CRM is dead. I didn't kill it, but the time has come to close call centers, reallocate resources and do something else. What? Read on. www.healthcareitstrategy.com

1. CRM: Dead or Dying?
Patient Equity Management

2. It’s called VRM, Vendor
Relationship Management

3. “Retention is for wimps. We measure the percentage of
patients who have our name tattooed on their body.”
(Harley Davidson Annual Report)
“80% of CEOs believe their brand provides a superior patient
experience…8 % of their customers agree“
(Bain & Company)

4. CRM – A Matter of Perspective
Is your hospital looking from the inside-out or from the
outside-in?

5. Are your patients coming or going?
Patient Equity Management (PEM): Treat
Patients as Assets

6. Does Your Hospital Stand Out?
“We retail electronics”
“We’re in pharmaceuticals”
“We offer professional services”
“We manufacture dry goods”
“You are not in the healthcare business. You are in the
decommodification business.”

7. It’s not your father’s CRM…or is it?

8. CRM Alone Won’t Grow Revenues
 98% of Coupons Get Thrown Away
 It is 10x More Expensive to Generate Revenue from a New
Patient
 A 5% Increase in Retention Can Increase Profits by 60% –
100%
 It is 6x More Expensive to Service Patients Through a Call
Center than it is via the Internet and Website
 Patients Who Refer Another Patient Generate Revenue at No
Cost
 Loyal and Referred Patients Stay Longer, and More Services

9. COLOR
It’s time to color outside the box

10. It’s time to break a few coconuts

11. CRM
Logical Left
Brain
•Patient’s
Value to
Enterprise
•Systems and
Transactions
•Functional
Value
PEM
Emotional Right
Brain
•Enterprise’s
Value to
Patient
•People and
Interactions
•Emotional Value

12. CRM is an “inside-out” view
Standard CRM involves heavy applications of
technology:
 CRM applications
 Enhanced IVR and ACD applications
 Outsourcing call center operations
 Off-shoring
 Sales force automation

13. CRM is technology employed for
user convenience…

14. CRM is a shotgun approach

15. CRM is Multiple channels,
patients in a box.
STORE
(FACE TO
FACE)
WEB
(COMPUTER
TO
COMPUTER)
PHONE
(PHONE
TO
PHONE)

16. Is there a Better Way?

17. Fixing CRM
Customer Relationship Management should focus on value
creation, not cost reduction, effectiveness, not efficiency.
CRM should have revenue targets.
Value creation through CRM initiatives comes from:
 Growing the patient base
 Maintaining the patient base – retention, cross-sell & up-sell
 Servicing patient segments
 Maximizing channel effectiveness

18. Change of Focus
The focus is changing from enterprise to single patient, from technology
to process, to…
 Patient Acquisition (number of new "quality" patients)
 Patient Retention (percent of existing patient retained)
 Patient Satisfaction (question results from survey and/or focus groups)
 Patient Segmentation (percent of profit by patient demographics)
 Patient Profitability (average profit per patient/per household)
 Patient Servicing (average response time for patient complaint/inquiry
resolution, first call resolution)
 Patient Referrals (Net)

19. How are your patients connected
to each other? To you?

20. Patients have many channel
choices

21. Patients Solicit
Bids
I want to notify the whole market that I want to buy a LG TV. In effect, I want to
issue a personal RFP that goes out to every retailer of LG TVs.

22. The patient is channel agnostic, and how the patient
is cared for must be infrastructure agnostic.
Patient Equity/Experience Management is the New Marketing

23. Decommodify the business,
become the patient…
…Reengineer

24. From what to what?

25. Patient Management Evolution
 CRM evolves to PEM
 Patient Experience = Hospital Performance – Patient
Expectations
 The value add is transforming CRM to Patient Equity
Management – the total lifetime discounted value of all the
hospital’s patients.

26. Patients vs. Hospitals– who is
winning?
How many hits does Google display
for your hospital?
How many for FaceBook?
MySpace?
YouTube?

27. How many of those interactions
are you really managing?

28. Managing patients is like herding
cats…not much bang for your buck.

29. It’s not a fair fight…
While you manage patients, they
are managing you

30. Still with me?

31. Two worlds collid, patients and
hospitals
Will either survive intact?

32. It’s not easy…
but important ventures rarely are.

33. Where do you need to go?
How do you get there?

34. Need Help?

35. (EASY button
not included}

36. Pale Rhino is leading the way

37. It’s called VRM, Vendor
Relationship Management

38. First, write the patient access &
experience playbook…
CRM to PEM:
•Define Enterprise-Wide
•Strategy
•Assess GAPS
•Build roadmap
•Implement Digital Access
•Implement Voice Access

39. Define Goals & Objectives

40. Evaluate your situation

41. Develop a plan

42. Social Networking

43. Paul Roemer, Managing Partner
Pale Rhino Consulting
Contact: Paul Roemer, Partner, Clinton Rubin LLC
paul.roemer@clintonrubin.com
(484) 885-6942
+1 (484) 885-6942
paul@palerhinoconsulting.com