Why Reputation Is a Business Driver in Healthcare

How corporate, disease and brand leadership shape physician prescribing habits

It’s not always easy to convince internal stakeholders to invest in building and protecting your corporate brand if you are a pharmaceutical communicator. But now we’ve solid proof that reputation isn’t just a nice-to-have — it’s a real driver of prescribing behavior and can make a tangible difference to your bottom line.

Physicians, who are right there in the trenches of patient care, are influenced by more than just the safety, efficacy and cost of treatments. They’re also looking at the reputation of the companies behind those treatments. WE Communications’ 2024 Brands in Motion health report, “Reputation Rules: Unlocking Physician Prescribing Power,” shines a light on how much reputation matters in the decision-making process of healthcare professionals.

Understanding the Three Levels of Reputation

Last year, our Brands in Motion health report, “Healthy Reputation: More Than Medicine,” showed that when faced with drugs of similar safety, efficacy and cost profiles, 62% of physicians will turn to the corporate reputation of the biotech or pharma company to make their final decision. This was music to the ears of communications teams who’ve long known, even just instinctively, the power of reputation.

This year, what stood out was how physicians view reputation on three different levels: corporate leadership, disease category leadership and brand leadership. Each level carries its own weight and significance — and can seriously impact how treatments are perceived and chosen.

Corporate Leadership: The Tipping Point

There’s a direct link between corporate reputation and prescribing decisions. Our study revealed that 81% of physicians say a company’s overall reputation significantly influences their perception of a medicine’s value at least moderately. What are the most important factors contributing to your corporate reputation in the eyes of physicians? According to our research, the top factors selected by physicians are reliability and credibility (73%), trust (52%), transparency and communication (47%), and innovation (44%). At this level of reputation, companies need to show they have a track record of product excellence, ethical practices, transparent communication with stakeholders and a long-term commitment to addressing unmet patient needs to come out on top.

Disease Category Leadership: Expertise Matters

The second level of reputation refers to a company’s perceived expertise in a specific disease category. Physicians are looking for companies with established experience in particular areas of medicine. The report found that 59% of physicians are swayed by a company’s leadership and expertise within a specific disease area, even a bit more than overall corporate reputation (58%). For instance, companies that excel in oncology, cardiology or endocrinology and can demonstrate a history of innovation and success in these fields are more likely to influence prescribing behaviors. This specialized reputation assures physicians that the company is not only knowledgeable but also dedicated to advancing treatments in that particular area.

Brand Leadership: Industry Table Stakes

It’s a given that the reputation of individual brands and products influences prescribing decisions. In the pharmaceutical industry, brand reputation is built by sharing positive clinical trial data, effective communication of the brand’s strengths and benefits, and patient testimonials. This is typically where most company resources are spent when it comes to communications — as it should be. But when brands are neck-and-neck in a competitive market environment, companies should look to invest more in disease and corporate leadership to prevail.

The Ripple Effect of a Strong Reputation

Beyond influencing prescribing decisions, a strong corporate reputation has broader implications. The report noted that a good reputation enhances trust within the medical community (62%), boosts credibility within the industry (52%) and increases opportunities for collaboration with physicians (34%). Collectively, these factors contribute to a company’s ability to innovate, expand its market presence and ultimately improve patient care.

Actionable Insights for Pharma and Biotech Companies

Given the profound impact of reputation at all three levels, it’s crucial for pharmaceutical and biotech companies to actively manage and enhance their reputations. Here are some key takeaways from the report:

• Evaluate your reputation: Regularly assess the strength of your company’s reputation at the corporate, disease and brand levels. Understand which areas are strong and which need improvement.
• Educate internal stakeholders: Communicate the importance of reputation as a driver of physician behavior and business success to your team. Leverage these research findings to secure resources for reputation management. Consider asking all brands to contribute toward a pot for corporate reputation building.
• Lead with innovation: Highlight your company’s commitment to R&D and addressing unmet medical needs. Innovation is a crucial lever of reputation.
• Engage with physicians: View physicians as partners and allies, not just customers. Foster collaboration and open lines of communication.
• Communicate transparently: Be open about your R&D processes, clinical trials and patient support initiatives. Transparency builds trust and credibility.

Conclusion: Strengthen and Leverage Your Reputation

In the competitive healthcare landscape, the strength of a company’s reputation at the corporate, disease and brand levels is paramount. Pharmaceutical and biotech companies must continuously evaluate and enhance their reputation to effectively influence physician prescribing habits and drive business success.

Partner with WE Communications to assess and fortify your reputation, ensuring it becomes a powerful asset. For a deeper understanding and comprehensive insights, access the full 2024 Brands in Motion health report, “Reputation Rules: Unlocking Physician Prescribing Power,” here.