Posts Tagged ‘Pharma social media’

Comparing Social Media to Pharma Sales Reps

January 25th, 2010

Relationship marketing is really nothing new in the world of pharmaceutical companies.  For decades, the industry has relied on the ability of its sales reps to form lasting relationships that pay off in the form of increased prescriptions.  Say what you will about how the reps cultivated those relationships, but the fact is, they were able to tailor their information delivery to what doctors were seeking.

In recent years, the pharmaceutical industry has sought to regulate how those relationships are formed by cutting back on tchotchkes, expensive lunches and other ethically questionable practices that influence prescription writing.  Just today, the news circulated that New York Governor, David Patterson, was seeking to eliminate the practice of providing gifts to doctors after an office visit.  In some ways, this mirrors the voluntary code of ethics adopted by Big Pharma a little over a year ago.  However, others argue that the new limitations that Governor Patterson seeks to impose are too rigid and eliminate the ability of the sales rep to deliver his key value—education.  It’s an interesting conundrum: how do you allow the free flow of information to ensure access to the best sources available while at the same time curtailing the types of seedy relationships that place undue pressure on doctors?

Before you answer, ask yourself an additional question: is this problem all that different from what pharmaceutical marketers face when entering the world of social media?  To be an active participant in social networks, the key skill you need to possess is the ability to form relationships.  For a pharma company, the biggest value they can provide patients and doctors online is information.  In much the same way that sales reps face regulations on their relationship-building practices, pharma marketers will inevitably be faced with the same ethical questions.  But you knew that already. That is the primary reason why the FDA has started to pay attention and is certainly the reason why many pharma companies are skittish about launching a social media initiative.  The more pressing question is: how do you establish boundaries that govern a pharmaceutical company’s ability to provide information without crossing regulatory guidelines?  Can impending guidance from the FDA actually make it more difficult for pharma companies to get information it the hands of patients as a result of strict regulations?

There is no easy answer.  On the one hand, as a social media advocate, I believe that the primary value a pharmaceutical company can provide is information.  Impending regulation that prohibits the company’s ability to do that may ultimately harm the patient in the long run.  On the flip side, I also realize the importance of governing this industry given what is at stake and by no means would advocate a wild west atmosphere of lawlessness.

Yet still I struggle, how far is too far when it comes to restrictions on pharmaceutical companies?  In the offline world, there are hordes of honest, hard-working sales reps that feel they are providing a service in the form of information.  Regulations such as those proposed by Governor Patterson make it far more difficult to provide that service.  Online, we strive to provide that same service while at the same time thumbing our nose at the tactics of sales reps.  Where is the line between providing information and breaking an ethical code of conduct?  In some cases, the line is not always clear.

We often trumpet the arrival of social media as the newest tool in a marketer’s bag of tricks.  But it’s merely an extension of what has been taking place for decades at pharmaceutical companies—building relationships based on providing value to the target audience.

I have my own thoughts on why social media is different from the relationship marketing of years past, but would be curious to hear your feedback in the meantime.  I’ll post my ideas tomorrow on why social media is a new form of relationship marketing and how the ethically questionable tactics—regardless of guidance—will be rooted out.

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Why Do Pharma Companies Fire Their Social Media Agency?

January 21st, 2010

Working in the agency world is a little bit like the dating scene—if you are around it long enough, you are bound to get your heart broken (or wallet as the case may be) once or twice.

It’s no secret that agencies are let go for a variety of reasons that range from the completely justifiable to the head scratchers.  The average retention rate of clients in the PR business is something in the neighborhood of 12-16 months depending on which reports you choose to believe (I am happy to report SHIFT’s is much longer!).  With such a revolving door, one must wonder: what drives a pharmaceutical company to fire its social media agency?

There is no definitive list of reasons that leads to an agency getting the boot.  It can be a result of missed metrics, poor strategy outlines, faulty execution, budget constraints, etc…And while the list is long, I’d venture to guess that there are two primary buckets that cause a pharma company to fire its social media agency—false promises made by the agency and unreasonable expectations of the pharmaceutical company (sometimes one causes the other).  We’ll take these one at a time.

False Promises Made by the Agency

I touched on this one a bit in yesterday’s post.  Too often, agencies walk into a pitch eager to win business and selling whatever they think the company at the other side of the table wants to buy.  They do this without regard for whether or not they believe they can deliver on those lofty promises.  Why?  They don’t care.  The goal is to win the business and earn a quick buck—not create sustained value.  This breeds the thinking that social media is a silver bullet.  With people out there selling it as such, it is no wonder that some marketers think that social media has the ability to mask existing problems.  It does not.  Because agencies are selling false hope, when they can’t deliver on that hope, they get the axe—justifiably.

A good social media agency will outline challenging goals, but not make promises of a brand remake over night.  A good agency will highlight the risks of engaging in social media and have a plan in place to mitigate those risks and deal with them when they arise.  Most importantly, a good social media agency will say “no”.  They won’t be afraid to tell you if your strategy is off base, or if your line of thinking will fall down when engaging with a community online.  If your social media agency is afraid to tell you “no” I can almost assure you the program will fail.  False promises are a quick way to the unemployment line and only makes the job of legitimate agencies that much more difficult.

Unreasonable Expectations of the Pharmaceutical Company

The message I have been trumpeting recently, along with others, is that social media does not shovel problems under the rug—it rips the rug off the floor.  If a company walks into a social media engagement thinking that it can distance itself from product problems or damaging messaging it is sorely mistaken.  The more likely result is the social media community will expose that problem quicker than you ever thought was possible.  And not only will it be exposed, it will run rampant until you step up and offer a solution.  The thing people often forget about social media is that it acts as one giant neighborhood watch.  Phonies are uncovered, bad products are rooted out and shifty salesmen are pinpointed.  It’s not a comfortable place to be if you have skeletons in the closet.

Unfortunately, some pharmaceutical companies are willing to throw caution to the wind and hope social media can work miracles.  When those miracles fail to materialize, the social media takes the fall.  Sure, it is the job of the agency to steer the client in the right direction and set appropriate expectations, but sometimes it is not enough.  In those cases, the pharma company is bound to fail because it simply demands too much.

The Lesson?

The new marketing model increases accountability on both the vendor and client side.  The days of arm’s length relationships are coming to a screeching halt.  In order to truly succeed in social media, you better have a true partnership.  Afterall, if you can’t master that relationship, you can forget about the new ones you will be forming through social media.

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Don’t Write Off Traditional PR Entirely for Social Media

January 14th, 2010

It’s no secret that social media is the trend of the day in pharmaceutical marketing.  A combination of constant evangelism on the part of social media wingnuts (I mean advocates), an uptick in real-world examples from pharma companies and the FDA public hearing has vaulted social media into the limelight.  Since attaining such prominence, social media seems to have a stranglehold on the marketing discussion (or maybe it’s that whole echo chamber thing I posted about).  But the limelight can be so bright that it causes you to miss other things right before your eyes.

If you haven’t picked up on my thinly veiled metaphor just yet, social media is the bright light in this case.  In recent months, social media has been relegated to shiny object duty.  It’s the marketing tactic of the day being waived before pharma executives at every strategy session to increase patient engagement, raise brand awareness and break into new markets.  That’s a good thing.  The level of conversations that are occurring regarding social media is encouraging.  It indicates that pharmaceutical companies are slowly but surely buying into its potential.  But there is a fine line to walk between realistic potential and hype—we are getting dangerously close to the edge.

Social media enters into the hype zone when it causes otherwise level-headed marketers to write off alternative, viable marketing tactics.  And if they are not written off, they are certainly placed on the backburner.  As an aforementioned wingnut, I believe in the value of social media as much as the next guy.  But social media CANNOT exist in isolation.  It has to be conducted in the context of a larger marketing strategy that includes a broad range of tactics.  I’m a PR guy.  In fact, while I tout the benefits of social media on a regular basis, a large chunk of my work is dedicated to so-called traditional PR.  That’s right, writing press releases, reaching out to editors and forming relationships with the main-stream media.  Can you imagine?

(Warning, here comes a small commercial, bear with me, I think it is relevant).

At my agency, SHIFT Communications, we describe ourselves as a hybrid agency in the sense that we do both traditional PR and social media.  I think that’s crucial.  We do this not so we can sell both services, but because we firmly believe that social media, and traditional PR should happen in concert, not in isolation.

Social media is important.  It will only grow in importance as companies become better at engaging with relevant communities.  But remember, social media should not happen at the expense of the remaining parts of the marketing mix—even traditional PR.

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