Forrester Research: Forrester Retail Insights Healthcare First Look: Research & Event Highlights From Forrester

 19 April 2005
GigaWorld IT Forum 2005
"The Business Of IT: Visible Process Improvement" is the theme of Forrester's GigaWorld IT Forum 2005, May 2-5, in Dallas. Healthcare's Laura Ramos and Brad Holmes will be in attendance.

Laura Ramos will lead a series of events for a life sciences audience, including an executive exchange roundtable discussion on portals, a portals best practices session, and a lunch on RFID and drug ePedigrees.

For more information about sessions at GigaWorld for pharmaceutical, life sciences, and biotech firms, please email Sara McAulay at
smcaulay@forrester.com.


Upcoming ForrTels
Doctors Say eDetailing's Influence Increases
April 25, 11 a.m. Eastern time

Using data from a recent physician survey, Liz Boehm will report doctors' eDetailing practices and preferences.

Beyond RFID Tags: How Pharma Should Prepare For Drug ePedigree
May 11, 11 a.m. Eastern time

Laura Ramos will discuss how RFID technology will help pharma track drugs through the supply chain and what the next steps are for drug manufacturers.

Register online or call the Client Resource Center at +1 866/FORRESTER to sign up.


Where You Will Find Us
Liz Boehm will be speaking at Dendrite's Patient Brand Loyalty Thought Leadership Conference in Bedminster, N.J., on Wednesday, April 20.

Customer and prospect brand executives and managers will be exposed to industry leaders' thoughts on traditional pharma loyalty plans, patient adherence programs, patient brand loyalty value, and achieving persistence and compliance.


Numbers You Should Know
Five. Of 20 plans that Forrester recently surveyed, only five had deployed any type of contract management application. Also, of the 14 health plan execs we contacted in January 2005, five expect to implement a replacement or additional claims adjudication system.

45%. Of consumers who find plan-related decisions complex, 45% say that unclear medical terminology is a contributor.

13%. Across all prescription products, only 13% of drug takers have ever visited branded drug sites -- which means that 87% haven't.

78%. In 2004, 78% of all US online households were registered to receive at least one marketing email.

63%. Sixty-three percent of physicians working at large, office-based practices or institutions use a handheld in a typical work week.


Hot Off The Presses From Forrester's Healthcare Team
Do Online Tools Help Members Pick A Health Plan? by Katy Henrickson

Kryptiq Automates Plans' Provider Contracts by Katy Henrickson

The Forrester Wave: Healthcare Claims Platforms, Q1 2005 by Eric Brown

Which Rx Takers Visit Rx Sites by Liz Boehm

Pharma's Consumer Email Marketing Repair Kit by Liz Boehm


About Half Of Visitors Think Rx Sites Are A Good Source Of Information
About Half Of Visitors Think Rx Sites Are A Good Source Of Information

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Do Online Tools Help Members Pick A Health Plan?
Forrester's Consumer Technographics data indicates that consumers rank choosing a health plan among the most challenging healthcare decisions they face. Do plans' decision support tools help? Forrester reviewed the features, functions, and usability of seven plan selection tools using our Web Site Review methodology. Most fared well in the basics but lacked provider cost comparison and HSA calculators that would help users understand the financial impact of selecting a consumer-directed product.

Despite state-of-the-art functionality, many plan comparison tools have usability issues. Areas that need improvement include explanations of healthcare jargon, help at key decision points, and logical sequencing. Plans should use Forrester's Scenario Design methodology to refine how their tools help members achieve their goals.


Which Health Plan Cost Comparison Tools Balance Features And Usability? The Forrester Wave: Healthcare Claims Platforms, Q1 2005
Health plans are investing in medical claims processing systems to replace aging legacy systems and support the complexity of new plan designs. We used the Forrester Wave methodology to take a deep dive on six leading claims platform vendors: Amisys Synertech, CSC, EDS, Perot Systems, QCSI, and The TriZetto Group. We evaluated these vendors on the strength of their current offering, strategy, and market presence.

Because the Forrester Wave tool is modifiable, we developed a base analysis and then tweaked the relative importance of various evaluation criteria to reflect the needs of plans responding to CDHP demand. We separately focused on the features that are important to plans pursuing medical management. Readers can download the Forrester Wave tool to further customize the comparative analysis of the six claims platform vendors.

Kryptiq Automates Plans' Provider Contracts
Many plans still struggle with paper processes for managing provider contracts. Payers that automate the creation and management of provider contracts will be able to standardize and analyze their contracts while reducing the amount of paper they process. Kryptiq's Guardian Contract Manager is a strong second-generation tool with context-specific features for plans. Kryptiq's tool has built-in provider rate tables and rules, a range of system integration options, and the capability to manage the contracting process from end to end.

Pharma's Consumer Email Marketing Repair Kit
Email is ubiquitous, inexpensive, interactive, and -- pharma marketing executives hope -- profitable. Fifty-seven percent of pharma execs plan to increase their consumer email marketing spend in 2005. To earn consumers' loyalty via email, pharma must beat consumer skepticism, win precious inbox real estate, and make its messages stand out among a deluge of other emails. How? Pharma must improve its marketing email etiquette around subscription management, sender identification, and value accessibility.

We evaluated nine random pharma email campaigns against Forrester's 10 email best practice criteria. Common mistakes included burying valuable content or calls to action "below the fold," failure to allay consumers' privacy fears with a reiteration of the privacy policy, and placing email opt-in opportunities far from the beaten path on the brand Web site.

Which Rx Takers Visit Rx Sites
Pharma marketers are building branded drug sites, but only 13% of consumers who take prescription medication have ever visited one. Forrester's Consumer Technographics data reveals which drug-taking consumers are going to "drug.com" sites and how they feel about the content to be found there. The glass is half full for pharma marketers hoping to reach the 87% of drug takers who haven't visited a branded drug site. A little awareness goes a long way: Nearly a third of the consumers who hadn't been to a drug site didn't know that they existed. Even consumers who hadn't been to a drug.com site think that the Web is a good place to get drug information: Two-thirds of the respondents who hadn't visited a drug site don't think drug information is too complicated for the Web.

But there is room for improvement. Consumers are still skittish about privacy and need to be reassured. Physician endorsement is a powerful but elusive kudos; informational materials or lists of questions that consumers can use in their checkups help them verify the accuracy of drug.com content. Television advertisements often mention the drug site, but marketers should entice consumers to the Web with details of the information, compliance programs, and decision support tools to be found there.

We are very interested in your feedback on our research. Do you have topics to recommend, data you would like to have, or technologies you want assessed? Drop me a line at bradholmes@forrester.com so we can connect.


Brad Holmes
VP and Research Director,
Healthcare and Life Sciences



Research Referenced In This Issue

Do Online Tools Help Members Pick A Health Plan? (35812)
Healthcare Claims Platform Scorecard Summary: Amisys Synertech (36567)
Healthcare Claims Platform Scorecard Summary: CSC (36568)
Healthcare Claims Platform Scorecard Summary: EDS (36564)
Healthcare Claims Platform Scorecard Summary: Perot Systems (36566)
Healthcare Claims Platform Scorecard Summary: QCSI (36565)
Healthcare Claims Platform Scorecard Summary: The TriZetto Group (36569)
How Good Is Your Email Marketing? (33524)
Kryptiq Automates Plans' Provider Contracts (36664)
Pharma's Consumer Email Marketing Repair Kit (35269)
Scenario Design: A Disciplined Approach To Customer Experience (35020)   
The Forrester Wave™: Healthcare Claims Platforms, Q1 2005 (35273)
Usability Holds Back MD Handheld Usage (36530)
Which Rx Takers Visit Rx Sites (36594)


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