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Five Critical Roles for
Healthcare Marketing Executives



              Karen Corrigan
            Corrigan Partners LLC
                    @karencorrigan
            Corriganpartners.com
The changing face of competition . . .
and healthcare marketing.
• Restructuring markets and intensifying
  competitor activities in anticipation of reform
  and other industry pressures

• New reimbursement methods and care delivery
  models that require greater emphasis on
  customer engagement to optimize profitability

• Transformation of marketing practice through
  web, social and mobile technologies




                                                    2
Five critical roles for healthcare marketers
   Growth Strategist

   Brand Advocate

   Digital Change Agent

   Experience Champion

   Innovation Catalyst




                                               3
Role # 1:
The marketer as growth strategist
                      In nearly every other industry, marketing
                       is valued as a revenue-generating
                       business competency critical to driving
                       growth, brand loyalty and better
                       financial performance.
                      Now is the time for chief marketing
                       officers to move aggressively to
                       transform marketing practice from
                       promotions-oriented tactics to growth-
                       oriented strategic leadership.




                                                                   4
Revenue generation is the priority . . .
                     For the foreseeable future, health systems
                      will be operating with competing and
                      somewhat conflicting objectives as they
                      attempt to optimize commercial volumes
                      for core clinical programs, while
                      simultaneously building accountable care
                      systems and capabilities.
                     Marketing executives must help health
                      systems transcend the ‘pay for volume’ and
                      ‘pay for value’ markets




                                                                   5
Focus on revenue-generating growth opportunities
 Building a powerful, relevant, differentiated brand position
 Developing a core set of comprehensive ‘smart growth’ service lines
 Enhancing access and minimizing ‘leaky bucket’ and out-migration
 Creating and leveraging more tightly integrated physician structures
 Developing innovative payor/contracting relationships
 Developing competencies in population health management
 Diversifying ambulatory, post-acute, retail and on-line health services
 Creating future-ready models of care
 Expanding into new markets and new lines of business
 Creating a signature, customer-centric service culture
 Leveraging strategic information technologies
 Building revenue-generating marketing capabilities


                                                                            6
Success requires a growth-oriented culture
                    Marketing’s partnership and co-accountability
                    with clinical operations, IT, finance, HR and
                    other core business functions are critical to:
                    Driving alignment across the network
                     (operations, IT, physicians, contracting, etc.)
                    Understanding changing payment methods
                     and business models
                    Delivering on revenue growth and profit
                     targets.




                                                                   7
Role #2:
The marketer as brand advocate
The business of branding: Growth. Innovation. Leverage.

• Brands influence consumer decision-making and
  choices regarding health and medical care.

• Brands shape the complex referral and transactional
  relationships among consumers, health services,
  physicians, hospitals and payers; strong brands create
  premium referral, partnering and contracting
  advantages.

• Strong brands attract the best talent, and can be
  leveraged to benefit recruitment and retention.

• Brands are about growth, revenue, profitability, market
  leverage, staff commitment and customer loyalty.
                                                            8
Rapidly restructuring markets require new
approaches to brand leadership
Brand management must evolve to address and handle the complexities of:

                           Newly developing care delivery models

                           Hospital and health system mergers & acquisitions

                           Physician integration and owned medical practices

                           Ambulatory, post acute and retail diversification

                           Academic, technology and business partnerships

                           Multi-market, multi-state expansion initiatives

                           Enterprise IT/EHR/Website strategies

                           Co-branding/co-marketing relationships

                                                                                9
Brand strength improves competitive performance
                                     Brand leadership has never been more important
                                      – or more challenging – for health systems
                                     Rapidly changing competitive dynamics are taxing
                                      even well established healthcare brands
                                     To date, brand investments in healthcare have
                                      been largely focused on identity systems,
                                      advertising and promotions
Brand alignment builds the brand-
driven culture that transforms an    Brand and its interdependency on the operating
organization from one that simply     model is a fledging concept in healthcare
 ‘promotes a brand’ to one that
       ‘delivers the brand.’         Strategic, operational, clinical, physician and
                                      marketing alignment is essential to creating and
                                      delivering a meaningful, differentiating and
                                      durable brand value proposition

                                                                                         10
Tracking the impact of brand investments on
business performance is imperative
                                         Strategic Metrics                               Marketing Metrics                Financial Metrics

 Performance             Market              Brand                   Market         Customer             Customer              Business
    Metric               Position          Reputation               Leverage        Acquisition          Retention             Outcomes

   Sample           Market share     Industry rankings          Contracting       Awareness          Satisfaction       Sales revenue
  Measures          Rate of growth   Customer perceptions       Recruitment       Preference         Referrals          Margin
                                     MD perceptions             Fundraising       # inquiries        Share of spend     Payor mix
                                     Staff perceptions          M&A/partnering    # new customers    Lifetime value     Ratings
                                     Community benefit          $$/new ventures   Volumes            Brand loyalty



    Focus                 How is brand equity leveraged to create and sustain      How do brand perceptions influence     How does customer
                                       competitive advantage?                             customer behavior?            behavior create tangible
                                                                                                                           economic value?
©Corrigan Partners LLC



                                                                          Strong brands influence consumer choice
                                                                          Strong brands attract and retain the best talent
                           The bottom line                                Strong brands create contracting, partnering leverage
                                                                          Strong brands shape referral patterns
                                                                          Strong brands build customer loyalty
                                                                          Strong brands better weather economic cycles
                                                                                                                                              11
Core competencies of brand leadership

                 Advanced brand research and analytic techniques


                 Relevant, defensible brand value proposition


                 Purposeful, consistent brand experience


                  Brand-driven growth pipeline


                  Leveraged brand equity



                                                                12
Role #3:
The marketer as digital change agent
Web, social networking and mobile technologies are revolutionizing business
processes everywhere and marketers can be change agents by helping health
systems better understand how to employ these technologies to:
 Reach and engage consumers
 Acquire and retain customers
 Improve patient-provider relationships
 Support patients with care management
 Promote better clinical care and decision-making
 Facilitate workplace communications and productivity
 Build the brand




                                                                              13
Building digital marketing capabilities is job one
                  Invest in digital marketing structures, capabilities
                  and support systems:
                   • Integrated, multi-channel strategies
                   • Integrated web, social, mobile marketing
                   • Content marketing & management
                   • Integrated CRM/contact center
                   • Mobile media development & marketing
                   • Digital brandscaping
                   • Social commerce
                   • Community management



                                                                         14
Master the art of digital and content marketing
 Harness the power of digital marketing to drive customer acquisition and
  retention; digital marketing gives us real time access to the patient at the
  very moment they are interested; social engagement gives us deep insights
  into consumer needs and wants.
 Engaging the right audiences, in the right places, at the right time to drive
  revenue and brand loyalty is the goal of digital marketing.
 Success requires a thorough understanding of how consumers discover,
  consume and share information on-line; and the role of search and social
  interaction across the buying cycle.
 Make digital brandscaping a priority – deliver a positive, consistent brand
  experience in both virtual and physical environments.




                                                                                  15
Lead the change . . .
• Develop fluency in digital and social media -- use the tools
  personally & professionally
• Establish a vision and plan for digital and social marketing;
  restructure marketing and redesign marketing processes
• Educate the organization as to how web, social and
  mobile are changing consumer behaviors, and how digital
  and social tools can enhance brand experience, improve
  health and facilitate business processes
• Provide education to increase digital & social media skills in marketing and
  across the organization
• Facilitate adoption of digital – web, social and mobile -- from top tier
  executives who may be entrenched in outdated ways
• Make it easy for staff to do the right thing – help them understand the brand,
  understand the rules, understand the platforms

                                                                                 16
Role #4:
The marketer as experience champion
               Be a champion for customer-centered decision-
                making and innovations that transform customer
                experience.
               Drive understanding across the health system that
                customer experience is more than HCAHPS scores
                and patient satisfaction . . . it’s about meeting
                customer expectations every day in every
                interaction through DESIGN – administrative
                systems, appointment scheduling, meeting and
                greeting, clinical processes, customer engagement,
                billing, follow-up, etc.




                                                                 17
Experience happens by design; not by accident

        People                      Processes
       • Culture                   • Scheduling
       • Beliefs                  • Registration
       • Values                     • Treatment
     • Behaviors                    • Hand-offs
                   Brand-Driven
                    Experience
    Performance     Framework      Marketing
       • Service                  • Segments
       • Quality                   • Products
         • Lean                   • Channels
     • Six Sigma                     • Brand



                                                   18
Help others learn from the “Elite 8%”
  A Bain & Company study found that 80% of surveyed companies felt they
   delivered good experiences; when their customers were interviewed, only
   8% truly delivered. What sets the ‘elite 8’ apart?
     They understand their customers and design the right offers and
      experiences for those customers.
     They deliver experience by focusing the entire company on customer
      needs with an emphasis on cross-functional collaboration.
     They develop capabilities to please customers again and again—by
      such means as continual innovation, training people in how to create
      new customer experiences, and establishing direct accountability for
      customer experience.            Source: Harvard Management Update; Three D’s of Customer Experience; 2005
What can marketing do?
   Employ innovative research techniques to generate rich insights into
    customer needs, wants, expectations . . .
   Bring customers and providers together in planning and design sessions . . .
   Articulate the link between brand value proposition and experience . . .
   Keep experiences authentic…authentic to your brand value proposition,
    authentic to customer expectations, authentic to capabilities . . .
   Champion use of DESIGN to hardwire experience . . .
   Become a fan of demonstration projects; experiment, learn, apply . . .
   Educate, educate, educate . . .
Role #5:
The marketer as innovation catalyst
                  Transformation of care delivery systems, business
                  processes, and market strategies are top priorities
                  for health systems:

                   Innovations advance strategy, build brand
                     equity, and produce a better bottom line.

                   Innovation rarely happens by chance; it
                     happens more through the purposeful creation
                     of innovation competencies and processes.

                   Innovation demands alignment of culture,
                     capabilities and structure, as well as a laser
                     focus on value-creation.

                   Transformation cannot happen without
                     innovation.
                                                                      21
Marketing’s role has never been more crucial
 Creating new markets, moving market
  share, developing new sources of revenue,
  building brand loyalty, improving
  profitability, and sustaining competitiveness
  are all goals of innovation.
 Marketers can help by creating a focused
  customer-centered approach to innovation
  and developing the platforms to drive
  creative solutions.
 Success stems from creative thinking, fresh
  solutions, and relevance to customers.
 That puts marketing front and center as the
  curator of customer intelligence.


                                                  22
Align innovation efforts to strategy
•   Needs driven innovations - emphasis is market research to
    better understand customer needs and discover market
    opportunities that can be addressed in unique ways; R & D is
    the core competency.
•   Relationship driven innovations - emphasis is mass
    customization as a competency to create one-to-one
    relationships, enabled by sophisticated, enabling CRM
    technology that recognizes, supports, and delivers customized
    solutions for valued customers.
•   Market driving innovations - resetting the rules of competition
    through value innovation; radical, disruptive moves that create
    new markets, transform customers into fans, and build such
    distinct points of competitive advantage that they are difficult
    to duplicate.


                                                                       23
Promote less talk, more action
                 Healthcare consumers are frustrated by the
                  complexities of access, fragmentation of care,
                  lack of communications, and other aspects of
                  their experiences.
                 Most of the industry is woefully behind in
                  providing on-line conveniences such as
                  scheduling and customer communications.
                 Opportunities for innovations that take the
                  hassle out of healthcare are sizable.
                 So why aren’t more marketers driving changes in
                  the customer experience realm?




                                                                   24
The business enterprise has two and only two
 basic functions: marketing and innovation.
 Marketing and innovation produce results;
             all the rest are costs.
                  Peter Drucker




                                               25
Embrace change, then drive transformation




                                       26
Questions. Comments. Discussion.
 Karen Corrigan
 Founder/CEO
 Corrigan Partners
 karen@corriganpartners.com
 P 757.288.2480
           @karencorrigan

       blog @ karencorrigan.com

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Five critical roles for healthcare marketing executives

  • 1. Five Critical Roles for Healthcare Marketing Executives Karen Corrigan Corrigan Partners LLC @karencorrigan Corriganpartners.com
  • 2. The changing face of competition . . . and healthcare marketing. • Restructuring markets and intensifying competitor activities in anticipation of reform and other industry pressures • New reimbursement methods and care delivery models that require greater emphasis on customer engagement to optimize profitability • Transformation of marketing practice through web, social and mobile technologies 2
  • 3. Five critical roles for healthcare marketers  Growth Strategist  Brand Advocate  Digital Change Agent  Experience Champion  Innovation Catalyst 3
  • 4. Role # 1: The marketer as growth strategist  In nearly every other industry, marketing is valued as a revenue-generating business competency critical to driving growth, brand loyalty and better financial performance.  Now is the time for chief marketing officers to move aggressively to transform marketing practice from promotions-oriented tactics to growth- oriented strategic leadership. 4
  • 5. Revenue generation is the priority . . .  For the foreseeable future, health systems will be operating with competing and somewhat conflicting objectives as they attempt to optimize commercial volumes for core clinical programs, while simultaneously building accountable care systems and capabilities.  Marketing executives must help health systems transcend the ‘pay for volume’ and ‘pay for value’ markets 5
  • 6. Focus on revenue-generating growth opportunities  Building a powerful, relevant, differentiated brand position  Developing a core set of comprehensive ‘smart growth’ service lines  Enhancing access and minimizing ‘leaky bucket’ and out-migration  Creating and leveraging more tightly integrated physician structures  Developing innovative payor/contracting relationships  Developing competencies in population health management  Diversifying ambulatory, post-acute, retail and on-line health services  Creating future-ready models of care  Expanding into new markets and new lines of business  Creating a signature, customer-centric service culture  Leveraging strategic information technologies  Building revenue-generating marketing capabilities 6
  • 7. Success requires a growth-oriented culture Marketing’s partnership and co-accountability with clinical operations, IT, finance, HR and other core business functions are critical to:  Driving alignment across the network (operations, IT, physicians, contracting, etc.)  Understanding changing payment methods and business models  Delivering on revenue growth and profit targets. 7
  • 8. Role #2: The marketer as brand advocate The business of branding: Growth. Innovation. Leverage. • Brands influence consumer decision-making and choices regarding health and medical care. • Brands shape the complex referral and transactional relationships among consumers, health services, physicians, hospitals and payers; strong brands create premium referral, partnering and contracting advantages. • Strong brands attract the best talent, and can be leveraged to benefit recruitment and retention. • Brands are about growth, revenue, profitability, market leverage, staff commitment and customer loyalty. 8
  • 9. Rapidly restructuring markets require new approaches to brand leadership Brand management must evolve to address and handle the complexities of: Newly developing care delivery models Hospital and health system mergers & acquisitions Physician integration and owned medical practices Ambulatory, post acute and retail diversification Academic, technology and business partnerships Multi-market, multi-state expansion initiatives Enterprise IT/EHR/Website strategies Co-branding/co-marketing relationships 9
  • 10. Brand strength improves competitive performance  Brand leadership has never been more important – or more challenging – for health systems  Rapidly changing competitive dynamics are taxing even well established healthcare brands  To date, brand investments in healthcare have been largely focused on identity systems, advertising and promotions Brand alignment builds the brand- driven culture that transforms an  Brand and its interdependency on the operating organization from one that simply model is a fledging concept in healthcare ‘promotes a brand’ to one that ‘delivers the brand.’  Strategic, operational, clinical, physician and marketing alignment is essential to creating and delivering a meaningful, differentiating and durable brand value proposition 10
  • 11. Tracking the impact of brand investments on business performance is imperative Strategic Metrics Marketing Metrics Financial Metrics Performance Market Brand Market Customer Customer Business Metric Position Reputation Leverage Acquisition Retention Outcomes Sample Market share Industry rankings Contracting Awareness Satisfaction Sales revenue Measures Rate of growth Customer perceptions Recruitment Preference Referrals Margin MD perceptions Fundraising # inquiries Share of spend Payor mix Staff perceptions M&A/partnering # new customers Lifetime value Ratings Community benefit $$/new ventures Volumes Brand loyalty Focus How is brand equity leveraged to create and sustain How do brand perceptions influence How does customer competitive advantage? customer behavior? behavior create tangible economic value? ©Corrigan Partners LLC  Strong brands influence consumer choice  Strong brands attract and retain the best talent The bottom line  Strong brands create contracting, partnering leverage  Strong brands shape referral patterns  Strong brands build customer loyalty  Strong brands better weather economic cycles 11
  • 12. Core competencies of brand leadership Advanced brand research and analytic techniques Relevant, defensible brand value proposition Purposeful, consistent brand experience Brand-driven growth pipeline Leveraged brand equity 12
  • 13. Role #3: The marketer as digital change agent Web, social networking and mobile technologies are revolutionizing business processes everywhere and marketers can be change agents by helping health systems better understand how to employ these technologies to:  Reach and engage consumers  Acquire and retain customers  Improve patient-provider relationships  Support patients with care management  Promote better clinical care and decision-making  Facilitate workplace communications and productivity  Build the brand 13
  • 14. Building digital marketing capabilities is job one Invest in digital marketing structures, capabilities and support systems: • Integrated, multi-channel strategies • Integrated web, social, mobile marketing • Content marketing & management • Integrated CRM/contact center • Mobile media development & marketing • Digital brandscaping • Social commerce • Community management 14
  • 15. Master the art of digital and content marketing  Harness the power of digital marketing to drive customer acquisition and retention; digital marketing gives us real time access to the patient at the very moment they are interested; social engagement gives us deep insights into consumer needs and wants.  Engaging the right audiences, in the right places, at the right time to drive revenue and brand loyalty is the goal of digital marketing.  Success requires a thorough understanding of how consumers discover, consume and share information on-line; and the role of search and social interaction across the buying cycle.  Make digital brandscaping a priority – deliver a positive, consistent brand experience in both virtual and physical environments. 15
  • 16. Lead the change . . . • Develop fluency in digital and social media -- use the tools personally & professionally • Establish a vision and plan for digital and social marketing; restructure marketing and redesign marketing processes • Educate the organization as to how web, social and mobile are changing consumer behaviors, and how digital and social tools can enhance brand experience, improve health and facilitate business processes • Provide education to increase digital & social media skills in marketing and across the organization • Facilitate adoption of digital – web, social and mobile -- from top tier executives who may be entrenched in outdated ways • Make it easy for staff to do the right thing – help them understand the brand, understand the rules, understand the platforms 16
  • 17. Role #4: The marketer as experience champion  Be a champion for customer-centered decision- making and innovations that transform customer experience.  Drive understanding across the health system that customer experience is more than HCAHPS scores and patient satisfaction . . . it’s about meeting customer expectations every day in every interaction through DESIGN – administrative systems, appointment scheduling, meeting and greeting, clinical processes, customer engagement, billing, follow-up, etc. 17
  • 18. Experience happens by design; not by accident People Processes • Culture • Scheduling • Beliefs • Registration • Values • Treatment • Behaviors • Hand-offs Brand-Driven Experience Performance Framework Marketing • Service • Segments • Quality • Products • Lean • Channels • Six Sigma • Brand 18
  • 19. Help others learn from the “Elite 8%”  A Bain & Company study found that 80% of surveyed companies felt they delivered good experiences; when their customers were interviewed, only 8% truly delivered. What sets the ‘elite 8’ apart?  They understand their customers and design the right offers and experiences for those customers.  They deliver experience by focusing the entire company on customer needs with an emphasis on cross-functional collaboration.  They develop capabilities to please customers again and again—by such means as continual innovation, training people in how to create new customer experiences, and establishing direct accountability for customer experience. Source: Harvard Management Update; Three D’s of Customer Experience; 2005
  • 20. What can marketing do?  Employ innovative research techniques to generate rich insights into customer needs, wants, expectations . . .  Bring customers and providers together in planning and design sessions . . .  Articulate the link between brand value proposition and experience . . .  Keep experiences authentic…authentic to your brand value proposition, authentic to customer expectations, authentic to capabilities . . .  Champion use of DESIGN to hardwire experience . . .  Become a fan of demonstration projects; experiment, learn, apply . . .  Educate, educate, educate . . .
  • 21. Role #5: The marketer as innovation catalyst Transformation of care delivery systems, business processes, and market strategies are top priorities for health systems:  Innovations advance strategy, build brand equity, and produce a better bottom line.  Innovation rarely happens by chance; it happens more through the purposeful creation of innovation competencies and processes.  Innovation demands alignment of culture, capabilities and structure, as well as a laser focus on value-creation.  Transformation cannot happen without innovation. 21
  • 22. Marketing’s role has never been more crucial  Creating new markets, moving market share, developing new sources of revenue, building brand loyalty, improving profitability, and sustaining competitiveness are all goals of innovation.  Marketers can help by creating a focused customer-centered approach to innovation and developing the platforms to drive creative solutions.  Success stems from creative thinking, fresh solutions, and relevance to customers.  That puts marketing front and center as the curator of customer intelligence. 22
  • 23. Align innovation efforts to strategy • Needs driven innovations - emphasis is market research to better understand customer needs and discover market opportunities that can be addressed in unique ways; R & D is the core competency. • Relationship driven innovations - emphasis is mass customization as a competency to create one-to-one relationships, enabled by sophisticated, enabling CRM technology that recognizes, supports, and delivers customized solutions for valued customers. • Market driving innovations - resetting the rules of competition through value innovation; radical, disruptive moves that create new markets, transform customers into fans, and build such distinct points of competitive advantage that they are difficult to duplicate. 23
  • 24. Promote less talk, more action  Healthcare consumers are frustrated by the complexities of access, fragmentation of care, lack of communications, and other aspects of their experiences.  Most of the industry is woefully behind in providing on-line conveniences such as scheduling and customer communications.  Opportunities for innovations that take the hassle out of healthcare are sizable.  So why aren’t more marketers driving changes in the customer experience realm? 24
  • 25. The business enterprise has two and only two basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Peter Drucker 25
  • 26. Embrace change, then drive transformation 26
  • 27. Questions. Comments. Discussion. Karen Corrigan Founder/CEO Corrigan Partners karen@corriganpartners.com P 757.288.2480 @karencorrigan blog @ karencorrigan.com