Online Communication System Links Drug Manufacturers to Patients
For millions of chronic disease sufferers, staying abreast of recent findings on their medical issue has been as challenging as living with the disease itself.
With new medications, treatments and therapies showing up on an almost daily basis, effectively managing a disease has been virtually impossible.
But the Internet seems to be changing all that. People are taking more responsibility for their own health. They are using the Internet to find alternative medications, treatments and practitioners.
In fact, Cyber Dialogue, an Internet customer relationship management company, estimates that more than 25 million, or nearly half of all U.S. adults currently online, use the Internet to access medical information. That number is expected to grow to 88.5 million by 2005.
The health care industry realizes this is happening. And many health care organizations are looking for new ways to get their message on the information superhighway and in front of their target audience.
In particular, pharmaceutical companies are looking to make their presence felt on the Web, as studies reveal its ability to influence consumer behavior far outweighs that of television and print.
& #711; Pharmaceuticals Spend
Millions On Advertising
To influence the market of 34 million adults who request specific prescription medications from their doctors, pharmaceutical companies spent an estimated $915 million on direct-to-consumer advertising in the first half of 1999, reports Cyber Dialogue.
In contrast to the $530 million spent on television ads and the $370 million spent in print, Internet advertising spending totaled an estimated $10 million , accounting for just over 1 percent of total direct-to-consumer outlays.
Surprisingly, an analysis of the return on investment shows a dramatic difference exists in online vs. offline effectiveness.
While drug manufacturers spent $220 on print ads and $197 on TV ads to drive a single specific drug request by a consumer, a meager $14 was spent on the Internet per specific drug request.
So just how are pharmaceutical companies reaching their obviously receptive online audience? Primarily through permission marketing, the growing trend of presenting marketing materials only to those that have granted you the permission to do so.
& #711; Health Groups Enter Into
Permission Marketing Deals
Partnering with health care organizations everywhere, drug manufacturers are entering into these often-considered mutually beneficial relationships.
Here’s how they work: Health care organizations ask their patients if they would like to receive timely, relevant information on a medical issue that concerns them, as an example asthma. The patients that say yes, or otherwise grant their permission to be marketed to, are placed on the asthma mailing list.
Pharmaceutical companies that are looking to market their asthma treatments and therapies then “purchase” this targeted mailing list. They then send informational E-mails on their product or service to the individuals on the list and pay the health care organization as much as $3 per hit in reimbursement.
Under this arrangement, the asthma sufferer receives clear, concise information on a product or service that could help them more effectively manage the disease.
At the same time, the pharmaceutical company is placed directly in front of a captive audience that is genuinely interested in whatever it is that is being marketed.
Finally, the health care organization obtains an additional revenue source, which can be directed toward improving current services and adding new ones.
Permission marketing works because it’s anticipated, personal and relevant. Anticipated because people actually look forward to seeing the information. Personal because the messages are directly related to the individual. Relevant because the marketing is about something the prospect is interested in.
& #711; Participants Assured
Privacy Will Be Protected
Naturally, permission marketing campaigns assure participants complete privacy and anonymity. Promises are made that only specific information, sometimes as basic as name, education level and age, will be distributed.
And, thankfully, consumers today can rest assure that these promises are backed by the federally mandated Health Insurance Portability and Accountability Act (HIPAA). Passed in 1996, HIPAA was designed to protect confidential health care information through improved security standards and federal privacy legislation.
At the core of the new regulations are requirements to systemize, expedite and protect the electronic transfer of health care information.
Those regulations having the most impact on health care include the new standards for the electronic transmission of financial and administrative information, the new standard codes for identifying medical diagnoses and procedures, as well as the numeric identification numbers that have been designated for both provider organizations and employers.
In addition, there are 34 specific security measures that providers must adopt in order to protect patient-identifiable health care information. Also, additional rules exist that specify how and under what circumstances health care information can be used and shared.
& #711; Marketing Strategy Supplies
Demand For More Information
The reality is individuals everywhere want to have more information on health care issues that concern them. Things like permission marketing bring this data to the consumer in a secure, polite, non-threatening manner.
For chronic disease sufferers, who are constantly looking for new ways to manage their ailment more effectively, permission marketing is somewhat heaven sent. It allows them to sit back and let the information come to them, where they can then pick and choose which data is most applicable to their situation.
Soon, with the cooperation of physicians, pharmacists and health care organizations, chronic patients everywhere will have access to the information they to manage their disease.
Arges is CEO of Carlsbad-based eVitals Corp.
