacy and Legal Notice

Example 2: Adderall XR YouTube Video

Example 2: Content, NOT Context

Warning letter contents:– “…overstate the efficacy”– “… omits important information regarding

the risks”– “…broadens the indication … suggesting

uses that have not been approved”– “…overstatement of efficacy and omission

of important safety information”

Not any different than if content had been in a DTC television or print ad

#8

What About ROI?

Can You Measure the Value Of…

Image by Damien Roue on Flickr: http://www.flickr.com/photos/damienroue/2581992080/


Image by Mulad on Flickr: http://www.flickr.com/photos/mulad/143851399/


Image by b_d_solis on Flickr: http://www.flickr.com/photos/briansolis/2676945109/


Image by Duke Green on Flickr: http://flickr.com/photos/duke_geren/124379253/

It All Depends On Your Objectives Determine what you want to measure

– Corporate reputation?– Conversations among target audience?– Awareness in naïve group?

Relate objectives to traditional media…– How do you measure the effectiveness of your

PR campaigns (press mentions) ?

But More Importantly… Are You Listening?

Image by Orange Beard on Flickr: http://www.flickr.com/photos/metrojp/92038203/

Free “Listening” Tools

GoogleAnalytics

AideRSS

FeedBurner

Social Media Monitoring Services

Calculating ROI: GM Fastlane Blog

Source: http://blogs.forrester.com/groundswell/2007/01/new_roi_of_blog.html

Startup Costs CostsPlanning and Development $25, 000

Training for blogging executive $10,000

Ongoing Costs (annual)

Blogging platform $25,000

Brand-monitoring service $50,000

IT Support $3,000

Content production (incl. Exec time) $150,000

Review and redirection $20,000

TOTAL COST (year one) $283,000

Calculating ROI: GM Fastlane Blog

Source: http://blogs.forrester.com/groundswell/2007/01/new_roi_of_blog.html

Benefit Analysis (annual) ValueAdvertising Value (Visibility/traffic)- est. 7,500 daily page views @ $2.50 CPM

$25, 000

PR Value; Press stories about/driven by blog- est. 24 stories @ $10K each

$240,000

WOM Value: Refering posts on other blogs- est. 370 posts @ $100 each

$37,000

Support Value: Support calls avoided- est. 50 daily calls @ $5.50 each

$69,000

Research Value: Customer insights- est. comments equivalent to 5 focus groups @ $8K each

$40,000

TOTAL BENEFITS (year one) $393,000

+$110,000

Final Thoughts

It’s about people! Listen, learn, experiment, participate and

educate, educate, educate… Start small (internal), but think outside the

bun Put someone important in charge Setup an SOP and escalation policy Determine what is considered success Social Media is a full time job… And more Generate enthusiasm and encourage

participation

And so what we have ended up doing in many cases is take some small steps to get more comfortable with getting involved.

We are also making sure we have processes in place to handle adverse event reports and that we have responsible people involved who can respond quickly to questions.

At the same time, [ these projects ] are giving us some great experience.

And so what we have ended up doing in many cases is take some small steps to get more comfortable with getting involved.

We are also making sure we have processes in place to handle adverse event reports and that we have responsible people involved who can respond quickly to questions.

At the same time, [ these projects ] are giving us some great experience.

Marc MonseauEditor, JNJBTW.comOCT 2nd, 2008

Resources

Groundswell– Blog – http://blogs.forrester.com/groundswell

– Book – http://tinyurl.com/6bab6n

Web Strategist – Jeremiah Owyang’s Blog– http://www.web-strategist.com

Altimeter Group – Charlene Li’s Blog– http://www.charleneli.com/blog

Chris Brogan’s Blog– http://www.chrisbrogan.com

~ Thank You ~

Shwen GweeFounder & HostMed 2.0 Blog and Podcast

Health Informatics and New Media LeadVertex Pharmaceuticals

EMAIL: [email protected]: @shwen

BLOG: www.Med20.comPODCAST: www.Med20radio.comCOMMUNITY: www.SocialPharmer.com

Some Rights Reserved (2008) Shwen Gwee

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