PM360 January 2010

E-Source

Introducing the New Web 2.0 Metric
By Andrew Levitt

As we explore the boundaries of social media in pharma—and wonder about the ROI of those efforts—we need to consider a new metric, one based on the idea of Involvement. I call it “ROI 2.0,” or Return on Involvement.

You may wonder how can we adequately measure the impact of a well-organized social networking program, where one individual brand evangelist may interact with a dozen people and talk about your brand? How do those 20 minutes chatting at the soccer field on a Sunday morning with someone who could use your product compare to multiple exposures to a 30-second TV ad that plays in the background on the Today Show? How much value can we place on the recommendation of a trusted friend about a prescription product that he’s used for the past six months? 
 
As we look to capture more data points that help identify the ROI of social media programming, we should reflect on some more traditional measures. A preponderance of data confirms that word of mouth remains the most trusted form of advertising across the globe. A report by Nielsen revealed that “recommendations from consumers” topped the charts at 78% (vs. TV at 56% and brand Websites at 60%) in terms of what advertising source people trust the most. A similar study by Roper showed that “word of mouth” is “the best source for information about trying new prescription products,” well ahead of “advertising” at just 21%.
 
Now the People Are the Message
Take, for example, companies such as BzzAgent, which creates WOM programs for consumer packaged goods companies. It engages people with product samples, which makes them feel appreciated and lets them know their voice matters. Those people help spread messages to people they know. Again, think Involvement. Communispace creates private communities for a number of finance, OTC, and other packaged goods, which provides a powerful new way to conduct a type of market research. At the same time, it builds relationships for companies with a group of consumers who care to share their opinions and want to be involved.
 
Though our industry tends to lag behind others with marketing innovations, new solutions can enable word of mouth, create community, and deliver unique insights into consumer behavior, even in the pharma space. And through these types of marketing activities, pharma companies can move the bar dramatically to generate huge “ROI 2.0” returns.
 
As a place to start, we can measure and model various data points, such as the number of brand ambassadors in a program and the number of conversations they generate. We can measure how long those conversations last, and if the conversations are directed to someone in a brand’s target audience. We gain insights into the likelihood that the person receiving the message will speak to their physician about the topic (or product) in question, and we learn how likely the message will spread to someone else. We can further explore opt-in rates from calls-to-action, time spent on Websites, referrals into the physician office, and, of course, the number of new prescriptions that come from word of mouth programming. We can also map the spread of conversations to show impact at a specific geographic level.

And this doesn’t even begin to consider the loyalty effect of the consumers who participate in a structured program. Think of the involvement you can have with some of your most passionate consumers who use your Rx product day in and day out.
 
Think Differently. Get Noticed.
The key here is to embrace social media tools, and find a way to make them work for your brand. Involve your customer base in a whole new way. Dive in and explore the options. Become a change agent inside your company. And you’ll be the one who gets noticed!

Andrew Levitt is the Founder and CEO of HealthTalker and is a seasoned marketing executive with over 14 years of experience. Before launching HealthTalker in February 2007, he served in various executive marketing capacities at Schering-Plough, J&J, and Genzyme. He can be reached at andy@healthtalker.com or 617-440-4232.