Social CRM Tim Gilchrist


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  • This is the presentation I gave at the CRM Innovations for Managing Health Care Reform Conference, Las Vegas May 2012. Includes Conf opening remarks at start of deck
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  • These are some interesting times, everything the health plan industry has been striving for over the last 3 years since reform is now in question with the supreme court ruling Paul Saffo at Stanford has in interesting theory. Change is accompanied by “Contradictions, Inversions, Oddities, and Coincidences”
  • The health care business is on a very similar trajectory to the newspaper business of the 90’s Hospital chains are consolidating just like the multi-city papers Providers are gobbled up like small town newspapers And health plans are buying providers and HIT Both industries run on old-inflexible IT infrastructures Now here is the contradiction
  • Silicon Valley has woken up to health care Go over chart I happen to work with many of these startups – when I ask them why there is not finance or insurance component to the business models that all say the same thing Mainframe Healthcare” term coined by Andy Grove of HP to describe current state of health care Centered around “facilities” not people These people are really smart – this isn't all over again At the heart of all of these ideas is one simple truth: Insurance it not really insurance anymore, it’s prepayment of a service When you take out the admin overhead, you get back 40% of your investment So as we think about what health looks like in the future, I think we would be remiss not to keep in mind these basic facts. The way we will succeed is to understand there are far too many Contradictions, Inversions, Oddities, and Coincidences in the market for a continuation of business as usual
  • Question to the audience: “Who has seen this video?” How is it that a bootstrap start up with $1,200 can shake up a $12.8 B market? This is the question we will attempt to answer today How do we retool our marketing, PR and business apparatus to matter in a world where: Startups have the same or better media leverage than incumbents Customers freely engage in conversations about brands with or without the brand ’s participation (They are CONNECTED) Traditional media channel influence is rapidly declining. (newspaper mention is worth fractions of what it used to be) If brands don ’t choose to lead the conversation someone else will! Dollar Shave Club understands the above and now owns the “Social High Ground” over Gillette and Bic In terms of ROI, do you think DSC ’s mastery of social will translate into revenue? So what does this have to do with healthcare? DSC arbitraged a gap between the over inflated razor manufacture and distribution ($20+ per razor) and what it actually costs to make an distribute a razor ($1). Gillette alone controls 68% of the market Are there parallels with Healthcare? Gillette and Bic have built “cathedrals” to shaving, expensive cathedrals. DSC created a “Turkish Bazaar” where prices are low and they actually listen to their customers. Can you name any health plans that are unapproachable cathedrals – who play the role of Gillette and Bic in the healthcare world?
  • Questions to the audience: Does the merchant in this picture know more about his customers than facebook? He is “customer intimate” When was the last time you bought something from the person who actually made it? (This used to be the norm). Does the person selling you the $20 blades at the big box store care if you buy them or not? We are slowly emerging from the era of the cathedral to a place where consumers matter, they talk to each other, and they can take brands down if they want to Social media is a disruptive force that makes possible again the success of companies that are customer intimate – as in the bazaar (We will use Cathedral & the Bazaar as descriptors throughout this presentation) Cathedral: Think GM before the buyout (or health care now “mainframe healthcare”) Bazaar: Think Dollar Shave Club or Zappos The Cathedral & the Bazaar By Eric S. Raymond We have spent the last 100 years building cathedrals to commerce that are essentially inaccessible. Great companies act like bazaars in that they are open and use their customers to help develop product (This is Social CRM) Note* The hamburger and the ice cream cone were invented “on the spot” by store owners as customers waited ($XX Billion industries). This can not be done in the cathedral
  • Social CRM is not a philosophy, it is simply a set of business functions that make use of the social web It ’s way too early for a definitive definition Organizations that poses some of all of the following behaviors / philosophies will tend to be more successful with social and social CRM You truly value your customers Your product / service brings significant value – you are proud of it (if not true social media will expose the lie) You value and trust your employees – they are great brand ambassadors If you can ’t say yes to all three, avoid social CRM and social media “ Turning the company “inside out” refers to the process of converting from cathedral to bazaar… Scaling up to meet consumer demand for intimacy by training employees in social and developing routing and workflow methodologies
  • Typical CRM lifecycle Sales collects data on consumers and/or data are purchased Marketing deciles data Marketing / Advertising produces ads / direct mail Consumers flow thru the “pipeline” Consumers purchase product Outputs: Forecasts – Predicting consumer behavior as viewed from the brand ’s viewpoint Contacts – Potential future customers that fit the brand ’s definition Optimize future campaigns – How can we sell more by driving more consumers to our way of thinking Critical flaws: Relies on passive data collection (purchased lists, chance encounters, web forms) Fixed process for a variable market. Will people purchase health the same way in 2014? Assumes consumers buy the way brands sell, doesn't ’t work that way Focused purely on making sales – adds no value to the customer (how does it feel to be “targeted”)
  • Social CRM takes a radical departure from traditional CRM: Its not just about sales, it ’s the whole customer experience Properly implemented social CRM takes into account that customers do not want to be yelled at (as with advertising) they see the purchasing process as a relationship that might start in a number of different ways (wellness, NPD, Service, etc.) Customers and Constituents: Notice these are at the center of the chart, they are not part of the process they ARE the process. Given that SM carries with it the ability to reach far more people than traditional media “Constituents” become a valuable demographic. The path to sales is often viral and constituents are a great way to help spread your company’s message. With SM, it becomes possible to determine which customers and constituents are more valuable than others in spreading your message “connectors” (This is hard to do in the physical Bazaar) Listening: The first step is listening. Pick any product and there is a conversation going on about that product – only some of the companies that produce a product or service are actually involved in the conversation. Tools include Radian6 and Wise Window, BuzzMetrics (Nielsen), Cymfony Sales: The conversation includes people who are seeking the recommendations of their friends towards the purchase of products & services. It is possible to join the conversation and influence purchase decisions. (more on this in the rest of the deck) Service: If you do not answer your customer ’s questions, their friends will – or worse your competition! CoTweet, HootSuite, Radian6 New Product Development (NPD): With time to market increasing in importance, organizations can no longer afford to design products and services in a vacuum. Organizations must capitalize on innovation trends that can range from product fixes and enhancement requests to feature and solution suggestions. The goal is to capture, organize, and prioritize ideas. Many crowdsourcing approaches work here too. Jive, Salesforce, UserVoice HR: The resume is dead. Many savvy HR departments build relationships with potential employees thru their social channels (LinkedIn) and ultimately hire people they already know. Since a good employee is more likely to know other good fits for the company finding and the viral nature of social are multipliers here Staff Collaboration: Someone who volunteers for a task is far more likely to be successful at that task (true in open source) As NPD, HR and sales become more open processes collaboration becomes both a valuable tool to accelerate internal project management but also to help manage the scaling challenges of being customer intimate (e.g., someone in formulary development interacting with a member in case management). Jive, SharePoint, Socialtext Insights – Byproduct of listening. If you believe that people interacting with their friends on social networks are more likely to be honest than in a focus group with complete strangers and an artificial environment than social insights are for you. WiseWindow, Radian6 Cymfony Marketing – Creating the environment for sales via social platforms: FB, Twitter, portals. These are not just brand extensions they are the foundation for all other Social CRM and the source of the most valuable data in your CRM database All the above serve to take down the barriers between “Consumer” and “Health Plan”. If consumers are made to feel part of the team and their opinions are valued, they are far more likely to buy Social CRM is much more expansive than traditional CRM… Now we will discuss how companies can scale to meet the needs of social (turn themselves inside out)
  • Everything about traditional CRM (and business) is centered around managing scarcity We tend to talk about the ideal customer who is least likely to respond The most chronically ill Members who complain the most The most expensive way to reach these rare customers (TV & Print) The 2 or 3 people in your organization who are allowed to talk to the WSJ Social media offers the ability to manage abundance You can now reach millions of people inexpensively People will even band together and do work for you Employees who never dealt with customers before will do so an enjoy it Allowing members to talk to each other makes healthier members The trick is how do you scale to manage abundance? Social media must become everyone ’s job. Turn your company inside out The Marketing and PR people can ’t do it alone. You need to: Train staff to be Social Media Ambassadors (WLP Program) Develop systems to route and handle the volume of conversations
  • You can ’t gather quality data if you don’t own a social platform, facebook does not give up much valuable data Listening: Anyone can do this, essentially using the web as a database of opinions Engaging: If your brand has a FB page, etc. FB will share a tiny percentage of the data they collect on your fans and allow you to perform targeted marketing The ability to test messages for response and virality is a valuable tool available to page owners This is the first stage of turning the company “inside out”, you have to scale up on the employee side to meet the needs of consumers on the outside (Radian6, SharePoint and Jive help do this) Workflow is key Owning: Developing a brand ’s own social network provides by far the most valuable data. For example, starting a case management community delivers unprecedented knowledge, even over traditional CM activities A far more economical way to engage CM members (10x telephonic) Perfect opportunity to integrate PBM resources for treatment compliance Nurse community moderation provides feedback in terms of program compliance, provider interaction, use of alternative medicines, devices, etc Allowing peer to peer interaction opens the floodgates of user generated content – your customers will start redesigning and improving CM protocols, and you will have exclusive use of the data Managing abundance makes it possible to include non-members, thus creating the sales opportunity Tools such as Salesforce “Social Hub” can tack individuals and route them to company representatives intelligently and/or to tradition CRM customer contact modes: Outbound sales, direct mail, etc. The tweet asking for insurance recommendations is the holy grail. It ’s anybody’s customer at this point
  • There is no one single model for Social CRM it’s different for every company and must be consistent with the brand promise (communities respond to authenticity) Creative to Content We’ve all watched Man Men – Great AD minds chain smoking their way thru the next creative epiphany Until recently, companies controlled most of the content surrounding their brand. If you paid $1M to be the “Champagne of Beers” Well then, you were the Champagne of beers and nobody else had the voice to argue the point Creatives matter a lot less in the connected, dynamic world we live in: They are fixed in time and can not keep up with dynamic content They lack the interactive qualities It’s expensive to create iterations of TV and print creatives A brand could never keep up with the consumer rate of content creation – “If you can’t beat ‘em join ‘em” Great Storytelling Tell stories about your brand that are contagious Link your media together and make your stories immersive, engaging and viral Relationships Be the catalyst to: Introduce your customers to each other Your employees to your customers Your vendors to each other The ecosystem you create will be more valuable than the silos were Brand Ambassadors Don’t show up to the battle without your army (The Art of War) They might not all be “on message” but they are on your side Give them access to the storytelling tools Outputs The sales funnel includes some value adds along the way (Insights, NPD) Sales is not a linear or static process, the pipeline could start at any point and take days or years
  • WiseWindow is an excellent tool for crosstab analysis
  • Another example of improving customer impressions of us
  • Social CRM Tim Gilchrist

    1. 1. Health Plan Direct-To-ConsumerMarketingCRM Innovations for Managing Health CareReform @timgilchrist
    2. 2. Disruption“Contradictions, Inversions, Oddities, and Coincidences” Paul Saffo, Stanford Univ.• Contradictions • 2007 stock prices and gold prices were both soaring • 90’s Newspaper consolidation and growth of new media• Inversions • Google share prices and facebook IPO • Apple and Microsoft share prices• Oddities • HIT, ACOs and Reform • Health Plans, Reform and Silicon Valley 2
    3. 3. 3
    4. 4. Where the VC Dollars are GoingCompany EMRs Patient On Site Direct Price Tele- Decision Insurance / Portal Clinics Primary Care Transparency Medicine Support FinanceAvadoCare Here, ArriveMDMedLion, Qliance, White GloveEmployer Direct Healthcare,, Healthin Reach,, Revation, Teledoc,cellscopeGlide HealthHealth Dialog, HealthTap. bigevidence, Pipette, QuantumHealthZocDoc, Cake Health 4
    5. 5. Consumer Intimacy In the PostReform WorldStrategies for Success Using CRM,Social Media and Listening Technology @timgilchrist
    6. 6. Dollar Shave Club Video 6
    7. 7. A Step Back Street Scene in India (about 1884–1888), Edwin Lord Weeks 7
    8. 8. Yikes! Facebook Knows More About My Customers Than I Do!Three Concepts: • Consumers are regaining their control of brands • Companies that listen – will learn everything they need to be successful • Companies can scale towards customer intimacy by turning themselves inside out 8
    9. 9. Review: Current CRM Lifecycle Most Likely to Respond Database Sales“Leads” Least Likely to Respond Outputs Forecast Contacts Optimization s 9
    10. 10. Social CRM Ecosystem Marketing Sales Insights Service Customers Constituents Staff Colab NPD HR 10
    11. 11. Managing AbundanceHistorically businesses are built around managing scarcity (the verysick, the dissatisfied). Social media tools can help us manageabundance which is more rewarding • Insights • Wellness communities • User-generated content • Product innovation ideas • Customer service preemption • 1 on 1 chat / telephone Unhealthy / Undiagnosed • Messaging Healthy General Public Members with Questions Chronically Ill Very Dissatisfied New Members Struggling toward Wellness Individual 8 11
    12. 12. Hierarchy of Social Data“@thejessicadrake: Hey guys? Do you have health insurance that yourehappy with? Whos your provider? I may be switching...”- anthem Owning Social Engaging Automation / Switchboard Listening 12
    13. 13. Creative to Content Relationships Great One to One Storytelling One to many Many to Many Marketing PR Service Brand Ambassadors Insights NPD New Hires Collab Your Company Inside Out Sales 13
    14. 14. Listening For DollarsWhat does the social conversation look like for people lookingto buy health insurance? 14
    15. 15. Listening for DollarsDo you think there is a relationship between “IndividualInsurance” and people expressing purchasing intent? Wouldthis be of value to a health plan? 15
    16. 16. Listening for Dollars• 421 people want to buy Aetna products - Unsolicited• Are they listening?• These leads should be put right into the prospect pipeline 16
    17. 17. Questions?
    18. 18. Appendix
    19. 19. Listening Key Points We know there is a significant conversation taking place regarding heath care & wellness in social media We can listen to this conversation and learn what the public is saying from a very unique viewpoint: • Over 1 million conversations on health & wellness captured in the last 30 days (U.S. only) • Conversations are unsolicited, we hear exactly what’s on people’s minds • When speaking to friends, the conversation is honest and candid • People often relate the truth about what they did and intend to do 19
    20. 20. Health & Wellness (Consumer View) Positive Sentiments Towards Wellness Negative Sentiments Towards Wellness • Over 1 million conversations about health & wellness in the last 30 days. (data scrubbed for spam) • Only 69% of the conversations viewed health and wellness positively • What’s missing? Very little in the way of healthy eating, it’s all about the workout • Positive characterized by dominance of the word “healthy” and usual suspects. • Negative is much more interesting • Great variety of terms near the top (signifying confusion?) • Increased emphasis on “time” & “feel” • These are two totally different conversations 20
    21. 21. Drill Down on “Time” Theme “Having a hard time balancing whats right, whats healthy, whats moral and whats economical” Negative Sentiments Towards Wellness (topics related to time) • Not surprisingly, people who displayed a negative sentiment towards wellness found time was an issue towards attaining a healthy lifestyle • What can we do with this information? • Create products that somehow address the concept of available time to be healthy? • Unlike a survey, we can talk to these people! How cool is that! (Footprint?) • Are these people where the majority of our medical costs are coming from? 21
    22. 22. Comparing Negative and Positive View PointsPositive: • “@MyTrainerBob just finished bootcamp. My legs are on fire! Thanks for a great workout.” • “Great chest, triceps and cardio workout today. Barely had time to fit it in between clients but I got er done!” • Just did some pilates, I feel awesome after I workout. :)Negative: • “Man I was tryin 2 eat somewhat healthy but that grill chesse burger from carls was callin my name.....and that s*@t was bomb AF” • “If I ever say I am a healthy eater, slap me.” • “@troyredington Its easier for me to be frugal than healthy. Being healthy requires preparation but its easy to do quick unhealthy food.” 22
    23. 23. Value of a Good Network • People who discuss health & wellness on Twitter are far more active than typical tweeters (avg = 694 followers vs. 123 for all Twitter) • People expressing positive sentiment towards health & wellness had 25% more followers than those expressing negative sentiment • Supports social theory that people with larger / active social networks are made healthier by the support they receive FOLLOWING FOLLOWERS UPDATES Positive 297.4 794.1 3270.8 Sentiment Negative 339.5 595.5 2817.5 Sentiment 13% 25% 14% *Source - 100 hand-screened Tweets relating to health & wellness during Jan-Feb 2010. A quick analysis of over 2,000 tweets from the same period produced similar results 23
    24. 24. DiscussionHow is this different than other forms of data collection: • Accuracy (look into people’s private lives) • Latency (data can be discovered as fast as searches are created). Is there value in speed?Is the possibility of two-way communication appealing? • @AnthemHealth experienceSeems like we can learn more from those with negative sentimentIs there a link between social interaction and health? Is this the incentive? (Maslow) 24
    25. 25. Top Ten Reasons Your Plan Belongs in SocialMedia1. Efficiency: increase productivity by moving from traditional one-on-one interactions to one-to-many2. Marketing cost model shifts from paid impressions to viral distribution3. Ability to reach members in a medium of their choice, when and where they want (social media is preferred by many)4. Sales differentiator1. WLP is the only major to take Social Media this far, it’s where the employees/customers are5. Positive brand experience1. Consumer relationship with the health plan is redefined “My health plan never did this before”6. Switch from a defensive / passive posture – “defending managed care” to active stance “We are making people better and can prove it!”7. Wisdom of the crowds (members help each other and WLP)8. Data richness / latency1. Why wonder if our customers are interested in purchasing a policy when we can just ask or listen9. Casts site as a destination rather than task oriented site10. Consumers have access to a variety of areas of expertise beyond customer service (Product, Marketing, Institute 25
    26. 26. Goals - Why are we doing this?Twitter and social media provide us with an excellent feedback mechanism, direct from the membership. Not just listening to tech- savvy 23 year-olds, we receive tweets for doctors offices, moms inquiring about their children and every imaginable demographic.Transparency is key, there are no secrets on the web, if a member is dissatisfied, social media and twitter gives them the voice to tell thousands about their experience. Its a different ball game now, we need to meet this challenge head on.Social media programs are measured by their outcomes. When we help a member on Twitter, there is a record left for all to see, it doesnt all disappear when the phone is hung up. Our passion for customer service is contagious in this medium and we are not afraid to work without a net.Traditional ROI rules don’t apply because you can’t divide by zero (it doesn’t cost anything for Anthem to join Twitter) 26
    27. 27. Twitter in Action • marquearts • Spent another hour w/ Blue Cross dealing with the issue wed resolved Aug14. Ill be sending them my bill for training their staff. • AnthemHealth (tim gilchrist) • @marquearts Kelley, r u enrolled w/ B Shield or B Cross of CA? If B Cross Id like 2 undrstnd what we did wrong. • marquearts • I will be sending you a bill for 5 hours of my billable time. Due upon receipt, of course. RT @AnthemHealth #FAIL • marquearts • #FollowFriday Love going out to @AnthemHealth @ideasurge @marketingveep @wendyme2u @LAtweetah @yenra @RabbiBaum @yogaheals @LuisdoAmaral • • to-a-senior-vp-at-wellpoint-via-twitter/ 27
    28. 28. @AnthemHealth Examples Upset Member marquearts • Spent another hour w/ Blue Cross dealing with the issue wed resolved Aug14. Ill be sending them my bill for training their staff. •Straightforward reply •Took the time to look up her real name AnthemHealth • @marquearts Kelley, r u enrolled w/ B Shield or B Cross of CA? If B Cross Id like 2 undrstnd what we did wrong. Be straight forward, find out how we can do better 28
    29. 29. @AnthemHealth Examples marquearts • I will be sending you a bill for 5 hours of my billable time. Due upon receipt, of course. RT @AnthemHealth #FAIL The hash tag “FAIL” The retweet “RT” is the ultimate insult indicates others are spreading this message With a little more time invested, success! marquearts • #FollowFriday Love going out to @AnthemHealth @ideasurge @marketingveep @wendyme2u @LAtweetah @yenra @RabbiBaum @yogaheals @LuisdoAmaral When customers blog about how great you are, the real power of social media kicks in • 29