2024 ZS Future of Health ReportOur 6-country survey reveals what people want from healthcare By Bill.
2024-12-24
14页
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1Institutional Research GroupAnalysisPublished on December 16,2024PublishingDesigned by Mara PotterDataCollin Anderson Data AINDUSTRY&TECHNOLOGY RESEARCH2025 Healthcare&Life Sciences OutlookOur analysts outlook on the healthcare market in 2025PitchBook is a Morningstar company providing the most comprehensive,most accurate,and hard-to-find data for professionals doing business in the private markets.Kazi Helal,Ph.D.Senior Analyst,Biotech&Healthcare Aaron DeGagne,CFA Senior Analyst,Healthcare p.2Healthcare&life sciences:Healthcare&life sciences private markets will move toward concentrated deals and funds.p.5Healthcare&life sciences:Healthcare will increase as a share of global PE deal counts,while VC share will hold steady.p.7Healthtech:The aggregate number of healthtech unicorns will decline,driven by greater M&A and IPO activity.p.9Medtech:At least two brain-computer interface startups will record$100 million-plus VC rounds.p.11Pharmatech:The global innovation landscape will be defined by regional specialization and collaborative ecosystems.p.14Biopharma:Demand for strong clinical assets over platform technologies will continue.p.17Analyst Q&A2025 outlooksPitchBook Data,Inc.Nizar Tarhuni Executive Vice President of Research and Market IntelligencePaul Condra Head of Emerging Technology Research22025 Healthcare&Life Sciences OutlookKazi Helal,Ph.D.Senior Analyst,Biotech&HRationaleIn 2025,the healthcare&life sciences VC industry will be defined by fewer but larger deals and funds.Investors will increasingly focus on late-stage,capital-intensive opportunities with strong clinical validation and clearer paths to commercialization,consolidating resources into high-potential ventures.The shift toward concentration in healthcare&life sciences VC is the result of several intersecting historical trends,macroeconomic pressures,and industry dynamics,with the life sciences VC segment leading the way.Historically,life sciences VC investment has been characterized by a broad base of early-stage funding opportunities.However,over the past few years,this model has undergone a significant transformation.During the COVID-19 pandemic,life sciences experienced an unprecedented surge in VC activity,driven by urgent global demand for diagnostics,vaccines,and treatments.Life sciences VC deal count as a share of total VC peaked at 8.2%in Q3 2020,while deal value surged to 17.7%.This represented a high-water mark,as the pandemic fueled investment in biopharma,medtech,and digital health.By Q3 2024,however,deal count declined to 5.6%,and deal value stabilized at 13%.This normalization reflects reduced urgency in pandemic-related investments and increased competition from other high-growth sectors such as AI and fintech.In the broader healthcare context,life sciences accounted for 43.3%of healthcare VC deals at its peak in Q2 2020 before declining to 34.2%by Q3 2024.While deal count declined,life sciences maintained a consistently high share of deal value,stabilizing above 65%.This disparity highlights the capital-intensive nature of biotech and medtech investments,as these sectors require significant funding for advanced research,clinical trials,and manufacturing.Macroeconomic pressures have further accelerated the trend toward fewer but larger deals.Rising interest rates and tighter credit markets have constrained the availability of VC,prompting investors to prioritize de-risked opportunities.Fundraising activity reflects this shift:Life sciences VC fund count dropped from 135 in 2021 to just 22 in 2024,while capital raised declined from$30.8 billion to$11.7 billion over the same period.Similarly,healthcare PE fundraising saw a drop in fund count from 49 in 2021 to 13 in 2024,with capital raised falling from$17.0 billion to$10.7 billion.These declines indicate increased investor selectivity,as capital consolidates into larger,well-capitalized funds targeting late-stage opportunities,with a massive focus on pharma services.The increasing costs of biotech innovation further reinforce this trend.Developing and commercializing new therapies requires significant capital investment,driven by lengthy research&development timelines,regulatory complexities,and manufacturing challenges.Investors are gravitating toward late-stage HEALTHCARE&LIFE SCIENCES Outlook:Healthcare&life sciences private markets will move toward concentrated deals and funds.32025 Healthcare&Life Sciences Outlookcompanies with strong clinical validation,scalable technologies,and a clear path to monetization through licensing or acquisitions.This shift is particularly evident in the rise of average deal sizes,which have increased as funding concentrates on fewer,high-impact opportunities.Despite these challenges,healthcare&life sciences remain a resilient and attractive sector for VC and PE investors,driven by demographic shifts,technological advancements,and the growing need for innovative therapies.Investments in areas such as AI-driven drug discovery,precision medicine,and digital health are likely to dominate,further concentrating activity in the sector.Life sciences VC deals as a share of all VC deal value 10.9.0%0%2%4%6%8%Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q320202021202220232024Source:PitchBook Geography:Global As of September 30,2024Life sciences VC deals as a share of all VC deal count4.9%5.6%0%1%2%3%4%5%6%7%8%9%Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q320202021202220232024Source:PitchBook Geography:Global As of September 30,2024Life sciences VC fundraising activity$6.8$8.9$9.9$9.4$12.2$13.4$18.4$30.8$16.2$18.3$11.73750605675658113592632220142015201620172018201920202021202220232024Capital raised($B)Fund countSource:PitchBook Geography:Global As of September 30,2024Healthcare PE fundraising activity$5.4$3.5$6.2$5.9$8.4$9.5$10.4$17.0$15.0$20.2$10.7191520212827374944331320142015201620172018201920202021202220232024Capital raised($B)Fund countSource:PitchBook Geography:Global As of September 30,202442025 Healthcare&Life Sciences OutlookRisksWhile the trend toward larger,later-stage deals and funds might appear logical,several factors could undermine this prediction for 2025.A rebound in macroeconomic conditions could revive interest in early-stage ventures,countering the current push toward consolidation.Unexpected scientific breakthroughs or emerging technologiesespecially in AI-driven drug discovery or obesity treatmentscould shift capital back into the early pipeline.Regulatory changes that simplify clinical development might further encourage smaller bets.If late-stage investments fail to deliver returns,the industry might revert to nurturing preclinical and Phase 1 projects.Ultimately,renewed interest in earlier ventures could restore a more balanced,innovation-driven,and growth-oriented funding environment.52025 Healthcare&Life Sciences OutlookRationaleIn 2023,healthcares share of global PE deal activity hit a decade-low of 9.4%due to challenges ranging from high labor costs to elevated interest rates.In 2024,however,the sector has shown modest recovery,accounting for 9.9%of global PE transactions as of the third quarter.We predict that healthcares share of PE deal activity will rise further in 2025,though it is unlikely to approach the high of 11.5%from 2018.In healthcare services,we have continued to see strong PE deal activity in the medspa,outpatient mental health,and infusion submarkets,and pharma services PE deal activity has also meaningfully accelerated.A few drivers underlining our prediction for rising healthcare share of PE deal flow are steady and declining interest rates,reduced impact from labor cost inflation,and an incoming US administration likely to be more friendly to PE in healthcare.In VC,we expect healthcares share of global VC deal count to stay about the same;healthcares share was 16.5%in both 2023 and 2024 YTD.Over the past decade,healthcares share of VC deal activity has averaged 16.1%,though this figure is brought up by the 18.2%from 2020driven by one-time COVID-19-pandemic-era market dynamics that are unlikely to be repeated.There is a meaningful number of healthcare startups that last priced in a very different market environment,and venture capitalists may be reluctant to plough more capital into the sector before achieving return on investment from previous deals.Over the past two years,there has been a dearth of VC capital being recycled from M&A and IPO-driven exits,and there may need to be a meaningful pickup in exit activity to justify additional VC allocation to healthcare.Despite a continued tough funding environment in various pockets of VC-backed healthcare,including healthtech and early-stage life sciences,thematic areas such as metabolic health(weight loss)and AI continue to power VC investment in the sector.Still,buoyant public markets,signs of life for the IPO landscape,and AI-driven investment should mostly offset healthcares VC headwinds,leading to our prediction of no changeplus or minus a few basis pointsto healthcares share of global VC funding in 2025.HEALTHCARE&LIFE SCIENCES Outlook:Healthcare will increase as a share of global PE deal counts,while VC share will hold steady.Aaron DeGagne,CFASenior Analyst,H62025 Healthcare&Life Sciences OutlookRisksThe post-pandemic healthcare sector presents distinct challenges for VC and PE investors.The industry continues to face point-solution fatigue,where narrowly focused innovations struggle to sustain investor interest.Industry consolidation has created high barriers to entry,with few new private companies successfully competing against established leaders.In well-funded areas like weight loss drugs,incumbents leverage significant capital advantages to maintain their dominance.Additionally,healthcare PE has faced increasing scrutiny from state and federal authorities,while the underwhelming performance of post-IPO healthtech startups poses a challenge for exit opportunities of VC-and PE-backed firms.These dynamics,coupled with declining interest rates,may prompt investors to shift focus to other sectors such as AI,IT,and real estate,which could capture a larger share of capital in the coming year.2024 outlookHealthcare will decrease as a share of both PE and VC global deal count.OutcomeIn contrast to our prediction heading into 2024 of a decline,healthcare increased as a share of global PE deal activity in 2024,rising to 9.9%from 9.4%the year prior.Buyers and sellers became more optimistic and active in the second half of the year as interest rates and the cost of debt started to descend,and sellers looked to PE buyers to fill the gap left by still-low levels of M&A and public listings.On the VC front,healthcares share of global VC deal flow held steady at 16.5%,about in line with historical norms.There was little change to healthcares share of global activity,as venture funding in the sector has now settled into a new normal after reaching a new high during the pandemic-fueled VC boom in 2020.Healthcare VC deals as a share of all VC deal count16.5.5%0%2%4%6%8 14 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Source:PitchBook Geography:Global As of September 30,2024Healthcare PE deals as a share of all PE deal count(excluding add-ons)9.4%9.9%0%2%4%6%8 1420152016201720182019 2020 2021 2022 2023 2024Source:PitchBook Geography:Global As of September 30,202472025 Healthcare&Life Sciences OutlookHEALTHTECH Outlook:The aggregate number of healthtech unicorns will decline,driven by greater M&A and IPO activity.Aaron DeGagne,CFASenior Analyst,HRationaleThe number of digital health unicorns has held steady at 48 since early 2023,but we expect this to change in 2025 from late-stage startups exiting via both M&A and IPOs.After years of rapid funding and growth,many sector startups have reached maturity,positioning them as attractive targets for strategic buyers or ready candidates for public markets.Consolidation trends in digital health should also drive meaningful M&A activitywe see the digital health subsegments of chronic disease management,digital therapeutics,and personal care management as especially ripe for M&A transactions over the year ahead.At the same time,the IPO pipeline is growing as macroeconomic conditions stabilize and investor sentiment toward digital health improves.Our preliminary data shows that Q3 was the strongest year for funding in digital health since early 2022.Several companies with proven revenue models and scalable platformsparticularly in behavioral health,specialty telehealth,musculoskeletal,and chronic condition managementare poised to go public in the medium term.For example,chronic disease platform Omada Health confidentially filed an S-1 earlier this year,1 and Hinge Health is rumored to have hired bankers in anticipation of filing an S-1 soon.2 Across digital health,our VC Exit Predictor scoring also assigns high IPO probabilities(above 90%)to other notable digital health startups including Oura,Zocdoc,Ro,Headway,and Spring Health.On the other hand,it is possible that rising levels of funding could marginally increase the number of digital health unicorns,but we would bet on exits outpacing new unicorn growth in 2025,considering the robust pipeline of near-IPO-ready startups and the relatively difficult funding market for digital health broadly.Even a small number of IPOs,in combination with some consolidation,could shrink the pool of VC-backed unicorns in the year ahead,especially as VCs push portfolio companies toward exit opportunities in an effort to capture returns after years of substantial capital deployment.We would also expect a handful of late-stage digital health startups to experience closure events in 2025 as these companies near the end of their cash runways and fail to receive follow-on investment.News that primary care startup Forward shut down is one example of a recent“fallen unicorn,”as the startup had raised over$500 million and was previously valued at$1.3 billion when the company raised Series E funding in November 2023.1:“Exclusive:Diabetes Startup Omada Health Has Confidentially Filed Its S-1 To Go Public,”Business Insider,Rebecca Torrence and Ben Bergman,October 2,2024.2:“Exclusive:Physical Therapy Startup Hinge Health Hires Morgan Stanley as It Prepares to Confidentially File Its S-1,”Business Insider,Rebecca Torrence,September 26,2024.82025 Healthcare&Life Sciences OutlookAggregate digital health VC unicorn value and count$13.7$29.7$94.8$113.6$113.8$111.88184047484820202021202220232024YTDAggregate value($B)Company countSource:PitchBook Geography:Global As of September 30,2024 Note:Annual figures are as of January 1.YTD data is as of September 30,2024.RisksStill-high interest rates,some residual uncertainty on inflation,and an ongoing trend of startup companies staying private for longer are all factors that could limit exit activity in 2025.The number of public listings has been below expectations dating back to 2022,and there are few specific events that we could point to in the near term that would drive increased exit activity.And in the US,there is additional uncertainty around the healthcare policy of the incoming Trump administration,which could provide a cooling effect for startups seeking to go public in early 2025.2024 outlookAt least three digital health startups will go public in 2024.OutcomeWe had anticipated the digital health IPO window to disappoint market participants in 2024,and while this thesis bore out,the number of public listings fell short of even our lower expectations.Across all of consumer digital health,only Guangzhou-based chronic disease platform Ark Jianke Group successfully exited via IPOthe company now trades at a valuation of about$1 billion on the Hong Kong Stock Exchange.A slower-than-expected pace of interest rate cuts,startups preferences for private market funding over public capital,and memories of difficult post-IPO performance from public listings in recent years were all factors contributing to the sluggish IPO market in 2024.92025 Healthcare&Life Sciences OutlookMEDTECH Outlook:At least two brain-computer interface startups will record$100 million-plus VC rounds.Aaron DeGagne,CFASenior Analyst,HRationaleInnovation in brain-computer interfaces(BCIs)has been advancing rapidly,and 2024 saw one of the first major exits in the category with Tethers$200 million deal to acquire a majority stake of Blackrock Neurotecha surprising transaction considering Tethers cryptocurrency focus.In 2025,we expect to see two or more startups in the space raise additional VC funding above the$100 million threshold.Leading companies like Neuralink and Synchron have raised substantial funding in previous years and are approaching pivotal stages in their lifecycle with ongoing clinical trials and laying the groundwork for product commercialization.Neuralinks last two VC rounds were well above the$100 million mark,as the startup raised$205.9 million in July 2021 and a$323.2 million Series D in November 2023.Following the two-year pattern for fundraising,it stands to reason that the startup could look to raise another VC round in 2025.Having raised significantly fewer dollars to date,Synchron has still been able to make progress on its development efforts,and the company recently announced positive preliminary results from its six-patient COMMAND study in September 2024.3 Synchron last raised$75 million in December 2022,and given it has been about two years since this last round,the startup appears due to raise additional funding within 2025.Beyond the efforts of the leading startup companies,there are also other market dynamics at play that,in our view,increase the likelihood investors will remain interested in funding emerging BCI technologies.Programs like the Neural Engineering System Design from the Defense Advanced Research Projects Agency have accelerated BCI development,and Big Tech companies including Meta,Alphabet,and Apple are exploring BCI for integration with their augmented reality(AR)and virtual reality ecosystems.BCI VC deal activity by quarter0123456$0$50$100$150$200$250$300$350$400Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q320202021202220232024Deal value($M)Deal countSource:PitchBook Geography:Global As of September 30,20243:“Synchron Announces Positive Results From U.S.COMMAND Study of Endovascular Brain-Computer Interface,”Business Wire,September 30,2024.102025 Healthcare&Life Sciences OutlookRisksThis prediction is highly reliant on the fundraising ambitions of leading VC-backed startups,namely Neuralink and Synchron.If either can extend their cash runways into 2026,then they may not have a need for additional funding in 2025.And it is also within the realm of possibility that one or both could look to exit by IPO in 2025.If a public listing does occur,while this may technically count as a funding event,it would not be an exact match to our prediction.On this point,PitchBooks Exit Predictor assigns Neuralink and Synchron with IPO probability scores of 94%and 42%,respectively.2024 outlookSurgical robotics will continue to be a leading VC categorysurpassing 2023 funding levels.OutcomeAs of the end of 2024s third quarter,the surgical robotics category is not currently on pace to exceed 2023 funding levels.While the category has seen a decent level of funding YTD at over$360 million,the sector has not repeated as a leading investment theme in medtech this year.Quarterly funding can be choppy,and given that long-term dynamics remain strong,we do not have serious concerns about the health of the category from an investment perspective.In fact,in Q3 there were several positive developments in the space,with CMR Surgical and Moon Surgical receiving US Food and Drug Administration(FDA)clearances for their Versius and Maestro systems,respectively,and PROCEPT BioRobotics securing FDA approval to begin a pivotal trial for prostate cancer.Over the past year,startups in the space have been primarily focusing on building and scaling their companies versus fundraising;though going forward,they will eventually need additional VC dollars as funding milestones are met.112025 Healthcare&Life Sciences OutlookPHARMATECH Outlook:The global innovation landscape will be defined by regional specialization and collaborative ecosystems.Kazi Helal,Ph.D.Senior Analyst,Biotech&HRationaleThe biotech and pharma innovation landscape will increasingly be characterized by regional specialization,driving both collaborative opportunities and growing funding gaps for companies that do not align with regional strengths.North America will lead in advanced biologics and AI-driven drug discovery;Europe will focus on sustainable manufacturing and rare diseases;Asia will emphasize generics and biologics manufacturing;while emerging markets prioritize vaccines and digital health.The global pharma industry is increasingly shaped by regional specialization,driven by VC trends that align funding with regional strengths.As a result,companies that do not fit into these emerging specialties are facing greater challenges in accessing capital.This evolution reflects a strategic focus among investors to maximize value by targeting areas where specific regions hold a competitive advantage.However,it also leads to widening funding gaps for those that do not align with these specialized strengths.Historically,North America,particularly the US,has been the epicenter of VC investment in pharmabiopharma and pharmatech verticalsaccounting for over 60%of global deal value since 2020,with its share climbing to 70.8%in 2024.This continued dominance is supported by an ecosystem characterized by cutting-edge academic research,robust National Institutes of Health funding,and strong industry-academia collaborations.The regions focus on AI-driven drug discovery,mRNA technology,and targeted oncology has propelled its innovation capabilities.Policies like the Inflation Reduction Act have further incentivized accelerated development for high-priority therapeutic areas,establishing North America as the leader in early-stage biopharma innovation.Europes pharma VC share reached 18.1%of global deal value in 2024,driven by a growing emphasis on sustainable biomanufacturing practices and policy-driven innovation.Initiatives such as Horizon Europe and the EU Pharmaceutical Strategy have paved the way for advancements in rare diseases and antimicrobial resistance.Moreover,Europe has positioned itself as a leader in sustainability through the adoption of automation and digital twins technologies in biomanufacturing,driving efficiency while addressing environmental concerns.However,the fragmented regulatory landscape has necessitated increased cross-border collaboration,with partnerships among Germany,Switzerland,and the UK proving critical in enhancing competitiveness across clinical trials and biologics manufacturing.The Asia region,while seeing its VC funding share decline to 10.3%in 2024,remains indispensable to the biopharma supply chain.Asias strategic role has shifted toward being the global hub for active pharmaceutical ingredient production,generics,and biosimilars.India,for instance,has leveraged its generics expertise to venture into more complex biologics,such as antibody-drug conjugates,while 122025 Healthcare&Life Sciences Outlookaccelerated regulatory approvals in China and Japan have spurred innovation,particularly in oncology and regenerative medicine.Despite the dip in VC inflows,Asias focus on scaling manufacturing capabilities and maintaining a cost-competitive edge ensures its relevance within the global ecosystem.These trends reveal a distinct shift toward regional specialization,creating a more interconnected yet segmented global pharma landscape.However,this evolution brings challenges,such as potential funding disparities for companies that do not align with regional strengths.The increasing gap between funding rounds,observed particularly in 2024,signals a tightening capital environment for those not operating within the most in-demand specialties.Companies that do not fit into a regions specialization are finding it difficult to secure funding,resulting in a longer wait between financing rounds and potential challenges in maintaining growth momentum.Pharma VC deal value($B)by region$0$10$20$30$40$50$60$70$8020202021202220232024North AmericaEuropeAsiaMiddle EastAfricaOceaniaRest of worldSource:PitchBook Geography:Global As of September 30,2024Median and average time(years)since last biopharma VC round 1.51.21.31.71.91.81.61.71.92.220202021202220232024MedianAverageSource:PitchBook Geography:Global As of September 30,2024RisksWhile regional specialization presents a compelling narrative,several factors could undermine this neat segmentation.Economic or regulatory shifts could disrupt existing regional advantages,encouraging investors to return to more diversified portfolios rather than anchoring to specific hubs.A breakthrough therapy or technology emerging from a nonspecialized region could attract substantial global attention and funding,destabilizing current patterns.Moreover,ongoing geopolitical tensions,supply chain vulnerabilities,and unexpected pandemics may force investors to prioritize flexibility and resilience over specialization,potentially reversing the trend and narrowing the very funding gaps this model was thought to widen.In such scenarios,the anticipated alignment of regional strengths might fracture,making the innovation landscape less predictable and more broadly distributed than this outlook suggests.132025 Healthcare&Life Sciences Outlook2024 outlookThe interval between funding rounds for biopharma companies will lengthen from the baseline set in 2021 by several months.OutcomeThis prediction proved accurate.In 2024,the average time between funding rounds extended from 1.6 years in 2021 to 2.2 years,reflecting a more challenging environment for securing timely follow-on capital.Tighter credit conditions and heightened investor selectivity disproportionately affected smaller early-stage ventures.Concurrently,a shift toward regional specialization,with investors favoring established hubs supported by robust talent pools,further widened funding gaps.As a result,“winners”within each region attracted greater investment,while companies operating outside these focal areas struggled to maintain growth and advance their pipelines.142025 Healthcare&Life Sciences OutlookBIOPHARMA Outlook:Demand for strong clinical assets over platform technologies will continue.Kazi Helal,Ph.D.Senior Analyst,Biotech&HRationaleIn 2025,increased demand for clinical data will continue to drive VC investments toward biopharma companies advancing to mid-and late-stage clinical trials,with obesity and GLP-1 drugs leading the way.The growing importance of robust clinical data in VC investment decisions reflects broader changes in market dynamics,investor priorities,and regulatory expectations.In 2025,venture capitalists are expected to prioritize companies advancing to Phase 2 and beyond.These stages of development offer greater clarity on efficacy,safety,and commercial potential,making them attractive targets for risk-adjusted investments.Historically,the clinical trial stage has played a significant role in determining the size and frequency of biopharma VC investments.From 2020 to 2024,Phase 2 companies consistently captured the highest deal sizes due to the combination of innovation and clinical validation they represent,except in 2023,when obesity deals boosted Phase 1 companies total deal size.While the biotech market faced economic tightening during the 2022-2023 downturn,Phase 2 investments demonstrated resilience,rebounding to$5.2 billion in 2024.This trend highlights the growing reliance on proof-of-concept data to de-risk investments and enhance valuations.Phase 3 assets,on the other hand,saw declining investment levels,dropping from$4.2 billion in 2021 to$1.7 billion in 2024.This decline is attributed to the financial and operational complexities of late-stage trials,underscoring the importance of strong Phase 2 data to attract partnerships or licensing agreements with Big Pharma.Market corrections over the past few years have amplified the emphasis on risk mitigation,steering VC focus away from early-stage assets with limited clinical validation.High failure rates and extended time horizons associated with preclinical and Phase 1 assets have made these investments less attractive.Instead,mid-stage companies,particularly those in Phase 2,have become a focal point.Phase 2 serves as a pivotal inflection point where efficacy and safety data significantly enhance the likelihood of regulatory and commercial success,driving higher valuations and stronger investor interest.Obesity/GLP-1 drugs and AI platforms,however,have emerged as notable exceptions to this trend.The markets reaction to the blockbuster sales of Eli Lillys and Novo Nordisks products has fueled a wave of investor enthusiasm.The GLP-1 drug category,characterized by its copycat nature and reduced clinical complexity compared with novel therapeutic areas,has required less extensive clinical data to instill confidence among venture capitalists.In contrast,while AI platforms have attracted large early-stage investments with concentrated bets without clinical data in companies like Xaira and Generate:Biomedicines,the leading public companies in this space are struggling to demonstrate strong clinical validation of their approaches.152025 Healthcare&Life Sciences OutlookEconomic factors further justify this focus on clinical data.Rising interest rates and tighter capital markets have made access to funding more challenging,compelling venture capitalists to prioritize assets with clearer paths to monetization or Big Pharma acquisition.Companies advancing through mid-stage trials are better positioned to secure licensing deals or acquisitions,offering returns that align with investor expectations in a constrained economic environment.These dynamics suggest that clinical validation will remain a cornerstone of biopharma VC strategy through 2025.Biopharma VC deal value($B)by highest phase$0$2$4$6$8$10$12$14$16$1820202021202220232024Phase 4Phase 3Phase 2Phase 1Source:PitchBook Geography:Global As of September 30,2024Note:Determined as the highest phase of a trial that started prior to the round closing.Data combines trials between phases to the highest phase.Biopharma VC IPO count by highest phase102030405060708020202021202220232024Phase 4Phase 3Phase 2Phase 1None0Source:PitchBook Geography:Global As of September 30,2024Note:Determined as the highest phase of a trial that started prior to the round closing.Data combines trials between phases to the highest phase.RisksWhile the emphasis on late-stage clinical data appears justified,several factors could undermine this trend.Emerging platform technologiesespecially those harnessing generative AImay rapidly mature and produce compelling preclinical results that challenge the notion that robust clinical data is the sole determinant of value.Regulatory environments could evolve,providing faster approval pathways or adaptive trial designs that benefit platform-based models.Additionally,unforeseen scientific breakthroughs,unexpected positive outcomes from early-stage assets,or a surge in strategic partnerships between Big Pharma and platform companies might shift investor sentiment back toward earlier innovation.In such scenarios,a few large,exceptionally well-funded early-stage platform startupssuch as Xaira and Metseracould attract massive deal sizes that,while small in count,significantly influence aggregate market values.This would prompt investors to recognize the untapped long-term growth potential inherent in flexible,scalable platform technologies,ultimately weakening the prevailing demand for strong clinical assets as the only clear path to returns.162025 Healthcare&Life Sciences Outlook2024 outlook Biopharma startups will require more robust clinical validation,such as successful completion of Phase 2 trials,prior to pursuing IPOs,reflecting a shift from trends observed in 2021.Despite challenges in public markets and limited exit opportunities,AI-driven biotech startups will maintain robust growth and high valuations in their early stages.OutcomeThe predictions proved accurate.In 2024,more startups entering IPOs presented data from Phase 2 and Phase 3 trials,underscoring the industrys shift toward stronger clinical validation before going public.This emphasis on advanced-stage results helped attract partnerships with Big Pharma and reassured VC investors looking to de-risk their portfolios.The deal landscape adjusted accordingly,with IPO and M&A activity increasingly tied to positive late-stage clinical data.Meanwhile,early-stage AI-driven biotech companies,particularly those applying generative AI approaches to biologics,maintained high valuations.While still early in their lifecycles,these ventures captured significant investor interest and capital,reflecting sustained confidence in their long-term potential,even amid a challenging public market environment.172025 Healthcare&Life Sciences OutlookWhich subsegment of your coverage is the most underappreciated by investors?MedtechDigital healthBiopharmaPharmatechVision tech is underappreciated,as there is scope for multiple areas of innovation in eye care including disease screening,contact lenses,and cataract surgery.Brain health and mental strength is underappreciatedthere is a growing need for platforms to screen and manage neurological conditions.Oncolytic viruses lack innovation despite successful drugs and large IPOs like CG Oncology.Lab-in-a-box automation:Post-Theranos,tech-enabled contract resource organization(CRO)/health services are seen as high-risk bets.Which incumbent/legacy providers face the most risk of disruption?MedtechDigital healthBiopharmaPharmatechIntuitive Surgical faces disruption risk,as contenders are emerging to challenge Intuitives near-monopoly in soft-tissue robotics.Teladoc Health faces disruption from a crowded telehealth market and heavy reliance on marketing to drive revenue in its cash-pay BetterHelp platform.Traditional drug developers face AI-driven startups partnering with Big Pharma for rapid advancements.China-based outsourcing services:The US BIOSECURE Act threatens their role in US pharma contracting.In your space,which seed-stage startups should Series A investors pay attention to?MedtechDigital healthBiopharmaPharmatechCognixion:developing BCI tech for communication disabilities.Lazarus 3D:inventive 3D-printing approach for pre-operative surgical training.Miga:strong vision to build out a comprehensive consumer-facing heart health platform.Stethophone:novel technology to enable using a smartphone as a medical stethoscope.Incisive Genetics:CRISPR-focused,enabling novel gene-editing targets with full protein delivery.Omios Bio:Innovating novel oncolytic virus tech for immunotherapy to unlock new targets.SiGenex:Lab-in-a-box automation for scalable genetic testing as a tech-enabled service.Novelna:Early-detection liquid biopsy focused on using proteomics,enabling new insights beyond previous genomics/methylation efforts.Analyst Q&A18COPYRIGHT 2024 by PitchBook Data,Inc.All rights reserved.No part of this publication may be reproduced in any form or by any meansgraphic,electronic,or mechanical,including photocopying,recording,taping,and information storage and retrieval systemswithout the express written permission of PitchBook Data,Inc.Contents are based on information from sources believed to be reliable,but accuracy and completeness cannot be guaranteed.Nothing herein should be construed as investment advice,a past,current or future recommendation to buy or sell any security or an offer to sell,or a solicitation of an offer to buy any security.This material does not purport to contain all of the information that a prospective investor may wish to consider and is not to be relied upon as such or used in substitution for the exercise of independent judgment.2025 Healthcare&Life Sciences OutlookWhich Series A companies should Series B and C investors pay attention to?MedtechDigital healthBiopharmaPharmatechAlimetry:creating a new diagnostic category in body surface gastric mapping for GI.Prenuvo:a startup to watch in the fast-growing whole-body scanning market.Stroll:innovative AR approach to neuro-rehabilitation.Jasper:early player in emerging cancer care support category.Faeth Therapeutics:Modulates nutrition to enhance drug efficacy and enable new treatments.Excision BioTherapeutics:Gene-editing solutions targeting infectious diseases.Foresight Diagnostics:Shifting liquid biopsy focus to pharma services beyond early cancer detection.If you were to select only three subsectors(in no particular order)from your coverage to invest in,which subsectors would you choose?MedtechDigital healthBiopharmaPharmatech Cardiovascular Surgical robotics Cancer diagnostics Teletherapy&behavioral health Care&benefits navigation Nutrition and weight loss Obesity-focused therapeutics Oncolytic viruses Novel cell therapy technologies(B-Cell,next gen CAR-T)Automation tech-enabled CRO services Digital twins AI for synthetic data in biologics development Biosimilars CDMO and CMO services in emerging markets
2024-12-24
18页
5星级
ZS portfolio and business development quarterlyBiopharma pipeline and investment trendsBy Cody Power.
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SurveyInnovation in oncology:Accelerating R&D in an evolving landscapeICON report:Innovation in Oncology:Accelerating R&D in an evolving landscapeExecutive summary 03Methodologies 04 Respondent profile summary 05Therapeutic pipeline and approaches 06Therapeutic setting and cancer staging 07Therapeutic approaches 08Key challenges in oncology drug development 09Therapeutic challenges 09Clinical development challenges 11Clinical challenges by stage of development 12Improving drug development 13 Improving oncology drug development by research phase 13Improving oncology drug development mono bination therapy 14Artificial Intelligence(AI)and/or Machine Learning (ML)to support oncology drug development 15Clinical development trends by clinical experience 16Clinical development trends by organisation size®ion 17The future of cancer treatments 19The future use of emerging therapeutic approaches 20The patient impact of emerging therapeutic approaches 20Further reading 21ContentsSurvey report:Innovation in Oncology:Accelerating R&D in an evolving landscape3From mRNA-vaccines and antibody drug conjugates to radionuclide and CAR-NK therapies,the increasing sophistication of emerging modalities has been accompanied by increasingly complex oncology-focused clinical development.To better understand the current state of emergent oncology treatment development,including the associated clinical trial dynamics and challenges,ICON conducted a survey of 104 professionals engaged in oncology drug development,representing organisations ranging from small to large biotech and pharmaceutical companies from North America and Europe.Speaking from a variety of experiences with the oncology drug development pipeline,survey respondents provide insight into the current state of oncology clinical research and where it is likely to go in the future.Explore the results to learn:The current state of the overall oncology drug development pipeline,and where small and large organisations are concentrating their research efforts The most significant challenges and limitations in cancer treatment clinical trials How oncology drug developers are employing AI in their work and where they currently find the most benefit Regional differences in drug development pipelines and clinical study challenges Differences in clinical and non-clinical outlooks for the future of cancer staging and oncology patient outcomesExecutive summaryThe growing understanding of the complexities underlying various types of cancers has led to the discovery of many new biological approaches to cancer treatment.Furthermore,over the last decade,the number of innovative treatment modalities in oncology that have entered clinical trials has risen dramatically.Survey report:Innovation in Oncology:Accelerating R&D in an evolving landscape4OverviewMethodology,data collection and analysis by Citeline on behalf of ICON.Data collected April 19 to May 20,2024.Methodology conforms to accepted marketing research methods,practices and procedures.MethodologyBeginning on April 19,2014,invitations to participate in an online survey were emailed to active users of Citeline.By May 20,2024,Citeline had received 1,497 survey responses.Of those,104 respondents represented small or large pharma/biotech companies,whose roles primarily focus on the therapeutic drug development in oncology and who hold manager or higher positions with in their organisations.The following analyses are based on those 104 respondents.Response motivationTo encourage prompt response an increase the response rate overall,email invitations and survey materials were branded with the Citeline name and logo to capitalise on user affinity for this valued brand.MethodologiesSurvey report:Innovation in Oncology:Accelerating R&D in an evolving landscape5Respondent profile summarySmall pharma/biotech make up the majority(71%)of respondents,and 73%of respondents have a clinical practice.Over half of respondents(54%)hold director-level or higher positions within their organisation.Nearly half of respondents have a job function that includes clinical research(47%).Which of the following best describes your level of seniority?(Please select all that apply)C-SuiteEVP/SVPVPScientistManagerDirectorHead of development13%4%5%4)4se:All respondents(n=104)Which of these responsibilities are included in your job function?(Please select all that apply)Base:All respondents(n=104)Clinical researchClinical operations/DevelopmentClinical safetyComplianceMedical/Medical affairsPreclinical developmentManufacturingDrug discovery/R&DQualityRegulatory affairsData managementPatient recruitmentCommercialisation/Market access38110%#!G%Do you have a clinical practice?73%What type of organisation do you work for?71)%In which region are you primarily based?52Hse:All respondents(n=104)NoYesNorth AmericaEuropeLarge pharma/biotech(1,000 employees)Small pharma/biotech(0-99 employees)Survey report:Innovation in Oncology:Accelerating R&D in an evolving landscape6Therapeutic pipeline and approachesThe most common stage that respondents are currently working in is research and development(40%).The remaining 60%of respondents reported working in pre-clinical research and beyond.Overall,therapeutic pipelines are diverse,with most oncology developers invested in developing multiple different therapeutic approaches,and developing at least one combination therapy.Of the 102 respondents who reported having therapies in development,85%of respondents reported developing multiple therapies and 68%reported developing at least one combination therapy.How many therapeutic approaches do you currently have in clinical development?What stage of research are you in?Research and development41#%Pre-clinicalEarly phase(stage 1 and 2)Late stage(stage 3)Post-market/long-term follow-upBase:All respondents(n=104)Base:All respondents;multiple answers permitted(n=104)Are you developing a monotherapy or a combination therapy?Base:All respondents(n=102)15G8%1 approach2 approaches3 or more approaches46%A monotherapy68%A combination therapySurvey report:Innovation in Oncology:Accelerating R&D in an evolving landscape7Developers are taking diverse approaches to oncology development,with therapeutic approaches distributed in their therapeutic setting and cancer categorisation method.However,very early(preventative setting)and late(metastatic setting)were most common,and the majority of therapeutic approaches(65%)were best suited to a cancer categorisation method that included molecular-genetic classification,indicating a widespread shift away from traditional cancer classification methods.What settings are best suited for your therapy?Base:All therapeutic approaches(n=146).Other:Curative monotherapy For your therapy,what is the most useful method to categorise cancers?Base:All therapeutic approaches(n=146).Other:No commentsConventional pathalogical classification historical type(tissure of origin),primary site,grade,stage132%Both pathological and molecular-genetic classificationMolecular-genetic classificationOther134%Preventative setting1%Metastatic settingNeoadjuvant setting(before surgery)Palliative settingAdjuvant setting27%Other1Therapeutic setting and cancer stagingSurvey report:Innovation in Oncology:Accelerating R&D in an evolving landscape8Survey respondents reported 146 individual therapeutic approaches.Of them,targeted therapies(24%),immunotherapies(23%)and cell and gene therapies(30%)were most common.The most common specific therapeutic approaches included targeted small molecules(29%),mRNA-based cancer vaccines(27%),gene therapy(26%),antibody-drug conjugates(25%)or immunomodulatory cytokines(25%).What high-level therapeutic approach are you taking?23%Immunotherapy240%Targeted therapyCell and gene therapyWhat specific therapies are included in the therapeutic approach?Targeted small molecules25)&%mRNA-based cancer vaccineGene therapyAntibody-drug conjugateImmunomodulatory cytokines27%se:All therapeutic approaches(n=146);multiple answers permittedBase:All therapeutic approaches(n=146);multiple answers permittedTherapeutic approachesTop 3 high-level approachesTop 5 specific therapiesSurvey report:Innovation in Oncology:Accelerating R&D in an evolving landscape9Base:All therapeutic approaches(n=146);multiple answers permittedHarmful or toxic side effectsPredicting patient response (biomarker identification)Limited efficacy in a subset of patientsEfficacy limited to liquid tumoursLow responseHighly localised therapeutic effectsDosage selection difficultyOff-target effects and inflammationPotency control difficultyChallenging delivery system47B8866654S%Which of the following possible disadvantages to your therapeutic approach do you think could limit the therapys utility?Top 10 limitationsKey challenges in oncology drug developmentOf the therapeutic approaches reported,97ced at least one disadvantage that could limit its utility,but the specific limitations were highly distributed.The most commonly cited challenges across all therapeutic approaches included biomarker identification/response prediction(53%),therapeutic toxicity(47%),limited efficacy in a subset of patients(42%)and off-target effects(38%).Therapeutic challengesSurvey report:Innovation in Oncology:Accelerating R&D in an evolving landscape10Base:All therapeutic approaches(n=146).Numbers represent the percent of respondents who reported developing a specific therapeutic approach who reported experiencing a specific limitation to their therapys utility.Which of the following possible disadvantages to your therapeutic approach do you think could limit the therapys utility?Antibody-drug conjugateMonoclonal antibodiesBispecific antibodiesCancer vaccine(not mRNA)mRNA-based cancer vaccineTargeted small moleculesImmunomodulatory cytokinesICI(checkpoint inhibitors)Oncolytic virus therapyCAR-T cell therapyNK cell therapyGene therapyRadiopharmaceuticalLimited to liquid cancersLow responceLow treatmement durabilityImmune system neutralisationLocalised therapeutic effectsSupply chain challengesRetreatment challengesAdministration timing challengesChallenging delivery systemBiomarker indentification/response predictionOral bioavailabilityMetabolic stabilityPrimary cancer resistanceTumour hererogenityRapid drug metabolismDrug drug interactionsPoor drug receptor affinityGenome intergration challengesPatient subset with limited efficacyTumorigenisisOff-target and inflammatory effectsTherapeutic toxicityDosage selection difficultyChallenges assessing clinical effectPotency control difficultyCompared by specific therapeutic approachBut,some therapeutic approaches faced disproportionate challenges with therapeutic utility.For example,challenges predicting patient response were identified for 80%of therapeutic approaches including CAR T cell therapies,and oncolytic virus therapy faced disproportionate challenges with off-target effects(79%),assessment of clinical effect(86%)and with a challenging delivery system(64%).Non-mRNA cancer vaccines,and cell therapies(CAR-T cell and NK cell)faced a similar,disproportionate degree of challenges with localised therapeutic effects and metabolic stability.Survey report:Innovation in Oncology:Accelerating R&D in an evolving landscape11Which of the following clinical trial elements do you find challenging?Phase 327C8%Phase 2Phase 1Discovery/preclinicalPhase 440%5%Regulatory approval and launch Submission/launch prepLifecycle managementClinical development challengesAll respondents(100%)found at least one clinical trial element challenging,even as the specific challenges varied by respondent.Overall,69%of respondents identified phase 2 or 3 as one of the most challenging phases during clinical development.Half cited that identifying and selecting experienced sites was a challenge,and nearly half struggled with managing complex logistics for therapy supply and manufacture.Identifying and selecting experienced trial sites41PA8%Managing complex logistics for therapy supply and manufactureConducting long-term patient follow-up after trialDrawing statistically significant conclusions with small cohortsTransitioning from preclinical to first-in-human trials45se:All respondents(n=104);multiple answers permittedDuring which phases of development do oncology treatments experience the greatest challenges?Base:All respondents(n=104);multiple answers permittedTop 5 challengesSurvey report:Innovation in Oncology:Accelerating R&D in an evolving landscape12Clinical challenges by stage of developmentClinical challenges varied by stage of development.Over half of respondents in pre-clinical development reported difficulty with dose selection.More respondents in early development reported challenges with long-term follow-up,and with managing complex logistics than those in other stages of development.Meanwhile,those in clinical development(phase 1,2,or 3)most often reported facing challenges with site selection.Challenges with patient retention and with drawing statistically significant conclusions from small cohorts were common challenges faced by those in late stage or post-market development.Which of the following clinical trial elements do you find challenging?Base:All therapeutic approaches(n=146).Numbers represent the percent of respondents in a specific stage of development who reported that a specific clinical trial element was challenging.ComparisonR&DPre-clinicalEarly phase(phases 1&2)Late stage(phase 3)Post-marketTransitioning from preclinical to human trials4236461540Scaling from early to late-stage trials3336423820Determining the optimal dosage3757174620Identifying target patients/relevant biomarkers3721334630Determining appropriate inclusion and exclusion criteria3343253130Recruiting diverse patient populations4721381510Patient retention/high dropout rates2843334640Designing sufficiently adaptive trials2636333830Designing long-term clinical trials1929333130Conducting long-term patient follow-up after trial4243463830Protocol deviation3543382330Drawing statistically significant conclusions with small cohorts4729334650Navigating regulatory requirements284333150Managing large volumes of trial data3536421520Identifying and selecting experienced trial sites4936636230Identifying experienced vendors/partners3729422320Managing complex logistics for therapy supply and manufacture4964422340Compared by respondents stage of developmentSurvey report:Innovation in Oncology:Accelerating R&D in an evolving landscape13More than half of respondents in preclinical through late-stage research identified biomarkers as a key area for improvement.Respondents in very early and very late stages of clinical development identified different opportunities for improvement.While respondents in early R&D stages were very diversified in the opportunities they identified for improvement,respondents in post-market stages concentrated their focus on RWD integration,innovative trial designs and more integrated collaboration between investigators,clinicians and partners.Improving drug development Improving oncology drug development by research phaseOverall,respondents identified that oncology drug development could be most improved through the early identification of biomarkers,and particularly the interpretation of predictive biomarkers into clinical development.Additionally,respondents saw opportunities to improve drug development with more innovative clinical trial designs.Base:All respondents(n=104)Predictive biomarkersInnovative clinical trial designsEarly biomarker identification47EAse:All respondents(n=104);Numbers represent the percent of respondents in a stage of development who identified a way to improve oncology R&DWhat are the primary ways that R&D can be improved upon for oncology drug development?What are the primary ways that R&D can be improved upon for oncology drug development?ComparisonR&DPre-clinicalEarly phase (phases 1&2)Late stage(phase 3)Post-marketEarly biomarker identification3750583120Predictive biomarkers4929586220Real-world data(RWD)integration3536253850Innovative clinical trial designs4743334670Integrated collaboration between investigators,clinicians and partners3329292360Implementing advanced technologies(i.e.,AI)3329382340Global collaborations3043333130Patient-centred approaches3743253810Top 3 waysCompared by respondents stage of developmentSurvey report:Innovation in Oncology:Accelerating R&D in an evolving landscape14 Improving oncology drug development mono bination therapyComparisonMonotherapy%Combination therapy%Innovative clinical trial designs5336Early biomarker identification4938Predictive biomarkers4345Patient-centered approaches3436Implementing advanced technologies(i.e.,AI)3829Real-world data(RWD)integration2842Global collaboration2839Integrated collaboration between investigators,clinicians and partners2635Those developing combination therapies are more likely to cite a need for better collaboration between regions and stakeholders,reflecting the many stakeholders involved in combination therapy development.Meanwhile,those developing monotherapies identify innovative clinical trial designs as the primary way to improve drug development.Most respondents agree that there is a need to improve the development and use of biomarkers,regardless of whether they are developing a monotherapy or a combination therapy.What are the primary ways that R&D can be improved upon for oncology drug development?Base:All respondents(n=104);Numbers represent the percent of respondents developing a specific therapeutic approach who identified a way to improve oncology R&DCompared by respondents therapeutic approach(monotherapy or combination therapy)Survey report:Innovation in Oncology:Accelerating R&D in an evolving landscape15Artificial Intelligence(AI)and/or Machine Learning(ML)to support oncology drug developmentTwo-thirds of respondent organisations(67%)presently use AI and/or ML methods to support oncology drug development,with clinical study design and target identification being the most common workflow adoptions.Clinical study design and target identification are also seen areas where AI could most fast-track oncology drug development.Meanwhile biomarker detection/assessment was also seen as a key area that could benefit from AI,but is currently the workflow where AI is most infrequently used.Are you currently using artificial intelligence(AI)and/or machine learning(ML)methods to support oncology drug development at your organisation?Base:All respondents(n=103).Note:Dont know not included(n=1)YesNo33g%Clinical study design58B%Target identification/validation439%Lead discovery388%Dose optimisation396%Hypothesis generation372%Lead optimisation350%Biomarker detection/assessment49%What workflows are you currently supporting with artificial intelligence(AI)/machine learning(ML)methods?(Please select all that apply)In what areas can artificial intelligence(AI)and machine learning(ML)accelerate oncology drug development the most?(Please select 3 areas)Current AI/ML support methodsAI/ML method acceleratorsBase:All respondents who are currently using AI and/or ML methods;multiple answers permitted(n=69)Base:All respondents;three answers permitted(n=104)Survey report:Innovation in Oncology:Accelerating R&D in an evolving landscape16Clinical development trends by clinical experienceOpinions of clinicians and non-clinicians differ significantly regarding the degree to which oncology care and treatment paradigms will shift in the future,as well the extent of improvement todays drug development will have on future patient outcomes.80%of respondents from small organisations have a clinical practice53%of respondents from large organisations have a clinical practiceClinician outlook on standard cancer staging is more favourable than non-clinicians.In the future,I predict most cancer patients will undergo:SurgeryTargeted therapyRadiation or chemotherapyImmuno-therapyCombination treatments27!2%7CW9WD%Significantly more clinicians predict the current standard of care will remain part of oncology care in the future.How hopeful are you about patient outcomes in 10 years?Most non-clinicians(90%)believe patient outcomes will improve moderately to always favourably,versus only 59%of clinicians.Patient outcomes will worsenPatient outcomes will moderately improvePatient outcomes will not changePatient outcomes will have minimal improvement19%7%Patient outcomes will dramatically improve7%0W!)%9%4%4%Patient outcomes will almost always be favorableSmall biotech/pharma is more heavily populated with active clinicians.For your therapy,what is the most useful method to categorise cancers?Conventional pathological classificationBoth pathological and molecular-genetic classificationMolecular-genetic classification18IF96C%ClinicalNon-clinicalClinicalNon-clinicalClinicalNon-clinicalBase:All respondents;three answers permitted(n=104)Base:All respondents(n=104)Base:All respondents(n=104)Base:All respondents(n=104)Survey report:Innovation in Oncology:Accelerating R&D in an evolving landscape17Clinical development trends by organisation size®ionLarge vs small biotech/pharmaOncology clinical development trends varied by organisation size.For instance,small organisations reported developing a disproportionate number of gene therapies,and were much more likely to report challenges with selecting experienced sites and conducting long-term follow-up.Only two of the top five challenges faced by small and large organisations overlapped:managing complex logistics,and transitioning from preclinical to human trials.However,these challenges were more commonly cited by large organisations.Small organisations were much more challenged by identifying experienced sites,and conducting long-term patient follow up.Identifying and selecting experienced trial sitesConducting long-term patient follow-up after trialManaging complex logistics for therapy supply and manufactureTransitioning from preclinical to human trialsManaging complex logistics for therapy supply and manufactureTransitioning from preclinical to human trialsDetermining the optimal dosageProtocol deviationRecruiting diverse patient populationsSmall pharma/biotechLarge pharma/biotechDrawing statistically significant conclusions with small cohorts39WFEA7W777se:All respondents(n=104)Which of the following clinical trial elements do you find challenging?What setting are best suited for your therapy?Small biotech/pharma efforts are highly distributed across settings of therapeutic administration.In contrast,large biotech/pharmas efforts address more of the extremes,targeting either cancer prevention or late stage blockbusters.Preventative setting400%Metastaticsetting43%Neoadjuvant setting(before surgery)23juvant setting13%Palliativesetting3%Curativemonotherapy3%0%Small pharma/biotechLarge pharma/biotechBase:All respondents;multiple answers permitted(n=104)Small pharma/biotechLarge pharma/biotech31B654C000%Targeted small moleculesGene therapyAntibody-drug conjugatemRNA-based cancer vaccineImmunomodulatory cytokinesICI(checkpoint inhibitors)Antibody-drug conjugateImmunomodulatory cytokinesTargeted small moleculesmABs or RadiopharmaceuticalsBase:All respondents(n=104)What specific therapies are you developing?Top 5 therapies in developmentTop 5 challenges in clinical studiesSmall biotech/pharma is more willing to invest in mRNA vaccines and CGT therapies than large organisations,which have prioritised development of targeted and immunotherapies.Survey report:Innovation in Oncology:Accelerating R&D in an evolving landscape18North America(NA)vs Europe(EU)NA and EU showed significant overlap in the most prevalent modalities,although the prioritisation of those treatment approaches varied.EU respondents are more likely to embrace the utility of molecular-genetic classification.In contrast,nearly half of respondents from North America still prefer conventional classifications.North AmericaEuropemRNA-based cancer vaccineAntibody-drug conjugateImmunomodulatory cytokinesTargeted small moleculesICI(checkpoint inhibitors)Targeted small moleculesGene therapyMonoclonal antibodiesImmunomodulatory cytokinesmRNA-based cancer vaccine359777$440se:All respondents(n=104)NA and EU experienced very different sets of challenges in clinical studies.However,respondents from the EU reported fewer challenges overall.On average,of the 17 clinical trial elements provided,respondents from the EU identified 5 as challenging and respondents from NA identified 7 as challenging.Identifying and selecting experienced trial sitesConducting long-term patient follow-up after trialManaging large volumes of trial dataPatient retention/High dropout ratesManaging complex logistics for therapy supply and manufactureDrawing statistically significant conclusions with small cohortsProtocol deviationIdentifying and selecting experienced trial sitesTransitioning from preclinical to human trialsNorth AmericaEurope43aPFD8P8%Identifying experienced vendors/partnersBase:All respondents(n=104)What specific therapies are you developing?Which of the following clinical trial elements do you find challenging?What is the most useful method to categorise cancer?Converted classificationMolecular-genetic classificationBoth46489&V%North AmericaEuropeBase:All respondents(n=104)Top 5 therapies in developmentTop 5 challenges in clinical studiesRegional differences in oncology clinical development included a disproportionate embrace of molecular-genetic cancer classification by EU respondents.EU respondents also more frequently reported developing gene therapies,and that they faced challenges with managing complex logistics more frequently.Survey report:Innovation in Oncology:Accelerating R&D in an evolving landscape19Future of cancer treatmentsMost respondents predict that cancer treatments will be mostly personalised in the future,with combination treatments,targeted therapy and immunotherapy viewed as the leading therapies for future patients to undergo(replacing radiation,chemotherapy and surgery procedures).Base:All respondents;multiple answers permitted(n=104)In the future,I predict MOST cancer patients will undergo:(Please select all that apply)Combination treatments48%Radiation or chemotherapy43%Targeted therapy40%Immuno-therapy25%Surgery29$78%In the future,I predict MOST cancer patients will not undergo:(Please select all that apply)I predict the future of cancer treatment will MOSTLY be:IndividualA combination of the above49$%UniversalPersonalised(by molecular-genetic characteristics,etc.)Base:All respondents(n=104)19!%-12%-13%Will minus will not (%difference)Survey report:Innovation in Oncology:Accelerating R&D in an evolving landscape20The future use of emerging therapeutic approachesWhich of the following therapeutic approaches do you think will be the MOST utilised,and which will be LEAST utilised in 10 years?(Please select 3 approaches)Given the emerging therapeutic approaches in oncology,how hopeful are you about patient outcomes in 10 years compared to today?Base:All respondents(n=104);three answers permitted for each prediction4214 3)1(!H$!4$%Stem cell therapyTargeted antibodiesGene therapymRNA-based cancer vaccineImmune checkpoint inhibitorsOther cancer vaccine (not mRNA-based)NK cell therapyImmunomodulatory cytokine therapy CAR T-cell therapyOncolytic virus therapyRadiopharmaceuticalSmall molecule targeted therapyThe survey reflected little consensus on a single emerging therapeutic approach in oncology that would emerge as the most utilisedor least utilisedin the future.Most utilised approachLeast utilised approach The patient impact of emerging therapeutic approachesPatient outcomes will almost always be favorable 8%Patient outcomes will dramatically improve29%Patient outcomes will moderately improve31%Patient outcomes willhave minimal improvement15%Patient outcomes will not change5%Patient outcomes will worsenA third of respondents(37%)expect emerging oncology therapies to have a meaningful impact on patient welfare,while 31%of respondents expect moderate improvements.However,one in five respondents predicted that patient outcomes would not improve,or would worsen in the future.Base:All respondents(n=104).Note:includes:Patient outcomes will almost always be favourable&Patient outcomes will dramatically improve.Survey report:Innovation in Oncology:Accelerating R&D in an evolving landscape21From Vaccines to Oncology and Beyond:Tracking mRNAs ProgressIn this article,ICON experts discuss how the success of mRNA-based vaccines paves the way for the development of mRNA-based therapeutics for oncology and their potential use for treating cancers.ICON ArticleBlogLeveraging healthcare intelligence to increase diversity of oncology clinical trialsNew regulatory requirements for diversity require sponsors to submit a diversity action plan alongside key trial documents to the FDA.Read the blog to learn how healthcare intelligence can be leveraged to increase diversity in oncology clinical trials.ICON Further readingWhitepaperApproaching the CAR T-cell therapy horizonApproved CAR T-cell therapies have shown remarkable results in patients with certain types of blood cancers,but further innovations are needed before the technology can reach its full potential.In this whitepaper,we explore the most exciting clinical developments in CAR T-cell therapy,and relate them to limitations of approved therapies.ICON the CAR T-cell therapy horizon Clinical advancements expanding the potential of CAR T-cell therapiesBlogNavigating shifting paradigms in dose optimisation and dose selection for oncology therapeuticsThe maximum tolerable dose(MTD)is increasingly seen as suboptimal for emerging oncology therapies,which lack chemotherapys generalised cytotoxic effects.More contemporary dose-selection designs can now identify the lowest dose of an oncology therapy with the highest rate of efficacy that is tolerable for patients.Learn more.ICON WebpageArtificial Intelligence(AI)and clinical trialsICON experts contribute regularly to industry publications and media coverage of AI and clinical trials.Stay up to date with ICONs latest thought leadership on how AI technology,combined with big data,hold the potential to solve many key clinical trial challenges.ICON for commercialising oncology treatments for young adultsIn this whitepaper we delve into the dynamic landscape of oncology treatments tailored specifically for young adults.As cancer incidence among young individuals surges globally,its imperative to explore innovative strategies that address their unique needs and challenges.ICON for commercialising oncology treatments for young adultsICON clinical development of precision medicines in oncologyAn improved understanding of cancer biology has ushered in an era of precision medicine and a proliferation of novel therapeutic modalities available to patients.These emerging therapies are shifting the oncology therapeutic landscape and posing unique challenges during clinical development.Explore the barriers and opportunities facing todays oncology developers as reported by over 100 professionals in an ICON survey,and their predictions for the future of oncology treatments.And,learn strategies for de-risking oncology clinical development in todays evolving,precision-dominated field.ICON plc Corporate HeadquartersSouth County Business ParkLeopardstown,Dublin 18Ireland T:(IRL) 353 1 291 2000T:(US) 1 215 616 3000F: 353 1 247 6260ICON ICONICON plc is a world-leading healthcare intelligence and clinical research organisation.From molecule to medicine,we advance clinical research providing outsourced services to pharmaceutical,biotechnology,medical device and government and public health organisations.We develop new innovations,drive emerging therapies forward and improve patient lives.With headquarters in Dublin,Ireland,ICON employed approximately 41,100 employees in 97 locations in 55 countries as at June 30,2024.For further information about ICON,visit:.2024 ICON plc.All rights reserved.
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Better for You(Customer),You(Brand)and You(Retailer)REPORTContentsBFY Executive Summary04Health as defined by customers and where to invest04The BFY customer and those best positioned with them05Considerations for brands and retailers06Exec Summary Key Visuals07Our Approach08Where our data comes from08Why is health&wellness the future?09Recent Health trends10Affordable Health&Wellness11 There are new underserved health needs that represent an opportunity11Diets are on the rise13The Future GenZ customer is different when it comes to health behaviors13Being healthy is a way to become a better role model14Food will play a bigger role outside of nutrition14Services are of growing importance in the Health equation15Doctors are the new influencers with the rise of clinical15Personalization data and GenAI enable better experiences16Channel Proliferation17The ultimate goal:live longer,better,happier17What does Health mean?21What are the 9 H&W dimensions?21The Immediate Self22Inner Circle Relationships22The Higher Self 22Outer Circle Relationships23What dimensions matters most to shoppers?23Where do customers expect retailers to invest?25Partner 26Raise Expectations27Lead27Track28What have customers said(a preview)?29Do we see any variation by age,income and BFY customers?29BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved2ContentsWho is the BFY Customer?32Who is the BFY Customer and why do they matter?32What needs(value proposition)matter most to BFY customers?38Whose core customer base skews most toward BFY customers today?45What do BFY customers have to say about these retailers?49Who is best positioned in Health for the future?52What does doing better look like?54Which channels are most important?55What are the most important departments to health?55A note of affordability59How can retailers and brands help?60Where to invest?60Where can retailers play a role across health dimensions?62What are the retailers doing today to attract BFY shoppers?65Customer needs66Services68Values70Conclusion73Key takeaways 73Reach out74About dunnhumby75BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved3BFY Executive SummaryHealth as defined by customers and where to invest1.Why is Health and Wellness the Future?At the same time last year in our Grocery 2053 report,we predicted that Health&Wellness would be the most important trend in driving consumer behavior in the next 30 years(along with budget consciousness).The extent of customers who rank health as a top need(70%),choose healthy foods when shopping(80%),and expect retailers to help them make healthy choices(50%)help explain the growing importance of health.And so,it was our duty as customer advocates to better understand what health means to shoppers,who is the better-for-you customer,and who are the best-positioned retailers in the wellness space.2.Which recent health and wellness trends have been shaping the Grocery industry?The definition of health and wellness is forever evolving and growing in pervasiveness and so are the trends that define it and its shoppers.In this section of the report,we examine:affordable health and wellness,underserved customer health needs,specific diets on the rise,how GenZ are different when it comes to motivators,health as a way to become a role model,the growing importance of services in the health industry,doctors as the new influencers,the demand for better personalization and GenAI,channel proliferation and the desire to live longer,better and happier.Billion is the worthBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved4BACK TO CONTENTS3.What does health truly mean to customers and which health dimensions matter most?The definition of health,as one would expect,is squishy.Weve provided a more holistic definition of health and its impact on customers daily lives.The nine dimensions of health and wellness in order of importance to customers(where they invest more time and money and plan to do so in the future):physical health,financial health,mental and emotional health,personal appearance,social and cultural health,spiritual health,intellectual health,environmental health,and occupational health.Weve also explored nuances across better-for-you segments.4.Where do customers expect retailers and brands to invest?customers generally expect support in the areas that matter most to them,but there are some nuances and exceptions to the rule.For example,environmental health is a bottom contender coming in second to last in terms of how much time and effort customers invest there.However,it comes in at the second top spot when it comes to expecting support(products,services,or information)from retailers in this area.Weve developed a health strategy framework to help retailers and brands to better identify whitespace,adapt strategies,and position themselves.Partner with customers where it matters most.The BFY customer and those best positioned with them5.Who are the Better-For-You customers and how much are they worth?BFY customers tend to be younger(18-44),have more kids,have higher incomes($100k ),have bigger monthly grocery budgets(60$more),and exhibit more omnichannel and loyalty behaviors.Theyre also worth$285bn to the grocery industry every year whats not to like?Thats what makes them so attractive to retailers and brands and why its key to understand what they value in a grocery environment.6.What needs matter to them?And so its not a surprise that BFY customers care more about quality,digital,and values and less so about price than their less health-focused counterparts.They place much more importance on natural and organic variety,a retailer that helps them make healthier choices,sustainable packaging,local variety,products suited to their diets,retailers who care about waste and other elements of the experience,and digital pillars like the upscale look and feel of a store and technology that helps make the shopping experience better.7.Which retailers attract the highest share of BFY customers today?Sixty percent or more of Amazon Fresh,Natural Grocers,and Fresh Market shoppers belong to the BFY segment,compared to 32%for the average US retailer.Because of their focus on quality and digital-needs which matter more to BFY customers,seven out of the top 10 retailers also appeared in our Top 10 Quality and Digital best-in-class retailers in our annual RPI.We also explore our three BFY sub-segments.8.What are BFY customers saying about these retailers?In line with our findings of what matters most to BFY shoppers,when asked which retailers do health best,customers mention some of the following themes:a focus on fresh produce,fresh meat,local and overall variety,a selection of organic and free-from products,the showcasing of smaller brands,advertising,nutritional classes,dedicated organic sections,easy meals,health guides,recipes and information,labels and in-store identification,sustainability efforts,and prices just to name a few.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved5BACK TO CONTENTS9.Who is best positioned with BFY customer in the future?When considering who is best positioned in health with BFY shoppers in the future,its not only about those with the biggest share of BFY shoppers in their stores today,but also those who have a strong performance in the health needs that matter most to BFY shoppers.By combining importance(share of BFY shoppers)and performance(customer perceptions on health needs),we were able to rank retailers and identify those best positioned with the BFY customer today and in the future.In this report,we share the top quartile(top 18)with readers.Being best-in-class in health is a clear path to growth and like all good strategies,requires clear trade-offs for success.10.What are the more important departments to BFY customers?BFY customers tend to be more present than average in Seafood,RTE,and Fresh Produce(along with Alcoholic Beverages,Baby Care and Deli Meat),making them key to winning over these customers.These three are also the departments most associated with performing well in some of the areas that matter most to BFY customers:healthy choices,organic variety,and sustainability.Considerations for brands and retailers11.Where to invest(recap)?BFY customers value different dimensions of health(physical health,environmental health,personal appearance,financial health,mental health),different needs(quality,digital,sustainability,rewards),and departments(seafood,RTE,and produce).Get a better understanding of what this means for your customers specifically,map whitespace,and invest in the areas that matter most to them.Make sure to adopt a more holistic and customer-first view of health and wellness as you envision your customers future.12.How can brands and retailers play a bigger role in health and wellness?How brands help customers on their health journeys will depend on the specific dimensions of health and wellness that retailers try to position themselves in as with the customer value proposition,trade-offs must be made.These may include:nutritious,organic,and local foods,fitness equipment,nutritional guidance,personal grooming products,and fashion items,mindfulness resources and community spaces,products representing various cultures,books on spirituality and personal growth,educational resources,continuous learning workshops,ergonomic furniture and accessories,work-life balance resources,eco-friendly products,budget-friendly options,and financial planning resources to name a few.13.What are some recent examples of what retailers are doing in this space?Weve seen retailers invest in key areas:customer needs like innovation in local variety,organic variety,affordability,private brand,rewards,specific diets,and departments that cater to health-conscious customers;services like personalized coaching,nutrition,healthcare,fitness classes and partnerships that contribute to customers holistic health journeys;and Values like sustainability and community initiatives,and employee health that help them clearly communicate their beliefs and values to customers.Recent and major retailer investments in health and wellness are another indicator of the growing importance of health to customers,retailers,and brands alike.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved6BACK TO CONTENTSBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved7BACK TO CONTENTSOur ApproachTo gain a clear understanding of what health is for customers and why it is the future,well need to immerse ourselves in the world of health and wellness.And well do so by answering the following questions:Why is health and wellness the future?Which recent health and wellness trends have been shaping the Grocery industry?What does health truly mean to customers,which health dimensions matter most,and where do customers expect retailers and brands to invest?Who are the Better-For-You customers,how much are they worth,what matters to them,which retailers are best positioned with them and what are BFY customers saying about them?How can brands and retailers play a bigger role in Health&Wellness and what are some recent examples of what retailers are doing in this space?Once weve explored these,it will hopefully become clearer that what is better for you(customer),is also better for you(the brand)and you(the retailer).In other words,customers have a growing appetite for Health&Wellness,and there are unmet health needs that retailers and brands can tap into to better serve these customers.This will require a clear understanding of these customers and what needs matter to them,which this report aims to provide.To identify the dimensions of health that matter most to customers,the behaviors that define Better-for-You shoppers,the elements(or needs)of the customer value proposition that matter most to them,and the best-positioned retailers with these same shoppers,we rely on two key resources:dunnhumbys Consumer Trends Tracker(CTT)and dunnhumbys Grocery Retailer Preference Index(RPI)the grocery industrys most robust statistical model.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved8BACK TO CONTENTSThe CTT helps us track the evolution of customer behaviors over time on key trends private brand,pricing,promotions,assortment,health,store experience,supply chain,and ecommerce.It sources its data from 2,000 American grocery shoppers per wave and is now in its 7th wave since April 2022.The RPI,on the other hand,is designed to help us understand which retailers in the US are best positioned for the long-term,and why,and is the only approach that combines financial results with customer perception to determine grocery brand equity strength.It sources perception data from our annual survey of 10,000 American grocery shoppers and is now in its 7th annual edition.For our analysis in this health and wellness-focused study,weve included the largest 73 retailers in the industry that sell everyday food and non-food household items.Weve also conducted extensive desk research reviewing more than 100 articles and whitepapers,the analysis of which we share in the next section of the report,to fully comprehend the current health environment and available research(including our own).As a result,this report provides a truly holistic and customer First approach to understanding health.Why is health&wellness the future?In our recent Grocery 2053 piece,we explored the megatrends with the biggest impact on shoppers,brands,and retailers in the 30 years to come,and Health&Wellness rose to the top.Indeed,when forced to choose between various needs(see table below),64%of US customers told us that physical health was the most important need for them that number was 46%for mental health,above short-term and long-term financial needs.That said,when asked what their main stressors were,financial health topped the list for customers.And thats how we coined the term Affordable Health&Wellness.The importance that customers place on mental and physical health combined with other behaviors,like the fact that 80%of shoppers regularly choose healthy foods when shopping and almost 50%of customers expect“retailers to help them make healthy choices”placed Affordable Health&Wellness nearly head-to-head with Budget Consciousness or the concern with saving money.In this same report,we also explored the likeliness of shoppers to choose specific diets,and organic products,desire sustainability,invest in healthcare services and products,and purchase prescription medicine.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved9BACK TO CONTENTSWith health playing such an important role for customers,brands,and retailers alike,we knew further exploring the subject of health and wellness was our duty as customer advocates.The realization that different dimensions of health(well look at 9 of them)have an impact on overall customer well-being and their shopping preferences ignited in us at dunnhumby the desire to explore a much broader set of health and wellness dimensions for a truly holistic and customer First approach.But before we indulge in the exploration of these health dimensions,lets first have a look at the latest Health&Wellness trends that have shaped and have been shaped by shoppers in recent years to better understand the current context of Health&Wellness.Affordable Health&Wellness Underserved Health Needs Diets on the Rise The Future GenZ customer Being a Health Role Model The Growing Importance of ServicesTogether,well explore the following trends:Food as Medicine Doctors are the New Influencer Personalization and GenAI-powered Health Channel Proliferation Live Longer,Better and HappierThe following is not meant to be an exhaustive list of trends,but rather a mere reflection of recurring themes in recent publications.This section of the report is a summary of comprehensive desk research weve conducted over the past months.To do so,weve looked at more than 100 publicly available articles and whitepapers on health and wellness as well as previous dunnhumby research.This will give us the necessary context before we look at 9 health and wellness dimensions and gain a better understanding of the BFY customer.Recent Health trendsBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved10BACK TO CONTENTSAffordable Health&WellnessIn our Grocery 2053 study,we identified the most important customer trends impacting the next three decades.Health and wellness was#2,almost head-to-head with(and at the mercy of)Budget Consciousness brands who can crack the affordability nut will win customers in health.And so,we expect the value core,price,and quality,to remain determining factors in the adoption of wellness products and services in the near and not so near future.As per our latest RPI 2024:Building Long-Term Loyalty in a Year of Low Growth,price and quality drive 60-70%of emotional and financial results for retailers and that will be true for the success of any health and wellness initiative.There are new underserved health needs that represent an opportunityOur recent RPI study showed us that there still is much headroom in the market in“Helping customers Makes Healthy Choices”and the perceived difference in retailer options are quite high see chart below.And thanks to our Customer Trends Tracker,we also know about half customers want retailers and brands to help them make healthier choices(and that number is growing).Customer Needs Map:Met versus UnmetBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved11BACK TO CONTENTSForbes,Exploding Topics and Peloton talk about the openness of shoppers to new health routines and wellness occasions like exercise recovery,spiritual well-being,biotech wellness tools,micro workouts,sleep synching and other sleep solutions,spa visits,sober-curious lifestyles,mushrooms,healing circles,IV therapy,supplements,plant-based products,and the outdoors.The Future of Wellness McKinsey survey identifies the most important and growing needs in the wellness space with 87%of shoppers spending more on sexual health products in the past year,80%of shoppers considering gut health to be important to them,70%have purchased in the healthy aging category,60%trying to lose weight,48%purchasing womens health products of some kind and about 40%of shoppers purchasing health-at-home products.Other notable mentions were purchases for appearance(50%of respondents),healthcare(almost 50%),fitness(about 25%),nutrition(similar),sleep(slightly above 20%)and mindfulness(at 12%)and these numbers tended to be higher for GenZ shoppers.At dunnhumby,weve decided to take an even more holistic approach and,like in everything we do,a more Customer First approach to health,including all dimensions that could have a potential impact on ones health.Together well explore the physical,mental and emotional,social,spiritual,intellectual,occupational,environmental,and financial dimensions of health.Well understand which of these dimensions matter most to shoppers today,where we expect shoppers to invest in the future,and where shoppers expect brands and retailers to help them most.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved12BACK TO CONTENTSDiets are on the riseAs per dunnhumbys Consumer Trends Tracker,29%of customers reported in April 2024 frequently buying products for a specific diet that number is up from 27%in May 2022,with the top diets being(in order):Keto,Low carb,Low sugar,Gluten-free,Vegetarian,Vegan,Low Fat,Low Sodium,Diabetic,High Protein and the list goes on.The Future GenZ customer is different when it comes to health behaviorsOur Grocery 2053 research report shows that 61%of GenZ shoppers care about mental health,thats double the share of the older age cohort who cares about mental health).BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved13BACK TO CONTENTSBeing healthy is a way to become a better role modelIn our same Grocery 2053 report,we showed that Values-Based consumption is one of the top 5 trends that will have the biggest impact on customers,brands and retailers alike in decades to come.We also know that GenZ and Millennials exhibit and invest more in values than their older counterparts.Appealing to this need for Values will impact brands and retailers ability to appeal to these shoppers and bring them in their stores.According to the Peloton report,72%of shoppers are“hopeful that their fitness journey makes them a better person,and 60%hope this helps them become a better role model for people in their lives.Health is about so much more than simply nutrition.Food will play a bigger role outside of nutritionHealth means different things to different shoppers,and the way shoppers perceive food is no different.Cooking from scratch,organic and local products,healthcare products and healthcare services,and personalized nutrition(food as medicine)all play a role in better nutrition.The role of food and other health categories is blurring more than ever.Food now plays a bigger role than ever in customers health journeys.As reported by Progressive Grocer,The Academy of Nutrition and Dietetics(AND)formalized a definition of the Food as Medicine philosophy to their definition of terms list in 2019,which then appeared in FMIs“The Food as Medicine Opportunity in Food Retail”report.It combines prescription programs,incentive programs,medically tailored nutrition,path-to-purchase marketing,and personalized nutrition education via several health foods and services.More than 70%of those surveyed in the 2024 Report on Food Industry Contributions to Health&Well-Being reported having nutrition,health,and well-being strategies in place.This is a trend that is here to stay.well-beingBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved14BACK TO CONTENTSServices are of growing importance in the Health equationIn dunnhumbys Grocery 2053 report,we saw that 29%of customers in the US on average are likely or very likely to use healthcare services in the future in a Grocery environment.In 2021,McKinsey reported that 30%of wellness spending was in services like personal training,nutritionists,and counseling with 37%of respondents stating they would spend more here in the following year.The remaining 70%of spending was on products,with 23%of respondents saying they would spend more here in the following year.This represents an opportunity for brands going DTC and retailers to expand their health services to capture a bigger share of their shoppers wallets dedicated to wellness.Doctors are the new influencers with the rise of clinicalTwenty percent of respondents in McKinseys 2023 Future of Wellness survey stated doctor recommendations as a source of product purchase influence,in the third spot,right behind seeing the product in-store and friend and family recommendations,and ahead of traditional and social media,including influencers.In the same survey,half of US respondents stated clinical effectiveness as a top purchasing factor,more than the 20%of shoppers who stated clean ingredients as a factor.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved15BACK TO CONTENTSPersonalization data and GenAI enable better experiencesAs evidenced in our Personalization RPI,helping customers make healthier choices is one of the determinant factors of providing a frictionless experience.Healthcare came up as one of the top departments where personalization matters most to shoppers,and this was true across all drivers of personalization:targeted savings,a frictionless experience,and localized assortment.In this report,well also look at the departments with the biggest presence of Better-for-You shoppers.And so,its not surprising that shoppers want increased personalization and connectivity now possible thanks to biomonitoring and wearables.The Future of Wellness survey report states that 20%of US shoppers want personalized products that use biometric data to feed recommendations.Half of shoppers have purchased a wearable at some point in time and this represents a major opportunity for brands and retailers to leverage this data.Its not just about personalizing recommendations,but also personalizing products themselves based on biometrics.Shopifys 11 Health and Wellness Trends Shaping the Industry states that“58%of consumers are very interested”in personalized supplements made just for them,with younger generations like Gen Z and millennials being most interested(71%).”This opens a door to endless possibilities for brands and retailers out there looking to tailor not only product recommendations but also experiences and products themselves to unique shoppers.Percent saying Very/Extremely important by DepartmentBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved16BACK TO CONTENTSChannel ProliferationIts not just health categories and services that are blurring,but channels too.In our Grocery 2053 report,we identified channel proliferation as one of the main structural grocery trends for shoppers in decades to come.In the same way,lines are blurring between occasions at-home and out-of-home,the same is happening in the wellness industry.Although the Peloton report states that 56%of GenZ work out in a gym or health club,which is more than other generations(as this appeals to their social health and need to develop relationships IRL),shoppers are experiencing fitness at home(51%engage in this at home)and in augmented reality.As reported in Shopifys Top 8 health and wellness trends,e-marketer projects there to be 104million monthly AR and VR users in the US in 2024,with 60%of“US teens and adults believe that virtual environments will make it significantly easier to find a fitness or exercise routine”think Supernatural and Beatsaber as examples.Health has already become and will become even more pervasive across all The ultimate goal:live longer,better,happierGlobal life expectancy,as per worldometer,has grown dramatically from 47 years in 1950 to 73 in 2023(although the rate is less steep in the past 10 years),with the US landing at#47 out of 201 countries at 78 years of age.Some countries are obsessed with health and living longer.In fact,the“Core du Sud:lobsession de la sant,ARTE Reportage(South Korea:an obsession with health)”documentary by ARTE explores many initiatives put in place by countries like South Korea to increase life expectancy:diet,exercise,and corporate sponsorship.For example,Hyundai started developing healthy meals for their employees and now offers its meals on a subscription basis to various customers.The documentary“Live to 100:Secrets of the Blue Zones”by Netflix,explores how pockets of the world live better,and longer,specifically those with a very high number of people aged 100 and above.It mentions five communities,one being Loma Linda in the US.The documentary gives hints as to why some communities succeed in growing older:diet,exercise,social networks,governmental policies,and others.The world is growing older and that opens limitless opportunities for brands and retailers.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved17BACK TO CONTENTSAnd its not just about living longer and better for customers,but also about being happy now.As per dunnhumbys head of customer Strategy for the Americas Erich Kahners analysis of the World Happiness Report,we see major gaps in the global landscape.What do America,Uzbekistan,China,Mauritius,and Canada all have in common?A huge happiness gap between young and old.In 75%of the Worlds countries,people aged 30 and under are the happiest age demographic,while people 60 and over are the happiest demographic in just 16%of the worlds countries.As a global rule,younger means happier.The five countries mentioned above are exceptions to that rule.Not only that,but they also display the five biggest differences in global happiness rankings between the young and the old.America ranks 10th out of 143 countries measured for happiness of people aged 60 and older-coming in a statistical tie with countries like Australia,the Netherlands,Switzerland,and Luxembourg.For people aged 30 and younger,America ranks 62nd(and experienced some of the largest declines with this cohort)-coming in a statistical tie with countries like Russia,Albania,Ecuador,and Kazakhstan.This is a tale of two Americas.What could be driving this?The report unfortunately doesnt show performance by driver,by age group,but it does identify six drivers of differences in happiness between countries overall.These are,in order of impact on global happiness ranking:(1)Prevalence of Social Support in the Population,(2)Freedom to Make Life Choices,(3)Prevalence of Political/Business Corruption in the Country,(4)Prevalence of Generosity in the Population,(5)GDP per Capita,and finally(6)Average Life Expectancy at Birth.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved18BACK TO CONTENTSIf we are to look at the first two and bottom two,a message emerges:community and a feeling of control make a difference,and individual wealth and individual health are not enough.Connecting some dots,perhaps a generation of young people in the US are feeling more isolated,perhaps due to this in combination with the local and world events,especially of the past four years,are feeling like the things they value are devalued by others,far from their own reach and that these things are beyond their control to effectively address.The World Happiness Report(WHR)report also addresses subjective well-being characterized by life satisfaction and it has decreased in North America for younger cohorts.“Life satisfaction tends to be higher amongst those who report being satisfied with:standards of living,the city or region they reside in,opportunities for social interactions and friendships in their city or area,accessibility of quality healthcare services in their city or area,availability of good and affordable housing in their city or area,and the public transportation system.Satisfaction with standards of living has by far the most significant impact on life satisfaction,emphasizing the role of material well-being.”(WHR)This is in line with what we demonstrated in dunnhumby Quarterlys Grocery 2053.Money DOES make one happy or at least,makes one less stressed.Younger US demographics tend to be more concerned with short-and long-term finances.The point at which one becomes less stressed with money,or at least that stressor is of equal importance to health,is when income exceeds$150K(US average).To a certain extent,revenue does allow for more freedom to make choices,and this is a revenue bracket that is much more accessible to older demographics.And so financial health can also help explain some of the gaps in happiness between younger and older demographics in the US.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved19BACK TO CONTENTSBeing happy and healthy is about more than financial health alone.The WHR states subjective well-being and emotional health during childhood as the biggest predictor for adult life satisfaction(and other elements like labor market success,physical health,and relationships)and subjective well-being in adolescence of levels of income in adulthood.This underlines the holistic nature of wellness and health and the impact different dimensions of well-being have on one another.Indeed,there are many dimensions that have an impact on ones overall holistic health and thats exactly what well explore in this report,those that matter the most to customers and where they expect retailers to provide support.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved20BACK TO CONTENTSWhat does Health mean?“Health and wellness”is a squishy term,discussed by many.Were the first to create a customer-first framework for understanding its connection to food retailing.As youll see below,its a modern twist on Maslow Hierarchy of needs,which only focuses on the immediate and higher self.It acknowledges the greater interconnectedness of the internet/globalized/social media/DEI age,compared to the more introspective/regional/analog less woke world of Maslow,with key differences.What are the nine health and wellness dimensions?Health and wellness are multidimensional concepts that encompass various aspects of an individuals well-being.Different models may outline slightly different dimensions,but there are commonly recognized dimensions of health and wellness.When we ask customers which dimensions are most important where they invest their time,money,and efforts(and well come back to importance rankings in the next section),themes arise.Some health dimensions or needs are at the core of what we coined The Immediate Self and others belong to the most outer layers further from the core of what matters most to shoppers.Some readers may also notice that these dimensions align nicely with Maslow hierarchy of needs physiological,safety,love and belonging,esteem,and self-actualization.Were putting a new,relevant spin on it because these unprecedented healthy times call for it.The nine dimensions of health&wellnessBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved21BACK TO CONTENTSWhilst we recognize that all dimensions of health to some degree matter to customers in achieving a sense of overall health and wellness,customers will prioritize The Immediate Self those with a bigger impact on their perceived health,before satisfying those outer layers of health.We also recognize that although we are treating these dimensions individually to make sense of what matters most,these dimensions are all interrelated.In other words,physical health supports mental health,and both support financial health and vice versa,financial health can enable physical health.Before we further investigate the health dimensions that matter most and where customers expect support from retailers,lets have a look at some definitions.The Immediate Self1.Physical Health This dimension involves the overall functioning of the body,including fitness,nutrition,sleep,and the absence of illness or physical ailments.2.Financial Health Financial well-being involves managing economic resources responsibly,planning for the future,and minimizing financial stress.3.Mental&Emotional Health Mental and emotional well-being involves emotional stability,stress management,resilience,and cognitive function.It encompasses aspects such as mental illness prevention and the promotion of mental fitness.It may also include the ability to understand,express,and manage ones emotions.It involves having a positive attitude,and self-awareness.4.Personal Appearance The presentation of ones outward appearance,beauty,grooming,care,hygiene and fashion.Inner Circle Relationships5.Social&Cultural Health Social and cultural wellness involves building and maintaining positive and healthy relationships with friends and family,fostering a sense of belonging,and contributing to the well-being of the community.It emphasizes effective communication,social support,cultural identity,diversity,and inclusivity.The Higher Self6.Spiritual or Religious Health Spiritual well-being is often related to a sense of purpose,meaning,and connection to something greater than oneself.This dimension can include beliefs,values,and practices,of religious nature or not.7.Intellectual Health Intellectual wellness involves continuous learning,critical thinking,problem-solving,and creativity.It emphasizes the importance of staying mentally engaged and curious and challenging ones brain and hobbies.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved22BACK TO CONTENTSOuter Circle Relationships8.Environmental Health Environmental well-being considers the impact of ones surroundings on overall health.This includes factors such as air and water quality,safety,access to nature,and care for ones environment.9.Occupational Health:Occupational well-being pertains to satisfaction and fulfillment in ones work or chosen activities.It involves finding a balance between work and personal life.People may prioritize these dimensions differently based on their individual values,beliefs,and life circumstances.When shoppers define health and wellness,they often consider a combination of these dimensions,seeking products and services that align with their specific goals and preferences.Additionally,an increasing awareness of holistic well-being has led to a growing demand for products that promote various dimensions in an integrated manner.But which dimensions matter most?What dimensions matters most to shoppers?When we ask customers where they invest most of their time,money,and effort(to determine the importance of various health dimensions)and where they plan to focus efforts next year,there are clear cut-offs.The Immediate Self.At least 53%of customers say theyve invested moderately or a lot(as opposed to a little or not at all)in their physical health,financial health,mental health,emotional health,and personal appearance.As a result,we can deduce that improving ones health on these dimensions will have a much bigger and more positive impact on ones overall health(or at least the perception of health).A healthy body,lower financial stress,emotional stability,and satisfactory appearance are all elements of health that are mostly tied to ones immediate self.That is not to say that they do not have a positive impact on those around us when we feel satisfied with our health needs in these areas.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved23BACK TO CONTENTSInner Circle Relationships.That brings us to our relationships,those close to us,and those form part of our inner circle.Social and cultural health,our ability to maintain healthy relationships,our sense of identity,and our belonging to a community come in 5th with 50%of customers who say theyve invested at least moderately in this dimension of health and 45%who plan to do so in the next year.The Higher Self.Once weve satisfied our immediate and social health needs,it seems as though our higher self needs become apparent.About 45%of customers invest moderate efforts in a sense of purpose and challenging ones brain.Spiritual and intellectual health have a positive impact on customers overall health,perhaps to a lesser extent than immediate health needs,but they are part of the bigger health ensemble.Outer Circle Relationships.Finally,we get to the outmost layer of health dimensions which comprises environmental and occupational health.Fewer Americans,41%and 37%of them respectively,invest a moderate or big amount of money or effort in caring for the environment and fulfillment at work.As a result,one would assume that customers expect support from retailers and brands in the areas that matter most to them and where they invest the most.Although that is generally true,there are some nuances that are worth exploring well do this in Where do customers expect retailers to invest.In the next section of the report,well explore demographic nuances as well as what this means for the Better-for-You customer who is more inclined toward certain health behaviors(we explore this further in the report)than the average customer.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved24BACK TO CONTENTSSo what?To better understand what strategy is best based on the health dimensions that matter most to customers and where they expect retailers and brands to support them,we mapped importance and expectations using the following applied health framework.Where do customers expect retailers to invest?Customers do generally expect retailers and brands to support them with products,services,and information in the areas that matter most to them.Of course,there are some exceptions to the rule worth noting.Its not a surprise that physical health is the area where customers expect the most support.Physical health is the most important dimension of health to customers and its also where retailers and brands traditionally have been most present by offering organic and locally sourced products and hence have built capabilities and credibility in this area.Environmental health is where we see the most dissonance.Its the second to last most important health dimension to customers,but it is an area where retailers are expected to help,coming in the second spot with 32%of customers expecting retailer support.There may be many reasons for this.One hypothesis is that customers may want to feel like theyre making a positive impact without doing all the work themselves,benefiting from retailer efforts.It may also be the case that retailers and brands have set these high expectations by offering a wide assortment of sustainable packaging,investing heavily in environmental initiatives,making this a crucial part of their ESG strategy and making efforts to communicate these efforts in a way self-fulfilling high expectations.Financial health and mental health are to a lesser extent areas where customers expect support from retailers(as are other areas),perhaps because grocery retailers and brands havent successfully carved a niche in these areas and may represent a whitespace.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved25BACK TO CONTENTSThe best strategy will vary depending on where health dimensions land with the objective,varying from increasing retailer/brand expectation(build credibility and invest more in this area)or increasing Customer importance(change attitudes and beliefs over time).Exploring new concepts,products,and services to bring to market to tap a latent demand may help simultaneously build credibility and change Customer attitudes towards a health dimension.Of course,other elements like competitiveness,fit with value proposition,and ROI will help determine the best course of action we will come back to this later.PartnerDefinition:High impact(importance).High expectation(expected support).Goal:Partner with customers and invest.The most influential of health dimensions.Invest in these dimensions of health.They are the most important to Customers and they also expect a high level of support in these areas.These are the areas related to the immediate self.Physical health,by far the leader,followed by financial health and personal appearance matters most to Customers.These are areas where Customers expect a high level of support from retailers and brands with products,services,and information.Helping Customers with healthy foods,health and beauty products,and services like access to nutrition,fitness,and mental health experts combined with helping them manage their financial health and help them save money will have the biggest impact on Customers,retailers,and brands alike.One can assume that health improvements in these areas will be perceived by Customers to have the highest impact on their overall health and that theyll credit retailers and brands the most for helping them on their health journeys.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved26BACK TO CONTENTSRaise ExpectationsDefinition:High impact(importance).Low expectation(expected support).Goal:Raise expectations with Customers and investigate.These dimensions are important they just need a little help.Investing more may turn these into partner dimensions.Further,investigate how investing in mental and social/cultural health could represent a positioning opportunity(a partner)and potentially invest more if it makes sense to do so.Mental and social/emotional health matter just as much to customers as partners,but they dont expect as much support from retailers here.These expectations may be reflective of the current support in these areas and building credibility here would require further investment to turn these into partners.This means evaluating whether investments would have a positive impact on Customers,your brands overall positioning and whether youre capable of justifying the ROI of these investments.This may look like products and services that promote mental well-being,diversity,and culture throughout the store and creating community spaces for example.More examples can be found in the Where can retailers play a role across health dimensions section of the report.LeadDefinition:Low impact(importance).High expectation(expected support).Goal:EducateOur lead dimension environmental health,matters,but in a different way.Maintain current investments to ensure meeting Customer expectations and focus on educating Customers to grow importance.Educating Customers(by growing Customer importance)may turn this into a partner.This quadrant refers specifically to environmental health.Customers tell us theyre investing less here than in other higher-ranked dimensions,but they still expect a high level of support from retailers.There may be many hypotheses as to why that is the case.They might be telling us they feel like they cant make a huge impact by themselves,but they recognize that retailer organizations can make a huge impact with their actions,and so they expect them to become a platform for customers to make sustainability decisions.That would make sense as retailers are part of a global supply chain system,and agriculture has been highlighted as one of the biggest contributors to human-accelerated climate change.Customers might also be transferring that responsibility to retailers and brands,as theyre investing less effort in the environment compared to other dimensions.This also may be reflective of all the investments retailers and brands are making in this space,and so have built credibility and expectations in this dimension of health.There is an opportunity here to keep educating Customers on the importance of contributing to the environment(and how big of an impact an individual customer can have on their environment by shopping at one retailer vs another)and change beliefs and attitudes over time,and so transfer back some of the responsibility to Customers.Recent examples of what brands are doing can be found in the What are retailers doing the attract BFY shopper?section of this report.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved27BACK TO CONTENTSTrackDefinition:Low impact(importance).Low expectation(expected support).Goal:Track Customers and their evolving needs.These health dimensions matter less,at least for now.Monitor and invest at a minimum,if at all.These categories matter least to Customers,and it is also where they expect the least support.Keep an eye on the evolution of the importance of spiritual,intellectual,and occupational health and perhaps have a minimal offering to be able to pivot if these become more important over time.In summary.This health strategy framework gives us a better understanding of the potential of investing in certain dimensions of health based on their importance to Customers and where they expect support from brands and retailers.It also helps us understand the varying goals from one dimension to another:from track,to lead,to raising expectations,to partner.When applying this framework,it will be important to consider elements like the impact of current investments on expectations are expectations merely a result of where brands have built credibility so far,how competitive a dimension is the amount of retailers and brands positioning themselves in this area,how difficult it may be to position oneself as a leader in that dimension the investments and ROI required,and finally the natural fit with the overall customer value proposition of the brand or retailer today.But what did Customers have to say when we asked what they expect from retailers?BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved28BACK TO CONTENTSWhat have Customers said(a preview)?To better understand Customer expectations,we also asked Customer How do grocery stores help you eat healthy?How can they help you eat healthier?Weve included Customer quotes in the What BFY Customers have to say about these retailers section.Customers answers range from(and these are just some examples):Specific diets that matter keto or sugar-free,vegan or plant-based,low fat,low sodium,gluten-free Departments that matter produce,deli,RTE meals,meat,frozen Needs that matter price,discounts,organic,variety,local,freshness,sustainability,staffOther Customers expect retailers to help them make meals at home,help them with meal prep,offer a wide selection of meal kits,educate them,share recipes on socials,clearly label products in store,help them navigate health products in-store and online,keep stores organized and clean,clearly mark and separate health sections,showcase smaller health brands,allow them to sample health products in store and even offer nutrition and cooking classes.Do we see any variation by age,income and BFY Customers?Next,well look at the varying importance or health dimensions across age cohorts,income brackets,and Better-for-You(vs Non BFY)Customers.Catering to different segments will mean a focus on different dimensions of health.The following should help brands and retailers understand how to best cater to the needs of current Customer segments,but also what health dimensions are most likely to attract new Customer segments if theyre not in your stores or buying your brand already.AgeWhen we compare the percent of Customers by age cohort who invest a moderate amount(or a lot)in a health dimension to the national average,we can begin to understand what matters to different Customers.For example,not only can we see that younger Customers care more about health overall than older age cohorts,i.e.a bigger share of Customers care about health up to 17%more in some cases,but we can also see that the gaps are bigger in the following areas(in order of gap%):occupational health,personal appearance,social/cultural health,intellectual health and environmental health.It would make sense that at a younger age,we invest more time and effort in education,appearance,being fulfilled at work(compared to when one is retired),our social interactions,and defining our identity.Younger generations also grew up with the benefit of a broader global awareness of the impact that humans are having on the environment.As we get older and move through various life stages,our priorities shift and physical health,spiritual health,and our finances become increasingly important.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved29BACK TO CONTENTSIncomeIn the same fashion,we can compare levels of investment and Customer importance across various income brackets still observing the percent of Customers who invest a moderate amount in a health dimension vs the national average.Here we can see that more affluent Customers care about health dimensions across the board a bigger share of affluent Customers care about any health dimension.This also makes sense,a higher income means being able to invest more in health.Specifically,more affluent Customers than average invest their time and money in financial,social and physical health where we see the BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved30BACK TO CONTENTSBFY CustomersWhen we compare Better-for-You Customers to the national average,we see clear differences.Not only does a bigger share of these health-focused shoppers invest in their health across any health dimension up to 10%more,but the gap is bigger in physical,environmental,and mental health.In other words,these are the health dimensions that matter more to these shoppers.Thats 74%of BFY Customers who invest a moderate amount of time,money,and effort in physical health compared to 52%of Non-BFY Customers,49%in environmental health(vs 22%),and 61%in mental/emotional health(vs 44%).The Better-for-You Customer is indeed different and in a world where health will be a driving trend in coming decades,understanding this Customer(who invests more in any health dimension)is key.In the next section of this report The BFY Customer,well explore who these Customers truly are and why they matter,their worth to the Grocery industry,the needs they value the most,and which retailers are best positioned with them.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved31BACK TO CONTENTSWho is the BFY Customer?Now that we have a clear understanding of what health means to shoppers,which dimensions matter most to them,and where they expect brands and retailers to support them,lets explore:Why Better-for-You Customers matter to your business.Who they are and what behaviors differentiate them from other shoppers.What are the needs(Customer value proposition)that matter most to them.Which retailers are best positioned with the BFY shopper.What are BFY Customers saying(quotes)about these retailers.What departments are most important to them.Who is the BFY customer and why do they matter?In the most recent edition of our annual RPI,we identified nine customer segments in the US.The underlying dimensions of the most important pillars of Customer needs help us determine the degree to which a Customer is:quality versus savings focused,personalized savings versus mass savings focused,better-for-you focused,and digital channel integrated.And so if we take the three Better-for-You focused Customer segments ranging from mid to upmarket and brick&mortar to omni-channel Balanced Product Value(mid-market)BFY,Balanced Product Value BFY Loyalty Programs,and Higher Quality BFY,Digital Channels,we can see that they make up 33%of the US population.With a weighted average yearly budget of approximately$6500,that makes them worth a whopping$285 billion(130M households x 33Y population x$6500 yearly budget).Furthermore,retailers who over-index on the BFY segment experience a long-term Grocery Sales growth(5-year CAGR)average of 7%.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved32BACK TO CONTENTSWhen we compare BFY Customers to nonhealth focused Customers,not only are they the Customer of the future see Grocery 2053 for more details on the importance of affordable health and wellness in the coming 30 years-but their value is clear from a financial perspective and in the types of behaviors they exhibit.digitally integratedBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved33BACK TO CONTENTSBFY Customers are youngerAge-%Shopper by Age CohortThey have younger families with more kids,almost 1.5 times more likely to have kids.BFY Customer are younger than their counterparts,and more likely to be present in the 18-44 cohorts than the 45 age cohorts.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved34BACK TO CONTENTSYounger shoppers regularly invest in the environment and organic productsDo this more than half the timeThis is consistent with our Grocery 2053 finding that younger customers tend to invest more in sustainability and organics more on the needs that matter to BFY Customers in the next section of our report.They are wealthier and are more likely to have incomes above$100,000.Shopper with younger Kids at Homewell-beingBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved35BACK TO CONTENTSAs a result of higher incomes and bigger households,they have a bigger budget.They spend$60 more on average per month on groceries.They also tend to engage more with digital channels and exhibit more omnichannel behaviors with 35%(versus 24%for non-BFY Customers)of them being omnichannel/store-dominant and 15%(vs 12%for non-BFY Customers)being omnichannel/digital-dominant.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved36BACK TO CONTENTSAs a result,they tend to spend a higher share of their grocery spend online than non-BFY Customers.If being younger,with more kids,higher incomes,bigger grocery budgets,and exhibiting more omnichannel behaviors combined with their overall worth to the grocery industry makes BFY Customers attractive to brands and retailers alike,it will be important to clearly understand their needs and how they value various elements of the customer value proposition differently than their not-so-health-focused counterparts.That is what well investigate in the next section of this report.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved37BACK TO CONTENTSWhat needs(value proposition)matter most to BFY customers?Better-For-You Customers tend to be more mid or upmarket and omnichannel,so it doesnt come as a surprise that they value quality,digital,and values more so than other shoppers and place less importance on price.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved38BACK TO CONTENTSWhen thinking about where Better-For-You Customers are most different from other shoppers and where we see the biggest gaps,there are key differences in what they say is most important to them across the value proposition.Theyre less worried about everyday low prices(although EDLP is still important overall with 66%of Customers saying low prices are important to them),and place much more importance than their counterparts on natural and organic variety,a retailer that helps them make healthier choices,sustainable packaging,local variety,products suited to their diets and retailers who care about waste.Other elements of the experience and digital pillars also stand out like the upscale look and feel of the store and technology that helps make the shopping experience better.If you want to bring or keep these healthy shoppers in your store,youll need to make sure you speak to these key elements of the value proposition that matter most to them through the products and services you offer and how you communicate elements of your overall and ESG strategy.BFY Customers tend to be less concerned with mass price levers.When asked what needs are important or extremely important,they care less about everyday low prices and prices that are lower than other retailers,so we can expect them to compare prices less across retailers.Although the gaps are small for these next attributes,the same is true:private brand prices,and deep and visible discounts.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved39BACK TO CONTENTSAlthough promotional relevance is less important to BFY Customers,they seem to care more about personalization levers than non-BFY-focused Customers.They do want to be rewarded with 55%of them saying that is important to them(versus 49%for non-BFY Customers)and care about relevant communications.Quality is of utter importance to them as it is the need(followed by Digital)where we see the biggest gaps with other non-BFY shoppers.This is true for 9/10 assortment quality levers with the biggest gaps in natural/organic variety,retailer helps me make healthy choices,local variety,products to suit my diet,premium products,and quality products.It is also true for other levers like private brand quality and love.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved40BACK TO CONTENTSIndeed,BFY Customers expect retailers to help them make healthy choices,and as we saw in the previous section,there are many dimensions with which retailers can help support BFY customers and we know that those expectations are rising.In our latest wave of the Consumer Trends Tracker where we track all the most important Customer trends over time,47%of US Customers told us in April 2024 they expect retailers to help them make healthier choices,up from 42%in May 2022,a number constantly growing every quarter.This represents a major opportunity for retailers to play a bigger role in the lives of Customers and help them reach any holistic wellness goals they may have.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved41BACK TO CONTENTSBFY Customers care more about the upscale look and feel of a clean and well-maintained store,more so than non-health-focused Customers.They place more importance on feeling valued by staff and that one-to-one relationship with associates.This likely has to do with their heightened emphasis on product quality and clean ingredients.Weve observed a correlation between Customer perceptions of the store look feel/cleanliness and product quality perceptions.In other words,BFY Customers want clean,nice stores that signal clean,quality products.After quality,digital is where we see the biggest gap in importance.BFY customers are more digitally inclined than others.That is,47%of them feel that a retailer who uses technology to improve their shopping experience is important or extremely important to them,as opposed to only 30%of non-BFY shoppers.They also tend to care more about a retailer providing easy ways to shop online.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved42BACK TO CONTENTSOn the contrary,theyre less concerned with the operations pillar.They tend to care less about price consistency in coherence with mass pricing levers abovementioned,with no significant difference in how much BFY Customers care about out-of-stocks when compared to other shoppers.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved43BACK TO CONTENTSWhere BFY Customers differ the most across Customer preferences from non-BFY Customers is in how much they care about sustainability values.Its where we see the biggest gaps in what is important or extremely important to both Customer segments.Fifty-five percent of BFY Customers say sustainable products are important or very important to them compared to 27%of non-BFY Customers,and a similar share of BFY Customers say its important to them that a retailer shows they care about food waste.When looking at speed and convenience and assortment outcomes,BFY customers are on par with their non-BFY counterparts.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved44BACK TO CONTENTSBetter-for-You Customers inclination towards the quality,digital,and values pillars will help us understand which retailers are best positioned with these Customers.Then it wont be a surprise that some of the retailers who attract a bigger share of BFY Customers also ranked in the top 10 Quality and Digital retailers in our annual RPI,with variances that may be explained in part by those who also make Sustainability a priority.Whose core customer base skews most toward BFY Customers today?Amazon Fresh,Natural Grocers,and the Fresh Market have 60%or more of their shoppers health-focused shoppers,compared to 32%for the average US retailer.Sprouts,Amazon,Trader Joes,Target,Walgreens,Fresh Thyme,and CVS also made the Top 10.As we mentioned previously,because of their focus on quality and digital-needs that matter more to BFY Customers,seven out of the top 10 retailers also appeared in our Top 10 Quality and Digital best-in-class retailers in our annual RPI.This set of retailers naturally have a Customer Value Proposition that appeals to this set of shoppers.What are these retailers doing?Well,they are focusing on what matters most to BFY shoppers.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved45BACK TO CONTENTSIn the previous section,we saw that BFY customers place a greater importance on some elements of quality,digital,and values.And so its not a surprise to see the same retailers who position themselves well with BFY customers also rank successfully(in the top 1st or 2nd quartile)in perception scores in the following:organic products,help me make healthier choices and sustainability,as well as some digital levers like easy ways to shop online and technology to make my shopping easier.In other words,their Customer Value Proposition is aligned to their shopper of interest.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved46BACK TO CONTENTSIn the Balanced Product Value,BFY,Loyalty sub-segment,its The GIANT Company and Frys who top the list with 24%of their shoppers belonging to this sub-segment followed by other players like Vons,Natural Grocers,Family Fare,Safeway,Stop&Shop,Fred Meyer and Jewel-Osco.We do see some nuances in the best-positioned retailers across the three BFY sub-segments:balanced value(midmarket),balanced value loyalty-inclined,and high quality digital-inclined(upmarket),which well explore next.When we look specifically at the Balanced Product Value BFY sub-segment,Sprouts,The Fresh Market,Trader Joes,Market Basket,WinCo,Stater Bros,Natural Grocers,Marcs,Grocery Outlet,and Hannaford make the Top 10 with at least 15%of their shoppers belonging to this sub-segment,compared to 9%for the average US retailer.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved47BACK TO CONTENTSTo get a bit more insight as to why these retailers attract a higher share of BFY shoppers in their stores,lets look at what Customers have to say about them.Finally,in the Higher Quality,BFY,Digital sub-segment,Amazon Fresh clearly leads the pack with 58%of their shoppers belonging to this segment,compared to 9%for the average US retailer.Amazon,Natural Grocers,Walgreens,The Fresh Market,Target,Fresh Thyme,and pharma players like Rite Aid and CSV also positioned themselves in the top 10 with this upmarket health-focused Customer segment.Giant Company and Vons have the highest share of mid-market,loyalty,BFY CustomerBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved48BACK TO CONTENTSWhat do BFY Customers have to say about these retailers?When asked How do grocery stores help you eat healthy?How can they help you eat healthier?Which store does this best and why?,BFY Customers are clear on why some of these top-ranked retailers are the best at helping them eat healthy and as well see the reasons are far and wide.Please note that this is not an exhaustive list of Customer quotes.Weve collected roughly 500 quotes from BFY Customers and 1500 quotes on this question alone from a survey of 10k respondents.Customers answers range from(and these are just some examples):Specific diets that matter keto or sugar-free,vegan or plant-based,low fat,low sodium,gluten-free Departments that matter produce,deli,RTE meals,meat,frozen Needs that matter price,discounts,organic,variety,local,freshness,sustainability,staffOther Customer expect retailers to help them make meals at home,help them with meal prep,offer a wide selection of meal kits,educate them,share recipes on socials,clearly label products in store,help them navigate health products in-store and online,keep stores organized and clean,clearly mark and separate health sections,showcase smaller health brands,allow them to sample health products in store and even offer nutrition and cooking classes.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved49BACK TO CONTENTSAmazon Labels.“Amazon-because of the content list,as well as the labels of ingredients,and percentages not at the back of most packages.”Sustainability.“Amazon Fresh gives me the best because they observe sustainability at its peak.”Frys Prices.“Trying to be healthy and eat healthier is very expensive.Frys Food and Drug have digital or paper coupons that help.Frys offers cash on certain items when purchased.”Family Fare Local.“Does a great job at providing locally made products in their stores.”Fred Meyers Fresh Produce,Meat&Cheese.“Fred Meyers and Yokes(a regional store)both offer plenty of regional produce and fresh meats.They also focus on regional foods like eggs and cheese,all of which help me choose fresher over canned anything.”Variety.“Fred Meyer is better at this because they generally have the widest selection.”Fresh Market Produce.“I like to get whole foods like fruits and veggies and not processed food.Fresh Market is good for that.”Produce.“Fresh Market has the BEST produce,always fresh and appealing.Deli is the best in town.”Fresh Thyme Smaller Brands.“Fresh Thyme offers some organic but also smaller company brands that seem healthier than mass companies.”Produce.“Fresh Thyme has a large produce department in relation to the rest of the store.It creates an appropriate illusion.”Advertising.“Advertising in store for healthy products and recipes.Fresh Thyme does this best.”Hannaford Produce.“Hannaford puts fruits and vegetables first as you enter.They give great deals and fresh produce.”Natural Grocers Free From.“Natural Grocers offer items that have less unwanted ingredients or are in their natural state.They refrigerate things like nuts and seeds so its rare to get rancid items.”BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved50BACK TO CONTENTS Organic.“Natural Grocers stores help me eat healthy by selling organic foods.Other than that,it is extremely hard to find foods that arent full of weird chemicals.”Classes.“Natural Grocers offers cooking and nutrition classes for free.”Safeway Organic Section.“Safeway helps by segregating an entire row,dedicated only to organic food.”Stop and Shop Organic Section.“Stop and Shop has a good organic section.”Target Variety.“Target has the largest selection,for me at least,of options to choose from when Im looking to eat better.”Trader Joes Health Guides.“Stores like Trader Joes have their healthy options guide visible when you enter their stores.”Advertising,recipes.“Trader Joes always influences me to make healthy choices.They do this by their advertising,their wide variety of organic options,and social media presence sharing healthy recipes.”Information.“Trader Joes is the best at getting me to consider healthy options.It consistently displays healthy options and gives more information on healthy alternatives.”Identification.“Offering healthier products that are identified on the shelves.I think Trader Joes does this best.”Prices.“Trader Joes helps me to eat healthy.Their prices are fair,and they have good quality products.”Vons Produce.“My local Vons has a big selection of quality produce that helps me make healthy choices.”Easy Meals.“Vons offers healthy options and easier meals to cook on the go.”Walgreens Quality.“They help me a lot to eat healthy because of the highest quality that they provide.”WinCo Prices.“Grocery stores help me eat healthy by maintaining reasonable prices on healthier food choices.WinCo does this the best for me because they have the lowest everyday prices.”In the What are retailers doing to attract BFY shoppers section,we also include some recent examples of how some major retailers across the country are showcasing health and wellness through various initiatives.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved51BACK TO CONTENTSWho is best positioned in Health for the future?Up until now,weve only looked at one side of the equation the share of BFY shoppers who currently shop at a given retailer.But to get a clear understanding of who are the best-in-class retailers with BFY shoppers,we must also look into the future.In other words,we must understand which retailers are best positioned on elements of the Customer value proposition that matter most to BFY shoppers.And so,the best-positioned health retailers will be those:Whose Customers care most about health in other words,these retailers attract a high share of BFY shoppers today in their stores.Who perform well in the areas that matter most to BFY shoppers like sustainability,local variety,organic variety,and helping Customers make healthy choices in other words,their value proposition is well aligned to serve BFY Customers and attract them to their stores today and in the future.Using a composite score of both those measures(share of BFY shoppers and Customer perceptions scores),we were able to identify 18 best-in-class retailers(the top quartile of 73 retailers we looked at)that are best positioned with BFY shoppers for the future.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved52BACK TO CONTENTSThe best-in-class health retailers attract a higher share of BFY shoppers thanks to their performance i.e.their Customers perceive them to perform well across the most important health needs.In some cases,retailers attract a higher or lower share of BFY shoppers than expected based on their performance see the line in the graph.Retailers at the far left arent performing well,despite having more BFY customers than those in the middle,who are performing well but dont have as high of a BFY shopper concentration.Thats an issue for those on the far left they arent positioned well now nor in the future and are at risk of losing these shoppers.The cluster of retailers in the middle are doing ok now but if they want to attract more BFY customers they need to do better against those on the far right.Those on the far right are well positioned to gain share with BFY,now and in the future.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved53BACK TO CONTENTSWhat does doing better look like?There are clear benefits(and trade-offs)to being health first.When we segment retailers based on their overall health position,best-in-class retailers,those top 18,experience a 7%long-term growth rate,compared to five percent for others.This suggests BFY in the core banner strategy(think category strategy,roles,and levers)is a path for growth,but it might not yield a higher share or share of wallet.However,when BFY is implemented at lower levels of the strategy(for example,only certain categories with a smaller assortment),you can maintain a mass appeal while still growing with BFY,but you probably wont grow as much.And of course,like all great strategies,success requires trade-offs.Best-in-class health retailers focus on performing well in quality and digital at the expense of price and promo.This makes sense as these are the areas that matter most to BFY shoppers as we saw earlier in the report.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved54BACK TO CONTENTSWhich channels are most important?Club,Specialty,Pureplay,and Drug channels attract more BFY Customers than they do non-BFY Customers with the biggest gap in specialty.That makes sense with a bigger share of BFY Customers(vs non-BFY shoppers)looking for organic and local variety,products suited to their specific diets,and expecting retailers to help them make healthier choices.What are the most important departments of health?When we look at some examples of Customer needs that BFY Customers place a bigger importance on than their non-health-focused counterparts(healthy choices,organic variety,and sustainability),we see that some departments emerge as being key to the health and wellness goals of BFY Customers.To identify these departments,we looked at the relationship between retailers department penetration share and their performance(Customer perception scores)on these health-related needs.In other words,retailers who performed well in each health area also tended to have a high share of shoppers purchasing in key departments.For example,retailers who were well ranked by shoppers in“I agree this retailer helps me make healthier choices”(percent of Customers who agree or strongly agree that these retailers help them),also tended to have a higher share of shoppers purchasing in the following departments:Seafood,Ready-to-Eat Meals and Fresh Produce,followed by Bakery,Deli Meat,Fresh Meat,Alcoholic Beverages,and Baby Care.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved55BACK TO CONTENTSThe same is true for retailers who were ranked well in“offers a wide variety of natural/organic products”with the addition of Dairy.Retailers who performed well in“the company cares about environmental sustainability”also tended to have a high share of Customers buying similar departments with the addition of Health Care and Pet Care.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved56BACK TO CONTENTSRTE,Seafood,and Fresh Produce consistently appear in the top three or four departments most associated with positive health perceptions with overall shoppers.It isnt a surprise then to see the same departments top the list of those that over-index with BFY Customers.When looking at department penetration or the percent of BFY Customers who shop in each department and where we see the biggest gaps with non-BFY Customers,Seafood,RTE,and Fresh Produce(along with Alcoholic Beverages,Baby Care,and Deli Meat)stand out.BFY Customers tend to be more present than average in these departments and they are key for winning over these Customers.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved57BACK TO CONTENTSHopefully,this provides some direction in prioritizing departments that matter to BFY Customers when investing in Health&Wellness initiatives whether that be assortment,price and promotions,innovation,and private brand and we also know from years of expertise in category levers that these same levers will have a varying level of importance across departments.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved58BACK TO CONTENTSA note on affordability In this section of the report,we focused on catering to BFY Customers.Yes,they have higher incomes and bigger budgets,but that isnt the case for all shoppers,and we see all Customers becoming more and more price-focused over time.For most shoppers shopping health,price is a major barrier as evidenced in Grocery 2053.Indeed,for 60%of Customers,price is a barrier when shopping for healthy foods.This highlights the need to position health strategies differently for different Customer segments coming into your doors.A strategy aimed at BFY Customers will differ greatly from one aimed at Customers focused on product savings and how much each Customer segment matters to your brand.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved59BACK TO CONTENTSWhere to invest?Together,weve learned a lot about what BFY Customers value most and what health truly means to Customers.Investing in areas that matter most to BFY shoppers will be key to attracting and retaining these Customers so will appealing to a broader,holistic Customer-first definition of health and investing in the dimensions of health where Customers expect to be supported by brands and retailers.Adoption of a Customer-first holistic view of health.Customers have different definitions of health.For some,its about specific diets or departments;for others its about specific needs like organic,local,sustainability,labeling,or cleanliness.We also learned that there are nine dimensions of health that can have an impact on Customers overall health.Consider all of this when thinking of how to best help Customers on their health journeys.Map your current offering to identify whitespace.Before deciding where to invest,map your current offerings(products,services,and information),as well as your performance across the needs and health dimensions that matter most to your Customers to understand how you are positioned today.Refer to our 2x2 importance versus performance frameworks to do so.In this report,we explored one framework for health dimensions(and where Customers expect support)and another for how retailers are positioned with BFY shoppers(share of shoppers vs performance on needs).How can retailers and brands help?BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved60BACK TO CONTENTSInvest in the dimensions of health that matter.Weve learned that Customers expect retailers and brands to support them in some health dimensions more than others.They expect more support in physical health,environmental health,personal appearance,financial health,and mental/emotional health.Except for environmental health,these are also the areas where they invest the most time,money,and effort.It will also be important to understand how expectations vary specifically for your shoppers.We provide some recommendations for where brands and retailers can play a role for each health dimension in this section.Invest in the Customer needs that matter to BFY shoppers.We also learned that Better-for-you Customers care more about Quality,Digital,and Values than non-BFY Customers.They place much more importance on quality natural and organic variety,a retailer that helps them make healthier choices,local variety,products suited to their diets,premium variety,new products,high-quality products,upscale store feel,and staff that makes them feel valued;values sustainable packaging,retailers who care about waste;Digital tech that improves their shopping experience,and easy ways to shop online,and certain departments Seafood,RTE,and Produce.If you want to retain and win over BFY shoppers,make sure to invest and differentiate yourself in these Customer needs.Do not lose sight of savings and rewards.Even though BFY shoppers are less price sensitive fewer BFY shoppers say price is important when compared to non-BFY shoppers,savings still matter to them(66%of them say base prices matter,versus 76%of non-BFY shoppers).We also learned that a bigger share of BFY shoppers value rewards and communications compared to other shoppers.This may highlight the greater importance of personalization in the affordable BFY race and suggest that other rewards beyond just savings like new product discovery and information related could be important for this group.Be inspired by what leaders are doing to cater to BFY shoppers.In this report,we shared what Customers were saying about those who are the best at helping them eat healthy.Customers mentioned fresh produce,fresh meat,local and overall variety,a selection of organic and free-from products,showcasing smaller brands,advertising,nutritional classes,dedicated organic sections,easy meals,health guides,recipes and information,labels and in-store identification,sustainability efforts,and prices.In this section of the report,we also highlight recent examples of what retailers are doing today to attract BFY shoppers.Some focus on specific Customer needs or values,whilst others on services.Evaluate the trade-offs youre willing to make.All great strategy requires trade-offs.Leaders with BFY shoppers were seen to make clear trade-offs.Best-in-class BFY retailers prioritized the Quality and Digital pillars of the Customer value proposition,performing better in these areas.Evaluate which trade-offs youre willing to make as a business and which align best with your overall strategy.Position yourself in Health for the future.We believe that following these steps and considerations will bring you one step closer to positioning yourself as a leader in health for the future.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved61BACK TO CONTENTSWhere can retailers play a role across health dimensions?Earlier in this report,we explore the nine health dimensions that matter to Customers and where they expect retailers to invest the most.With Customers expecting retailers to play a bigger role in their health,retailers will need to decide what blend of products,services,and information will define their health value proposition.The future is about more than merely providing an assortment of healthy or organic products on the shelf(although that will still matter).The future lies in catering to the WHOLE self or the dimensions of health that contribute to their overall health.Retailers can play a significant role in improving various dimensions of health and wellness by offering products,services,and experiences that cater to consumers needs and preferences.Here are ways retailers can contribute to enhancing different dimensions of health and wellness:1.Physical Health:Promote nutritious foods,offering organic and locally sourced options,and providing wellness-focused products.Offer a variety of fresh and healthy food options,including organic and locally sourced products.Provide fitness equipment,activewear,and wellness-related gadgets.Create sections or partnerships for health supplements and nutritional guidance.2.Financial Health Offer budget-friendly options,provide resources for meal planning and cost-effective shopping,and promote financial literacy.Offer resources on financial planning and budgeting.Provide products and services that cater to different budget ranges.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved62BACK TO CONTENTS3.Mental and Emotional Health:Curate stress-relief products,offer mindfulness resources and promote mental well-being through community engagement.Offer meditation and mindfulness products,such as guided meditation apps,relaxation aids,and stress relief tools.Provide educational materials on mental health,self-help books,and resources for mental well-being.Offer products that promote relaxation and stress reduction,such as aromatherapy items,soothing scents,and comfort products.Provide resources on emotional intelligence and effective communication.4.Personal apperance Offer a range of products and services that support grooming,skincare,fitness,and fashion choices,while also providing education and resources to empower consumers in making informed decisions about their well-being.Additionally,contribute to destigmatizing body image issues and promoting inclusivity and diversity in marketing and product offerings.5.Social and Cultural Health Create spaces for community events,facilitate connections through shared experiences,and promote inclusivity.Create community spaces within the store for events,workshops,or meet-ups.Offer products that encourage social interaction,such as board games,group fitness classes,or shared experiences.Celebrate diversity through product curation,support local artisans and cultural traditions,and foster cultural exchange within the community.Curate a diverse range of products representing various cultures.Celebrate cultural events and holidays,fostering inclusivity.6.Spiritual Health Offer products that cater to spiritual practices and foster a sense of purpose and connection.Provide products related to meditation,prayer,and spiritual practices.Curate a selection of books on spirituality and personal growth.7.Intellectual Health Provide educational resources,host workshops,and promote cognitive engagement through product offerings.Offer educational resources,books,and products that stimulate cognitive engagement.Host workshops,talks,or classes on various subjects to promote continuous learning.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved63BACK TO CONTENTS8.Environmental Health Prioritize sustainable and eco-friendly products,reduce packaging waste,and advocate for environmental stewardship.Promote sustainable and eco-friendly products.Share information on sustainable living practices and eco-conscious choices.9.Occupational Health Promote career development and advancement,including training programs and mentorship initiatives,and foster a positive work culture that values open communication,collaboration,and recognition of employees contributions.Support for your working needs like on-the-go meal options,career resources,ergonomic office furniture,and accessories.Offer resources on work-life balance and stress management.By aligning their offerings with these dimensions of health and wellness,retailers can create a holistic shopping experience that goes beyond traditional product transactions.Additionally,providing educational resources,hosting events,and fostering a sense of community within the retail space can further enhance the overall well-being of shoppers.BETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved64BACK TO CONTENTSWhat are retailers doing today to attract BFY shoppers?Now,lets look at some recent real-world examples of grocery retailers implementing health and wellness initiatives that contribute to several dimensions of their customers health.This is not meant to be an exhaustive list,but rather to inspire retailers and brands in the future with examples that align their overall customer value proposition.These retailers are investing in:Customer needs like innovation in local variety,organic variety,affordability,private brand,rewards,specific diets,and departments that cater to health-conscious customers Services like personalized coaching,nutrition,healthcare,fitness classes,and partnerships that contribute to customers holistic health journeys Values like sustainability,and community initiatives,and employee health that help them clearly communicate their beliefs and values to customersBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved65BACK TO CONTENTSCustomer Needs Local VarietyBig Y launches a Local Vendor Discovery Tour to find local vendors for its newest stores.“Were committed to providing our shoppers with the finest,freshest,and most flavorful foods that we can,and in the spirit of community togetherness,were proud to partner with others who feel the same way,”noted Mike Cormier,Big Ys SVP of sales and marketing.linkWalmart launched a new campaign that highlights local farmers.linkThe campaign“highlights our growers and puts them front and center on our shoppable pages.This is the first time Walmart has ever featured growers/farmers on our website or partnered with produce influencers,”Evan Gaetano,manager of site merchandising-grocery e-commerce at Walmart.Produce Quality,Supply Chain,and SustainabilityWalmart partners with Agritask to“secure surety of supply,reduce food waste and guarantee fresh produce for shoppers”.link“Dealing with challenges in purchasing and planning accuracy in agriculture due to data discrepancies and environmental uncertainties can be tough,Agritasks technology has the potential to fill vital information gaps that sourcing managers often face when predicting yield.”Kyle Carlyle,VP of sourcing innovation and surety of supply at Walmart.Ready-to-Eat and Personalized Meal KitsWeis Markets and Picadeli installed high-tech salad bars at two Weis Markets locations.“Picadeli is revolutionizing what to expect from salad bars,and were proud to bring their next-level quick meal offerings to our stores,”said Weis Markets SVP of Merchandising and Marketing Bob Gleeson.linkNatural Grocers Earth Fare offers personalized meal kits based on genetic data.“Our partnership with GenoPalate marks a transformative step for consumer relationships with their local grocery.By offering meals that cater to an individual wellness goal and DNA,were deepening the connection between our customers and their food choices,enhancing our communitys experience with Earth Fare,”said Henry Kugler,COO of Earth Fare.linkSeafood and SustainabilityTrader Joes aims to procure fresh and packaged seafood only from sustainable sources.linkSpecific Diets,Innovation,and Supply ChainSprouts leverages its branded innovation in-store centers,focuses on health categories,adds ripening rooms,and expands distribution centers to improve quality.“Our intent is to become a leading provider in attribute health-driven categories,such as organic,vegan,grass-fed,and keto,prioritizing winning and gaining market share in these differentiated categories,”said CEO Jack Sinclair.linkBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved66BACK TO CONTENTSRewards and Community BuildingSchnucks rewards shoppers who reach weekly step goals during an April community challenge.“Schnucks is invested in promoting healthier choices to our customers,and this step challenge is a new way to do that by bringing together the community to build healthier habits,”said Schnucks Manager of Health&Wellness Allison Primo,MS,RD,LD.“We want to reward our customers for being active in April and support them in reaching their health goals when they shop at Schnucks.”linkAdvertising and Health JourneysWalmart launches“Save Your Resolutions”campaign to help Customers with 2024 goals.linkAffordability,Private Brand,and Customer EducationTarget introduces more than 1,000 wellness products starting at$1.99 and launches an online wellness destination with ideas,products,and meal inspirations.“Thats why Target is delivering like no other retailer,offering guests the ultimate destination to support their wellness journey,whether thats enjoying a nonalcoholic beverage from Sechey or stocking up on Bloom to get their daily greens.Were making it fun and easy for our guests to discover new products at a great value,with more than 1,000 new wellness products,starting at just$1.99.”said Rick Gomez,EVP and chief food,essentials and beauty officer at Target.linkWalmart launches elevated private brand bettergoods that focuses on innovative recipes,plant-based and made-without products at prices below$15 with 300 products across many categories.“Todays customers expect more from the private brands they purchase they want affordable,quality products to elevate their overall food experience.The launch of bettergoods delivers on that customer need in a meaningful way,”said Scott Morris,SVP,of private brands,food,and consumables at Walmart.“Bettergoods is more than just a new private brand.Its a commitment to our customers that they can enjoy unique culinary flavors at the incredible value Walmart delivers.”linkOrganic urban formats,departments,local and Private BrandAmazon launches a smaller urban concept Whole Foods Market Daily Shop to cater to urban Customers with a selection of organic grab-and-go meals,weekly essentials in fresh departments and others,local varieties,and 365 private label.linkBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved67BACK TO CONTENTSServices Fitness ClassesNatural Grocers launches Spin&Blend Classes,combining activity and nutrition(spinning class and smoothie discount).linkPersonalized CoachingMeijer launches a virtual personalized nutrition coach,accredited by the Commission on Dietetic Registration with 45 minute lessons for$89 including assessment,education,meal planning,nutritional coaching,food allergy management,weight management,and behavioral change support.“As a one-stop shop,were constantly testing and evaluating what our customers want and need as they focus more on health,wellness,and nutrition,”said Jackie Morse,group VP of pharmacy and health at Meijer.linkHealthcare and PartnershipsPublix partners with WellSync to launch a virtual healthcare service for its Customers that can use the service to get medical care without an appointment for common health conditions and medication refills.linkAHOLD unveils a new agreement with Mark Cuban Cost Plus Drug Company“Working with Mark Cuban reaffirms Ahold Delhaize USAs commitment to supporting healthy communities.”“This collaboration will help the local brand pharmacy patients afford the medications they need while bringing additional transparency to drug pricing,”said Moira OToole,director of patient health services for Salisbury,N.C.-based Ahold Delhaize USA.linkKroger Healths The Little Clinic revamps its weight management program.The program helps provide access to medical treatment via a personalized approach and access to GLP-1 drugs when appropriate.linkHy Vee launches Smart Benefits with Soda Health to provide food benefits on healthy products,biometric screenings,condition management programs,dietician services,vaccinations,and smoke cessation.“Through this new program,we make managing health easier for our customers,”noted Hy-Vee President Aaron Wiese.“As a trusted grocer and a health care provider,we are uniquely positioned to reach and engage with individuals in the Midwest and beyond as we help support them in their health journey.Soda Health offers an innovative benefits platform that complements our expertise in food,nutrition,and pharmacy,so ultimately,we can help improve a persons overall health.”linkWalmarts wellness day with free health screenings.“What an ideal opportunity we have to begin the year connecting with the communities we serve,”said Kevin Host,Walmarts SVP of pharmacy.“Wellness Day is a fun experience that allows customers and patients to check in on their health while also building relationships with our incredible pharmacy teams.Im immensely proud of the ways we continue to build on our touchpoints of care across Health&Wellness at Walmart.”linkWalmart offers innovative mammography screening services and a free HIV screening pilot.linkBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved68BACK TO CONTENTSAmazon Health launches Health Condition Programs with Omada Health to build custom health plans.linkPublix joins the GoodRx Gold network to offer members prescription savings of up to 90%,prescriptions below$10,and telehealth visits for$19.linkCVS and Walgreens to begin offering the abortion pill.linkUber partners with Vitamin Shoppe to make their 700 locations available on the Uber app.“Nutrition needs are personal and often urgent,”said Beryl Sanders,director of U.S.grocery and retail partnerships at San Francisco-based Uber.linkWalgreens Boots Alliance Advances supports many health initiatives through collaborative partnerships,one of them being cancer care with a focus on providing support for patients and their loved ones.linkAmazon,Walmart,and CVS sign many new partnerships with health providers in 2023 and 2024 alone to grow in a new world of healthcare.See the full list here.Costco expands the services it offers Customers by launching a new weight loss program through its partnership with Sesame,on top of other services like health check-ups and virtual mental therapy.linkBETTER FOR YOU(CUSTOMER),YOU(BRAND)AND YOU(RETAILER)2024 dunnhumby/All rights reserved69BACK TO CONTENTSValues SponsorshipsSprouts Farmers Market announced eight eight deals with female athletes and has sponsored more than 150 female athletes through partnerships.linkSustainability and CommunityThe Giant Company invests in hunger relief,donations,local NFPs,reducing food waste,and wellness classes.“As we celebrated our 100th anniversary last year,our efforts centered around areas where we can make the greatest impact:eliminating hunger,changing childrens lives,healing the planet,promoting well-being,and fostering a culture of inclusion and belonging.With this focus,were able to help connect families,create healthier communities,and grow local neighborhoods.”said Giant company President John Ruane.linkSEG invests in communities and the environment via donations,hunger relief,scholarships,and inclusion.“In 2023,we took significant steps to promote fairness,diversity,and sustainability throughout our operations.By implementing eco-friendly practices,supporting our diverse workforce,and partnering with suppliers who share our values,we actively worked to safeguard our environment and create a more equitable future.Our dedication to delivering a preferred shopping experience is deeply connected to our sincere commitment t
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The Annual Clinical Trials RoundupOctober 2024White PaperHeidi ChenAssociate Director,Research&Comme.
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IN PARTNERSHIP WITHUnleashing the Power of Artificial Intelligence in Clinical TrialsRevolutionizing Drug Development3REVOLUTIONIZING DRUG DEVELOPMENT01020304TABLE OF CONTENTSForeword AI in Clinical Trials An ongoing revolution.Real-world impact Transformative AI Use Cases across the Clinical Trial value chain.Fueling innovation The expanding ecosystem of AI-Driven Trials.Challenges ahead Overcoming barriers and limitations.Revolutionizing Drug DevelopmentWE ACCELERATE DATA AND AI ADOPTION TO POSITIVELY IMPACT PEOPLE AND ORGANIZATIONS.Artefact is a global leader in consulting services,specialized in data transformation and data&digital marketing,from strategy to the deployment of AI solutions.We are offering a unique combination of innovation(Art)and data science(Fact).DATA READINESS|AI ACCELERATION|DATA&DIGITAL MARKETING|TECHNOLOGIES22COUNTRIES 1000CLIENTS1500EMPLOYEESUnleashing the Power of Artificial Intelligence in Clinical TrialsThomas Filaire Partner-Healthcare Data&AI Transformation45REVOLUTIONIZING DRUG DEVELOPMENTREVOLUTIONIZING DRUG DEVELOPMENTPatientsthousandsForeword AI in Clinical TrialsAn ongoing revolution.0 1FOREWORD AI IN CLINICAL TRIALS-AN ONGOING REVOLUTIONHowever,this process has reached a tipping point.In stark contrast to the rapid advancements in computing power described by Moores Law,the pharmaceutical industry has grappled with a phenomenon known as Erooms Law.This inverse trend highlights the escalating costs and complexities associated with drug development over time.While Moores Law predicts an exponential growth in computing capabilities,Erooms Law observes a doubling of drug development costs approximately every nine years.This reality is evidenced by the surge in average development costs from an estimated$900 million in 2012 to a staggering$2.3 billion in 2022 for a single new molecule.Several factors contribute to this challenging landscape.Shifttoprecisionmedicine:Tailored approaches for specific patient subpopulations require complex protocols and additional endpoints,complicating trial design and execution.Diversityrequirements:Clinical trials must now reflect broader demographic and geographic diversity,making recruitment more challenging and time-consuming.Decentralizedclinicaltrials(DCTs):The rise of wearable technology and electronic health records introduces diverse data sources that must be harmonized,straining traditional data management methods.Real-WorldData(RWD)integration:Adding real-world data increases regulatory complexity,necessitating thorough validation for reliable insights.Strictregulatorylandscape:With high standards for patient safety,companies must navigate intricate compliance frameworks across jurisdictions.Building on the challenges faced by the pharmaceutical industry,AI and Generative AI have the capacitytoIn an industry where failure is the norm with nine out of ten molecules failing in clinical trials,AI represents a game-changing opportunity.By shaving weeks off the development timeline,AI has the potential to save pharmaceutical companies millions,accelerate breakthroughs,and bring life-saving therapies to patients faster than ever before.After many years of focusing on drug discovery,the healthcare ecosystem understood that another short-term promise of AI could lie in revolutionizingtrialprocesses,enabling faster,more efficient,and data-driven trials.This has coincided with an explosion transformeverystageoftheclinicaltriallifecycle,from protocol design and patient recruitment to data analysis and management.By leveraging vast datasets and complex algorithms,these technologies can identify patterns,generate insights,and make predictions at a speed and scale previously unattainable by human researchers alone.GenAI,in particular,brings a new dimension to this transformation with its ability to create,manipulate,and optimize content,potentially automating many time-consuming tasks in trial design and execution.As we delve deeper into the applications of AI and GenAI in clinical trials,well explore how these technologies are not just incremental improvements but potentially game-changing innovations that could reshape the landscape of drug development and patient care.Several key players have positioned themselves in this arena,including pharmaceutical companies aiming to accelerate their time-to-market,start-ups offering increasingly innovative solutions to address industry challenges and help patients gain quicker access to medications,and major tech companies providing the essential technical infrastructure.Without the advanced platforms and systems these big tech firms supply,the progress we see today would be significantly hindered.In this White Paper,we will explore concrete applications,the ecosystem involved,and the challenges and limitations of these technologies.of generative-AI capabilities,emerging as a transformational technology with the potential to significantly reduce the 10-15 year and$2.3 billion cost needed to develop a new treatment.Clinical trials are the pivotal phase of drug development.After preclinical research in laboratories and on animals to establish proof of concept and assess a products activity and toxicity,clinical trials on humans begin.These trials are designed to evaluate the safety of the drug(Phase I),confirm its therapeutic effectiveness for a specific disease(Phases II and III),and,finally,monitor its performance in real-world conditions(Phase IV).Clinical trialsDrugApprovalPharmacologyphaseFocus on safety and the proper doseExploratoryphaseFocus on effectiveness and side effectsConfirmatoryphaseCompares the new treatment to existing treatmentPost marketing phaseApproved treatmentProbability of success631X%Patients20-100Patients100-300Patients1000-30009%We observed a significant reduction in the average time from the start to the completion of clinical trials,decreasing from 8.6 years in 2019 to 4.8 years in 2022.”Luca Mollo Vice-President,Medical Director FranceOptimizing trials through predictive modeling,smarter patient recruitment,improving patient monitoring,and enhancing data analysis-these are the four main ways AI is transforming clinical trials.”Shweta Maniar-Global Director,Healthcare&Life Sciences67REVOLUTIONIZING DRUG DEVELOPMENTREVOLUTIONIZING DRUG DEVELOPMENTReal-world impact Transformative AI Use Cases across the Clinical Trial value chain.0 2The overarching goal of the pharmaceutical industry is to bring new medications to market as quickly as possible,ensuring patients gain timely access to treatments,especially for diseases that still lack effective therapies.In order to do so,pharmaceutical companies have mostly focused their efforts on leveraging AI algorithms to analyze vast amounts of data,identify potential drug targets,predict drug efficacy,and optimize lead compounds for development.This was the case with Pfizer during the COVID-19 pandemic.To alleviate pressure on hospitals while awaiting the arrival of a vaccine,the company set a goal to develop an oral antiviral.Had they relied on a MethodologyWe structured the clinical trial value chain into three key phases to provide a clear and focused framework.The first phase covers study objectives,planning,and protocol development.The second phase addresses patient recruitment and enrollment,crucial for securing a representative and sufficient sample.The final phase focuses on the operational aspects of trial execution,including data collection and data management.For this analysis,we opted not to cover the pharmacovigilance phase,which involves post-market safety monitoring,or the market entry phase,which deals with the commercial launch of the treatment.Mappingofusecases.This use case mapping is not exhaustive and is informed by client feedback,scientific literature,and our own experience in developing solutions for healthcare organizations.While it highlights important examples,it does not encompass all potential opportunities within the clinical trials value chain.Clinical trial design010203Patient recruitment&enrollmentExecution&managementconventional screening process,it would have involved 3 million molecules and taken 4 years.Thanks to AI,they were able to narrow the screening to just 600 molecules and reduce the timeline to only 4 months-from development to approval.This achievement underscores the immense potential of AI to accelerate the development of groundbreaking medicines.Yet,the true short-term promise of AI lies in revolutionizingtrial processes,enabling faster,more efficient,and data-driven trials that can significantly accelerate the development of new therapies:decentralized trials and remote monitoring have increased as a result of the pandemic,opening the door for new types of data.This has coincided with an explosion of generative-AI capabilities.2 REAL-WORLD IMPACT TRANSFORMATIVE AI USE CASES ACROSS THE CLINICAL TRIAL VALUE CHAINWe firmly believe in the transformation of research and clinical development through AI,having prioritized 18 R&D thematics with multiple high-potential AI use cases,ranging from target identification to trial design.This conviction will enable us to tackle the 2 major challenges of the drug innovation process:probability of success and time to market.”Brice Miranda Group Chief Data Officer89REVOLUTIONIZING DRUG DEVELOPMENTREVOLUTIONIZING DRUG DEVELOPMENTUse Case#1 Clinical trial designAutomated patient experience indexDesigning an optimal clinical trial protocol is the first step of the clinical trial process.It is a delicate balance between ensuring robust scientific validity and maintaining practical feasibility:How many patients are needed?What are the doses to test to assess efficacy and safety?What are the appropriate clinical endpoints(i.e.,outcomes measured to determine the trials success)?As the foundation of the entire trial,any mistakes or oversights in the design phase can result in failed trials or unreliable outcomes.Today,several factors are making clinical trial design increasingly complex:Personalizationoftreatments:Precision medicine requires tailoring treatments based on genetic profiles,which complicates defining patient subpopulations and reduces sample sizes,making recruitment more challenging.Tighterregulations:Regulatory agencies,like the FDA and EMA,are imposing stricter safety,ethical,and diversity requirements,adding to trial complexity.DigitaltechnologiesandBigData:Integrating wearable sensors,digital biomarkers,and big data requires sophisticated protocols to manage large,real-time datasets while ensuring data privacy.Multiple endpoints:Modern trials often measure a variety of clinical,biological,and quality-of-life outcomes,making it harder to define and track the right endpointsTraditionally,this process has been highly time-consuming.With the emergence of AI,it is now being transformed and revolutionized.1 AI-poweredclinicaltrialoptimization:Using LLMs to extract safety and efficacy information from clinical trial abstracts.This allows trial designers to rapidly analyze how other researchers have structured their trials,which interventions were used,and what outcomes were achieved,significantly streamlining the trial design process and enhancing decision-making.2 Algorithm-basedpredictionoftrialsuccess:By analyzing various types of information,including drug details,the target disease,trial eligibility criteria,and historical trial data,the algorithm is able to predict the outcome of the trial.Based on these predictions,pharmaceutical companies might decide to adjust trial design,or try a different drug completely.3 LLM-drivenpatienteligibilitypredictionforclinicaltrials:These models,such as TrialGPT,Trial Pathfinder,and AutoTrial,help by analyzing trial descriptions and generating appropriate eligibility criteria ranges.This significantly improves the match between patients and clinical trial requirements.USECASESCONTEXT Improving patient experience is now a priority across the pharmaceutical industry,with patient experience assessments increasingly becoming a requirement for clinical trials.An automated patient satisfaction index can streamline how teams evaluate and enhance patient experience in studies.SOLUTION Patients are surveyed to assess the relative burden of common trial procedures.The automated patient experience index then generates an immediate score,offering study teams rapid,data-driven feedback on patient satisfaction.This index can be integrated into a broader clinical trial design tool that manages costs,site selection,investigator choice,and other trial aspects.IMPACT Enhanced Patient Experience:Improves patient satisfaction by up to 20%.Data-DrivenTrialDesign:Enables study teams to optimize protocols with patient experience in mind.AcceleratedTrials:Boosts retention and recruitment,expediting the delivery of new medicines to patients.FOCUSUSECASE2 REAL-WORLD IMPACT TRANSFORMATIVE AI USE CASES ACROSS THE CLINICAL TRIAL VALUE CHAIN2 REAL-WORLD IMPACT TRANSFORMATIVE AI USE CASES ACROSS THE CLINICAL TRIAL VALUE CHAINLess than 5%of patients benefit from oncology clinical trials,even though 70%say they would be willing to participate if given the opportunity.So theres a clear need for a better match between patients and trials,and recent advances in AI are now making this possible.”Thomas Peyresblanques Co-founder&CEO70%of trials are concentrated in just 5%of major hospitals,while 90%of potential sites are underutilized in clinical research.”Kourosh DavarpanahCo-founder&CEO1011REVOLUTIONIZING DRUG DEVELOPMENTREVOLUTIONIZING DRUG DEVELOPMENTUse Case#2 Patient recruitment and enrollmentDiversity-focused site selection model for clinical trialsThe primary challenge in clinical trials is patient recruitment.Costs increase each year,partly due to the difficulty of enrolling patients whoaccuratelyreflectthereal-worldpatient population and who remain committed throughout the trial.In addition to being costly for the clinical trial sponsor,it is also time-consuming,as the manual process of identifying patients takes anywhere from 30 minutes to 4 hours per patient.Despite the growing competition in clinical trials,pharmaceutical companies continue to rely on the same major hospitals theyve partnered with for years.These large sites are overwhelmed with trial requests,creating a bottleneck that slows down the entire process and limits access to trials for a wider range of patients.It is essential to empower more healthcare practitioners to offer clinical trial opportunities to their patients.This would help pharmaceutical companies access diverse,underrepresented patient populations,resulting in more robust data and therapies that better reflect real-world patient needs.CONTEXT Multiple Myeloma is a cancer that disproportionately impacts African Americans in the U.S.,yet they are underrepresented in clinical trials.This lack of diversity creates gaps in understanding treatment effectiveness across demographics.A targeted,diversity-focused approach to site selection is essential to ensure trials represent high-risk populations accuratelySOLUTIONCreate a predictive model using machine learning(ML)to identify clinical trial sites with a high potential for diverse patient enrollment,particularly African Americans Dataintegration:Leveraging Real-World Data(RWD)and demographic information.Machinelearninganalysis:Using ML to evaluate each sites potential to recruit diverse patients,based on historical enrollment patterns.Site-leveldiversityindex:Developing a diversity index that quantifies the likelihood of each site to enroll diverse populations,specifically for Multiple Myeloma,across U.S.locations.This index serves as a targeted tool for selecting trial sites likely to contribute to a more inclusive patient cohort.1 PredictingpatientdropoutpropensityusinghistoricaldataandMachineLearning:By analyzing patient demographics,medical history,adherence patterns,and trial-specific factors,AI models can pinpoint individuals at high risk of dropping out.Once identified,clinicians can intervene proactively with targeted support:addressing concerns,providing information,or sending reminders to boost retention rates and ensure more patients remain in the trial.2 AI-drivenmodelsforclinicaltrialsiteselection:AI-powered platforms streamline clinical trial site selection by aggregating global data,reducing selection time,and optimizing site and investigator choices.By centralizing performance,expertise,and demographic data,AI ranks sites based on therapeutic experience,efficiency,and geographic fit,accelerating trial startup,reducing costs,and boosting success rates.3 Optimizingpatientconsentform:This essential document,crafted from complex technical and scientific information,confirms a patients informed willingness to join a clinical trial.Generative AI significantly streamlines this lengthy drafting process-often taking months-enabling faster completion and accelerating trial readiness.USECASESFOCUSUSECASEIMPACT Highprecision:The model accurately predicts sites likely to achieve diverse enrollment,outperforming general demographic-based predictions.Enhanceddiversity:By using diversity indicators,the model enables more inclusive and effective site selection.Strategicdiversityintegration:This data-driven model embeds diversity directly into trial planning,creating more representative clinical trials.2 REAL-WORLD IMPACT TRANSFORMATIVE AI USE CASES ACROSS THE CLINICAL TRIAL VALUE CHAIN2 REAL-WORLD IMPACT TRANSFORMATIVE AI USE CASES ACROSS THE CLINICAL TRIAL VALUE CHAINIt drastically cuts report drafting time from 100 days to as little as 48 by quickly processing data,automating tasks,and generating a preliminary draft for submission to regulatory authorities”.Luca MolloVice-President,Medical Director France1213REVOLUTIONIZING DRUG DEVELOPMENTREVOLUTIONIZING DRUG DEVELOPMENTUse Case#3 Execution and managementAI-driven analytics for accelerated clinical trial conclusionsThe clinical data management function faces unprecedented challenges with the rapid growth in data volume from an increasing number of diverse sources:Modern clinical trials generate vast amounts of data that must be efficiently collected,cleaned,stored,and analyzed.The rise of decentralizedclinicaltrials(DCTs)-which distribute trial activities across various locations,including patients homes-further compounds this complexity.DCTs often require the coordination of multiple technology vendors and platforms,leading to fragmented,siloed systems.This fragmentation significantly hinders real-time data access,integration,and interpretation,creating operational challenges for site administrators,investigators,and sponsors.The administrative burden of managing these complex trials has led many clinical trial sites to demand higher financial compensation,reflecting the increased effort needed to handle fragmented technologies,decentralized patient monitoring,and compliance with regulatory standards.This,in turn,drives up the overall cost of clinical trials,contributing to the growing expense of drug development.Today,AI-powered analytics tools are revolutionizing how researchers manage and consolidate clinical trial data.These tools can quickly identify trends,patterns,and correlations that would have taken months or even years to uncover with traditional methods,enabling faster and more accurate insights.By facilitating rapid,in-depth analysis,AI is transforming the data management process and driving more precise conclusions in a fraction of the time.CONTEXT Writing the conclusion of a clinical trial is a labor-intensive and time-sensitive task that requires synthesizing vast amounts of data,conducting complex analyses,and meeting stringent regulatory standards.Researchers must ensure that conclusions are both scientifically rigorous and accessible to diverse stakeholders.This balancing act can delay critical decision-making and the overall trial process,slowing the path to regulatory approval and impacting the speed at which treatments reach patients.SOLUTION Leverage AI-driven analytics to automate data processing,reveal hidden patterns,and generate initial summaries that streamline the conclusion-writing process.Apply advanced machine learning algorithms to uncover correlations and insights often missed by traditional methods,while natural language processing(NLP)models create unbiased,concise summaries that align with regulatory standards.Detect potential language biases and offer refinements,allowing researchers to concentrate on interpreting results rather than spending time on manual drafting.1 AIdrivenrisk-basedmonitoringandqualitymanagement(RBQM):AI-enhanced tooling that optimizes trial risk assessment and mitigation by learning from previous trials.It automatically detects issues in data quality,compliance,and safety,enabling real-time monitoring of risks.By aligning with the mitigation plan,it allows timely interventions,significantly reducing operational inefficiencies.2 Decentralizedclinicaltrials(DCTs)forenhanced participant engagement:By reducing participant burden and improving accessibility through remote monitoring,telemedicine,and mobile health technologies,these innovations boost recruitment and retention,keeping participants more engaged by making trials more convenient and accessible.3 AI-driveninsightdiscovery:Leverage AI to extract data from unstructured reports,annotate images and lab results,predict missing data points,and identify distinct subgroups within a trial population.AI transforms raw trial data into structured,actionable intelligence.USECASESFOCUSUSECASEIMPACT Acceleratesclinicaltrialtimelines with faster,more robust insights,enhancing the overall pace of trials.Supportshigh-qualitydecision-making by uncovering data-driven insights and patterns that traditional methods may overlook.Reducesresearcherworkload,allowing teams to focus on interpretation rather than time-consuming manual tasks.Shortenstimetoregulatoryapproval,speeding up the process of bringing new treatments to market.2 REAL-WORLD IMPACT TRANSFORMATIVE AI USE CASES ACROSS THE CLINICAL TRIAL VALUE CHAIN2 REAL-WORLD IMPACT TRANSFORMATIVE AI USE CASES ACROSS THE CLINICAL TRIAL VALUE CHAINWe are moving away from being a reactive healthcare ecosystem to a proactive,almost predictive ecosystem.”Shweta Maniar Global Director,Healthcare&Life Sciences1415REVOLUTIONIZING DRUG DEVELOPMENTREVOLUTIONIZING DRUG DEVELOPMENTThe ecosystem surrounding clinical trials is expanding,with a wide range of stakeholders contributing to rapid advancements in AI-driven solutions.While the landscape includes pharmaceutical companies,regulatory bodies,healthcare providers,and more,the most exciting innovations are happening within startups and tech providers.These players are leading the charge in revolutionizing clinical trials through AI-powered tools,Big Tech giants like Google,Amazon,Microsoft,Apple,and IBM have increasingly expanded their presence in the Healthcare industry.The increasing complexity and costs of clinical trials,alongside the growing demand for personalized medicine,have made it indispensable to leverage their expertise in data analytics,AI,cloud infrastructure,and consumer technologies.These companies view healthcare and life sciences as significant growth opportunities.In recent years,the surge in investments and the creation of new organizations reflect strong enthusiasm from tech providers for healthcare opportunities,particularly in drug development and clinical trial management.TheAppleWatchatrial fibrillation monitoring tool recently received FDA approval for use in clinical trials,making it the first digital tool qualified under the Medical Device Development Tools(MDDT)program.This approval allows sponsors to use the feature as a secondary endpoint in trials without requiring additional validation,opening a new era in research,potentially reducing costs,improving patient outcomes and increasing patient engagement.ABigTechsroleinadvancingAI-PoweredClinicalTrials.Microsofthas been applying generative AI through its AI for Health initiative,particularly in clinical trials involving imaging,data analysis,and predictive modeling.Through partnerships with pharmaceutical companies like Novartis,Microsoft uses AI to identify optimal trial designs and predict outcomes based on real-time data.IBMWatsonHealth applies its generative AI models to drug development and clinical trials,focusing on analyzing vast sets of medical literature and trial data.IBMs AI platform helps identify patterns in clinical data,supporting the design of protocols and improving patient recruitment by matching patients to trials more effectively.Verily(Alphabets life sciences arm)focuses on using generative AI for patient recruitment and trial management.Verilys Baseline platform collects and analyzes health data from volunteers to design smarter,more personalized clinical trials.The platform also applies AI to improve patient matching and streamline trial workflows.AlphaFold,the AI platform developed by Google DeepMind and Isomorphic Labs,recently achieved a groundbreaking milestone in science:accurately predicting the structure and sequence of proteins.What once took years to accomplish can now be completed in just minutes,revolutionizing our understanding of biology and accelerating scientific discovery.transforming everything from data analysis to patient recruitment and trial management.In this section,we will focus on the dynamic role of startups and technology providers.CLINICAL TRIALS Pharmaceutical/Biotechcompanies ClinicalResearchOrganizations(CROs)DatamonitoringcommitteeEthicscommitteesHealthAuthoritiesPatientsPatientsassociationHealthcareProvidersInvestigatorsTechnologyprovidersStart-upsSponsorsandconductorsRegulatorsParticipantsProviders and ExecutorsDataandtechnologyprovidersFueling innovation The expanding ecosystem of AI-Driven Trials0 33 FUELING INNOVATION THE EXPANDING ECOSYSTEM OF AI-DRIVEN TRIALS17REVOLUTIONIZING DRUG DEVELOPMENT16REVOLUTIONISING DRUG DEVELOPMENTIn recent years,startups have become essential for driving innovation within clinical research.These emerging players are reshaping the landscape with cutting-edge technologies and fresh approaches,addressing long-standing challenges in areas like trial design,patient recruitment,data management,and trial efficiency.By leveraging new ideas and attracting venture capital,these startups accelerate the pace of clinical trials and enable pharmaceutical companies to explore more diverse and specific pathologies.The growing investor interest in emerging healthcare technologies is aligned with the startup ecosystems B EmergingPlayers:howstartupsaredrivinginnovation inclinicalresearch.To truly make an impact,its not enough to simply integrate into the ecosystems value chain as a minor function.Entrepreneurs need to offer a compelling value proposition that significantly enhances the ability of pharmaceutical companies to generate more revenue,accelerate their operations,or dramatically reduce costs associated with clinical trials.This approach requires a clear,powerful presentation of the products viability and potential for substantial return on investment,closely aligned with the strategic interests of potential investors and industry stakeholders.”Samantha Jrusalmy Life Sciences Partnerenthusiasm for clinical trials,a trend that has been building over the past 5 to 10 years.In the following section,we will explore how these startups are revolutionizing clinical research and shaping the future of the industry around the 3 segments already presented:Clinicaltrialdesign Patientrecruitmentandenrollment Executionandmanagement.Patient recruitment&enrollmentExecution&managementProtocols automatisationTrials outcomes predictionTrial target optimisationIn-silico trialsClinical trial enrolmentPatient recruitmentData managementDCT&Patient follow-upClinical trials designThis mapping is not exhaustive and highlights only the startups mentioned during our interviews and personal research.3 FUELING INNOVATION THE EXPANDING ECOSYSTEM OF AI-DRIVEN TRIALS3 FUELING INNOVATION THE EXPANDING ECOSYSTEM OF AI-DRIVEN TRIALS1819REVOLUTIONIZING DRUG DEVELOPMENTREVOLUTIONIZING DRUG DEVELOPMENTIn the clinical trial design segment,most of the startups gravitate around 4 main topics:protocol automatization,trial target optimization,prediction of trial outcomes,and in-silico trials.Administrative tasks are numerous and time-consuming.Startups such as Florence Healthcare are entering this segment to help pharma companies improve their efficacy.Florence is a trial assistant that supports different actors in clinical trials(recruitment sites,CROs,and sponsors),automating administrative workflows(e.g.:regulatory,document sharing to sites),and managing day-to-day operations,from the launch until the end of the trial.To reduce the risk of trial failure due to imprecise patient enrollment in a clinical trial,Seqone produces advanced clinical genomic analysis(e.g.:detection of genomic mutations over time)to specify the target profile of patients to enroll in the trial.Similarly,Deemea,a startup focused on clinical trial imaging,is able to identify biomarkers matching with clinical trial characteristics within its library.Scientists can then create the perfect patient profile,reusing clinical imaging data.What if a pharmaceutical company could predict the outcome of a trial before launching it?That is the aim of NovainSilico,which can create simulations of the impact of a drug on patients,leveraging multiple sources of physiological and biological data.In addition,their knowledge-based model is able to design the patient profile which would best respond to the treatment,and could even predict long-term added benefits of the new drug.With the rise of generative AI,startups have created their place within the ecosystem to generate patients through the baseline characteristics of patients,often referred to as in-silico trials.Trials can leverage all or part of this new technology.In this segment,Unlearn.ais solution,“TwinRCTs”,generates digital twins of real patients to predict the outcome of their trial had they been in the control group,regardless of their current assignment(treatment or control group).It provides actionable insights to adjust the trial parameters and analysis.More patients can then be allocated to the trial treatment group,which drastically reduces recruitment needs and thus speeds up time to market.Clinical trial designIn the patient recruitment segment,many startups have positioned themselves to tackle this massive pain point for all actors(sponsors,recruitment sites,patients).However,different angles are being considered to mitigate this challenge:from the patients perspective,or from the sponsors and sites perspective.From the patients standpoint,Klineo helps them find the most relevant clinical trial.Its BtoPatient platform follows the entire clinical trial enrollment process,providing patients a seamless,end-to-end journey.Like social media-but with strong encrypted protocols to ensure patient Clinical trial enrolmentProtocols automatisationTrials outcomes predictionPatient recruitmentTrial target optimisationIn-silico trialsPatient recruitment and enrollment privacy-each patient completes their profile,receives trial suggestions,and can contact sites.To ensure safety and guidance,patients can share steps of their journey with their referring physician.On its side,Inatos B2B marketplace addresses two key challenges:broadening trial access to more research sites and enabling faster,more diverse patient enrollment for pharmaceutical companies.To achieve this,the platform leverages the latest advancements in large language models(LLMs)to match the right trials with the right sites and patients at scale.Public databases like ClinicalTrials.gov(in the US)and CTIS(in Europe)contain vast amounts of data but are often unstructured and outdated,leading to delays in finding relevant trials and thus slowing down patient recruitment.”Thomas Peyresblanques Co-founder&CEO3 FUELING INNOVATION THE EXPANDING ECOSYSTEM OF AI-DRIVEN TRIALS3 FUELING INNOVATION THE EXPANDING ECOSYSTEM OF AI-DRIVEN TRIALS2021REVOLUTIONIZING DRUG DEVELOPMENTREVOLUTIONIZING DRUG DEVELOPMENTThe third segment of the startup ecosystem encompasses a diversified range of players,including data management providers and companies aiming to decentralize trials and provide a virtual patient follow-up during a clinical trial.With regard to data management,startups are currently evolving in two areas:improving data structure,and managing existing data.Lynxcare operates in the first area,gathering structured and unstructured hospital data and transforming it into clean and scalable clinical data warehouses.This process generates meaningful and actionable insights,powering the whole clinical trial with RWD with a 90ta accuracy rate.Data managementDCT&Patient follow-upFinally,to ensure the success of a clinical trial and tackle the lack of diversification of enrolled patients,companies such as AI Cure carry out decentralized,virtual trial follow-ups.AI Cures solution prevents patient churn and provides patients real-time insights to sites.Through a monitoring interface,patients can obtain tailored dosing instructions,or receive daily reminders that motivate them to remain in the trial.This solution enables the generation of dashboards for recruitment sites to analyze patient engagement and medication adherence.In the event of protocol deviations,adjustments can be made to reduce the risk of trial failure.Deemea,in addition to focusing on imaging biomarkers analysis,works closely with recruitment sites to identify suitable patients for clinical trials.Its platform enables real-time collection of imaging data from partner recruitment sites,which is then pseudonymized,curated,and pre-annotated in under a secondwhereas manual processing previously took days,weeks,or even months.Finally,doctors can perform review and results analysis(e.g.,scoring),allowing them to save time and achieve multicenter standardization for studies.Typically,these startups want to increase their partnerships with recruitment sites in different areas(countries,regions)to improve the diversity and thus the chances of success of a clinical trial.Execution and managementWith only 4%of trials including a representative population,Inato helps sponsors recruit patients twice as fast,increasing diversity to 67%non-white participants from the previous average of 15%.”Kourosh DavarpanahCo-founder&CEOWe want to expand our current European coverage,not only to cities,but also country recruitment sites,to ensure a better representativity of the population.”Charlotte Pouchy CEO3 FUELING INNOVATION THE EXPANDING ECOSYSTEM OF AI-DRIVEN TRIALS3 FUELING INNOVATION THE EXPANDING ECOSYSTEM OF AI-DRIVEN TRIALSChallenges ahead Overcoming barriers and limitations.0 42223REVOLUTIONIZING DRUG DEVELOPMENTREVOLUTIONIZING DRUG DEVELOPMENTAI technologies,particularly machine learning algorithms,are evolving rapidly,and regulatory bodies are working to establish frameworks for their use.In some regions,A RegulatoryConstraints:StrikingtheBalanceBetweenPatientProtection and Accelerating Innovationregulatory guidelines for AI are still in development,creating uncertainty for companies seeking to implement AI in clinical trials.There is no AI without data.With the European Health Data Space,Europe has a pivotal opportunity to transform health data into actionable insights,driving innovation,better patient outcomes,and a stronger competitive edge on the global stage.To unlock AIs full potential,it will be essential to facilitate access to data to conduct life-saving research while still protecting peoples privacy.”Elisabetta Gatti-Policy Analyst,EMEA Digital Health AdvocacyWhile compliance adds additional costs and can slow down product development,it also serves as a lever for quality.When done well,it can enhance the quality of products and services rather than merely being seen as a hurdle.”Nathalie Beslay,Lawyer and Co-founder&CEOAlong with the many opportunities brought by AI in the design and management of clinical trials,it is important not to overlook the challenges and risks that still exist and must be addressed.In Europe,however,clinical trials are already governed by strong regulations designed to ensure patient safety and data integrity.These types of regulations have long been stringent,even before the advent of AI,as the health sector is highly regulated under EU frameworks.As a result,major regulatory structures such as the AI Act are a double-edged sword.While they aim to continue safeguarding data privacy and protect users,they also introduce an additional administrative burden for companies developing AI tools they want to be compliant.This can represent a disadvantage in terms of competitiveness for European companies,especially when the AI Act intersects with pre-existing regulatory frameworks such as the General Data Protection Regulation(GDPR),Digital Services Act and the Product Liability Directive.“Inconsistent and restrictive regulations”,as highlighted by the European Competitiveness Report written by Mario Draghi,hinder innovative AI companies wary of potential regulatory pitfalls.These complex and over-diversified regulations discourage innovation,as navigating a rigid and extensive regulatory environment becomes a challenge.This is specifically the case at the stage of translating innovation into commercialization and scaling-up.Another layer of complexity is added by the variations in national regulations across Europe and the transposition of European laws in member states.Some countries have well-established legal frameworks for health data.As Nathalie Beslay points out,France has 35 criminal offenses related to health data,yet few legal disputes arise-a sign of an effective deterrent system.While compliance adds costs and can slow down product development,it can also be a catalyst for quality.When regulatory requirements are fully met,they enhance the quality of the products and services offered,transforming compliance from a perceived obstacle into a lever for improvement.Regulations can actually provide an advantage to companies aiming to innovate in AI for clinical trials.They ensure a higher standard of safety and quality.4 CHALLENGES AHEAD OVERCOMING BARRIERS AND LIMITATIONS 24REVOLUTIONIZING DRUG DEVELOPMENT25REVOLUTIONISING DRUG DEVELOPMENTRegulation can also create a protective environment for local companies by raising the bar for external competitors in the EU market.Companies from regions with more lenient regulations may find it harder to enter the European market due to the high standards imposed by frameworks such as the GDPR and AI Act,giving compliant local firms a competitive edge.Her company is currently undergoing the process of ISO 42001:2023 certification,which will soon become mandatory for businesses in the sector.Beyond regulatory hurdles,the implementation of AI in clinical trials faces significant technical challenges.Central to these are issues surrounding data access,interoperability,and the integration of synthetic data solutions.DataAvailabilityandQualityAI models,particularly those utilizing deep learning,require vast amounts of high-quality data to function effectively.However,clinical trials-especially in the field of rare diseases-often struggle with limited data availability.Even when data is accessible,its quality can B DataAccess,Interoperability,andSyntheticData:OvercomingKeyChallengesvary significantly across institutions and regions,directly affecting the accuracy and utility of AI models.In Europe,healthcare data is fragmented1,largely confined to siloed national health systems.This lack of accessibility complicates efforts to aggregate and harmonize data for AI-driven analysis.While initiatives like the European Health Data Space(EHDS)aim to improve access to health data across the EU,the framework is still in its early stages,leaving some barriers unresolved.Furthermore,the inconsistency in data quality between countries and healthcare providers makes it challenging to train AI models on a unified dataset,limiting their generalizability across diverse populations.4 CHALLENGES AHEAD OVERCOMING BARRIERS AND LIMITATIONS InteroperabilityandIntegrationwithExistingSystemsInteroperability remains a critical barrier to the successful integration of AI into clinical trial processes.AI systems must seamlessly interact with existing clinical trial infrastructure,including electronic health records(EHRs),clinical data management systems(CDMS),and regulatory submission platforms.However,many of these systems are outdated or fragmented2,lacking the AI-readiness needed for smooth integration.In Europe,the lack of standardization across national healthcare IT systems further complicates this issue.AI tools developed for one country may not easily be transferable or compatible in multi-country trials,requiring costly and time-consuming adjustments.Even within a single country,integrating AI with legacy systems used in hospitals and clinical trial sites can pose technical challenges,slowing AI adoption.TheRoleofSyntheticDataSynthetic data offers a promising solution to address the challenges of limited data availability while maintaining patient privacy.By generating artificial datasets that mimic real-world clinical data,researchers can overcome some data access issues while still adhering to strict privacy regulations.However,for synthetic data to be a viable solution,it must accurately reflect the complexity of real-world clinical data to ensure that AI models trained on it perform reliably in actual clinical settings.4 CHALLENGES AHEAD OVERCOMING BARRIERS AND LIMITATIONS The European regulation is strict,but it can represent an advantage as a barrier to entry for non-compliant companies.”Charlotte Pouchy CEOGlobal data sharing is crucial for advancing research,but it is often hindered by legal,privacy,and competitive barriers,as well as the lack of adherence to common data standards and formats.This is especially true for rare diseases,where limited data makes collaboration even more vital.”Brice Miranda Group Chief Data Officer2627REVOLUTIONIZING DRUG DEVELOPMENTREVOLUTIONIZING DRUG DEVELOPMENTThe adoption of AI in clinical trials presents significant ethical challenges,particularly in ensuring trust among stakeholders.These challenges revolve around bias,transparency,explainability,cybersecurity,and data privacy,all of which must be addressed for AI tools to gain acceptance and be effectively integrated into clinical research.BiasandGeneralizabilityFrom the trust perspective,one of the primary concerns in using AI models in clinical trials is the risk of bias3,which arises when models are trained on non-representative datasets.This is particularly problematic in clinical trials,where the accuracy of AI-driven predictions is critical.If the dataset used to train an AI model does not adequately represent the diversity4 of patient populations,it can lead C ThePathtoTrust:AddressingTransparencyandSafetyConcernsin AI Adoptionto skewed and unreproducible results5.For example,an AI system trained on data predominantly from American or Chinese populations may not perform well when applied to global populations,which could result in inaccurate drug efficacy predictions across different demographic groups.In Europe,the wide variation in healthcare practices,population demographics,and genetic backgrounds between countries adds further complexity to this issue.Ensuring that AI models generalize well across diverse populations is essential for the integrity of multi-country clinical trials.Failure to account for this variability could introduce bias,limiting the applicability and reliability of AI-driven insights.Tackling6 this bias is not just a technical issue,but also an ethical one,as it directly impacts the fairness and inclusivity of clinical trials.4 CHALLENGES AHEAD OVERCOMING BARRIERS AND LIMITATIONS TransparencyandExplainabilityofAIModelsThe so-called black box nature of many AI models,particularly deep learning algorithms,poses another challenge.In clinical trials,transparency is crucial for gaining regulatory approval and building trust with stakeholders.However,many AI systems may currently lack the necessary explainability7,meaning that their decision-making processes are difficult to interpret.This is a significant issue in high-stakes areas like patient recruitment and treatment outcome predictions,where it is essential to understand how decisions are made.The EUs AI Act mandates that AI systems used in high-risk areas such as healthcare be transparent and interpretable8.Yet,despite these regulatory efforts,AI models in clinical trials may fall short of this standard.The lack of transparency can undermine trust,especially when decisions made by AI cannot be easily explained or validated by human experts.As a recent review in the International Journal of Surgery9 pointed out,AI systems do not incorporate human faculties like intuition or medical training,further limiting their reliability in complex clinical contexts.CybersecurityandDataPrivacyConcernsClinical trials generate and rely on vast amounts of sensitive patient data,and the introduction of AI systems only heightens concerns around cybersecurity and data privacy.The increasing use of cloud-based technologies,combined with the global nature of many trials,expands the potential attack surface for cyber threats.Ensuring the security of these AI systems and the data they handle is critical to maintaining trust.A security breach can result in fatal results,such as the manipulation of the behavior and results of AI systems10,known as Adversarial Machine Learning(AML).In the European Union,the GDPR sets strict standards for data protection11,and breaches can result in severe penalties.The reliance of AI models on large datasets raises the stakes,as any cyber-attack on an AI system handling clinical trial data could compromise patient confidentiality or even manipulate trial outcomes.Protecting patient data while ensuring AI models have sufficient access to the data they need for training is a delicate balance to strike.4 CHALLENGES AHEAD OVERCOMING BARRIERS AND LIMITATIONS The challenge of understanding and explaining decisions made by AI algorithms,along with potential bias,poses a significant hurdle for its use in clinical trials.”Nathalie Beslay,Lawyer and Co-founder&CEOGlossaryAIAct:Proposed regulation by the European Union that aims to be the worlds first concrete initiative for regulating AI by establishing a legal framework for the development,deployment,and use of AI systems.AIbias:A phenomenon that occurs when an AI algorithm produces results that are systemically prejudiced due to erroneous assumptions in the machine learning process.ArtificialIntelligence(AI):The field of computer science that focuses on creating intelligent machines capable of performing tasks that typically require human intelligence,such as visual perception,speech recognition,problem-solving,and decision-making.Clinicaltrial:Clinical trials are prospective biomedical or behavioral research studies on human participants designed to answer specific questions about biomedical or behavioral interventions,including new treatments and known interventions that warrant further study and comparison.Cohort:A group of people who share a defining characteristic,typically those who experienced a common event in a selected period,such as birth or graduation.Contract Research Organization(CRO):Company dedicated to managing clinical trials,handling all or part of the tasks related to a clinical study,including regulatory affairs,site selection,on-site monitoring,data management,biostatistics,and medical writing,among others.General Data Protection Regulation(GDPR):A comprehensive data protection regulation in the European Union(EU)that governs the collection,processing,and storage of personal data,and aims to protect the privacy and rights of individuals.GenerativeAI:A branch of Artificial Intelligence that focuses on creating and generating new content,such as images,music,or text,using algorithms and models.HealthcareProfessional(HCP):Any natural person who is a member of the medical,dental,pharmacy or nursing professions,or any other person who,in the course of his or her professional activities,may prescribe,purchase,supply,recommend or administer a medicinal productHealthcareproviders:A health care provider is an individual health professional or a health facility organization licensed to provide health care diagnosis and treatment services including medication,surgery and medical devices.In-silicotrials:Trials conducted partially or entirely with AI-generated virtual patients based on real-world datasets.It allows researchers to simulate patient behaviors and responses to new drugs,helping predict outcomes and optimize trial design without relying solely on physical participants.Investigation:A clinical investigation is any systematic investigation involving one or more human subjects,undertaken to assess the safety or performance of a device.Investigators:A clinical investigator involved in a clinical trial is responsible for ensuring that an investigation is conducted according to the signed investigator statement,the investigational plan,and applicable regulations;for protecting the rights,safety,and welfare of subjects under the investigators care;and for the control of drugs under investigation.LargeLanguageModel(LLM):A powerful AI model capable of processing and generating human-like text,leveraging a vast amount of pre-existing language data to generate coherent and contextually relevant responses.Precisionmedicine:Precision medicine is an innovative approach to healthcare that tailors medical treatment and prevention strategies to individual patients based on their unique genetic,environmental,and lifestyle factors.Randomizedcontrolledtrial(RCT):A gold-standard clinical research method where participants are randomly assigned to an experimental or control group to minimize bias.RCTs are the highest level of evidence for determining the effectiveness of treatments by comparing outcomes between groups.Real-worlddata(RWD):Refers to data derived from sources outside traditional clinical trials or controlled research settings.Real-worldevidence(RWE):Clinical evidence of the safety and efficacy of a medical device generated using real-world data(RWD)from routine health care delivery.Syntheticdata:Information thats artificially created rather than generated by real-world events to augment or improve AI models.Techproviders:Company or organization that offers various technology solutions,products,or services for specific aspect(s)of an industry.2829REVOLUTIONIZING DRUG DEVELOPMENTREVOLUTIONIZING DRUG DEVELOPMENTAI stands as a revolutionary force poised to dismantle long-standing bottlenecks in clinical trials.With the promise of timelines cut nearly in half,costs reduced,and patient access accelerated,AI-driven tools are fundamentally changing how new therapies are brought to market.Generative AI goes a step further,transforming trial design and execution with real-time insights and synthetic controls,enabling faster,moreflexible,andmorereliableresults.The pharmaceutical ecosystem is embracing AI innovations,from tech giants like Google and IBM,which provide critical infrastructure and analytics,to nimble startups that drive patient-centered solutions in clinical trial design,recruitment,data integration,and predictive modeling.This collaboration between industry giants and startups is not only accelerating R&D but also enabling more inclusive,diverse,anddata-richtrialsthatbetterrepresentreal-worldpatientpopulations.Yet,achieving AIs full potential in clinical trials requires overcoming significantchallenges in regulation,data interoperability,and ethical transparency.The EUs AI Act,GDPR,and other regulatory frameworks are creating a complex yet necessary foundation for safe,high-quality AI applications in healthcare.Addressing data privacy,interoperability,and trust remains critical to scaling AI responsibly.Despite its transformative potential,the deployment of AI in clinical trials facesethicalandpracticalobstacles.AI models may introduce or perpetuate biases that compromise trial fairness and inclusivity.Furthermore,the dependence on vast amounts of data increases the risk of patient privacy violations and security breaches.Researchers may risk becoming overly dependent on AI systems,which,despite their powerful capabilities,often lack transparency-a clear understanding of decision-making processes is crucial in clinical trials to establish trust and ensure validation.While AI provides valuable insights,it cannot replace vital human qualities such as common sense,intuition,and medical expertise,all of which are essential for trustworthy decision-making.In an era when the costs and complexities of drug development have surged,AI offers a new paradigm that is agile,efficient,and resilient.This transformation is setting a new standard for clinical research:AI is not just improving trials;its redefining them,paving the way for faster,safer,and more patient-focused drug development that holds the potential to significantly enhance patient outcomes and advance healthcare.However,realizing this vision requires balancinginnovationwithtransparency,patientprivacy,andethicalaccountabilitytoensureAIsroleinhealthcareremainsbothrevolutionaryandresponsiblymanaged.CONCLUSIONConclusion30REVOLUTIONIZING DRUG DEVELOPMENTSPORTS&ENTERTAINMENT TRAVEL&TOURISM PUBLIC&GOVERNMENT REAL ESTATE MANUFACTURING&UTILITIESFMCG RETAIL&ECOMMERCE LUXURY&COSMETICS HEALTHCARE BANKING&INSURANCE TELECOMMUNICATIONSWe would like to express our sincere gratitude to all the interviewees,from all parts of the ecosystem(investors,startups,pharmaceutical companies,and legal professionals)whose valuable input greatly contributed to the creation of this White Paper.Their expertise and collaborative approach were essential in shaping and refining our ideas.NathalieBeslay,Lawyer and Co-founder&CEO of NAAIAKouroshDavarpanah,Co-founder&CEO of INATOElisabettaGatti,Policy Analyst,EMEA Digital Health Advocacy at JOHNSON&JOHNSONSamanthaJrusalmy,Life Sciences Partner at ELAIAShwetaManiar,Global Director,Healthcare&Life Sciences at GOOGLE BriceMiranda,Group Chief Data Officer at SERVIERLucaMollo,Vice-President,Medical Director France at PFIZERThomasPeyresblanques,Co-founder&CEO of KLINEOCharlottePouchy,CEO of DEEMEAWe also extend our heartfelt thanks to each member of our team for their tireless efforts and invaluable contributions throughout the entire process.ArtefacteditorialteamThomasFilaire,Healthcare Partner at ARTEFACTLaGiroulet,Senior Consultant in Healthcare Practice at ARTEFACTSbastienMarguers,Director,Public Affairs and Science Lead at AI FOR HEALTHEmmaTordo,Data Consultant in Healthcare Practice at ARTEFACTGabrielRotetaMaranon,Public Relations Project Manager at AI FOR HEALTHVictorMassenet,Data Consultant in Healthcare Practice at ARTEFACTJadeHaine-Dubourg,Data Consultant in Healthcare Practice at ARTEFACTThanks&acknowledgementsSources 1 Data infrastructures for Al in medical imaging:a report on the experiences of five EU projects-Springer Open2 EHRs:The Challenge of Making Electronic Data Usable and Interoperable-Europe PMC3 Artificial intelligence in healthcare,Applications,risks,and ethical and societal impacts-STUDY Panel for the Future of Science and Technology4 Sources of bias in artificial intelligence that perpetuate healthcare disparities A global review,PLOS DIGITAL HEALTH5 Artificial intelligence:help or hindrance in solving the reproducibility crisis?Jennifer Straiton-Tandfonline6 Ethics and governance of artificial intelligence for health Guidance on large multi-modal models-World Health Organization7 Explainability for artificial intelligence in healthcare:a multidisciplinary perspective-BMC Medical Informatics and Decision Making8 The EU Artificial Intelligence Act(2024):Implications for healthcare-Science Direct9 Revolutionizing clinical trials:the role of AI in accelerating medical breakthroughs-International Journal of Surgery10 Adversarial Machine Learning,A Taxonomy and Terminology of Attacks and Mitigations-NIST Trustworthy and Responsible AI11 Artificial Intelligence and Data Protection How the GDPR Regulates AI-Centre for Information Policy LeadershipWE OFFER END-TO-END DATA&AI SERVICES Data&AI Strategy Data&AI organization Data Maturity Assessment Corporate Training Hackathons Data&AI Days GenAI Academy Artefact AI SummitsStrategy&Transformation AI&Gen AI Factory Data&AI for Operations AI for Customer Care Data&AI for Private EquityAI Acceleration Data Governance&Management Data New BI Self Business Intelligence Data for SustainabilityData Foundations&BI Consumer Data Environment Measurements(MROI)&Insights Data Valorization&Category Management Data-driven Sales Marketing Analytics GMP Certified ResellerMarketing Data-drivenABOUTARTEFACTABOUTAIFORHEALTHArtefact is a leading global consulting company dedicated to accelerating the adoption of data and AI to positively impact people and organizations.We specialize in data&AI transformation and data marketing to drive tangible business results across the entire enterprise value chain.Artefact offers the most comprehensive set of data-driven solutions per industry,built on deep data science and cutting-edge AI technologies,delivering AI projects at scale in all industry sectors.From strategy to operations,we offer an end-to-end approach and solutions:data strategy,data quality and governance,data platforms,AI Factory,data-driven customer experience and marketing ROI.Our 1500 employees operate in 22 countries(Europe,Asia,Americas,Middle East,Africa)and we partner with 1000 clients,including some of the worlds top 300 brands.Since 2017,AI for Health has been the leading public-private ecosystem uniting key stakeholders in AI and healthcare from around the world.Year-round,we deliver actionable insights,address complex health system challenges,and support diverse organizations in navigating AIs transformative potential.Each year,we host the AI for Health Summit,an international gathering of our ecosystem that includes pharmaceutical companies,startups,healthcare providers,tech providers,public institutions,research centers and many others.With a strong emphasis on practical use cases and impactful partnerships,our mission is to drive collaboration across sectors,shaping the future of healthcare through AI.Contact:IN 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Insights from the Experts2025 Emerging Experiences in U.S.Consumer HealthcareValtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareIt is time to take stock.Pandemic forward,U.S.healthcare has entered a new stage,with major disruptions in consumer behavior,business models,competition,regulation and emerging technology.For healthcare CMOs and CIOs,the stakes have never been higher.Finding value,making it sustainable and incorporating innovation are keys to success but require a keen eye.Weve brought together a comprehensive view,combining our experience with views from industry expert clients,new research and grounded analysis to capture the state of change and to beat a path forward.Executive summaryValtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareIntroductionShaping the future of consumer healthcare03Differentiating your brandCrafting a distinct brand messageDefining your market specializationBuilding strategic partnershipsInnovating in patient care delivery01Elevating patient loyaltyBalancing trust and personalizationStandardizing data for artificial intelligenceImplementing consumer data platformsDriving engagement with apps and patient portals04Experience operationsMastering data management for consistent careDeveloping a digital content strategyCreating effective patient feedback loopsEmpowering collaboration across multiple areas02Enhancing patient accessOpening up online scheduling and self-serviceImproving patient support with better find-a-doctor toolsExpanding virtual consultations and telehealthAutomating engagement with voice assistants and chatbotsConclusionLooking aheadWhats next in consumer healthcare?Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareConsumer behavior is increasingly dictating the future of healthcare.The COVID-19 pandemic resulted in an industry-wide shift toward digital healthcare delivery,with virtual visits becoming a necessity in non-urgent situations.Despite being a relatively nascent innovation at the time,telemedicine and self-service patient portals have since set new standards for consumer healthcare providers.However,the transformation of healthcare goes beyond the rise of digital tools.The industry also faces major political and economic challenges,including a shortage of doctors and nurses,shifts in Medicare and insurance reimbursements,declining patient loyalty,and a reduction in elective procedures.These challenges combined are driving unprecedented simultaneous change for providers,who must also navigate the demands for patient privacy,regulatory compliance and sufficient technical skills.All the while,consumer expectations in healthcare are increasingly set by the experiences theyre accustomed to in other industries.However,digital transformation in healthcare doesnt happen as readily as it might in other sectors.While innovative startups might have an easier time adapting,the large academic health systems face particularly arduous processes when contracting with new technology vendors.They often find themselves grappling with the burden of legacy technology and siloed data systems,which means implementing patient portals and data collection both vital for delivering personalized experiences comes with unique privacy and regulatory risks.The moment:Challenge and transformationValtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareThis combination of economic challenges,institutional limitations and rising consumer expectations is reshaping digital practices in healthcare.This shift is not only changing how healthcare providers are delivering modern patient experiences.Its also redefining the roles that govern these processes.The collaboration between marketing and IT of the last decade is no longer enough.To stay competitive,new roles focused on bridging these areas have become essential.Healthcare institutions need a new kind of digital transformation leader,one who fully understands the intersection between technology and the consumer experiences it enables.To better understand how consumer healthcare providers are tackling these challenges and capitalizing on new opportunities,we spoke to four industry thought leaders who are on the front lines of digital transformation.Weve paired these interviews with our own crucial quantitative research from 200-plus IT and marketing leaders in healthcare.In this report,we outline expert insights and explore the vast potential of new digital practices in elevating patient experiences and outcomes.ContributersAaron WatkinsSenior Director of Internet Strategy at Johns Hopkins MedicineChris BoyerDigital Health and Experience Strategist at Chris Boyer LLCJeff StewartVice President of Strategic Marketing at CHRISTUS HealthTanya AndreadisChief Marketing Officer and Vice President of Patient Engagement at Penn MedicineValtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareElevatingpatient loyaltyChapter 1:Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareAs any healthcare provider knows,there has been a significant drop in consumer loyalty towards healthcare providers and their institutions a result of increasing competition for attention,a dramatic pressure on convenience,and failures by providers to meet consumer expectations.In this context,to make meaningful improvements,providers must go deep into the dissatisfactions and create smarter,more compelling experiences.With patient expectations set by what they experience regularly as consumers in other industries,they increasingly demand a seamless experience across their entire journey.That patient journey today spans multiple touchpoints,all of which are valuable potential sources of data.The secret to success is being able to consolidate that data and make sense of it,and thats where AI-powered predictive analytics and marketing automation come in.Generative AI is also starting to show promise in automating routine patient communications,yet challenges remain.These challenges must be addressed from the outset of any digital transformation project to mitigate risk effectively.53%of consumer healthcare providers consider increasing patient loyalty and retention to be a primary motivator for further exploring patient personalization.-Consumer Healthcare Research Survey,Valtech USAValtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareBalancing trust and personalization Consumer data is vital for enabling personalization,but its also a contentious area,as its use is subject to shifting interpretations and stringent regulatory restraints.Theres a paradox between the expectation for personalization and the expectation for privacy,especially in healthcare,given the highly sensitive nature of the data involved.Nonetheless,patients increasingly expect personalized healthcare services,but they along with regulators also need providers to safeguard their privacy.In order to meet the needs of consumers,healthcare providers must implement robust,HIPAA-compliant systems and practices.These should be supported by developer practices focused on personalization,allowing for tailored services while ensuring that patient data is secure and protected.“Ease of access is the biggest thing competing as much online;providing as much of a digital service as you possibly can;providing content as targeted to the individual as it possibly can be but without violating privacy,is a real challenge right now.The goal is to find ways to use data to offer individualized experiences to help people in their decision making.Thats the goal,and thats what people expect,”says Aaron Watkins,Senior Director of Internet Strategy at Johns Hopkins Medicine.However,you cant meet consumer demands with regard to how they engage with digital healthcare services without first-party data i.e.,the information they provide about themselves.Customer satisfaction is partly dependent on that data,and if you cant meet those needs loyalty will decline.“Piedmont is a good organization to look at.Theyve done a lot to improve the overall experience of people coming to their website and finding what they need to do.Theyve identified what the top tasks are,and theyve optimized and personalized that journey through technology implementation,”says Chris Boyer,Digital Health Engagement Expert at Touch Point Media.53%of IT leaders cite balancing benefits with ethical concerns as a major obstacle in adopting tools and strategies for personalizing the patient experience,while 58%of marketing leaders cited budgetary constraints.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareTo build trust and foster loyalty,healthcare providers must be transparent in how they collect and use patient data,with security and privacy baked into the process by design.While most personalization strategies dont require explicit opt-in consent beyond general cookie agreements,providers must still be clear and purposeful in their communication to maintain the balance between personalization and trust.When patients feel confident that their data is being handled responsibly and theyre getting a quality experience theyre all the likelier to remain loyal to their healthcare provider.What are your organizations main drivers for exploring patient personalization?Increasing patient loyalty and retentionDriving revenue and better conversion ratesDriving more relevant and engaging content to each patientLeveraging our customer data and insightsCustomizing the patients user experienceMaintaining a competitive edgeRecruiting new patients into primary careSupporting population healthmanagement(PHM)initiativesHighly targetedmarketing campaignsReengagingexisting patients0 0P%Patient data privacy and security are top of mind,with 43%of C-suite leaders citing the risk of data breaches as a barrier to better personalization.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareImplementing consumer data platformsTo provide a consistent customer experience,organizations need to standardize and consolidate their internal systems.This begins with the integration of various data sources into a unified system,a single source of truth(SSoT)that streamlines data capture and management across all channels.Having an SSoT in turn provides a holistic view of patient interactions,unlocks opportunities for AI-driven personalization and enhances decision-making.Consumer data platforms(CDPs)are designed to collect,cleanse and unify customer data.However,their adoption in consumer healthcare has long been inhibited by the perception of redundancy in the IT department.IT typically focuses on implementing solutions like data lakes and data warehouses,which provide a centralized repository for data,but lack the features,tools,and accessibility required for immediate use.Layering on a CDP can help organizations unlock hidden value in their data by providing data-driven experiences to practitioners and patients alike.For instance,by using automated propensity modeling or segment identification to analyze data,CDPs enable healthcare providers to predict certain patient behaviors,such asthe likelihood of new appointment bookings,adherence to treatment regimes or even the chances of them switching to a new provider.However,due to the significant costs involved in licensing and integration,the time spent adapting to these technologies,and the perception of redundancy with home-grown efforts,fewer than one in five healthcare organizations have achieved a company-wide rollout of a CDP.Bespoke solutions in the cloud involving machine learning are also an opportunity,with a different set of benefits and challenges.Depending on the degree of sophistication and need,these may run parallel to traditional CDP or replace them entirely albeit with a higher level of ongoing overhead.“Five years ago,we heard this term:CDP,and we realized that it was being applied in multiple different outside industries.CDPs arent cheap,and in order to leverage them the right way,you have to really implement them correctly and implementation integration costs are pretty profound.Many health systems are only leveraging about 10%of their implementation because of this,”says Boyer.While 32%of marketing leaders are onboarding CDPs to drive personalization,only 18%of IT leaders feel the same.But,when it comes to the success of such an implementation,IT leaders are taking the lead at 32%versus 18%,underscoring the need for closer alignment between the two functions.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareImplementing a CDP isnt something that happens overnight.It involves identifying all your different data sources,such as website metrics,and then connecting them to the database.However,matching specific actions to people is a lot harder than it used to be,due partly to privacy regulations like CCPA.However,call center data can help overcome that limitation.“The early stages of CDP implementation have really focused on bringing all the different data sources into one accessible system.Many use CDP for all their digital interactions but they didnt even think about the call center for us,thats such a data rich environment which is why our first stage with CDP implementation will be to aggregate call center data and the various marketing inquiry data sets into one system,”says Tanya Andreadis,Chief Marketing Officer and Vice President of Patient Engagement at Penn Medicine.Simply having the data stored in a data lake or data warehouse isnt enough.By incorporating a CDP,providers will be better prepared to deliver the more personalized experiences that patients demand,which in turn fosters long-term engagement and loyalty.What is your organizations experience of using customer data platforms(CDPs)for patient personalization?5 %We havent begun exploring CDPsWe have identified CDP solutions for reviewWe have explored some CDPs but are yet to onboard oneWeve onboarded a CDPWe have pockets of successful CDP implementationWe have had a company-wide roll out of a CDP platform0R%of C-suite leaders have either onboarded,successfully implemented or had company-wide rollouts of a CDP platform illustrating a significant move in the maturity of healthcare organizations embracing CDPs to unlock better personalization opportunities.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareDriving engagement with apps and patient portalsPatient portals are secure web-based services that provide patients with convenient,round-the-clock access to their health information and other resources.More sophisticated platforms also let patients request medication refills,schedule appointments and message healthcare practitioners directly.This reduces waiting times for routine queries,eases the burden on busy employees and makes it easier for patients to stay engaged and involved in their own care.“The patient portal is about 80%of our digital health system,”says Boyer.“But how do you personalize that encounter?We know who you are and how weve treated you for the last two or three years.The question is,how can we make that experience better?Now,you can actually go to a website,and in a semi-authenticated state,check your prescriptions and care plans,and be able to understand whats the next treatment plan for you.Thats starting to get personalized based on your medical history;your clinical interactions with the organization.”The proliferation of mobile health apps has further empowered patients to manage their own health more effectively.Things like wellness programs,virtual health coaching and symptom tracking are now all common features found in consumer health mobile apps.The key to making these experiences successful is to use data to personalize every interaction,hence the value of a unified view of the customer across platforms.CDPs may play a key role outside of EMR portals.“For instance,many B2C brands use their marketing automation systems to send happy birthday messages and birthdays are connected to health milestones.Heres to a healthy year is a very simple message but can be a meaningful interaction that drives loyalty.Maybe not the most innovative idea,but its also not complicated.If were so focused on doing the next innovative thing,we could easily neglect some basic customer relationship management practices that make people feel special and connected to our organization,”says Andreadis.Despite the clear benefits of patient portals,the platforms themselves are difficult to innovate around due to inflexibilities,security considerations,and cultural misalignments.This is a highly inhibiting factor in the healthcare industry that sophisticated organizations must tackle creatively and with realistic expectations.“Even if youre with the best patient portal provider there is,it may not do the things that would allow truly personalized and proactive healthcare,”says Jeff Stewart,VP of Strategic Marketing at CHRISTUS Health.“We have to strake a careful balance between offering customized,meaningful brand experiences and aligning with the vendors need for standardization and reliability.”These systems are key infrastructure,but for users,relatively far from a perfect customer experience.Patient portals also carry another lesser-known risk:While patients increasingly expect self-service,it can also inadvertently lead to bad experiences and outcomes.For example,if a patient can access test results before a doctor even has the chance to explain them,theres a high risk of causing unnecessary stress,potentially leading to patients seeking alternative providers for a second opinion.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareStandardizing data for artificial intelligenceThe emerging technology of machine learning(data science,generative AI)has the potential to increase the relevancy and value of interactions for both patients and healthcare providers fostering loyalty and improving outcomes.This technology excels in analyzing unstructured inputs,making complex recommendations(usually with human oversight)and generating personalized outputs.These applications are rapidly advancing within the healthcare sector,primarily constrained by cultural factors and the need for appropriate legal and ethical safeguards.Given the intense competition in healthcare,high labor costs and the significant gap between traditional medical practices and evolving patient expectations,machine learning technologies offer solutions to numerous challenges across various healthcare domains.One of the biggest areas of potential in the current wave of generative AI is its ability to contextualize content.“Many organizations are starting to implement AI or large language models(LLMs)across their own individual data sets to provide context around their existing patient populations,and theyre using that to understand them better.You need to synthesize all the data first,before you can deliver a personalized experience,”says Boyer.However,AI and machine learning require extensive development and testing before theyre ready to be integrated into patient-facing applications.“COVID created a tremendous labor pressure,and our clinical staffing costs went up more than 20%so we cant financially justify bringing on 3-6 people to program chatbots,which is where LLMs come into their own”says Stewart.87%of C-suite healthcare leaders have implemented,or have plans to implement,LLM-powered chatbots into patient experiences.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareFortunately,LLMs can lower the barrier to entry.“I had five different data sets from working with an organization,and I was looking to standardize this data.I removed the individual names from it and standardized the data fields to let the LLM create a unified view.It was able to answer my questions pretty quickly.Normally,you would pay a consultant,an implementation partner,hundreds of thousands of dollars to do that,so there are significant cost savings with LLMs when it comes to manipulating and cleansing large,disparate data sets,”says Boyer.For AI to deliver value,its enormously dependent on standardized datasets fully vetted for quality and relevance.For example,an AI copilot that provides decision-making support for doctors wont be able to provide accurate and relevant information if it hasnt been trained on a verticalized dataset that has also been subjected to stringent quality controls.Even then,its imperative that,regardless of how advanced AI becomes,all communications are mediated by an appropriate practitioner.Its important for healthcare organizations to also focus on how structured data can support internal,operational efficiencies,too.Boyer comments:“One health organization has replaced their intranet that supports 60,000 employees.As a repository,it contains great information but its information thats difficult to find.By flattening the architecture of the data layer and implementing a chat generative AI solution on top,employees can now go in and ask questions using the chatbot to get the information they want.Suddenly theyre starting to see resources get freed up.”Deploying AI-based solutions throughout the organization requires significant expertise and resources,and integrating them with existing systems can be challenging.Furthermore,layering on AI in patient communications raises some privacy and security concerns.By improving the speed and quality of patient engagement with the responsible use of AI,healthcare providers can deliver a timelier and more satisfying experience,ultimately driving greater trust and loyalty.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareLoyalty programs converge with population health programs In commercial settings,loyalty programs have been transformational for companies seeking to turn customer interactions into lifetime engagements.Organizations can raise engagement with a combination of data science,gamification,personalization and targeted offers.In omnichannel settings,theyre proactively addressing the demands of distracted,disloyal or hesitant customers in legitimate ways by creating additional value.However,true loyalty programs in U.S.consumer healthcare have had limited uptake outside of niche contained areas like cosmetic surgery and physical therapy.These areas typically have a different culture around them,as opposed to the more emotionally sensitive,privacy-centric and often operationally siloed world of other areas of consumer healthcare.Fundamentally,most people only want to see their provider when they need help,and then they want to see them a lot before moving on.The idea of carefully stacking up reward points for a cheaper rate on a childs tonsillectomy,for instance,is not on the forefront of consumers minds.Forward-thinking health organizations now understand that the“pure value”approach doesnt unlock the power of loyalty programs with patients and families.Nonetheless,loyalty programs can still work if theyre thoughtfully combined with areas like wellness,population health initiatives,propensity-driven scans and other interactions that both benefit the patient and create opportunities for re-engagement.These communications can be extremely powerful if theyre orchestrated centrally with a data-science back end thats aware of the patients history,demographics,and can also potentially integrate an awareness of capacity for specific activities in the organization.A good loyalty program is highly personalized,just as any efficient population health program must be.In healthcare,these two approaches can converge.In this way,broad population health initiatives,patient support,patient education and reminders for routine healthcare services all come together to build a new kind of loyalty program.Its possible to transfer some of the characteristics of traditional loyalty programs to this approach.Nonetheless,things like financial offers and bonuses generally arent suitable,since no one wants to earn points for being sick or consuming more healthcare services.Instead,elements like gamification can be effective in things like personal health programs,which may involve activities that either do or dont represent healthcare provider visits.As with conventional loyalty programs,reactivation is another fundamental goal.For patients who havent engaged in some time,pushing demographically targeted content can keep the brand top-of-mind and in a positive light while providing a benefit like reminding the recipient of access to a free or educational program.Since convenience is largely correlated to patient loyalty,theres also an opportunity to promote new or refactored content through editorial updates.User feedback is also essential to the success of any loyalty program,and this may include tightening up personalization and helping to design the ongoing program.At every step,the goal is to add value to the patients health in a way where they feel seen,cared for and empowered.Emerging experience practice:Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareEnhancingpatient accessChapter 2:Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcarePatient access refers to patients accessibility to healthcare services.This increasingly relies on call centers and digital channels,such as find-a-doctor services,patient portals,and online scheduling apps,as well as other self-service tools.Access is a complex matter for healthcare organizations,not least because the patient journey spans a growing array of different touchpoints.Each of these channels has a fundamentally different role to play,but they must be connected in a way that supports the continuum of care from the perspectives of both the provider and the consumer.This presents increasing cost concerns for organizations,since patient access cant be managed with a one-size-fits-all approach.Providers need something uniquely tailored to their use cases and their patients needs.42%of C-suite leaders cited reducing wait times for appointments and services as one of the top three challenges that their organizations are struggling with in driving patient experience improvements.-Consumer Healthcare Research Survey,Valtech USAValtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareOpening up online scheduling and self-serviceConsumers are used to self-service in other industries.Healthcare should be no exception,but this has been historically held back by cultural silos within provider organizations,as well as concerns around privacy,technology,and operations.The benefits for both patients and employees are clear:Patients can book an available time slot for an appointment,while freeing up availability for call center operators to handle more complex requests.“We have a heavy focus on online scheduling,but were also looking at creative ways to fill canceled slots,waitlisting people and offering appointments as they come available through a program called fast pass,”says Andreadis.Despite the clear advantages of online scheduling,complexities remain,particularly in larger health systems that have a lot of different locations and service types and,therefore,touchpoints in the patient journey.To be effective,they also need to be integrated with numerous operational systems,which may be hosted across multiple silos.“We consolidated online scheduling platforms to cut down on all the operational costs of maintaining so many.Now we can invest in perfecting just one service instead of managing many suboptimal services,”says Andreadis.Such integrations take time,encouraging the need for interim solutions,many of which depend on inefficient processes on the back end.Only 36%of C-suite leaders currently offer self-service options beyond non-specialist scheduling via mobile apps or online portals to increase customer satisfaction.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareOnline scheduling becomes more challenging when healthcare providers have multiple specialty areas.“Where we focus most in patient access is creating opportunities for online scheduling,”says Watkins.“Weve got to establish workflows to get the right patient to the right specialized physician.Online scheduling is a real challenge in our specialty areas because of the extreme disease states that we can deal with,and making sure that our clinicians,who are doing the most cutting edge research or new treatments,are getting the right patients that meet their criteria.Thats been an area of focus.”Most of the systems that enable these more complex and specialized scheduling processes live within secure albeit dated patient portals,so they end up lacking the accessibility of mainstream digital experiences.As a result,patients often find these portals difficult to use,especially when trying to schedule appointments with specialists and referrals.Often,they end up having to navigate multiple systems to find the specific information and specialists they need.However,the next wave of consumer healthcare strategies is addressing these issues by moving them outside of the traditional patient portal and into better optimized and consolidated web applications.For instance,mobile payment solutions enable patients to securely pay medical bills,copayments,and for other healthcare services via apps or online platforms.Some healthcare providers also offer virtual waiting rooms,allowing patients to check in online,wait from home and receive notifications when its time to see the doctor.52%of healthcare organizations are using conversational user interface technologies to facilitate prescription management and refill requests.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareImproving patient support with better find-a-doctor toolsThe most effective online scheduling systems also integrate with find-a-doctor tools.These tools make it easy for patients to find the right healthcare providers and make informed decisions about their care.For healthcare marketers,theyre valuable lead generation tools for fast-tracking connections between patients and physicians.However,patients have come to expect more than just a search box.They also expect a full set of filters allowing them to search by specialty,location and other criteria.“Find-a-doctor tools are directed searches based off very specific filters,”says Stewart.“Now there are large taxonomy bases that have been built that allow for those kinds of consumer-friendly terms to be associated with the very medical and clinical terms and conditions and specialties.Its it still ultimately a very syntactical search,but we know that thats not how consumers think.Rather,they think in very disconnected and multifaceted terms.Were in the process of fixing our provider data,what we know about our providers and how that data is presented back.You need that to build conversational UIs,or an LLM wont process your data effectively.You need structured data to begin the process.”Structured data is vital for improving the search experience.For best results,they should also integrate seamlessly with other healthcare systems and databases.They also need unified metadata to drive more relevant responses,and this often requires additional logistical tagging beyond conditions and treatments to get the right person to the right location where the specific condition is treated.Find-a-doctor tools need to align with how patients think by using language that patients use to drive desired outcomes.Elevating provider and location search can be a resource-intensive and complex process,needing ongoing refinement to ensure they remain effective.“Were in the process of combining about five or six big sites into one with a lot of focus on improving our find-a-doctor application,which is an essential part of that whole journey from finding care to scheduling an appointment,”says Andreadis.“The website,the call center,its all very interrelated,as is proactive patient outreach.”Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareExpanding virtual consultations and telehealthTelehealth and virtual care services,typically provided through video consultations,secure messaging or phone calls,give patients remote access to healthcare.Its convenient for patients,as it eliminates the need to travel and often results in reduced delays and waiting times.For healthcare providers,this can also reduce the administrative burden by enabling practitioners to record,document and store all patient information electronically.“Theres a lot more demand for virtual care,”says Andreadis.“But its very interesting,because its not reimbursed uniformly at the same rate.This creates a conundrum for us because our customers are demanding it.So,we are experimenting with several models and have made telemedicine a standard offering for specialty care follow-up visits.We need to make virtual care offerings more accessible from our website,and allow new and returning patients to schedule online,and we need to figure out how to navigate the complexities of physician schedules,so we provide easy and seamless experiences for patients.”Virtual visits have pushed healthcare providers to develop new platforms that offer on-demand care.“One of the things you often hear about the American healthcare system is that its difficult to get in,”says Stewart.“It takes a long time to see a provider.But digitally being able to have a small group of clinicians provide care across multiple states helps us provide that access faster and easier.Instead of waiting in a room for two hours 30 minutes across town,patients can wait just a few minutes in a virtual waiting room.”Particularly for new patients and those seeking routine consultations,telehealth has become a core part of the patient journey,including finding a physician.“I think the biggest shift we hear when we talk with consumers is more of a desire for a kind of one-stop shopping when theyre choosing care.They want to be able to pick a physician near them but assess them fully remotely.They weigh up the convenience factors,”says Watkins.Patients who do their initial research online,as more and more do,typically want to have the option of telehealth,especially for preliminary consultations.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareAutomating engagement with voice assistants and chatbotsInteractive voice assistants(IVAs)and chatbots can significantly improve efficiency by freeing up staff to focus on more complex interactions.If theyre deeply integrated with consumer data platforms and patient management software,they can also identify patient needs before connecting them with the appropriate service or practitioner.“To give a sense of the scale involved,were getting about 9 million calls per year,”says Andreadis.“And theyre only ones that were tracking.There are millions of calls that are hitting parts of our organization that we dont even know about,so what were trying to do is move about 600 agents onto one platform and explore personalization opportunities.We have implemented an interactive voice assistant(IVA)over the last month,which is essentially a chatbot you speak into it as opposed to type into it and its powered by AI and machine learning.It needs a really good database to draw from in order to be able to direct you to the right place based on your inquiry.When you call,we know what type of medical professional youre looking for,and weve already detected your phone number,so we can get you connected to the right person without sending you through multiple phone trees or transferring you multiple times.”IVAs and chatbots have come a long way from the simple prerecorded and scripted messages of old to the point they can now understand context and combine that context with the patient information stored in your databases.However,effective automation requires accurate databases and specialized LLMs capable of handling a broad range of patient queries.Any deficiencies in their responses can quickly hinder patient access and lead to frustration,as well as trigger a drop in loyalty.Many healthcare organizations are protectively holding back from rolling out full LLM functionality and instead focusing on more constrained and contained forms of machine learning.These might not be as“smart”as current technology allows,but they do come with a lower risk.As such,organizations that are getting started with the adoption of solutions like LLM-based chatbots and copilots tend to do so in ways that dont impact patients directly.For instance,doctors might use copilots to take notes during virtual visits.70%of C-suite healthcare professionals are either considering,piloting,or extensively using LLM-powered chatbots to enhance patient experiences.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareNonetheless,we are moving quickly toward a new era of digitally driven patient experiences.Rapid advancement in AI has led 37%of C-suite professionals in consumer healthcare organizations to consider implementing LLM-powered chatbots as part of patient access strategies.Around half of IT and marketing leaders also agreed that conversational AI can provide better access to healthcare services,enhance data collection initiatives and improve resource allocation.This is not to suggest fully incorporating AI into your patient engagement strategies is going to happen overnight,but the promise is undoubtedly there,and specialized solutions for healthcare are making them more accessible.What are some of the risks associated with utilizing conversational UI in patient interactions?MarketingInformation TechnologyIncreased risk of medical misinformation or misdiagnosis42G%Technical failures or downtime impacting patient access50C%Increased risk of legal and liability issues449%Potential for algorithmic bias or discrimination427%Ethical concerns regarding the use of AI in healthcare4%3%Limited access for individuals with language,cognitive or demographic barriers20%Privacy breaches and data protection concerns16%Increased vulnerability to cyberattacks and hacking attempts322%Challenges maintaining patient trust and rapport285%Challenges maintaining regulatory compliance(e.g.,HIPAA)226C%of C-suite leaders rank algorithmic bias or discrimination among their top three concerns with using conversational UI in patient interactions.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareThe shuffling deck of roles for website provider searches,call centers,and chatbotsEmerging experience practice:Patient access is at the heart of any healthcare organization,second only to the delivery of services.As with most“conversions,”there often isnt a straight line between finding a doctor and making an appointment.Instead,things tend to happen in a complicated,non-linear way that might involve a mix of online research,website provider searches,geolocation,calls to the call center,calls back from the call center,chatbot interactions,emails and SMS confirmations.Users may start in one channel and end up finishing in another,either due to their own choice or operational processes.Users may have their own channel preferences.For instance,some may say,“I only use the call center,”or“I do all that scheduling silently when I am at work.”Each of these channels has its own unique use cases,costs-per-interaction,benefits and limitations.For instance,a well-operated call center generally represents the gold standard for its range and complexity of successful interactions,such as primary care appointments or specialist appointments that are hard to schedule due to delays and callbacks.Call center operators can solve problems with their tacit knowledge and complex workflows and scripts.They can even track these changes to provide ongoing support and education.Nonetheless,many people prefer not to talk on the phone.And wait times,even in well-funded call centers,can be a dealbreaker for stressed patients.Traditionally,some patients prefer web and mobile app searches to schedule appointments,using both search engines and specialized“provider/location search”applications within HCP sites.This approach omits many nuances of call centers and has a far more“brute force”sense of relevant answers.As a result,patients sometimes schedule online only to get a call back from the call center,sorting out details of their visit that were beyond the complexity of the search business logic.Somewhere between the call center and the web search is the chatbot,which comes in many forms and levels of sophistication.Meeting the requirement to be quiet and fast especially for those who prefer scheduling privately while going about their day chatbots have historically had the potential to deliver somewhat more nuanced responses and handle a broader range of cases than traditional provider search.Because of this,chatbots appeal to a particular kind of user who likes to formulate their questions.Chatbots have the benefit of being in the strongest“native”channel,natural language.However,most if not all healthcare chatbots used for scheduling have significant limitations.The deck of“what happens where”is also reshuffling,and significant changes are taking place.Channels are starting to converge around a larger experience and analytics superset.The lines between channels are starting to erode.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareHere is a playbook for healthcare brands:Web and mobile app searches to find and schedule a provider are becoming much more sophisticated.This change is the result of an increased use of more finely grained metadata to split the difference between convenience and relevancy.In turn,the power of this metadata is driving experiences that capture more of the nuances that would previously have required the call center.With better implementations,gone are the days of accidentally sending a patient needing a neurology exam to a convenient ambulatory care center just because they do concussion checks.Likewise,there is a move by many HCPs to bring a larger portion of specialist scheduling online,automating triage through complex contextual forms that can screen patients without human intervention.Given the popularity of provider searching as a low-overhead form of engagement,these additional features speak directly to a higher degree of convenience,shifting the role of provider search into new territory.However,everything in automation is highly dependent on accurate data and workflows.Chatbots are rapidly changing and driving greater content accuracy as they become more integrated with the help of master data management systems.These systems provide updated information on things like doctors,locations,treatment,intake triage rules and insurance providers.While chatbots are driving greater content accuracy,theyre still fairly hard-wired.Were now on the cusp of a technological revolution driven by the rise of patient-facing LLM-based chatbots and retrieval augmented generation(RAG),but progress is still being held back by fears of inaccuracies and legal risk.However,given the speed of development and improved governance,it seems very likely that,within a year,existing chatbots based on intent recognition and canned responses will give way to more flexible LLM solutions.These next-generation chatbots will be able to field not only a broader set of ways people express themselves,but also tackle a wider set of topics.The timing,implementation costs and politics will be fraught with challenges,but there will be a wave of innovation much like when online scheduling took off a decade ago,albeit with faster adoption curves.Thanks to these advancements,chatbots are becoming more reliable and can seamlessly transfer customers to live agents when needed.As chatbots handle more tasks like searching and scheduling without the need for live conversations,they offer greater flexibility.This shift will likely make digital interactions more popular,especially for people seeking efficient solutions,such as scheduling appointments while at work.Lastly,call centers themselves will also continue to change,as strong AI co-pilot support replaces rigid scripting and acknowledges new data points,quickly shifting more nuance into the interactions.This is potentially high-risk,but with the elevation of accuracy and capability across digital channels it seems likely that the key role of the call center will evolve into an even higher level of AI-supported triage and customer service,effected more efficiently by a smaller team.Only time will tell how these shifts in the roles and capabilities of digital channels will manifest,but one thing is certain:The dynamics underlying access are rapidly changing,and we can expect much more asymmetry among the experiences created by different HCPs as the competition for much better experiences becomes more obvious.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareDifferentiating your brandChapter 3:Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareWhile the quality of care remains and always should remain the primary competitive differentiator in healthcare,brands also need to compete with regard to the digital experiences they offer.Patient portals,find-a-doctor tools and telehealth platforms are now well-established,but just being present in the digital space is no longer enough.Todays patients expect a steady flow of new and better digital experiences,and those experiences are now fundamental in brand differentiation and loyalty.Thats why healthcare brands that use interactive,real-time data to guide patient decisions from selecting the right specialist to understanding their treatment options stand out in the market.Theyre not just healthcare providers.Theyre also trusted,authoritative sources of knowledge.50%of consumer healthcare providers create interactive educational content as their primary technique for differentiating their brands and capturing awareness.-Consumer Healthcare Research Survey,Valtech USAValtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareDefining your market specializationYou cant be all things to all people.To create a distinct brand message,consumer healthcare providers need to emphasize their expertise in the niche areas they serve.If your marketing communications give the impression that youre a jack of all trades,then youre less likely to stand out.Of course,your organizations medical specialties will be the primary focus area,and they should inform your content and customer engagement strategies.“Healthcare is in a place right now where theres more demand for services than there is capacity to care for people,”says Andreadis.“People in my role need to shift their thinking,because were not in an acquisition job anymore.When our marketing is acquisition-based,its very specific,long-tail terms,for example surgery for a very particular health need where we have access and an easy pathway for care.If a patient is searching for those very specialized services,we want to be there.Its a totally different mindset than casting a wide net.In the growth space,were all about connecting the dots with access,capacity and demand.”Providers should also consider other factors that help them stand out.For instance,you might be the only healthcare provider with your specialty in your area that also provides advanced telehealth services or a convenient mobile app where patients can book appointments or access their personal health information.Instead of pushing all of the most baseline messages and disappearing into a crowded market of similar providers,healthcare marketers should focus on specific narratives,demographic conditions,and contemporary topics,where tailored solutions are particularly effective.This is relevant in all areas of marketing and patient engagement,from optimizing your visibility in the search results to providing personalized care plans.Ultimately,focusing on your market specialization means fewer wasted resources and the ability to provide a more personalized and targeted level of patient care.Its not about getting numbers through the door,but about getting the patients youre best equipped to care for.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareCrafting a distinct brand messageIn any industry,customer loyalty depends on a lot of things.Of course,factors like service quality and pricing are paramount,but they dont paint the whole picture.Customers come because they need something,but they stay for the experience.Consumer healthcare is no different.As in any other organization,the experience must be consistent and integral to your brand.By crafting a unique brand identity and telling an engaging story,healthcare marketers can reflect their authentic values and create stronger,more meaningful relationships with their consumers.This in turn drives brand loyalty.However,more than two-thirds of healthcare marketers consider maintaining a consistent voice across multiple touchpoints and channels to be the biggest barrier to becoming more conversational as a brand.68%of healthcare IT leaders cite integrating a more conversational tone of voice into their existing brand strategies and guidelines as a significant challenge.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareWhat are the biggest barriers to your organization becoming more conversational as a brand?0 0Pp%Maintaining a consistent brand voice across channels/touchpointsIntegrating with existing brand strategy and guidelinesResistance from within the organization(e.g.staff,stakeholders)Concerns about brand reputation and trustUnsure of where to beginBe able to prove cost benefitEnsuring consistent messaging across all your patient interactions is key to unlocking a so-called“brand halo effect”,a thought process where one good experience influences opinion about other things that arent immediately related.In the context of brand-building and consumer loyalty,this translates into encouraging the same customers to purchase additional products and services.“If people are searching for specific services,we need to be where they are,”says Andreadis.“But we also want to have a consistent brand message that provides a halo for all services we offer.”Providers also need to encourage user-generated content,such as testimonials and reviews,to amplify positive word-of-mouth feedback and build brand advocacy.Even when that feedback isnt especially positive,its still valuable,if not more so.As in other industries,customers also put a lot of weight into how you respond to feedback,rather than just the feedback itself.In that respect,its simply another opportunity to reinforce an authentic brand message.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareBuilding strategic partnershipsHealthcare providers are already grappling with a shortage of workers.With employees overburdened as it is,many lack the resources needed for upskilling teams in the ways of digital transformation.This is particularly the case when adopting and integrating emerging technical solutions to enhance patient experience like generative AI,LLMs and propensity modelling for understanding patient behavior.These challenges are among the reasons why 40%of healthcare organizations consider partnerships with technology companies to deliver innovative digital solutions essential for gaining mindshare and redefining patient experiences.By aligning with reputable organizations and industry thought leaders who share the same brand values,providers can amplify their message to their target audiences.“One of the best things about the healthcare industry is that we rarely have intense competition we sometimes do locally but outside of that,it allows us to share and talk.Everybody has one challenge that we can all collaborate on and learn from each others experiences,”says Stewart.Partnerships with other healthcare providers are also essential in enhancing credibility and forging a go-to brand for referrals.“Even if you create an independent retail base,such as urgent care or a quick care model,at a certain point in time,you have to refer to the continuum of care in the broader health system,”says Boyer.“Some health systems are partnering together to accomplish that.Technology can solve some of that too.I know a lot of academic medical centers across the United States are now really looking into this to become recognized as more advanced,as leaders in their areas.”Andreadis also comments,“The next piece of the digital strategy puzzle is building the B2B relationships with physicians and outside organizations who are potential referral sources.”Clearly,to leverage all the potential benefits from such partnerships,providers must work together to integrate their data sources in pursuit of a unified patient journey.Every organization is the product of people,processes and technology working together to deliver a quality service.Close collaboration between internal teams and external partners is paramount.“To address all the digital touchpoints across the health system,you need to be a collaborator on an enterprise level across IT,patient access,revenue cycles,patient experiences,and everything else,”says Watkins.“The key word is collaborator or co-leader.”The overarching goal is to build trust and ensure seamless coordination between your organization and its referring providers and other partners.It helps enormously to implement a centralized platform that integrates with existing systems and allows for real-time updates and easy but secure sharing of patient information hence the rising importance of consumer data platforms.Thats what ultimately enhances the continuity and quality of patient care and helps establish a brand as a leading authority.50%of healthcare IT leaders describe the most adventurous brands today as those that partner with tech companies to build more innovative healthcare solutions.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareInnovating in patient care deliveryA better patient care experience is a better brand experience,one that builds loyalty and brand equity,making everything else easier.Technological innovation has become a leading brand differentiator in almost every industry,consumer healthcare included.More consumers prefer to interact digitally,especially when it comes to tasks like ordering a repeat prescription or scheduling a routine health checkup.That doesnt mean they dont still want in-person care,but they want to access it without unnecessary friction caused by excessive waiting times or convoluted intake processes.Weve already talked about the rapidly emerging role of AI in consumer healthcare,but its importance cannot be overstated.AI technologies can greatly augment the ability of healthcare organizations and their physicians to deliver better patient care.For instance,it can help providers be more proactive by providing medication reminders,both for physical and mental healthcare.Given the fact that digitized healthcare services will only become more popular,this can also attract and retain a new generation of patients.While well-established in the wellness and fitness sectors,wearable technology is also emerging as a way for medical professionals to track health data and monitor patients for personalized care.When theyre able to access and analyze this data to inform clinical decisions,they can shift from reactive to proactive care models.For the benefit of both clinicians and patients,this can also save a lot of visits to the doctor.As a result,wearable devices that monitor metrics like heart rates and sleep patterns are increasingly being integrated into patient care.AI is also becoming more deeply ingrained in patient care delivery by assisting caregivers in expedited decision-making.“Doctors are now doing this(using AI)for keeping track of clinical notes,and there are transcribers for every telemedicine visit now,”says Boyer.“These can report back and even prompt those doctors to ask targeted questions based on what the patient actually said.”Clearly,using next-generation AI benefits both physicians and patients by helping to fill the inevitable communication gaps that arise in complex processes like patient intake and wider healthcare delivery.48%of healthcare IT leaders have seen closer adherence to treatment plans and medication regimens as a result of using conversational user interfaces in patient interactions.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareUsing machine learning to tighten up a more assertive brand approach across channelsEmerging experience practice:When people in healthcare think about generative AI(GenAI)or machine learning,they tend to think about creating content like images or articles.However,a rapidly emerging use for these technologies is to accelerate content operations,activate omnichannel connections,and enforce various aspects of digital governance simultaneously including regulatory compliance,language style guides like“plain language”and even brand style.GenAI can assist with creating material,but also by enforcing workflow steps when publishing to flag problematic areas,or actually suggest changes before going to press.These tools have limited availability in publishing platform but their true potential can implemented through custom integrations in DXP platforms or better yet in workflow and content marketing or content hub platforms that provide even greater flexibility.Healthcare organizations have long fought with limitations on content creation,even for the basics.At the same time,theres also a pervasive problem in that much of healthcare marketing and communications look roughly the same,with unoriginal iconography and little differentiation in brand strategies.Limited resources and overly cautious approaches result in less creative and distinct brands.As a result,theres an opportunity to attract consumers with a clear and differentiated brand strategy.There are immediate gains to leveraging generative AI to generate more on-brand variations of images or to quickly edit content for brand consistency.However,as is often the case with automation,it sometimes makes sense to reorient the question from how do we do more with less to how do we compete in ways we could not have imagined and at a greater scale?After all,the cost to experiment has dropped through the floor.It can be hard to think this way,as we have grown used to the dynamics of our current pragmatic limitations.Its important to consider the opportunities that a high contrast,differentiating brand can offer if its not held back by these pragmatic concerns.For example,say a concerted effort is made to gain mindshare from a brand strategy that addresses the intersection of convenience and quality head-on in an engaging,funny but slightly irreverent,jokey way and assume it is testing very well.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareFor a narrowly defined retail medicine brand,implementing and sustaining a highly targeted,creative brand strategy might be manageable across a smaller set of content interactions.However,each piece of content still requires significant effort,including extensive manual review to ensure it stays on brand.For larger organizations,such as a multi-state health system,adopting this approach on a boarder scale would be prohibitively expensive and,in reality,it would only impact on 510%of the editorial copy due to the high resource demands.The opportunity to push a more distinct,creative voice safely and thoughtfully into a larger part of the brand experience has been severely inhibited from both the production and governance side of things.Careful experimentation is starting to chip away these limitations,thus opening up the potential to bring large organizations under more distinctive,tested brand regimes without the high costs and governance impossibilities.More future-focused brand consultancies are now experimenting with these tools and methods,and a new type of experience is already starting to appear.However,as these tools are successfully operationalized,we can expect more distinctive brand experiences to increase in the battle for attention and loyalty.We may soon see a wave where the word“differentiation”means a lot more.If we dont,it wont be because it is impractical to do so.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareExperience operationsChapter 4:Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcarePatient experiences are undergoing a major shift,driven by emerging technologies and their promise of convenience.With an ever-growing expansion of channels,the patient journey spans many different digital touchpoints,presenting greater technical and operational complexity.Thus,transforming customer experiences isnt just about implementing these touchpoints;its also about managing them in a way that supports a consolidated and sustainable experience.To address these challenges,forward-thinking providers are moving toward dynamic and scalable AI-powered platforms that personalize patient experiences based on continuous feedback.The only way to do that is through close collaboration between all stakeholders in the patient experience and that includes not only marketing but also operations,IT and front-line operations.50%of consumer healthcare providers are leveraging new content formats,including digital guides,videos or personalized content,to improve patient satisfaction.-Consumer Healthcare Research Survey,Valtech USAValtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareMastering data management for consistent careAs providers digitize their operations and enhance patient experiences through automation,their processes generate increasing amounts of data.This includes key information about providers,locations,services,logistics,and even individual customersand their interrelation.That data requires governance.Governance encompasses not only compliance and security,but also helps organizations get maximum value out of their data.Effective governance ensures that the data is of high quality,free from incorrect information that may result in negative customer experiences,and securely managed in accordance with HIPAA and other regulations.From a patient experience perspective,properly governed data can also be analyzed to identify trends and improve patient outcomes.Master data management(MDM)supports governance by improving the accessibility and accuracy of information.This streamlines operations,such as scheduling and referrals,to improve patient experiences,reduce risk and drive informed decision-making.“The digital world has forced us to try to unite,but data challenges have been holding that back,”says Stewart.“And so we set about a project to bring in master data management specific to our provider data.Consumers are driving a lot of that,because they want to know who can treat them for what condition,where,and when.”However,implementing MDM is a lot easier said than done,especially for health systems that have expanded by acquiring multiple hospitals,and thus often grapple with diverse systems and legacy IT architectures.Only 26%of healthcare organizations are in the“optimization”stage of their MDM journey,which involves continuous refinement of MDM processes,technology and data quality.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareThe process involves consolidating numerous data sources,such as provider databases,credentialing systems,practice management systems and electronic medical records stored in different structures and formats.Thats why implementation needs to be strategic and incremental,without compromising data integrity or security.This requires expertise in healthcare technology,hence the value of partnering with specialized solution vendors.“We set about a project to bring in master data management specific to our provider data so that we can truly understand the facts of who can treat who for what condition,where and when,”says Stewart.“Building a master data management solution to govern that process,so that we can present it internally or externally,has been our biggest strategy to wrestle.Once that gets in place,we can unlock that ability for LLMs and other conversational UIs to bring forward for our consumers.”50%of C-suite leaders cited that strengthening their data management and analysis capabilities was one of their top three challenges when it comes to driving customer experience improvements.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareDeveloping a digital content strategyWhile its taken healthcare longer to adopt content marketing than other sectors,things are changing quickly.60%of healthcare marketing professionals are now broadening their content marketing initiatives by incorporating other formats,such as digital guides in the form of videos and animations and other personalized content.However,the term“content marketing”itself doesnt paint the whole picture.Its not just about raising awareness by helping brands compete in organic search results.While important,content marketing is also about supporting patients with educational materials that enhance experiences and build trust.“Historically,weve had guides that we used for developing consumer loyalty,and weve got a handful of those still in the mix but those are labor-intensive to produce and maintain,”says Stewart.“Were now heavy on video creation and have a really strong in-house video team.Content like patient stories and physician biographies are now at the core of our content creation,and that will continue.”Clearly,for consumer healthcare providers,content has become mission-critical,but theres a lot more to digital content strategy than just focusing on website visitor counts.“Were also strengthening the academic side of our site by investing in components that support clinical trials and other aspects of our research,”adds Watkins.“Some of those will continue to have strictly academic goals,and others serve to position Johns Hopkins as a leader in the world of clinical care.”The nature of healthcare is such that any digital content strategy must place compliance,privacy and security at its heart.All content,regardless of its goal,must be relevant,high in quality and delivered across multiple digital channels.This requires meticulous planning and adherence to standards.After all,misinformed healthcare-related content can quite literally put peoples health and lives at risk.51%of marketers say that the brands creating interactive educational content like quizzes and tutorials are the ones capturing mindshare and redefining customer expectations.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareCreating effective patient feedback loopsYou cant improve what you dont know,hence the importance of patient feedback.“Traditionally,patient experience is a survey is conducted after they have an appointment to ask them how things worked,”says Boyer.“Now,were starting to see marketing leaders coming in to measure the patient experience prior to them showing up for an appointment.Some are using market research to actually redefine the way they deliver the primary care.The whole play is from an experience perspective and to ease access if we can grow patient loyalty,then it has the financial underpinning.”Fortunately,digital channels make it possible to collect valuable feedback across every touchpoint.These feedback loops include passive methods like social listening and active methods where customers give feedback directly.Gamification is an example of an active feedback loop,in which interactive games and rewards can encourage certain behaviors like leaving ratings and reviews.Only 35%of C-suite leaders are currently incorporating feedback mechanisms into their digital platforms.IT is the predominant driver in this initiative,with 40%of IT leaders currently implementing feedback mechanisms versus only 32%of marketing leaders.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareHealthcare providers are attempting to uncover ways to better tailor their communications to provide more personalized experiences,and feedback loops are fundamental in that pursuit.As such,they must strive to understand what patients challenges are when engaging with the U.S.healthcare system through their provider.Feedback loops can deliver this insight to increase acquisition and loyalty.Collecting feedback is,however,only the first part of the process.You also need a way to act on it.It requires continuous monitoring and improvement over every digital touchpoint.For instance,while patients might be satisfied with their doctors,they often express dissatisfaction with non-clinical interactions like digital or call center experiences.“We have patient surveys that include questions about their general experience,”says Andreadis.“We are moving to collecting feedback about our digital and call center experiences as well.”Healthcare providers usually focus primarily on the quality of clinical experiences,just as they should.However,from the business side,its also important to gather insights directly or indirectly from patients about their experiences before and after their appointments.Acting on these insights can lead to significant improvements in care quality and service delivery.55%of healthcare organizations consider implementing proactive measures to address patient feedback as one of their most significant challenges.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareEmpowering collaboration across multiple areasMost healthcare leaders are aware that their IT and marketing teams need to collaborate closely to enable better patient experiences.What often isnt clear,however,is exactly whos responsible for what.Its often said that marketing owns the experience,but the same can also be said of operations,not to mention any other patient-facing process.Similarly,ITs primary responsibility is the technology,but its up to marketing and other teams to actually use it for the betterment of an excellent patient experience.Being clear from the outset on the specific roles and responsibilities of each team is a vital first step in any digital transformation.“You can always pair a few major strategies for IT and marketing to collaborate on,such as patient access,patient experience,and financial stewardship,”says Boyer.Any successful organizational change is the product of close collaboration between every department involved.Digital transformation is no different.It doesnt happen in a vacuum.“Organizations have to overcome a lot of the natural silos that exist in healthcare to effectively assess technologies and keep in mind a timeline for what pieces need to be in place at what time,”says Watkins.“We need the ability to choose technology at an enterprise level and then apply it strategically and effectively.”54%of C-suite leaders identified the lack of coordination across different departments as the main obstacle preventing organizations from enhancing patient experiences.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareIn this case,several departments have a fundamental role to play.IT is responsible for deploying and managing new technology,while marketing will be the primary users of any solutions intended to drive patient loyalty or differentiate the brand.“The CIO is very much looking at how to maximize what they have.How do they make sure they dont have a Frankenstein of multiple technologies?Theyre making a move towards minimizing their technology overheads,while at the same time extending into digital health and addressing digital health initiatives,”says Boyer.“I have a co-leadership role with the vice president of patient access.She and I co-lead a massive digital and call center transformation project,”says Andreadis.“We established a multi-department program that would support all the related department budgets and got agreement for multi-year funding.Part of it goes to marketing,part of it goes to access,part of it goes to IT,part of it goes to our office of innovation,etc.It helps to force all of us to come together and work on it together because were all accountable for the same goals and objectives,and everyones perspective is crucial to the success.”Fostering cross-department collaboration isnt easy,and it does not come naturally,especially in the case of larger healthcare organizations with teams spread across the country.In this case,different departments and branches can struggle to align goals and methodologies when it comes to innovation.Thats why it requires a structural and cultural approach that starts from the very top and aims to break down silos and promote a shared understanding of objectives.Technology is itself a key driver of such initiatives,as it supports collaboration by simplifying access to information.51%of C-suite leaders cited an ineffective change management process as their top challenge for executing on a digitally improved patient experience.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareValtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareTechnology hybrids in personalization and content automationAutomation plays an essential role in content-heavy use cases,such as patient health information libraries or service line marketing materials where many different kinds of content cluster around topics.First,there is topically related or clustered content.This means that a piece of content is automatically linked to other similar items of interest.Since information architecture is often limited and must focus on the most common user journeys,content automation helps by continuously offering alternative but relevant paths for the user to explore.If a user misses something in the main navigation,content automation increases the likelihood of guiding them to what theyre looking for,making complex content more accessible and easier to navigate.Similar automation techniques can also drive more abstract personalization.For instance,a user whos profiled to have certain interests or intents sees not just one targeted,hard-wired piece of personalized content,but rather a list of many recent content items that are pertinent to them.Both use cases are extremely powerful,and theyre two of the main ways DXP platforms can support rich,complex,multi-topic,multi-audience digital experiences that cant otherwise be operationalized effectively.Nonetheless,these systems do come with some challenges.Most importantly,they lack a mechanism to comprehend what the different content pieces are about,aside from the semantic aspects of search.To do their content automation magic,a human being needs to tag the content in relation to a determinate taxonomy of terms,creating a sort of master list of topic categories for the digital ecosystem.This process is time-consuming,and though it is a key driver of the rich experiences that users want,its at the top of the list of tasks that either dont get done or are incomplete.This gap silently erodes the potential value of the digital operation at scale,resulting in users seeing less accurate,related and personalized content.Enter automation again this time in the form of LLMS.LLMs are particularly good at content analysis and manipulation tasks.Through integrated LLMS,DXP platforms can effortlessly taxonomize content for the automation of today,driving a much higher level of relevancy across many-to-many relationships at scale.This strength unlocks a great deal of value,with LLM-augmented automation enabling vastly more efficient content supply chains.For now,this hybrid approach is exactly whats needed to balance editorial control,segmented and strategized personalization,and the large volume of human-created content.LLMs enable DXP platforms to deliver much richer user experiences without being hindered by the limitations of human labor or attention.While its possible that LLMs will eventually take over in a wider range of content and personalization tasks,current challenges concerning control,ethics and observability make full automation unlikely.As such,hybrid systems often prove more durable and effective over time,allowing organizations to benefit from the best of both human-and AI-driven processes.Emerging experience practice:Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareWhats next forconsumer healthcare?Looking aheadIn healthcare,as in every other industry,consumer expectations are increasingly informing growth strategies.Digital health has become a critical enabler and is evolving rapidly as remote care,data-driven personalization and wearable devices become ever more prevalent.Now,patients demand not only a high standard of care but also a seamless digital experience with immediate accessibility to relevant and accurate information,all while staying aligned with trust and privacy expectations.As patients look to their own healthcare in a more holistic way,providers must be ready for whats next.For providers,emerging digital solutions like next-generation chatbots,propensity modeling and AI-augmented consumer data platforms provide an opportunity to better meet patient expectations while mitigating the growing impacts of staff shortages and rising operational costs.To stay relevant,organizations must focus on the key areas that will shape patient experiences today and tomorrow.To drive a premium patient experience,healthcare executives should continue to embrace advanced technologies and data management strategies.Building loyalty programs that are compelling and valuable to patients organized around their actual health can foster many business benefits.Aligning all interactions around the total patient experience and providing avenues for coherent,integrated engagement with HCPs are key elements that differentiate between healthcare-as-a-commodity and a personal relationship with a provider organization.To support these efforts,organizations can leverage advanced technologies like large language models(LLMs),refine master data management(MDM)practices,and implement customer data platforms(CDPs).By embracing these technologies,organizations can ensure their data is structured in the most effective way possible,leading to significant returns on value.LLMs can play a crucial role in addressing siloed and non-uniform patient data,facilitating better master data management.Additionally,these models can help structure valuable data from various sources,such as call center agent interactions,medical databases,website content and internal systems.This approach enhances data quality and accessibility,enabling more informed decision-making and streamlined operations.Implementing a CDP also allows healthcare organizations to unify first-party and third-party data from all touchpoints to create comprehensive patient profiles.This approach not only enables truly personalized journeys that foster brand loyalty,but also provides opportunities to embed feedback loops across different channels,ensuring continuous improvement in patient experience.How can providers enhance patient loyalty?Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareHealthcare organizations can enhance patient experiences and streamline operations by implementing chatbots in key areas,such as more effective and relevant find-a-doctor tools and enriched access experiences.These solutions improve search results and reduce administrative burdens on call agents,allowing them to focus on serving new medical inquiries and connecting patients with the most suitable physicians.This enables call agents to prioritize high-value interactions and provide personalized support.In addition to chatbots,voice assistants are increasingly being adopted to further optimize call routing and gather first-party data.These intelligent systems can efficiently direct patients to the appropriate resources based on their needs,minimizing wait times and improving overall call center efficiency.By collecting first-party data through voice interactions,healthcare organizations can also gain valuable insights into patient preferences and behaviors,enabling them to tailor all of these services and their communications accordingly.To stand out in the competitive healthcare industry and cultivate strong patient loyalty,organizations should prioritize three critical areas:1.Targeting niche markets.By adopting niche patient acquisition strategies,healthcare organizations can optimize their budgets and concentrate on providing specialized services in collaboration with specific physicians.This targeted approach allows for more efficient resource allocation and enables organizations to cater to the unique needs of particular patient segments.2.Fostering patient loyalty through content marketing.Developing a robust content marketing strategy is crucial for building patient loyalty.This involves creating personalized content,maintaining regular marketing communications and presenting an authentic brand image.3.Leveraging patient insights.Understanding the target market is essential for driving patient retention.Healthcare organizations should gather insights to determine the type of content that resonates with their audience and identify the most effective channels for engaging specific demographics.Additionally,when deploying AI technologies it is crucial to consider the demographic profiles of patients to ensure that the AI solutions are tailored to their preferences and needs.How can healthcare organizations address patient access?What tactics can be used to create a distinct brand?Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer HealthcareOne of the most significant obstacles to delivering exceptional customer experiences is the lack of strong collaboration between departments to address customer experience quality.Organizations that successfully align their internal departments to drive digital transformation will thrive as key stakeholders invest in shared objectives and budgets.This collaborative approach enables a holistic strategy for implementing technology effectively,propelling digital experiences forward.Omnichannel touchpoints and customer experience expectations drive the need for a different culture of prioritization and alignment within healthcare organizations.A central focus on“experience,”viewed holistically and understood from the customers perspective,must be a key ingredient in digital governance.Establishing standards,fostering regular collaboration,and aligning around business and experience goals should be driven at a higher level with increased oversightsometimes necessitating structural changes within organizations.The customer must remain at the center,with significant efforts made to address their needs without requiring them to navigate the organizations complexities or endure discontinuities and misaligned signals.When CIOs focus on reducing technical debt,structuring siloed data and consolidating technology platforms,they create opportunities for the marketing department to enhance various aspects of the customer experience.This includes developing better find-a-doctor tools,leveraging AI technologies,and implementing best-in-class CRM and CDP systems.By optimizing these areas,organizations can maximize their return on investment and cultivate patient loyalty.How can organizations achieve customer experience excellence?The coming years will favor consumer healthcare providers who can balance the adoption of cutting-edge technology with a deeply personalized,empathetic approach to patient care.Those who succeed in blending AI-augmented service delivery with human-centered experiences will be the organizations that define the future of patient care and drive lasting loyalty.Valtech|Sitecore2025 Emerging Experiences in U.S.Consumer Healthcare Copyright 2024-Sitecore and Valtech Limited.All rights reserved.Commercial in confidence.Valtech is the experience innovation company.We exist to change the way people experience the world through advanced digital technologies,data and design.We do this by bringing together a network of experience strategists,engineers,designers,analysts and CX professionals with a proven ability to accelerate business growth by transforming our clients products,services and systems.Our global footprint allows us to deliver impact at scale.Our teams bring the agility and adaptability that allow us to create breakthrough innovation and speed to market.To learn more about how we innovate patient experiences across all touchpoints,visit our Valtech Health page.
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