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Optimal Offer

optimal-offer

Find the Offer that Best Meets Your Brand Objectives

Many of the major brands in the pharma and life sciences industry are subsidizing their patient’s out of pocket costs with some type of discount program. The number of these programs has tripled in the last 3 years. Co-pay discount cards are the most prevalent type of discounting.

Most brand teams don’t realize the importance of the offer itself and how slight changes in their patient offer can have a major impact on the productivity and profitability of the brand’s performance. Having the right offer and understanding how that offer will impact the patient makes the difference between one that is profitable and one that is not.

The Problems with Current Patient Incentive Offers

Patient incentive programs offering patient discounts on out of pocket costs are looked at as a commodity in the industry.

Many brands know they need these offers but very few brands think strategically about how they are used and how they can be used more efficiently. Many incentive vendors think tactically rather than strategically about their own programs. As a result of the number of different programs available and the complexity of the analysis needed, no one expends resources against forecasting the potential outcomes of different patient incentive offers. And yet, the type of program selected and the offer and frequency of its use can have a major impact on the program’s success.

Millions of dollars are being wasted when:

  • Offers are not matching brand strategies
  • Brands are spending too much on rebate offers when they could have spent less to acquire the same patient
  • Offers are not adjusted to target the optimal incentive for core patients
  • Market testing of different offers has not been conducted

 

How We Help Our Clients Solve This Problem

Alpha 1C has developed a proprietary predictive modeling process to assist brand managers in both evaluating the current, in market incentive programs and in developing the best new programs that would be aligned with the brand’s strategies, budget and profitability goals. Our patient incentive optimal offer modeling process goes beyond any standard built process. The model is the output of  a custom analytics engagement that utilizes our client’s own data which results in a custom model unique to each brand.  If any key data points are not available from our clients, we can provide surrogate data which is either category or industry specific. We work directly with our client’s internal teams every step of the way – typically delivering the model results in just 3 short weeks. The simulation tool is provided to the brand team, allowing them to forecast different offers by varying the frequency and offer details to arrive at the most productive scenario for the brand.