Pharma is rapidly redeploying its commercial and medical affairs budget to digital engagement and the opportunities it offers to reach customers. Over half of commercial spend is already now in digital and this is expected to increase to 75% by 2025.
This evolution towards digital engagement has created a conundrum for the sector: with so many competing priorities and pressures, is the budget being spent in the right way? Furthermore, the optimism that digital transformation brings also raises questions over whether this increased investment is delivering the right outcomes for both industry and the customer.
On the flipside of cost, digital transformation within the sector has also opened the door for a shift from a product-first to a customer-first strategy based on the evidence that organisations who manage customer experience (CX) achieve greater return on investment.
To understand the value of customer spend, as well as the potential for that spend to generate return on investment, we need to be able to measure and evaluate the quality of the activity.
To date, the CX metrics used to track customer experience activities include Net Promoter Scores (NPS), Customer Effort Scores (CES), and Customer Satisfaction Scores (CSAT). While they can provide helpful insights for decision-making, they have some limitations, in that they mainly focus on discreet moments in the customer journey and reflect how the customer thinks and feels about a specific activity, rather than the overall relationship.
For more information on these CX metrics I recommend you read the Second Opinion publication on PEN's Customer Experience Measurement Framework.
What might it look like to include a measurement that also looks at the value over the entire relationship the customer has with the organisation? Moving past more traditional measures of value, we are strong supporters of the use of ‘customer lifetime value’ (LTV) to better inform investment decisions.