Differentiation in a crowded marketplace: the future of the pharmacist

NGP. What trends are you seeing in the pharma industry?

LS. With an ageing population and medical advancements in the industry, the pharmaceutical sector continues to grow. Our research has shown that 73 percent of Americans filled a prescription in the last 12 months, which demonstrates the industry’s resilience and potential for future growth. Unsurprisingly, the need for prescription drugs increases with age, with 90 percent of respondents over the age of 65 filling a prescription compared with only 38 percent of 18-24 year olds.

The re-emergence of the pharmacist as a valuable source of advice looks set to continue as customers recognize the value of the face time that they have with these specialists in comparison with so many other automated day-to-day services. That said I do believe that over time we will see an automation of some aspects of the experience, be it ordering a drug online, or the dispensation of completed prescriptions.

As the industry continues to move on due to technological advancements, I also believe we will see an increased focus placed on customer service. Many companies in both the pharmaceutical space and the wider business world are looking to create a hassle free service for their customers and are relying on innovation to do so.

I expect to see a continued, if not greater, focus on advertising and more subtle forms of communication such as public relations, as a means of differentiation.

NGP. How do you expect customer service to evolve in this industry and how can companies use customer service as a differentiating factor?

LS. As with all industries, customer service is seen as a key to success. I feel that customer service will become much more of a focal point for both the larger pharmaceutical companies and individual pharmacists as more players enter the market. Our research shows that customers already regard the role of the pharmacist as a service position, with 82 percent of respondents relying on them to offer guidance and 89 percent to fill prescriptions. What’s more, respondents also used the pharmacist to act as a liaison between themselves and their physician to determine the best drug for their condition (53 percent).

For pharmaceutical companies, differentiation can be achieved in a number of ways. However, customer service will have the greatest impact in the long term. A happy customer is a customer who will return time and time again. My experience and research in this field has shown that outstanding customer service builds loyalty, which in turn builds a level of trust that will encourage repeat business.

NGP. Turning to the customer facing side of drug dispensing, what do you think the future holds for the pharmacist?

LS. The role of the pharmacist varies depending on the age of the customer. Although the majority of Americans believe there has been no change in their interaction with their local pharmacist (53 percent), 40 percent of 18-24 year olds believe they deal with them much less frequently than in the past.

Interestingly however, our research shows that it is this age group that is most likely to display the greatest change in levels of interaction over the next two years, with 33 percent expecting to increase face time with their pharmacist.

I expect to see the tech generation embrace the introduction of self service to the process of drug dispensing, but anticipate that they will change the way in which they communicate with their pharmacist from a simply transactional relationship to one that is more focused on guidance and advice.

NGP. Many pharma companies are investing big money in differentiating their products through advertising. Are you seeing trends to suggest that this approach works?

LS. The jury remains out on the value of advertising. Our research demonstrates that while 73 percent of respondents had seen or heard advertisements for branded drugs, only 17 percent had actually sought specific information about a drug as a result of the advertisement.

Television (96 percent) and magazine advertisements (57 percent) are typically the most recognized form of advertising, however increasingly the doctor’s office has become an effective space for raising awareness of branded drugs.

I think that advertising will continue to play a large role in the promotion of branded drugs. However, I also expect to see an increase in the use of more subliminal methods of communication such as public relations.

NGP. Self-service is a way of life in many different industries. Do you see this as a growth area for pharmacists?

LS. Technology continues to advance at an alarming pace, and as with all industries, this will have an impact on the processes used in this sector. The level of automation in this industry will very much depend on the customer. While dispensing money automatically is now widely accepted and appreciated, the automatic dispensing of drugs raises a number of ethical and trust questions. Can a machine really get my prescription correct? Who can I ask for help if something goes wrong? Where can I get advice on what drug is best for me?

That said our research shows that although 58 percent of Americans prefer a lot of personal interaction with their pharmacist, 34 percent would prefer a self-service environment where the focus is on convenience. As the world becomes more automated, I expect to see this number increasing; however, I do not anticipate that it will have a negative effect on the role of the pharmacist, as face to face advice and personal interaction will remain vital in the drug selection process. I believe that the automation of certain processes such as prescription drop off and pick up will allow pharmacists to really focus on the guidance part of their role, offering a more effective and convenient service for customers.

BIO

Linda Shea, Senior Vice President and Global Managing Director, Customer Strategies, Opinion Research Corporation provides leadership and direction to the organization’s global focus on customer strategy and management. She has spent the last 24 years helping organizations maximize customer relationships in ways that impact the overall performance of their business. Additionally her experience extends into the spaces of market development and brand/ reputation management.

Shea’s work encompasses the full spectrum of the healthcare space, from development and manufacturing to marketing, distribution and delivery of care.

She speaks at national conferences on a routine basis, has authored numerous articles and is frequently quoted in business and industry publications.