32 Ma r ch 20 08 VIEW on Advertising ROI E verybody eagerly wants ROI. And, everybody eagerly wants to deliver it. Many people will even go so far as to boldly “guaran tee” it. Everybody throws the concept of return on investment (ROI) around with an air of confidence that we really know what it is all about. So when it comes to the marketing, communication, and advertising budgets, why can’t anyone, and I repeat, anyone, figure out how to truly quantify the ROI for the marketing dollars spent? The reason is because convincing customers to use your products is not and never will be an exact science. Economic formulas and equations and actuarial tables don’t apply. Advertising isn’t the insurance business. Demanding results from a commu nication mix is reasonable. Demanding ROI in its purest form — how much each dollar invested in communication returns in sales — is nothing more than a crapshoot.There it is. Sacrilege, some might say. But true nonetheless. Theory vs. Reality On a pure science basis — theoretically — marketers would need to control every single parameter of exposure to their products and mes sages to truly equate any type of economic relationship. In the healthcare communication world we live in — reality — this is virtually impossible to do. Why? Well, to start with, there’s clinical exposure to therapeutic areas and treatments that clinicians will have regardless of any concerted sales and marketing efforts put forth.Training, residency, schooling, all bring per ceptions and biases that affect every product and their competition before marketers even say anything about their products. And then there is the barrage of information and persuasion commu nicated to customers: sales efforts, medical education, formularies, col leagues and peers, clinical journals, practice journals, symposia and seminars, patient experiences, staff influence, etc. All of these influences and we haven’t even gotten to a tactical market ing program yet: DTC campaigns, relationship marketing, Edetailing, dinner programs, office tools — the list can go on and on and on, and usually does. It is the sum of these parts though, all the parts, that makes for truly effective and impactful communications. Trying to isolate one influence from the rest, one vehicle from the entire communication mix, to prove the worth of the investment is where the problems begin. There are no Guarantees Some of the smartest programs executed have trackability built in G&A HEALTHCARE COMMUNICATIONS is a fullservice agency providing strategic expertise and creative execution across the entire communication spectrum.We enjoy longstanding relationships with our clients because we think, we explore, and we deliver based on their needs rather than our own agenda. The Elusive, Impossible Quest for True ROI Let your marketing/advertising/communication programs off the ROI hook. Define and demand reasonable, measurable results that indicate the communication is working. throughout every step of the communication, including purchasing, Rx gen eration, or dispensing actions. But does that make this an exact science that can be modelled and duplicated with guaranteed results? Of course not. For example, thousands of people can be driven to a Web site where they could locate a physician in their immediate area to discuss a new treat ment option.The site can even provide driving directions and an incentive to visit that physician. But this is where the perfect science falls short. Human nature kicks in. Does the person act on this information? And if they do, do logistics or life get in the way? Is the person right for this treatment once he or she is seen by the clinician? Does the clinician choose an alternative treatment — a competitive option or perhaps another course of therapy? What about all of those other influences on the physician already discussed? We assume the deal is closed.We hope the outcome is what we desire. We expect sales will be impacted. But that is about as far as we can go. The same holds true for the billions of dollars spent on DTC today. It seems like everybody’s doing it, so it must be effective right? We’ve all seen, read, and participated in both sides of the debate. But in the end, who knows what the true ROI is on those billions. And that’s okay. Who said there has to be an ROI anyway? Public rela tions is critical and important, but we can’t even begin to produce ROI. Exhibit space ROI? Good luck. What’s the ROI on the company cars reps drive around? The pens they distribute? You know the “results” of each ter ritory, but there is certainly a constellation of influences that generate those results, good and bad. Let ROI off the Hook So let your marketing/advertising/communication programs off the ROI hook. Expect excellence in how your programs communicate your strate gy and your product’s unique selling proposition. Define and demand rea sonable, measurable results that indicate the communication is working: Web traffic, coupon redemption, audience response, calls taken, etc. They are all measurable parameters to gauge how well the communication is driving someone to take action. Define your expectations. Measure their impact based on those expec tations. But don’t burden your programs with the demands of ROI that are impossible to prove. And more importantly, don’t let the myth of having to unequivocally prove ROI stop you from trying innovative communication vehicles that can generate excellent results and ultimately, sales. # Joseph Kuchta, President G&A Healthcare Communications 0308 PVV VIEW Layout FINAL 3/18/08 4:18 PM Page 32 2008 Goble & Associates, Inc. Allergy testing that’s smiles ahead. Creating smiles is what we do. Just ask our clients. Go ahead. Send them an email. They’ll tell you how much they love their new primary care campaign for allergy diagnosis. And how we’ve been making them smile for years. If you’re not smiling enough with your agency, call Joe Kuchta at 3128031900 or visit gobleassoc.com. Steve Trebing Director, Marketing and Sales Support Phadia [email protected] Dennie Kane Vice President, US Sales and Marketing Phadia [email protected] GA1924_DENNY_STEVE_PharmaAd.indd 1 2/27/08 4:44:25 PM
An article from
The Elusive, Impossible Quest for True ROI
Filed Under:
Commercialization