Friday, September 6, 2013

A New Approach to Measuring ROI

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Today's guest post comes from Megan Kearney, Marketing Associate at TrialCard. She has worked for TrialCard for almost a decade years. In that time, she has held multiple positions starting as a Call Center Representative, then Project Manager, then Executive Project Manager and now Marketing Associate.

For many years, there has been a surprisingly low level of activity related to the demonstration of the return on investment of copay programs, voucher programs, and the like. To some degree, this was probably because the answer seemed axiomatic: “Of course these programs generate ROI because more prescriptions are being written.” On its face, this is correct, but is it the right question? In order to evaluate a promotion such as a copay card fairly, TrialCard invested in key measures that consider a set of related, but distinct measures including spillover prescribing (also known as the “halo effect”) and its opposite, cannibalization; the velocity of the uptake of redemptions, the effectiveness of the offer, and the change in patient persistency. We recognize that none of these measures are particularly easy to assess without having a sophisticated analytic structure. We provide our clients the assurance that their promotions are generating positive returns. How do we do this? We take a three step approach. The first step in this process is to measure the specific financial impact of a campaign. We believe the focus cannot solely reside on the number of redemptions, prescribers, etc.

TrialCard measures the incremental benefit of our programs over the appropriate baseline and its fundamental benefit: the number of unsubsidized prescriptions that the physician’s redemptions created – or prescriber spillover. The second arrow in TrialCard’s analytic quiver is our ability to model the optimal prescribers to engage in a campaign. We have built predictive models and clusters that allow brand teams to populate their analysis with the right mix of prescribers so that they can achieve their brand growth goals as cost-effectively as possible. The final piece of the puzzle relates to the tuning of the copay offer itself. TrialCard views the shaping of the offer as being influenced by a range of measures outside of the surface ones (i.e. benefit limits, number of uses, dollar buydown, etc.). By looking at the data from different angles, we create various “scenarios” for the brand teams to review in order to settle upon the right levels and right type of offers to provide. As copay programs continue to evolve, the need to increase the analytic sophistication of these solutions will also increase. That said, the first step is to build proof that demonstrates the financial effectiveness of campaigns. TrialCard is a known leader in innovative and customized solutions. Our eight patented solutions have redefined how pharmaceutical companies gain access, acquisition and adherence for their brands. Join us on Sept 17th at the ePharma Summit West for the panel discussion to learn more about the importance of our data analytics. Our West Coast Sales Director, Sanjeev Ganatra, will be on the panel and ready to answer your questions.
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