Pharmaceutical companies spend nearly 97 percent of their marketing budgets to capture initial market share.
Since the majority of spend goes towards attracting new consumers, efforts at retaining existing customers are given short shrift, with a paltry three percent of budgets. By focusing exclusively on new customers, companies are missing a valuable opportunity to increase sales and market share.
Pharmaceutical companies can no longer ignore the hidden value available by increasing patient adherence. Today, an estimated 70 percent of patients who begin a Pharmaceutical therapy discontinue it within 1 year, even those with chronic conditions that require ongoing treatment or those taking chemotherapy to prevent cancer recurrence. This costs the global Pharmaceutical Industry an estimated $30 Billion a year.
Put another way, increased adherence for a product with approximately $1 Billion in sales would translate to an additional $30 to $40 Million in annual revenue. In addition, since it costs six times more to attract new patients than to retain current patients, increasing the focus on, and yields from, adherence means additional money saved and earned.
Companies who implement strategies to increase adherence and persistence with their products can better face the numerous challenges in today’s market, and increase their share of profits.
But how does a company even begin? In this report we look at the formidable barriers Pharma companies face in improving adherence, elements of successful adherence programs and methods for ensuring the best ROI.