Like any effective illness diagnosis, key performance indicators that can help identify symptoms are critical. In Pharma businesses, these symptoms are the Closed-loop Marketing (CLM) metrics and measuring ROI. Identifying these metrics is the first step towards mitigating medication errors and improving customer experiences.
In your Closed-Loop Marketing (CLM) efforts, the symptoms to look out for are market share, customer satisfaction, sales revenue growth, return on investment, and so on. These metrics are borderline determinants and critical performance indicators of how successful your marketing efforts are and a pointer to the areas where you need to do better.
Your ability to understand and identify these metrics will determine how much more of a success you can make your closed-loop marketing effort. This article may be the eye-opener you need. Please keep reading to discover how to measure your pharmaceutical KPIs and modify them for an increased ROI in Pharma.
Why Big Pharma Should Choose Closed-Loop Marketing
As far as Pharmaceutical manufacturing and marketing is concerned, there’s been over a decade of decline in the efficiency of the traditional Pharma marketing approach. It faced challenges like reduced access to physicians, reduced efficiency of conventional sales force strategies, and constantly changing stakeholder preferences.
The recurring theme was the need for an effective marketing strategy that was more customer-centric. Closed-loop marketing (CLM) emerged as the response to these prevailing Pharma marketing needs.
Simply by incorporating real-time consumer insight and other digital marketing metrics, Platforce CLM is a better-focused marketing campaign strategy that tracks and analyzes customer complaints and behaviour. It then uses the information to personalize unique user experiences based on customers’ preferences.
What’s Closed-loop Marketing?
For pharmaceutical companies focusing on patients, CLM is the tool that bridges the gap between healthcare professionals and those they serve. Interactive platforms enable patients to invest actively in their recovery processes and healthy care journey.
Closed-loop marketing (CLM) helps pharmaceutical companies track the buyer’s life cycle. By continuously gathering and analyzing data from real-time experience and customer interaction, pharmaceutical companies can gain the insight they need to make informed decisions on quality control that fulfils the needs of their customers.
12 Major Pharmaceutical KPIs and CLM Metrics that Affect Campaign Results
Although Closed-Loop Marketing might sound demanding, it’s not. Instead, it’s a process that helps pharmaceutical companies identify essential KPIs and other metrics from analysis of customer interactions.
The data collected from these key performance indicators (KPIs) are used to assess performance and improve quality and competitive advantages in the market. KPI helps pharmaceutical companies achieve their marketing and cash flow objectives.
Many CLM metrics exist in regular marketing campaigns that would not have any efficiency in Pharma. This makes following KPIs very difficult and almost impossible. To help you identify and implement the right KPIs, here are the CLM KPIs your pharmaceutical company should be focused on:
1. Physician Awareness
Clinical trials are no jokes. In 2023, pharmaceutical companies that tried their new drugs had a success rate of less than 8%. As a result, many pharmaceutical companies put a lot of effort into ensuring their new drugs have successfully passed clinical trials.
But it’s all for nothing if there’s zero market anticipation for the drug. Metrics like physician awareness help you Measure how many healthcare providers are aware of the new drug after your CLM campaign. This data enables you to build a unique buyer persona of your target market and helps you create a marketing strategy that onboards physicians who clamour for your new drug.
2. Time to Market
Time to market can be a relevant KPI metric for Closed-Loop Marketing (CLM) in the pharmaceutical industry, but it may not be the primary or most critical metric.
Time to market is a relevant KPI for Closed-Loop Marketing (CLM) in pharmaceuticals, measuring how quickly campaigns launch. While it offers advantages like a competitive edge and adaptability, it should be part of a broader set of KPIs.
Effectiveness, compliance, and patience are the central focus for a comprehensive evaluation of CLM campaigns.
3. Manufacturing Efficiency
Like every metric we’ve mentioned, manufacturing efficiency isn’t one of the KPIs you’d track in traditional CLM metrics. But it contributes to your marketing efforts and results as a pharmaceutical company. However, manufacturing efficiency is more of an essential metric for a pharmaceutical company’s overall operations and manufacturing equipment.
It’s not a directly usable Key Performance Indicator (KPI) for Closed-Loop Marketing (CLM), mainly since CLM primarily focuses on marketing and sales-related metrics rather than operational or manufacturing aspects. However, it still can affect the product availability and pricing.
3. Conversion Rate
To improve the efficiency of your CLM, the conversion rate is a metric you must track. It provides valuable insights into the success rate of your CLM strategy and helps you track how well they influence healthcare decisions.
A higher conversion rate implies that your CLM strategy successfully influences healthcare decisions.
4. Engagement Metrics
Metrics like click-through rates (CTR), open rates, and time spent interacting with your content reflect how engaged your audience is. A high engagement rate suggests that your content is resonating with healthcare providers, which can lead to better conversion rates and increase the efficiency of your campaign outcomes.
5. Compliance and Adherence
This is more like safety KPIs as it ensures that healthcare professionals comply with recommended treatment plans and prescriptions, which is crucial in pharmaceutical marketing. Big Pharma needs this KPI to eradicate non-compliance with the prescriptions filled. Monitoring KPIs related to compliance and adherence can help gauge the effectiveness of your campaign in improving patient outcomes.
6. Return on Investment (ROI)
Pharmaceutical CLM campaigns require significant financial resources. Measuring ROI helps determine if the campaign generates enough revenue to justify the investment. It’s essential to track sales growth, revenue generated, and cost per conversion to assess ROI accurately.
7. Customer Lifetime Value (CLV)
CLV is especially relevant in the pharmaceutical industry, focusing on the long-term relationship between the company and healthcare providers. High CLV indicates that your CLM campaign is attracting new customers and retaining them.
8. Data Quality and Accuracy
In pharmaceutical marketing, data integrity is paramount. Ensure that KPIs related to data accuracy and quality are met to avoid targeting the wrong audience or making critical decisions based on flawed data.
9. Compliance and Regulatory Metrics
Pharmaceutical companies must adhere to strict regulations. KPIs related to compliance with industry guidelines and regulations, such as FDA guidelines, are vital to avoid legal issues and maintain a positive brand image.
10. Customer Feedback and Satisfaction
Feedback from healthcare providers is invaluable. Monitor KPIs related to customer satisfaction, gather feedback, and improve your CLM campaigns based on their input.
11. Competitive Benchmarking
Compare your KPIs with industry benchmarks and competitors to gain insights into your campaign’s relative performance. This can help identify areas where you may need to improve.
12. Market Share and Share of Voice
Monitor your pharmaceutical product’s market share and your share of voice in the industry. These KPIs can provide a broader perspective on your campaign’s impact within the pharmaceutical landscape.
The Roles of Technology in Tracking KPIs
In today’s data-driven world, Key Performance Indicators (KPIs) are the guiding stars for the pharmaceutical industry and organizations. They provide valuable insights into performance, helping the pharmacy make informed decisions that drive success and contribute to their net profit. However, the complexity and volume of data tracking KPIs can only be overwhelming with the right technology solutions.
These technologies play a crucial role in the implementation of data within the production process and Closed-Loop Marketing campaigns. Some of their functions include:
Data Collection and Integration
Technology is the foundation for collecting and integrating data from various sources within your marketing campaigns. Whether it’s sales figures, website analytics, equipment effectiveness, customer feedback, or operational metrics, technology allows businesses to aggregate and centralize these data points.
Advanced data integration tools help ensure the information is up-to-date and consistent, providing a comprehensive view of performance.
One of the significant advantages of technology in tracking KPIs is the ability to monitor performance in real time. Dashboards and reporting tools can display KPIs visually intuitively, enabling stakeholders to access critical data instantly. This real-time visibility allows for proactive decision-making and rapid responses to changing circumstances.
Automation of Reporting
Gone are the days of manually compiling spreadsheets and reports. Technology automates the process of generating KPI reports, saving time and reducing the risk of errors. Automated reporting ensures that KPI data is consistently and accurately presented, facilitating more meaningful analysis.
Customization and Personalization
Not all KPIs are created equal, and technology allows for customization. Businesses can tailor their KPI tracking systems to align with their goals and objectives. This customization ensures the tracked KPIs are directly relevant to the organization’s success.
As organizations grow, their KPI tracking needs to evolve. Technology solutions can scale with the business, accommodating increasing data volumes and more complex analytics requirements. This scalability ensures that KPI tracking remains practical and relevant in the long term.
Closed-loop marketing has been a groundbreaking marketing campaign solution, and its adoption by reputable pharmaceutical businesses is celebrated for the improved efficiency and effortlessness it brings to marketing campaigns.
For many pharmaceutical manufacturing industries, making the most out of it requires a strategic approach that involves understanding the metrics and KPIs that can directly affect the use of your products.
With the invention of technologies like Platforce, it’s now easier for any pharmaceutical business to track invaluable KPIs and integrate them to give them a competitive edge in the market.