Thursday, February 8, 2001

Closer look at Pharmaceutical D2C Marketing

Cyber Dialogue, a New York-based Analytical eCRM provider, today announced new analysis detailing the essential role the Internet can play in pharmaceutical direct-to-consumer (DTC) marketing. According to Cyber Dialogue's Health Practice, the goals of pharmaceutical e-marketing initiatives should be extended beyond awareness for a specific product or company. A comprehensive marketing strategy should now include online programs that complement offline initiatives and are designed to increase demand, improve compliance and promote patient success. With online initiatives in place, the analysis of opt-in online data - collected and utilized in accordance with the strictest privacy and ethical standards - will enable pharmaceutical companies to maximize the return on investment (ROI) for their DTC Web sites while also improving the quality of life for site visitors.

Currently, the Internet is the most cost-effective channel for creating consumer demand for prescription medications. In the first half of 2000, pharmaceutical companies spent an estimated $833 million on TV consumer advertising, $460 million on print campaigns and $47 million on Internet marketing (source: IMS Health). Using these figures in conjunction with proprietary Cyber Dialogue analysis, during the first half of 2000 it cost pharmaceutical companies an estimated:

- $54 per single specific drug request driven by the Internet
- $152 per single specific drug request driven by television advertising
- $318 per single specific drug request driven by print advertising

Cyber Dialogue's Health Practice emphasizes, however, that the Web should not be used as an isolated tool, nor should companies abandon the print and broadcast media channels that are essential to brand building. Direct-to-consumer e-marketing programs need to be integrated across all media channels. Combining online and offline data and deploying campaigns in all media is essential to marketing success.

"For the first time, pharmaceutical companies can use the Internet to spearhead a customer-focused, data-driven marketing strategy to augment their traditional consumer marketing programs," explained Mark Bard, a director in Cyber Dialogue's Health Practice. "The key factor to sustainable success, however, lies in the integration of e-marketing with existing marketing programs."

Pharmaceutical companies can use the data collected from consumers with their permission to understand their customers, provide feedback to refine their programs and serve long-term marketing strategies. A DTC Web site that offers online condition management will eventually deliver services such as personalized product messages, support information, patient education and even monitoring tools that enable online communication between a patient and physician. If done effectively, consumers will feel more comfortable interacting with pharmaceutical companies because of the value they'll receive in return.

"We already know that many patients are improving their compliance after simply reading disease information online, " continued Bard. "A DTC product Web site that offers a complete customer care platform will quickly prove its ROI because of its appeal to valuable segments of online consumers who want substantially more than 'brochure-ware' for a given prescription drug."

The ability to measure ROI for specific Web sites was recently made possible with the release of ePharma ROI, Cyber Dialogue's decision support and measurement tool. ePharma ROI, which is powered by Cyber Dialogue's analytical technology platform, Arc 360, measures Web site ROI, consumer views on the product and patient compliance. ePharma ROI also employs Cyber Dialogue's advanced analytic capabilities to help clients build one-to-one consumer relationships for the first time. ePharma ROI provides value to both the company and the consumer while complying with all pharmaceutical-specific privacy and regulatory policies.

Top Two Fortune 500 Corporate Career Websites
iLogos Research, a division of Recruitsoft announced today that its benchmark study of the Best Practices for Fortune 500 Career Website Recruiting has identified the top two Fortune 500 companies utilizing the Best Practices. The corporate careers sections on the Web sites of Microsoft (www.microsoft.com) and Compaq Computer Corporation (NYSE: CPQ) (www.compaq.com) adhere most closely to Best Practices that optimize companies’ ability to attract, convince and capture potential qualified candidates. iLogos is a leading research practice that studies and monitors trends in the Internet recruiting industry.

Additionally, the study presents the recruiting industry’s standard with 20 Best Practices in Internet Recruiting features, a comparison of the current practices of the Fortune 500 and predictions for future career Web site practices.

"It would be expected that Fortune 500 technology companies should lead in online recruiting; however to find that the top two of the Fortune 500 companies that we surveyed are technology companies shows true leadership," said Yves Lermusiaux, founder and president of iLogos Research. "Quality and speed are at the essence of corporate success. These best practices allow corporations not only to brand themselves well online but also to accelerate their hiring by integrating marketing- and communication-rich sites with automated processes."

"To receive accolades as a leading company in Internet recruiting is an honor for any organization," said Rachel McKinney, Compaq vice president Human Resources. "We have a ceaseless commitment to quality and bringing world-class technology to our recruiting efforts. Our website enables us to attract and hire top talent and ultimately provides a true strategic advantage in our recruitment efforts."

Of the 20 Best Practices in Internet Recruiting determined by iLogos Research, the chart below indicates the specific features utilized on the career pages of the corresponding corporate Web sites:

Some of the practices that Microsoft and Compaq had in common were:

1. Link to careers section from homepage
2. About the company: benefits
3. About the company: culture
4. Separate college recruiting section
5. Job search by job category
6. Job search by location
7. Job search by keyword
8. Complete job description
9. One click to apply
10. Choice of cut & paste form or resume builder
11. Application automatically connected to a job position
12. E-mail to a friend

The Best Practices focus on optimal functions that:

- attract traffic to the corporate career Web site,
- convince potential candidates of the company’s status as an employer of choice, and
- capture and process the candidate’s information in a streamlined process that benefits both candidate and corporate recruiter.

According to the study, the career pages of corporate Web sites present an invaluable opportunity for corporations to gain a competitive advantage in recruiting. Strategically developed sections target qualified candidates and integrate the entire recruiting process. Optimal Web site recruiting results—including faster time-to-contribution, lower cost per hire and significant increases in retention—may be obtained through a systematic approach to corporate Web sire recruiting.

News Tidbits (appears every day on the front page)
- More big online companies that failed to survive the "Internet economy slump" are closing their doors, including Icebox.com. From financing woes to simply overspending, dozens of eCompanies continue to close down every month. In addition, large Internet companies like Ask Jeeves continue to post higher than expected losses.

Return to February 2001 News Archive