Crm in health care
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Crm in health care

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  • Innovation & Transformation Necessary to Deliver CDH: Consumer-Driven Healthcare Calls For….                                     Consumer-Driven Provider Strategies Pricing Strategies should serve to competitively differentiate providers. Understanding the true costs and reimbursements of services will help providers position themselves more effectively in their markets. Organizational and Structural Strategies need to permit providers to rapidly adapt to consumer demands. Traditional department and specialty structures are not conducive to change. Strategies for Greater Efficiencies should result in lower operating costs (i.e., supplies, pharmacy, LOS, etc). Where value is in the forefront of consumers, higher levels of  efficiency (and reduced costs) are a requirement for providers.  Service Excellence Strategies should be global in nature and highly responsive to customer demands. Most providers fall tragically short  of even modest customer expectations for service. Consumers will flock to those that provide better service. Communications and Market Positioning Strategies should build on the distinct features and competencies that consumers care about. Careful message development must recognize and promote the key elements of that provider’s competitive strengths, rather than solely the institution as a whole. Long-term strategies: Cost reengineering - providers are beginning to develop meaningful clinical pathways that define the protocols and services by diagnosis They will have to invest in cost accounting and clinical information systems that provide them with the data needed to identify costs, streamline the process and improve quality The providers that will survive will be those that invest the time and the resources to improve both process and outcome and figure out how to communicate that to their various publics So How are Providers Reacting? Many are reacting in the time-honored way by sticking their head in the sand and saying it won’t happen or it won’t happen here or if it happens here it won’t happen to me - So let’s not do anything until after it’s here Unfortunately, most of the pieces needed for consumer driven health care to succeed are already here and in place

Crm in health care Crm in health care Presentation Transcript

  • CRM in healthcare 1
  • Healthcare Marketing is Changing• Hospitals are moving from mass advertising to targeted direct marketing.• Hospitals are very competitive.• The issue for them is how do you make sure prospective patients come to your facility? 2
  • Healthcare Marketing is Changing• Doctors used to be the target of marketing but has changed to “direct to consumer”.• Hospitals are developing “customer outreach” databases and are using traditional direct marketing techniques.• Different offers, creative and techniques are used in direct mail to attract prospects to the facility. 3
  • Healthcare has many of the same goalsas consumer marketing companiesHospitals are no different than consumer drivencompanies .The business acronyms may be different but thegoals are the same. 4
  • Healthcare marketing is consumer marketing• Patient acquisition: How do I get more patients coming to my facilities?• Patient retention: How do I get my patients continuing to use my facilities?• Patient “winback”: How do I bring back patients who haven’t been using my facilities for some period of time?• New Movers: How do I attract prospective patients in my facility’s footprint? 5
  • Three Components to a Successful Initiatives “Filling the Funnel” Marketing –Targeting - Offer Marketing List – Execution – Appointment setting “Operations” Net Appointments – Slots –Throughput Facility ops Follow Up - Reporting “Margins & Referral Patterns” Facility Op Margin - Splitters Management Out migration factors Managed care 6
  • Marketing Value Chain 7
  • Healthcare CRMHealthcare’ companies analyzed their marketingspending and realized they could cut over 75% ofthat cost.Their spending was for billboards, radio,newspaper and other “mass” advertising.Now they are focussing on running campaignsand having an effective CRM 8
  • Effectiveness of Healthcare CRMLeading Healthcare company tested direct responseand database marketing to 3 hospitals .• Based on the tremendous results the program wasrolled out to 25 additional hospitals next year.• An additional 20 hospitals were addedsubsequently.• Two goals from direct marketing: 1. Increase profitability from existing patients 2. Drive prospects to their chain of hospitals. 9
  • Database Architecture Internal Data External Data Health Risk 3rd Party Billing Touch point Call Assessment / Geodemographic Other Data Data Data Center Personally Overlay Sources Collected Data Data Hygiene Marketing Access & Reporting Tools Database Segmentation System Segmentation Scoring Consumers Direct Mail Positive Consumer Response Call CenterBilling Data Clinical Services Facility Screening 10
  • Learnings from CRM Testing Results• Database marketing is profitable for hospitals• Profitability varies by pay or mix and competitive environment• Product lessons: – Cardiology most profitable – Some product lines work, some don’t • e.g. sleep disorders, sports medicine – Expect eight-week time lag before start of revenue 11 stream
  • Segmentation and Scoring Models • Healthcare product (off-the-shelf) • Modified healthcare - life-stage • Disease specific models • Predictive models • Other models (loyalty scoring, etc.) 12
  • Segmentation and Scoring Models• Cluster methodology, along with other data elements.• Neural net technology to score names by house and prospect and by service line, e.g. cardiology, pulmonary (customer-behavior prediction). 13
  • Solucent bench mark study• If all hospitals performed like the benchmark hospitals, more than 100,000 additional patients could survive each year, and an additional 114,000 could avoid complications.• With 25 percent higher admissions per bed, benchmark hospitals treated more patients than non-winning hospitals and also treated patients who were more sick and required more complex treatment.• The 100 Top Hospitals facilities spent an average of 12 percent less, per discharge, than peer hospitals.• Median total profit margin at 100 Top Hospitals was nearly three times the median of peer hospitals. 14
  • Predictive Neural Networks• To predict which customers are likely to accept an offer, the algorithms are created on the basis of which customers have accepted similar offers in the past and which customers have rejected offers.• After selecting an appropriate discovery algorithm, the data- mining tool is applied to uncover the patterns that can be used for predicting the targeted behavior.• Only a few dozen transactions by any given customer are needed to determine likely future behavior.• Data used for analysis can come from all kinds of transactions, including call-center logs, warranty logs, e-mail, faxes, Web-site contacts and even surveys. 15
  • Cluster analysis builds hierarchicalCluster analysis trees based on similarity among individuals compared across several dimensions of questions 16
  • 17
  • Several softwares are avialable for cluster analysis 18
  • Segmentation and Scoring ModelsCPM Corp. uses two different scoringapproaches:Consumer Healthcare Utilization Index (CHUI)Patient Disease Index (PDI) built in in thesoftware. 19
  • Segmentation and Scoring Models• CHUI scores run from 0 – 999 to identify an individual’s propensity to use health care services.• The higher the number, the greater the likelihood the individual will need the service. This is used for prospects. 20
  • Segmentation and Scoring Models• The Patient Disease Index (PDI) is a segmentation system that uses patient data for segmentation.• In other words, if someone has pulmonary issues there is a likelihood there are cardiology issues. 21
  • Revenue ChainRecipient receives May or may not offer Go for screening May go directly Related clinical service to physician for evaluation of delivered at hospital symptoms, etc. Delivered service and revenue tracked through facility billing system Results and test plan analysis validated 22
  • ROI Calculation1 Gross charges X PCR = Net Revenue* patient to charge ratio Product Line (if available)2 Net Revenue X Net Operating Profit % = EBITA3 EBITA - Marketing Costs** = Marketing Profit *Net Revenue is projected based on PCR ** Marketing costs include : All creative costs, agency fees, letter shop costs, paper, printing and postage. 23
  • Control Group Methodology example in a healthcare company21,988 mail quantity of campaign “prospects” pulled from database1,161 (5% of total prospect quantity) “held back” (did not receive mailing) for control group testingRs.82.47 average cost per prospect individual mailed(Rs.15.75) average profit per control group individualRs.66.72 net profit per individual mailedRs.66.72 x 21,988 = Rs.1,467,039 adjusted net marketing profit 24
  • Revenue Tracking Billing System/Code Based• Conducted monthly•Data tracked for 12-month period• A mailed-to individual campaign matches targetagainst the codes• Revenue is also tracked against a mailed-to group 25
  • Virtual Colonoscopy Vital Statistics (Source: Call Center Reported Data. USA)Marketing costs: $181,162(Includes: Radio, creative, production, planning)Responses: 1058 completed callsAppointments set: 179Net screens: (if known) 54Screens needed to B/E: 798 26
  • Hospital A Vital StatisticsMarketing costs: $16,167Quantity mailed: 21,985Responses: 323Appointments set: 316Net screens: (if known) 307Visits/discharges: 54Gross revenue: $574,266Net revenue: $189,508EBITA : $36,006Marketing profit/loss: $19,839(EBITA – Marketing Costs) 27
  • Creative and Offers 28
  • Creative and Offers 29
  • 30
  • CRM in Health care - a paradigm shift Consumer-Driven Healthcare Calls For…. Consumer-Driven Provider Strategies Strategies for Greater Efficiencies Pricing Strategies Service Organizational & Excellence Structural Strategies Strategies Communications and Market-Positioning Strategies 31
  • Humana’s MyChoice ToolsSM• CRM enabled all- in-one place to compare: – Hospitals – Doctors – Outpatient facilities 32
  • Compare Hospitals Side-by-side comparison of: – Hospital results – Procedure- specific costs 33
  • Compare Doctors Details page includes: – Physician- specific http://familydoctor.org/670.xml cost estimates – Questions to ask your doctor – Links to Rx CalculatorSM and performance reports, as available 34
  • Compare Outpatient Facilities Results page provides: – Facility-specific information in 23 markets – to be expanded in 2008 – National average information available outside of 23 markets 35
  • Rx Calculator 36
  • SmartSummarySM 37
  • Integrated Approach to Health & Lifestyle Management Diagnosed Healthy/At Risk  Disease Management / Nurse  Comprehensive Wellness  Coaching  Health Risk Assessment  Weight Management  Diagnostic Screenings  Smoking Cessation  Incentives/Rewards  Obesity Management  Education & Preventive Care  Maternity Management  Online Fitness / Diet Tracking
  • Predictive Health care is an emergent strategy• Individuals don’t make random selections. They choose based on most suitable and advantageous to them• Support of payment rates, and meaningful comparisons of provider performance• Identification of patients of highest risk 40
  • Why predictive health care?• Early intervention will help moderate costs, improve quality, and increase member satisfaction with their health plan.• Offering preventative and wellness programs can create a brand equity 41
  • Predictive care – A “Win-Win” situation• Example 57 years, Diabetic, Hypertension, cardiac disorder. – Enrolled in 2006, educational opportunity, compliance monitored, proactive placement of access device with combined result of approximate $130,000 savings due to improved outcome. 42
  • The Indian scenario• Indian Pharmaceutical Market (IPM) is worth ` 1,40,000 million {currently it is approx ` 45,000 Cores}• IPM growing at 10% { Currently estimated at about 20.4%}• There are around 16000 players in the IPM 43
  • The Indian scenario• Building relationships with doctors for effective marketing.• Combined market share of top 5 companies not beyond 20%. 44
  • The Generic Market !• Pharmaceutical industry recognizes “Process patent” and not product patent.• Making it a 30,000 brands in the country.• There are more than 50 brands for every generic molecule. 45
  • Same Molecule … Different Brand 46
  • The Doctor’s Population ! Doctor Population• Doctors strength recognised with IMA :500,000. GPs Specialists• Majority are ‘General Super Specialists Practitioners’ { 60 – 65 %}• Specialists are around 30 – 35 %• Remaining are Super – Specialists.• Even the largest of the pharma corps cannot meet more than 25% of the doctors 47
  • Promotions• No Advertising in press• Promotion is directed solely to qualified doctors• Means of promotion – Medical Representatives – Direct mail – Journal Advertising – Conferences 48
  • CRM - IDIC ModelIDIC Model – Don Peppers and Martha• Identification• Differentiation• Interaction• Customization 49
  • Identification• Identification of Customers (doctors)• MRs maintains list of Doctors of his area – Name, address, telephone nos., specialty, qualification, visit timings• Integration of this data to a central database 50
  • Identification• Adding to this data by collecting from other sources like – IMA and Individual Associations – List of Conference Participants – Doctor Referral• Ongoing process: Continuous Addition, Updating and Deleting 51
  • Differentiation ‘Doctors’ Category Potential Non CoreCore Doctors Doctors Doctors 52
  • InteractionBuild Rapport – MRs use the Data base & Updates • Doctor’s Hobbies & Likes / Dislikes • Family details – Birthdates / Anniversary / No. of Children – Two Level Interactions • Personal level – Via MRs • Corporate level – Structured questionnaire mailed to doctors 53
  • InteractionData includes:– PERSONAL INFORMATION: Date of birth, marriage anniversary, details of children, qualification, experience– HOBBIES & INTERESTS: Activities during spare time, TV channels watched, general interest magazines read, favorite vacation destinations– PROFESSIONAL INTERESTS: Type of medical journals read, professional membership association, attendance at conferences 54
  • Customization• Effective use of the available data• Greeting Doctors on Birthdays, Marriage Anniversary – Cards, Phone Calls, Cake, Bouquets, Dinner with Spouse,• Gifts based on the interest and hobbies• Information received on every interaction should be fed back. 55
  • Loyalty Programme• Loyalty programme would ideally be – identifying accounts, – rewarding – encouraging to increase their spend• In Pharma industry, the customer (doctor) is not the consumer (patient)• Programme can be based on classification of doctors i.e. core, important, others• Continuous monitoring - Downgrading, reducing privilege 56
  • Direct Marketing• Brand awareness mailers, new launches, contests etc can be conducted by mail• The advantages are: – Cost effective – Large audience at lower costs – Targeted & specific to right audience, specialization, geographic location – Measurable 57
  • Measurement System• Analyzing the returns on conducting the CRM• Studying prescription – Between doctors • Exposed to CRM • Control sample met by field force but not exposed to CRM activities – Before and After exposure to programme• Professional market research agencies like C-Mark 58
  • Implementing the CRMPrivate Hospital Govt Hospital– Research through field – In government hospitals, force, chemist survey and there is bulk purchase of personal information drugs by the In-hospital system to understand the chemist spread of doctors - specialty wise – To build rapport and relation with them– Understanding the prescription habit i.e. which – Tendering for the brand is preferred by these doctors required drug– Identify the Doctors who – Provide Special discounts are prescribing the molecules that company 59
  • Implementing the CRM Private Hospital Govt Hospital– To give these core group – MRs to meet the Interns / Doctors special gifts / RMOs / House-man Conference participation – Arrange Medical– The Sales Manager to pitch conferences in to grow the bond stronger– To Send greetings, cake & flowers on special occasions 60
  • Implementing Issues !!• M.R.s – Level of conviction is generally low – Lack of seriousness in visiting regularly to doctors – Having data’s about the doctors but not using them.• Corporate level – Questionnaire not in proper format – Inability to cater to the specialists and M.D’s to such seminars. 61
  • Effectiveness of CRM !!QUALITATIVE QUANTITATIVE– Taking feedback from – Keep track of increase in sales the Doctors through of the desired terrority field people – Check through stockist the– Questionnaire and supplies made to these medical conferences will institutions and nearby give a brief idea about chemists the preferences – Increase in specific product– Check ORG & C- Marc performance in Mumbai data for increase in market value & number of prescriptions specialty – By checking the sales data – wise respectively territory wise/ stockiest wise – Track increase in number of 62
  • Training of MRs– Provide overall product knowledge in terms of medical and marketing– Discuss the strategies– What products to be discussed with which specialty of Doctors– How to built rapport with Drs / Chemists / Stockists 63
  • Categorizing ‘Doctors’– Core Doctors • With business of Rs. 10 L PM & above per month– Potential Doctors • With business of Rs. 3 L to Rs. 5 L PM– Non – Core Doctors • With business less than Rs. 100, 000 PM 64
  • Cost Drivers in health care • Aging population • Increased utilization • New medical treatments • New drugs • More intensive diagnostic testing • Epidemic of elective health care • Increasingly unhealthy lifestyles • Shortage of skilled workers • Market consolidation • Malpractice 65Jeff Goldsmith and Health Futures, Inc.
  • A small videoclip to share my thoughtsas you go outof the school 66
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  • You all h ave been great 68