Healthcare Marketing Executives: Are You Ready for the Future?


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In the healthcare industry, powerful demographic, economic, societal, technology and legislative forces are converging to change the underlying basis for competition. For health systems, new economic models, disruptive technologies and transformation of care delivery systems are front and center – challenging marketing executives to better understand and anticipate the impact of this change.

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Healthcare Marketing Executives: Are You Ready for the Future?

  1. 1. Healthcare Marketing Executives:Are You Ready for the Future?National Research Corporation2013 Market Insights SummitLas Vegas, NevadaKaren CorriganCorrigan Partners
  2. 2. The basis for competition in the healthindustry is rapidly changing . . .2• Restructuring markets and intensifyingcompetitor activities• New value-based reimbursement methodsand care delivery models• Transformation of marketing through web,social and mobile technologies
  3. 3. 5 forces marketers must watch1. The new economics of healthcare reform2. Market restructuring and emerging delivery models3. Evolution of brand in physical and virtual environments4. Technologies that disrupt and transform5. Growing, graying, connected consumers3
  4. 4. Volume vs. Value EconomicsToday providers are rewarded for volume based transactions on individualpatients. Reform models reward value based on episodes of care and outcomes: Bundled payments Pay for performance Accountable care Medical homes Coordination of care4Market force #1:The new economics of healthcare reform
  5. 5. 5Cost RestructuringCoordinated CareFragmented CarePatient CenteredProvider CenteredPayment for ValuePayment for VolumeCare Systems FocusedFacilities FocusedCare Team AccountabilityPhysician AccountabilityLongitudinal, Multi-Site CareEpisodic, Hospital-Based Care ModelsEfficient, Evidence-Based CareInconsistent, Variable MethodsElectronicPaperCost ReductionTODAY FUTURE
  6. 6. Focus of the marketing executive . . . Understand the changing economic model andthe implications for marketing strategy. Understand not only the top line revenueimplications of customer acquisition, but also thebottom line impact of key segments. Help your organization better prepare for andrelate to consumers under new delivery models. Build your marketing team’s customer acquisitionand customer retention capabilities6
  7. 7. Market force #2:Market restructuring; new delivery models Accountable care models and organizations Hospital and health system mergers & acquisitions Physician integration, employed medical practices Ambulatory, post acute and retail diversification Academic, technology and business partnerships Multi-market, multi-state expansion initiatives Enterprise IT/EHR/website strategies Co-branding/co-marketing relationships7
  8. 8. Focus of the marketing executive . . . Master the use of data to inform marketingstrategy and focus investments. Understand the marketing requirements of newlines of business Develop marketing structures, skills and systemsto support multiple markets, facilities, SBUs. Be a catalyst for innovation; push for andsupport care delivery and service innovations. Step up brand building to strengthen competitiveleverage across all lines of business.8
  9. 9. The underlying basis of competition is changing –taxing even well established healthcare brands.Market consolidation and expansion, servicediversification and strategic partnering are on therise – fueled by reform and accountable careclinical management structures.Web, social and mobile technologies are changingeverything! How we learn, how we shop, how wemanage, how we engage, how we . . . . . . . .Market force #3:Evolution of brands in physical and virtual worlds9
  10. 10. 10The social and mobile Web has completelychanged the speed, efficiency and ease withwhich consumers can engage with each otherand has had a tremendous impact on brands.Managing Content MarketingRobert Rose and Joe Pulizzi
  11. 11. 11C2B MarketingConsumers have‘reverse engineered’marketing.Source: LaunchMedia
  12. 12. 12Pre-tailingConsumers searchwebsites, blogs,ratings, brandsbefore purchasing.Source: LaunchMedia
  13. 13. 13HyperTransparencyQuality, pricing,availability, offers,recommendations,ratings are just aclick away.Source: LaunchMedia
  14. 14. 14Cloud TrustConsumerstrust bloggers,reviewers,socialcommunities.Source: LaunchMedia
  15. 15. Focus of the marketing executive . . . Help executives understand brand as a strategicasset to drive growth and business performance. Strengthen factors that drive differentiation andincrease competitive leverage. Build solid strategies for multi-facility, multi-services and multi-market systems Orchestrate business, clinical and marketingalignment to deliver consistent brand experiences Align brand identity and experience across web,social & mobile environments, including healthIT/EMR/patient, physician and employee portals15
  16. 16. Market force #4:Technologies that disrupt and transform16
  17. 17. 17the digitalpracticeTechnology is profoundlychanging the way providersand patients interact.
  18. 18. 18the socialpatientDigital marketing gives us realtime access to the patient at thevery moment they areinterested; social engagementgives us deep insights intoconsumer needs and wants.
  19. 19. Mobile health is the convergence of web, social,smartphone, tablet, telemedicine and remotemonitoring technologies.• Nearly 9 in 10 patients like the idea of remotehealthcare services• 61% would like it delivered by a mobile deviceSource: Price Waterhouse Coopers; 201019mobilehealth
  20. 20. 20Personalsearch80% of internet users have lookedonline for information abouthealth topics such as a specificdisease or treatment. Thistranslates to 59% of all adults.
  21. 21. 21Health Wellness Nutritioncontent marketingEngaging the right audiences, in the right places, at the right time todrive revenue and brand loyalty is the goal of content marketing.
  22. 22. Focus of the marketing executive . . . Understand that consumers today no longer havepurely offline or online experiences but weavetechnology through nearly every point ofcontemplation, purchasing and use of productsand services. Understand the adoption patterns of technologiesthat support care delivery and care management;and explore opportunities for creating points ofdifferentiation in access, timeliness, convenienceand customer service. Master integrated search, social and contentmarketing – strategy, planning, execution,management. Build digital media capabilities and fluency – fullspeed ahead!22
  23. 23. Market force #5:Growing, graying, connected consumers232011 was significant in that it marked the firstyear that baby-boomers began turning 65; andfor the next 15 to 20 years, about 10,000people will turn 65 years old every single day.Boomers will be the driving force inthe coming decades . . .
  24. 24. Not just a Florida and Arizona issue24People 65 and Older• 39.6 million in 2009,representing 12.9% ofthe U.S. population – 1 inevery 8 Americans.• Darker areas on the mapare regions where thepercentage of peopleover 65 exceed theaverage.• By 2030, there will beabout 72.1 million olderpersons, more thantwice their number in2000 and will count fornearly 20% of thepopulation.
  25. 25. Focus of the marketing executive . . . Assess aging trends and demand implications inyour marketplace. Dig deeper to gain meaningful insights into agingconsumer needs and behaviors. Identify growth opportunities, and drive nichestrategies, services, and program development. Help your organization understand that the new“senior” will demand more choices, be lesstolerant of bad service and inconveniences,won’t necessarily follow doctor’s orders, believethat 70 is the new 50 . . . and expect to betreated accordingly.25
  26. 26. Five critical roles for healthcare marketers Growth Strategist Brand Advocate Digital Change Agent Experience Champion Innovation Catalyst26
  27. 27. Role # 1:The marketer as growth strategist In nearly every other industry, marketingis valued as a revenue-generatingbusiness competency critical to drivinggrowth, brand loyalty and betterfinancial performance. Now is the time for chief marketingofficers to move aggressively totransform marketing practice frompromotions-oriented tactics to growth-oriented strategic leadership.27
  28. 28. Revenue generation is the priority . . . For the foreseeable future, health systemswill be operating with competing andsomewhat conflicting objectives as theyattempt to optimize volumes for coreclinical programs, while simultaneouslybuilding accountable care systems andcapabilities. Marketing executives must help healthsystems transcend the ‘pay for volume’ and‘pay for value’ markets28
  29. 29. Success requires a growth-oriented culture29Marketing’s partnership and co-accountabilitywith clinical operations, IT, finance, HR andother core business functions are critical to: Driving alignment across the network(operations, IT, physicians, contracting, etc.) Understanding changing payment methodsand business models Delivering on revenue growth and profittargets.
  30. 30. Role #2:The marketer as brand advocateThe business of branding: Growth. Innovation. Leverage.• Brands influence consumer decision-making andchoices regarding health and medical care.• Brands shape the complex referral, contractual andtransactional relationships among consumers, healthservices, physicians, hospitals and payers.• Strong brands attract the best talent, and can beleveraged to benefit recruitment and retention.• Brands are about growth, revenue, profitability, marketleverage, staff commitment and customer loyalty.30
  31. 31. 31Brand management must evolve to address and handle the complexities of:Rapidly restructuring markets require newapproaches to brand leadershipNewly developing care delivery modelsHospital and health system mergers & acquisitionsPhysician integration and owned medical practicesAmbulatory, post acute and retail diversificationAcademic, technology and business partnershipsMulti-market, multi-state expansion initiativesEnterprise IT/EHR/Website strategiesCo-branding/co-marketing relationships
  32. 32. 32One of the MostPowerful Forces inBrand Building isFocused Alignment – inthe ‘Bricks and Mortar’World as Well as theDigital OneCorePurposeStrategicVisionBrand ValuePropositionBrandAlignmentCustomerExperienceValueInnovationFundamental reason we exist.How we intend to compete.The unique reason our brandmatters to customers.How we link our business strategy to customer experience.How we satisfy customerneeds and wants.How we sustaincompetitive advantage.© Corrigan Partners LLC
  33. 33. Web, social networking and mobile technologies are revolutionizing businessprocesses everywhere and marketers can be change agents by helping healthsystems better understand how to employ these technologies to: Reach and engage consumers Acquire and retain customers Improve patient-provider relationships Support patients with care management Promote better clinical care and decision-making Facilitate workplace communications and productivity Build the brandRole #3:The marketer as digital change agent33
  34. 34. A comprehensive web, social and mobile capability, integratedwith clinical IT systems such as EMR and patient portals, andembedded in physical environments, is no longer optional fororganizations that want to remain relevant.34Lead the change . . .
  35. 35. Building digital marketing capabilities is job oneInvest in digital marketing structures, capabilitiesand support systems:• Integrated, multi-channel strategies• Integrated web, social, mobile marketing• Content marketing & management• Integrated CRM/contact center• Mobile media development & marketing• Digital brandscaping• Social commerce• Community management35
  36. 36. Role #4:The marketer as experience champion Be a champion for customer-centered decision-making and innovations that transform customerexperience. Drive understanding across the health system thatcustomer experience is more than HCAHPS scores. . . it’s about meeting customer expectations everyday in every interaction through DESIGN –administrative systems, appointment scheduling,meeting and greeting, clinical processes, customerengagement, billing, follow-up, etc.36
  37. 37. 37People• Culture• Beliefs• Values• BehaviorsBrand-DrivenExperienceFrameworkProcesses• Scheduling• Registration• Treatment• Hand-offsPerformance• Service• Quality• Lean• Six SigmaMarketing• Segments• Products• Channels• BrandExperience happens by design; not by accident
  38. 38. What can marketing do? Employ innovative research techniques to generate rich insights intocustomer needs, wants, expectations . . . Bring customers and providers together in planning and design sessions . . . Articulate the link between brand value proposition and experience . . . Keep experiences authentic…authentic to your brand value proposition,authentic to customer expectations, authentic to capabilities . . . Champion use of DESIGN to hardwire experience . . . Become a fan of demonstration projects; experiment, learn, apply . . . Educate, educate, educate . . .
  39. 39. Role #5:The marketer as innovation catalystTransformation of care delivery systems, businessprocesses, and market strategies are top prioritiesfor health systems: Innovations advance strategy, build brandequity, and produce a better bottom line. Innovation rarely happens by chance; ithappens more through the purposeful creationof innovation competencies and processes. Innovation demands alignment of culture,capabilities and structure, as well as a laserfocus on value-creation. Transformation cannot happen withoutinnovation.39
  40. 40.  Creating new markets, moving marketshare, developing new sources of revenue,building brand loyalty, improvingprofitability, and sustaining competitivenessare all goals of innovation. Marketers can help by creating a focusedcustomer-centered approach to innovationand developing the platforms to drivecreative solutions. Success stems from creative thinking, freshsolutions, and relevance to customers. That puts marketing front and center as thecurator of customer intelligence.Marketing’s role has never been more crucial40
  41. 41. Promote less talk, more action Healthcare consumers are frustrated by thecomplexities of access, fragmentation of care,lack of communications, and other aspects oftheir experiences. Most of the industry is woefully behind inproviding on-line conveniences such asscheduling and customer communications. Opportunities for innovations that take thehassle out of healthcare are sizable. So why aren’t more marketers driving changes inthe customer experience realm?41
  42. 42. So, how do I . . . Create a future-ready, high-performing andefficient marketing operation; that will . . . Better position the organization to competeas changing market dynamics reshape thecompetitive environment . . . And achieve organizational growth andprofitability goals?42
  43. 43. 43Embrace change, then drive transformation
  44. 44. Five bold moves to transform marketing Change the marketing culture Configure the new marketing organization Acquire new competencies, capabilities and skills Create a compelling case for change and bias for action Communicate new roles, new rules, new expectations44
  45. 45. Bold move #1:Change the marketing cultureThis requires a shift in thinking about marketing as tactical operations to adiscipline that is strategic, cross-functional and bottom line oriented.STRATEGICRESULTS ORIENTEDCROSS FUNCTIONALFocused on opportunities that drive growth and betterbusiness performance.Orchestrated across marketing, clinical and businessfunctions, with shared accountabilities for success.Delivers on growth, revenue and profit targets.4545
  46. 46. Bold move #2:Configure the new marketing operation Establish a future vision, role and scope for marketing Restructure to align/integrate critical functions Review and update staffing models and skills Standardize planning and resource allocation modeling Develop performance management standards & measures Invest in the core technology infrastructure Build a unified, high performance operation and culture4646
  47. 47. Bold move #3:Acquire new competencies, capabilities and skills Strategic marketing planning Market intelligence and business analytics Brand building and management Market and customer creation abilities Product development Sales, CRM, PRM, customer contact centers Customer engagement proficiencies Social commerce and community management Cross-channel content strategy and management Digital media fluency (web, mobile, social, etc.) Real-time responsiveness47
  48. 48. Bold move #4:Create a compelling case for change; bias for actionGrowing revenue, improving business performance, increasing brand loyaltyand building sustainable competitive advantage . . . Build brands that attract customers and remain relevant as markets change Develop highly targeted smart growth strategies across inpatient, ambulatory,retail and virtual sites Drive successful growth of more tightly integrated physician partners Redefine and leverage channel relationships Create future-ready models of care delivery that optimize profitability underreform economics Leverage web, mobile and social media technologies to attract and engagestakeholders48
  49. 49. Bold move #5:New roles, new rules, new expectations Communicate new rules and expectations: Marketing investments will be prioritized to strategic planning, businessdevelopment, growth and financial performance imperatives. Data and analysis will inform strategic marketing thinking and planning,and provide an evidence-based approach to marketing investment. Marketing and operations will establish cross functional collaboration,decision-making and co-accountability for outcomes. Time – and dollars – will be focused on fewer, more impactful activities;and activities and tasks that do not contribute to growth and improvedcompetitive performance will be transitioned or eliminated. Marketing performance measures, monitoring and reporting systems willbe developed and employed to track progress and outcomes.49
  50. 50. Key questions to get the conversation started . . . What is the current state of marketing in termsof priorities, effectiveness, capabilities, skills,systems, structure and performance? What is your vision for its future state? What isthe gap between current- and future-state interms of structure, processes, competenciesand investments? What are the marketing opportunities andchallenges in regards to changes in the deliverysystem; e.g., care transformation, multiplegeographies, expanding services portfolios,employed physician SBUs, etc.?50
  51. 51. Key questions to get the conversation started . . . What marketing capabilities and controls are/should be held by thecorporate operation; what is optimally administered by major businessunits? How are advances in technology (digital, social media marketing, CRM,etc.) changing marketing practice, and what new infrastructure, skillsand competencies will this require? What are the optimal synergies and relationships between planning,marketing, PR, sales, etc., as well as with finance, IT and SBU operationsto inform and support brand building, business development and growthpriorities?51
  52. 52. The business enterprise has two and only twobasic functions: marketing and innovation.Marketing and innovation produce results;all the rest are costs.Peter Drucker52
  53. 53. Questions. Comments. Discussion.Karen CorriganFounder/CEOCorrigan Partnerskaren@corriganpartners.comP 757.288.2480@karencorriganblog @