Copay cards - follow the money

Co-pay cards are an often used tactic to encourage patients to try a new branded medication that is prescribed by their physician, eliminating the concern for an expensive co-payment that can come with a Tier 3 drug. In CRM terms, they are used as a conversion tactic, and can even be the gateway to an adherence program.

Here is another perspective on co-pay cards:

In a very interesting article and interview in MMM, the Pharmaceutical Care Management Association is cited in an estimation of how much additional cost must be reimbursed because of the use of copay cards: $32 billion over the next ten years. In addition, the PCMA clarifies who is paying for those costs: employers, unions, and state employee plans. As well as taxpayers.

In other words, someone has to pay the insurance companies the money they expected in their copayments. Some is borne by the phramaceutical manufacturers, but some is also paid for by those who contractwith the insurers, like employers et al. The details of this analysis are not crystal clear, but it most likley is based on the missed savings that would come from generic usage. In any regard, this is a thought provoking total.

Want to read more about the perspective of the PCMA?: Browse their website, or a research report (by Visante) about their planned drug cost savings over the next 10 years.

Consumer Youtube channels -- various industries

I've been reviewing YouTube channels of various companies and industries that need to reach consumers. I'm looking for inspirations particularly outside of traditional pharmaceuticals, to industries where consumers need information on how to use products, before making a purchase decision: consider automobiles, cosmetics, and consumer electronics.

The spectrum of channels seems to range from advertising outposts to true peer to peer experiences. At the one end, Honda channels are predominantly commercials, and a few public service corporate videos. Apple's channel is in between in that it delivers instructional videos, but they are delivered in the official corporate messaging and video quality: see this iPad2 video on Apple channel.

Two companies for me have channels exemplifying more of the peer to peer, instructional nature taht consumers in the acquisition stage of CRM really need: http://www.blogger.com/img/blank.gifthey must understand how to use the product. See for example The Mercedes channel, with sample start ups. Video quality less slick but authentic, nad I learn something about the dashboards, engine noise, etc. Then there is Destination Beauty by L'Oreal Paris. Sure, cosmetics firms make plenty of slick commercials with movie stars. But rather than show those, this YouTube portal is a series of tutorial videos by consumer-friendly "artists" that present peer to peer instructions on hos to use the products for face, or hair.

The more authentic, and the more helpful, the YouTube videos, the more influential on CRM conversion they will be.

Boomers and Conversion to Product

Medical Marketing and Media cited an interesting study by agency GSW Worldwide's Pink Tank unit about how 44% of female baby boomers do further research before going to the pharmacy to fill a medication already prescribed. Various sources are enumerated, including online drug background, cost, and consultation with friends.

The background cited refers to the begrudging attitude of these "KaBoomer" women who are indeed taking more medication than their parents did at this age, yet they are not pleased with taking so much medication, and are skeptical.

This added need to perform research presents a potential risk that patients in this demographic will not fill the medications they are prescribed by their physicians. It is another hurdle that could lower the conversion rate, and health outcomes.

What does this mean in terms of consumer relationship marketing? An extra critical step must be planned for between physicians writing Rx and the Rx getting filled. Manufacturers must provide the right information, across multiple forums: in-office materials, online websites, search engines, and social media. Trusted medical portals, associations and consumer advocacy groups should also clearly explain the benefits of medications as prescribed.

How about a patient starter kit directing to these sources to answer any questions? Could there be opportunities to test call centers supplying information, especially after new product launches to baby boomer categories.

The channels can be tested as part of CRM roll-out for response rate and utilization. But no question, the conversion step needs to be a bit more complex here.

Coming down to the wire - finishing it off

June, 2010 is an interesting confluence of several factors all dealing with "coming to the finish line." The kids finishing school, the little league heading toward the playoffs, my book deadline imminent. Even the just completed Belmont Stakes horse race has its finish line. Plus I'm involved with multiple relationship marketing projects due to rollout within a month. These are all examples of homestretch, approaching a deadline.

When this happens, it is always a mix of emotions:

* desperation to get the project finished

* intensive, often late night work, to meet the delivery time.

* a thrill that the moment of truth is arriving.

Just as with patient conversion in CRM, do not presume that once the Rx is given that it will actually be filled (payer issues must be managed), and even if filled, that the drug will be taken (instructions and support are needed for adherence). The optimal patient experience must include the finish line.

Yet one thing is very important, at the finish line, not to let up on quality, not to forget the details. Otherwise, the competition may come back and pass you as you aim to cross the finish line. My son reminded me that come from behind victories happens in every horse race. Indeed the lead horse must stay vigilant.

How does your organization prepare for the big conclusion at a deadline?

How do you strike the proper balance between eagerness to complete, while still maintaining high quality?