Market Report Source

Overview

Introduction
CRM is a business strategy by which a company seeks to maximize the value of its products by managing the customer relationship, with specific aims to boost customer retention and increase market share, while reducing the costs of sales, marketing and customer fulfillment. CRM is made necessary because of advances in Web-enabled technologies, which have changed the dynamics of sales and marketing.

Scope
Insight into how the view of CRM as a solely sales, marketing or fulfillment strategy is flawed and contributes to unrealistic expectations
Identification of the leading CRM vendors in the pharmaceutical industry
A discussion of how pharmaceutical companies can benefit from moving in the direction of adopting an enterprise-wide CRM strategy
Analysis of how online communities can be leveraged to improve CRM strategies

Highlights
CRM is not an out of the box software solution that can instantaneously recoup losses due to cutbacks in sales force and media saturation. CRM is instead a constantly evolving reassessment of the relative value of relationships with target groups and effectiveness of the mediums used to communicate with them.

The greatest demand on pharmaceutical CRM infrastructure is the ability to cover multiple touch points across a diverse customer base. In this respect, the pharmaceutical industry is unlike any other, faced with a wide and varied array of customers, each of whom interact to varying degrees and at various levels.

Predictive analytics are the most challenging aspect of any CRM strategy, but also potentially the most rewarding. Online communities can play a role in developing a successful predictive CRM strategy by enabling companies to monitor the evolving thought processes of their customers.

Reasons to Purchase
Identify how the pharmaceutical industry is evolving beyond traditional sales and marketing strategies toward enterprise-wide CRM
Understand how CRM can move beyond managing customer relationships towards community building and support
Evaluate key vendors and how they are shaping the future of pharmaceutical CRM

Table of Contents

DATAMONITOR VIEW

CATALYST

SUMMARY

METHODOLOGY

TABLE OF CONTENTS

ANALYSIS

An Introduction to the role of CRM in the pharmaceutical industry

Analytical and Operational CRM

Regulatory constraints and the nature of the products sold make pharmaceutical CRM unique

Defining the “C” in CRM for the pharmaceutical vertical

The “R” in CRM does not stand for “ROI”...

...but ROI cannot be ignored

“Management” means much more than it used to

Dropping the “e” in eCRM

The view of CRM as a solely a sales, marketing or customer fulfillment strategy is flawed and contributes to unrealistic expectations and shortfalls in implementation

Drivers and resistors of CRM

CRM and the pharmaceutical sales force

CRM and marketing to key target groups

CRM and customer fulfillment

Customer fulfillment online: providing eSamples to physicians and consumers

CRM as a holistic business solution, rather than as a sales, marketing or fulfillment solution

The leading CRM vendors in the pharmaceutical vertical will combine industry experience with a focus on technology and functionality that meets specific needs rather than hard to define ROI targets

The Vendor Landscape

The Market Leader

Oracle (including PeopleSoft & Siebel Systems)

Case Studies: Novartis looks to Siebel for a CRM solution

Runners up

Salesforce.com

SAS

SAP

Unica

Microsoft

THE FUTURE DECODED

In the future, the focus of CRM will move beyond managing customer relationships towards community-building and support

Online Communities as a Tool of CRM

At a minimum, pharmaceutical companies should be using online communities as a market research tool

Greater lessons to be learned from online communities

APPENDIX

List of Figures

Definitions and abbreviations

References

Extended methodology

Datamonitor eHealth Physician Insight Survey 2005

Datamonitor eHealth Consumer Insight Survey 2005

Ask the analyst

List of Figures

Figure 1: CRM ideally keeps customers involved in an ongoing relationship with a company

Figure 2: Pharmaceutical companies are unique in that they have to deal consistently with a diverse customer base, some of which have conflicting needs

Figure 3: Companies stuck in a sales force ‘arms race’ have consistently seen the value of the investment diminish

Figure 4: As much as one third of the costs of adopting a CRM solution have to be invested up front

Figure 5: Information from online medical journals and website is often accessed more frequently than information from pharmaceutical sales representatives

Figure 6: Early adopters of Internet-enabled sales solutions have seen increases in the length of time physicians are willing to engage in a sales or educational activity

Figure 7: Overall, patients are now seen as equally as influential at the point-of-care as pharmaceutical sales reps

Figure 8: Traditional resistors of CRM are loosing ground to changing market forces

Figure 9: Approximately 4 out of every 10 patients need to be incentivized in order to be most likely to fill a prescription

Figure 10: Providing services to physicians through the channels they prefer greatly increases the likelihood that a long-term relationship can be established and maintained

Figure 11: Websites are a great channel through which to fulfill consumers needs for information and to introduce them to new services and channels of communication

Figure 12: The CRM vendor market is beginning to stabilize, but remains highly competitive

Figure 13: Oracle’s recent acquisitions of PeopleSoft and Siebel cements its place as the market leader within the pharmaceutical CRM vertical 28