attack artificial satisfaction barometers , enterprise-wide Key Performance Indicators (KPIs), ignoring actual levels of satisfaction of individual customers; Campaign management Sales force automation Data warehousing Data mining
CRM, Dead or Dying
CRM: Dead or Dying?
Patient Equity Management
It’s called VRM, Vendor
“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)
CRM – A Matter of Perspective
Is your hospital looking from the inside-out or from the
Are your patients coming or going?
Patient Equity Management (PEM): Treat
Patients as Assets
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
CRM Alone Won’t Grow Revenues
98% of Coupons Get Thrown Away
It is 10x More Expensive to Generate Revenue from a New
A 5% Increase in Retention Can Increase Profits by 60% –
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
Loyal and Referred Patients Stay Longer, and More Services
CRM is an “inside-out” view
Standard CRM involves heavy applications of
Enhanced IVR and ACD applications
Outsourcing call center operations
Sales force automation
CRM is technology employed for
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
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)
How are your patients connected
to each other? To you?
Patient Management Evolution
CRM evolves to PEM
Patient Experience = Hospital Performance – Patient
The value add is transforming CRM to Patient Equity
Management – the total lifetime discounted value of all the
Patients vs. Hospitals– who is
How many hits does Google display
for your hospital?
How many for FaceBook?
How many of those interactions
are you really managing?
Managing patients is like herding
cats…not much bang for your buck.
It’s not a fair fight…
While you manage patients, they
are managing you