Archive for February, 2010

Pharma Social Media Needs to Embrace Middle Ground

February 17th, 2010

If a casual observer were to take stock of the pharma social media conversation, it would resemble a heavyweight boxing match.

“In this corner, weighing in at 140 pounds and hailing from behind a computer screen somewhere are the social media advocates.   In this corner, tipping the scales at 800 pounds, from Washington, D.C., the FDA.”

Except in a boxing match, when the bell sounds, the two opponents leaver their respective corners and meet in the middle.  Of course, when they get to the middle, they spend some time pounding on each other—but they work it out.  In what seems like an endless quest to convince the FDA that pharmaceutical and biotech companies have a place in social media, neither side has been willing to leave its corner frequently enough.  In fact, until the infamous November public hearing, both sides tended to stay outside the ring—let alone their own corners.

Each side of the debate is standing steadfastly to their core beliefs.  The social media proponents are calling for full transparency, authenticity and real-time engagement.  They want social media unencumbered by the bureaucracy, regulations and processes of the FDA.  But the FDA is sticking to its guns and wants to ensure fair balance, the communication of risk information, a plan for adverse event reporting and off-label usage discussion.  But if neither side is willing to budge from their respective corners, we are bound to remain at a standstill.

The good news is that the impasse seems to be thawing out a bit.  Folks like Fabio Gratton and John Mack are making efforts to seek the FDA’s input and find common ground.  The FDA too for its part has been a willing participant in this delicate dance.  In fact, if either side has been more willing to move off its original laurels it has been the FDA.  The FDA called the November public hearing (albeit after much prodding).  The FDA itself is on Twitter and has recently expressed a willingness to find some common ground.

Both the FDA, pharma companies and social media agencies need to find the middle ground.  Agencies can’t stubbornly insist that every interaction in social media has to be immediate.  At the same time, the FDA cannot hold healthcare companies responsible for monitoring the broad expanse of the Internet for adverse events.  Similarly, pharmaceutical companies need to realize that social media is not a platform for product promotion—but a platform for providing access to information.

Rather than standing in their respective corners and plotting the knockout punch, all stakeholders need to meet in the middle on a shared set of values.  What is it?  The patient.  The FDA’s primary concern is the safety and health of the patient.  The pharmaceutical company should be focused on finding better treatment options for the patient.  The social media agency, if it has the right mindset, should believe that social media can help provide better access to information for…you guessed it; the patient!  Only once common ground is agreed upon will there be any hope of moving pharmaceutical social media forward.

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Can Pharma Marketing Hope to Create Brand Advocates?

February 11th, 2010

The holy grail for any marketer is to create “brand advocates.”  This is especially important for pharmaceutical companies.  Piles of research have demonstrated that a brand advocate wields disproportionate influence over their peer group, serves to extend a company’s presence and humanize its image.  For healthcare companies where patient health is the central issue, a personal brand advocate is priceless.  Health is personal and patients seek the counsel of others that have had similar experiences.

This dynamic occurs fundamentally because of the presence of trust between the brand, brand advocate and “would be” customer.  Therefore, to secure brand advocates, the relationship must be built on trust.  It stands to reason then that marketing programs should be built on trust, not persuasion.

When people consider the purpose of marketing they generally think of a company attempting to convince a prospective customer that its product is the best available product on the market.  This is a relationship built on persuasion.  Relationships built on persuasion rarely result in cultivating brand advocates.  With such a disconnect, it is plain to see why converting customers to brand advocates remains the holy grail.

In Principles of Advertising & IMC, by Tom Duncan, the idea of securing brand advocates is described as a linear process.  The first step in that process is for a customer to have some level of awareness with the brand.  From there, you would like that customer to identify with the brand and then feel connected.  Once you achieve those three steps, the hard work begins.  If you have a customer that feels connected with the brand, you ideally want that person to feel like they belong to a community.  And of course, the last step is converting community members into brand advocates outside that community.  In a marketer’s world, an easy way to think about this might be within the context of the sales funnel.  A lot of your customers enter the “brand advocate” funnel based on awareness but only a few come out the other side as advocates.  The trick is figuring out how to widening the bottom of that funnel to allow for a higher conversion rate of brand advocates.

As part of this process, a marketer needs to start at the desired outcome and work backwards.  As mentioned earlier, this means forming relationships that are built on trust—not persuasion.  For the pharmaceutical industry, which has a checkered past with its customer base, this point cannot be understated.  Relationships built on persuasion always feel coercive at best and adversarial at worst.  Pharma companies certainly do not want an adversarial relationship with patients, doctors or insurance providers.  That simply won’t yield brand advocates.  But given the current marketing tactics in favor, won’t it be difficult to foster relationships built on trust that yield brand advocates?  BINGO!

The very nature of most marketing techniques is built on persuasion or convincing a customer.  This won’t work.  That’s not to say that traditional advertisements and other forms of marketing are ineffective.  It simply means that the ad in question should be developed not based on persuading a customer, but on demonstrating why you should be trusted as a brand.  It’s subtle difference and will include similar messages—but the delivery will ultimately be different.  In addition, marketers will need to judge the mix of their marketing budgets moving forward in the context of whether or not they are building trust (i.e. long-term customers) or merely twisting a customer’s arm (short-term buyers).

A story in MediaPost yesterday highlights a survey of marketers that indicates 66% expect their digital marketing efforts to increase.  Why?  There is no shortage of reasons but I would venture to guess that part of it is marketers are coming to an awareness that trust cannot be built on the shoulders of advertising alone.  Relationship marketing requires a much more intimate connection with the brand than is offered through mass media.

Widening that funnel is about trust at its core.  How you get there is still debatable but I can assure you that the companies that realize relationship marketing is a top priority will figure out the path sooner than others.

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