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CRM, Dead or Dying

  1. 1. CRM: Dead or Dying? Patient Equity Management
  2. 2. It’s called VRM, Vendor Relationship Management
  3. 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. 4. CRM – A Matter of Perspective Is your hospital looking from the inside-out or from the outside-in?
  5. 5. Are your patients coming or going? Patient Equity Management (PEM): Treat Patients as Assets
  6. 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. 7. It’s not your father’s CRM…or is it?
  8. 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. 9. COLOR It’s time to color outside the box
  10. 10. It’s time to break a few coconuts
  11. 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. 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. 13. CRM is technology employed for user convenience…
  14. 14. CRM is a shotgun approach
  15. 15. CRM is Multiple channels, patients in a box. STORE (FACE TO FACE) WEB (COMPUTER TO COMPUTER) PHONE (PHONE TO PHONE)
  16. 16. Is there a Better Way?
  17. 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. 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. 19. How are your patients connected to each other? To you?
  20. 20. Patients have many channel choices
  21. 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. 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. 23. Decommodify the business, become the patient… …Reengineer
  24. 24. From what to what?
  25. 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. 26. Patients vs. Hospitals– who is winning? How many hits does Google display for your hospital? How many for FaceBook? MySpace? YouTube?
  27. 27. How many of those interactions are you really managing?
  28. 28. Managing patients is like herding cats…not much bang for your buck.
  29. 29. It’s not a fair fight… While you manage patients, they are managing you
  30. 30. Still with me?
  31. 31. Two worlds collid, patients and hospitals Will either survive intact?
  32. 32. It’s not easy… but important ventures rarely are.
  33. 33. Where do you need to go? How do you get there?
  34. 34. Need Help?
  35. 35. (EASY button not included}
  36. 36. Pale Rhino is leading the way
  37. 37. It’s called VRM, Vendor Relationship Management
  38. 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. 39. Define Goals & Objectives
  40. 40. Evaluate your situation
  41. 41. Develop a plan
  42. 42. Social Networking
  43. 43. Paul Roemer, Managing Partner Pale Rhino Consulting Contact: Paul Roemer, Partner, Clinton Rubin LLC (484) 885-6942 +1 (484) 885-6942

Editor's Notes

  • 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