Acquisition vs. Lifetime Value

In our DTC world of U.S. Rx/Biologics, the sales model is based on acquisition not lifetime value (LTV). But LTV, as a business model, is far more relevant to the majority of Rx, and is already embraced by many OTC products. In the post-Reform world, DTC, Social Listening and Insight will feed each other to start to level out the drop-off:

Pharma and many other healthcare related categories lose 50% of their customers in 120 days.

One of the challenges of adherence programs has always been reach and scale. What would it be like to see an entire commercial dedicated to telling people taking a drug to sign up, call or go online to get free support? Spend a little against that and watch your database take off. As a matter of fact, Ally and Chantix do it now, for the most part.

To shift from Acquisition mode to Adherence and LTV is not a one-or-the-other choice; right now it is so lopsided that Adherence is still sitting at the kiddy table. And reality is that given where the Brand is in its Lifecycle, investment and strategies need to deliver against that timing. But the forces that create true change are upon us – from digital adoption to Health Reform to information restrictions. And TV and print DTC driving to an adherence program might be far better for your business, your database, and patients’ lives. DTC surely has grown up.

Full article here