mobile opportunities for pharma

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Complete Digital, a division of Complete Medical Group Ltd Complete House • 19-‐21 King Edward Street • Macclesfield • Cheshire • SK10 1AQ • UK

Tel +44 (0)1625 624000 • Fax +44 (0)1625 619812 Registered in England No. 2503062

Mobile opportunities for pharma 1. Executive summary

Due to an explosion in Smartphone usage across the globe, companies need to seriously consider how to interact with their customers via this channel. All websites should be optimised for mobile use so that customers ‘on the go’ can have an improved customer experience versus surfing the standard site.

If real value can be gained from having specific Apps, their development across platforms would be recommended, supported by a robust promotional programme.

“A great mobile App isn’t just a luxury anymore. With fewer young consumers experiencing web pages in their ‘full’ format and instead opting for Apps and web-‐based views, mobile Apps are becoming a necessity” – VergePipe Media 2010.

2. The market

According to a new report from comScore, Smartphone ownership in the largest European markets, known as the EU5 (UK, France, Germany, Spain and Italy), has increased by 41% to 60.8 million in the last 12 months. In particular, the UK market has grown by 70% to more than 11 million subscribers.

Between January 2009 and January 2010, adoption in the EU5 grew by 32%, from 39 million subscribers to 51.6 million.

The Internet Advertising Bureau calculated that mobile access accounted for about a quarter of time UK web users spent online in mid-‐2010.

31% of UK web users aged 16 and older polled by the Office for National Statistics said they went online using mobile devices. According to comScore, Google and Facebook remain the most popular mobile websites for most users.

Physicians are generally early adopters of new technology and have embraced mobile devices faster than the general population, as measured by several surveys.

With a growing customer base using Smartphones and an expectation of being able to use mobile phones for a wide variety of activities, pharmaceutical companies need to have a clear strategy of how to embrace this channel.

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A key area is for marketers to understand how their target audience consumes information, not only on their desktops but also via mobile devices. By investigating this you can provide the right tools and information in the right format to your audience.

According to a new report from research2guidance, in 2015 there will be 1.4 billion Smartphone users and 500 million of them will use health Apps

3. Mobile operating systems

Different mobile providers use different operating systems (OS). For reference and in order of market share based on Q3 2010 sales, the following OS are most commonly used:

• Symbian holds a 36% market share (lower in the USA). This is inherently due to its largest shareholder and customer, Nokia. However, due to the growth of other platforms, it is currently in decline

• Android holds a 25% market share and is owned by Google. The number of phones with this OS has grown significantly, and since the release of the HTC Dream and Desire phones, sales have grown significantly. It is reputed to have great functionality but an interface that is not as intuitive to use as the iPhone

• iOS from Apple has a 16% market share and is used in the iPhone, iPod touch and iPad. Apple has pioneered the App store, leaving other companies to catch up

• RIM BlackBerry OS has a 2.5% market share and has a niche business audience

The latest Windows phone (Windows Phone 7) has a negligible market share and has failed to impress consumers, but is likely to partner with Nokia.

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The trend in OS purchases can be seen in this US chart, although the trend applies across geographical areas.

4. The opportunity

There are many ways to leverage the mobile channel across customer groups:

• Mobile optimisation of existing/new websites • Development of Smartphone Apps • Mobile advertising

To optimise existing sites or to develop Apps is a major conundrum faced by many companies. How do you choose between a rich native App which potentially reaches only a fraction of your target audience or an optimised website that can’t deliver as many metrics, but could be viewed by anyone with a Smartphone?

“The essential App metric floating around the still burgeoning mobile marketing space is seven. Consumers generally have seven Apps they use on a daily basis, and a branded App’s goal must be to penetrate the top seven” the lunchpail blog by Knotice 2011.

4.1 Optimisation of existing/new websites It is important to optimise existing sites and sites under development as a first step towards mobile-‐enabled marketing. Research those pages most frequently accessed by your customers and ensure they are optimised.

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Optimising content for mobile devices helps in two ways, as it also helps to push your site up the rankings in mobile search engines.

It is quicker to build an optimised site than to develop an App, and can save approximately 25% on development costs. It also works across Smartphone platforms, so you are not limited by the type of phone the customer has.

However, they are not as interactive as native Apps and require an internet connection for access.

Optimised sites:

• User-‐friendly: improved customer experience • Quick to load (versus a standard site) • Easier to interact with (log in, search)

Some sites can work adequately without creating a mobile version, but there are many where it would create a better customer experience, preferable to scrolling through the original site.

The key to designing sites optimised for mobile web access is to define your business objectives and understand the target audience’s goals for accessing your sites. Development of personas based on typical customers ensures you develop a task-‐based mobile experience for your target customers.

Mobile and PC users often have different reasons for visiting the same site. Mobile users are more likely to be seeking critical information to achieve a goal, for example to find the address of a restaurant, search for a phone number, book tickets or find the nearest location of a high street retailer.

Mobile usability differs from desktop usability as the small screens make it harder to view the text and graphics used on a PC. Only one page can be displayed at a time (apart from on the iPhone) and people often want the information urgently. Data input methods can be awkward, even on some of the newer devices.

Initially, a design of how the pages should look should be put together based on brand guidelines and appreciation of the limitations of screen size. Identification of any technical constraints in the information architecture should be taken into account and usability undertaken with end users.

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Here are some examples of mobile-‐optimised sites viewed on an iPhone and a Nokia Smartphone.

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Case study for an optimised site: Domino’s Pizza (UK and Ireland)

The new iPhone App is accessed from www.dominos.co.uk or www.dominos.ie and offers all the features of the main site in a bite-‐sized form especially designed for the iPhone. Due to the franchise nature of the operation, it is a browser-‐based iPhone web App instead of a native App, so it is more efficient and cost-‐effective to update the product.

Domino’s iPhone App paid for itself less than a month after launch. Domino’s stores receive hundreds of orders per day from the iPhone platform and has been used by thousands of users.

Domino’s iPhone App has been nominated for a Revolution Best Use of Mobile award and has been shortlisted for an NMA Best Use of Mobile award.

Domino’s Pizza has been working to grow its e-‐commerce sales, leading to a stream of activity where it has also developed ‘the Domino’s Pizza kiosk’ (digital ordering in store via interactive screens), resulting in an overall increase in e-‐commerce sales by 40% (£78.5 million) over a year, reaching almost a third of all sales.

“The 9.8 million downloads of Barclaycard’s Waterslide game App have reportedly translated into 650,000 hours of brand engagement” Supercollider blog 2010.

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4.2 App development You need to have a clear view of who the target audience is and how can you add value to them. Most people regularly use an average of seven Apps. To be one of the ‘golden seven’, an App must be engaging and help the user in their everyday life.

4.2.1 Native App

Description: written specifically for the platform (such as iPhone or BlackBerry). It is installed directly on the phone.

Benefits: like desktop Apps in that they are very responsive to user input. They can take advantage of all the hardware on the phone, such as GPS, camera, advanced graphics cards and Bluetooth®.

Limitations: longest development time of all Apps. For the iPhone, native Apps must be written in Objective-‐C. This is a powerful and flexible language, but it is not fast when programming.

4.2.2 Hybrid App

Description: a native App where some of the screens inside are mobile-‐optimised web pages.

Advantages: use of the App store for distribution, smaller App to launch so quicker to download and less expensive to develop and update.

Limitations: web pages require an internet connection and they will be slightly slower than the rest of the App, depending on the connection speed.

4.2.3 Healthcare Apps for physicians

As of February 2010, there were nearly 6000 health Apps within the Apple App store. Of these, 73% were intended for use by consumers or patients, while 27% were targeted at healthcare professionals (HCPs).

Commonly developed Apps for physicians:

• Drug reference • News alerts • Clinical papers • Diagnostic tools • Continuing medical education • Patient records

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The most downloaded physician Apps are those designed for a US audience across different platforms:

epocrates®: a mobile drug reference resource

Iradiology allows students to review classic radiology cases

Blausen Human Atlas (iPad)

3D figures of human anatomy, a comprehensive medical glossary, over 1000 still images and a library of videos explaining common medical conditions

iPhone version of Merck Manual

Medial encyclopaedia containing diagnostic and therapeutic information

• Well written and using clear and uncluttered information

• Areas extending into statistics, medico-‐legal and medical economics

• Clear internal linking, minimum navigation to reach areas of interest

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Medscape (most downloaded physician App):

• Drug reference and interactions

• Protocols and procedures

• Disease and condition reference

• Medical news

Kraft says that 90% of people who use its App also go on to register at kraftfoods.com. The App is also helping Kraft to reach men. “A strong percentage of iFood Assistant users are men,” Kraft spokesman Basil Maglaris says. “We’re appealing to a broader base of consumers than our traditional audience (of) women”.

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4.2.4 Healthcare Apps for consumers and patients

Commonly developed Apps for consumers and patients:

• Symptom diaries • Compliance assessments • Mobile and home monitoring • Managing illness • Wellness/fitness

As some patients do not like to be reminded about their condition, some Apps are targeted at their caregivers as they can be more receptive.

British Medical Association App on children’s health:

• Symptoms

• Treatments

• Information on common conditions

• Questions to ask your doctor

Drinks tracker (developed by the NHS):

• Calculate units

• Weekly averages

• Personalised feedback

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Case study: Betty Crocker’s mobile cookbook

Users search more than 4000 tried-‐and-‐tested recipes from the Betty Crocker kitchens. The world-‐famous Betty Crocker cookbook can be fully loaded onto the user’s iPad touch or iPhone, so it’s quick and doesn’t require a wireless or 3G connection. Users can search by recipe or ingredients, or be surprised with a random recipe from the cookbook. Recipes include step-‐by-‐step instructions and full nutritional information.

Results

• Consistently ranked in the top 25 of all free lifestyle Apps within the iTunes store

• Nearly 3000 customer reviews of the App

• It was featured in Apple’s December 2009 iPhone TV commercial

• Average user rating: 3.5 stars

• A third of all ratings give the App a full 5-‐star rating

Great success was also seen with the Jamie Oliver App, demonstrating that there is interest in recipes alongside a well-‐known brand.

4.2.5 App marketing

This is an essential part of the programme and is sometimes forgotten. A detailed promotional programme needs to be put together alongside development.

Promotion within the App store cannot be relied on, although Apple does recommend and review high-‐profile Apps. Getting (good) reviews on third-‐party sites is a great way to gain visibility. Luckily, many methods of promotion are free, such as the use of social media, so develop a profile on Twitter and Facebook but ideally reach out to communities that already exist around what your App is about (such as diabetes).

‘Discoverability’ of developed Apps is a real issue made worse by a constant flood of low-‐quality ones, although Apple is set to tackle this. Being in the top 25 listed Apps in a category is key, although challenging, and is affected by many factors outside your control.

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Buying mobile advertising via AdMob from Google can be very effective and was used successfully by Sherwin-‐Williams, a US supplies company who pushed their App from number 70 to number 18 in the utility section through advertising, resulting in a 500% increase in downloads.

4.2.6 Pricing

Most pharma companies provide their Apps for free, although there is significant number of companies outside the industry promoting Apps to physicians and patients for purchase. A common tactic to engage customers is to offer a free ‘lite’ version.

Average prices are dropping in App stores but medical versions hold a higher than average price.

“Audi claims its A4 Driving Challenge game has resulted in about half a million referrals to the A4’s website.”

4.3 Measuring success

4.3.1 Optimised sites

With correct tagging it is possible to tell which customers are viewing your website via a Smartphone and to identify which platform they are using, for example BlackBerry OS. Tracking this data over time will inform your decision on which native Apps you could develop in the future.

4.3.2 Apps

Choose metrics aligned to your objectives. A niche medical App for a neurologist is not going to get the 500,000 downloads like the Audi A4 Driving Challenge.

Are you looking for awareness and campaign support? Downloads are probably your top objective. Are you looking to deepen your relationship with your customers and increase brand affinity? In this case, re-‐usage of the App might be the best choice.

The data you can get for native Apps is richer and you also have the feedback from the App store to give you a quick insight into how well received the product is. This comes in the form of a star rating and you can see users’ comments.

Do your customers like your App? Do they keep coming back to it? Is it shifting perceptions of your brand in a positive way? Is it driving sales? Define what’s important and measure that: don’t get over-‐concerned by downloads alone.

The standard reporting from App stores provides a wealth of information in a dashboard format.

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Example rating from the Apple store

Out of 200 brand Apps, only 15 were rated 4 stars or more. Focus on the actual qualitative feedback, look for ways to continually improve the value of your App and ultimately look at re-‐usage statistics. If people keep coming back, there’s a good chance they like it: only 5% of Apps are still being used after 30 days.

“We understand that the mobile phone has now become a major keystone to any business. Now much more than just a communication device, it’s like a remote control for your business. We still call it a ‘mobile’ from habit, but it is an organiser, entertainment device, payment device and security centre. It can open doors, it can even run your bath” UR Mobile 2011.

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Case study: Novartis launched its Oncology Medical Information website with mobile Apps The Novartis Oncology Medical Information App provides HCPs with accurate, succinct and timely medical information. The site is fully optimised for access using Smartphones. Key features

• Allows HCPs, such as oncologists and haematologists, to view and download the latest standard response documents to many medical enquiries

• A robust search that allows HCPs to easily find the document they are looking for

• Able to email a document to the HCP for further reference directly from your mobile device

• HCPs can also submit a medical enquiry directly to Novartis through the App

At the same time, Novartis made downloadable Apps for iPhone and iPad (ranking 713), Android and BlackBerry.

Results

Rating in Android store of 3.72/5 (18 reviews) and 4.5 in the App store (182 reviews).

Comments include:

“Wants personal info to register, then find out App is only for Novartis drugs. Cannot delete account!

Don't waste your time”

“As an HCP, it allows me to find the information very quickly”

“This App would be a template for other drug companies thinking of leveraging mobile technology.

Well done, Novartis”

“Rapid growth: by 2013, mobile phones will overtake PCs as the most common web access device worldwide” Optimized mobile websites 2011.

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5. Summary

The mobile web cannot be ignored and companies need to act now and develop a robust mobile strategy and not just as an add on to the existing Internet one.

It is important to connect to and integrate mobile with existing channels to secure a seamless experience for customers across all touch points and interactions.

Create mobile websites that serve the needs of the majority of your customers and then build applications strategically to provide services to enhance the customer experience with your brand/company.

Optimise all active web sites so they can be viewed via smartphones, concentrating on area’s of greatest use and those involving data input.

Compared to the market as a whole, pharma has been slow to embrace the explosion in mobile use. This in itself provides innovative companies the opportunity to take a lead.

mobile opportunities for pharma

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