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Case Studies in Patient Incentives

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Overcoming Internal Pressure

A Case Study for Overcoming Internal Sales Department Pressure

Situation:

A top pharma company had a patient incentive offer in market that consisted of physical co-pay cards and on-line discount coupons for their dermatology product  -- both were thought to be performing adequately.

The client had two major issues:

  • Their field sales force was constantly asking for a “deeper discount” that they felt would produce better results.
  • They had a fixed budget which they could not exceed in order to maintain their product’s margin.

Our Solution:

  • We produced a unique analysis using our proprietary “Patient Incentive Optimal Offer Model”.
  • We met with the client to review a series of strategic and tactical brand and market specific questions. We gathered strategic objectives, budget, current brand performance, competitive activity, drop off/written to fill/abandonment rates, incentive program costs and brand financial information as input for the analysis.

Result:

  • We utilized client specific information and combined it with key performance data from their co-pay card vendor to produce a simulation model specific to the client’s brand and market situation.
  • The model performed a side-by-side analysis of the current in-market offer compared with five other offers. These offers were compared on base and incremental sales, profit, ROI (calculated eight different ways), and budgeting estimates by month.
  • The model presented a “mini case study” for each of the scenarios showing all the KPI’s side by side. The simulation capabilities allowed the brand team to run different patient offer scenarios “on-the-fly” and to quickly determine the impact of additional offer variations.
  • The analysis showed the current offer performed well above other offers and produced a high level of incremental volume.
  • The analysis indicated that most other evaluated options exceeded budget, with most not producing the same level of incremental volume as the current offer.
  • The results of the analysis were shared with the field sales force. A business decision was necessary: whether to choose another (deeper discount) offer with commitment to a higher sales goal or keep the current in-market offer and the current sales goal.
  • The client decided to keep the current in-market offer based on the analysis, their understanding of the potential impact of alternate options and their sales force’s hesitancy to increase sales goal.
  • At six months post analysis, co-pay utilization increased 12% with over 75,000 new patients. Over 70% of all prescriptions used a co-pay card.

Timing:

  • We finished the entire analysis in less than two weeks!