Today's Hospital Customer Service
Mission Critical in
Today’s Marketplace
 Thomas Roman
 www.linkedin.com/in/tomroman/
• Examine what confronts today’s
  competitive hospital care environment

• Discuss ways in which Customer Service
  can be designed into the health-care
  delivery systems

• Look at the impact of social networking,
  connectedness and new rules of Customer
  Service
•   It is tangible, impactful and
    actionable

•   Customer Service is linked to
    functional quality and measured by
    attributes commonly experienced
    by consumers

•   Elevating customer service to the
    same level of importance as clinical
    quality requires two things: data
    about service levels and a look at
    hospital practices and cultural
    norms that may get in the way of
    service
• Through the mid 1990’s, treating or thinking of patients as,
  “Customers” would have generated outrage among health-
  care workers and administrators
  (Howard 1999)

• Although patients may be consumers of our services,
  physicians have traditionally been considered hospitals'
  primary customers

• Patient’s don't differentiate between employees and
  independent medical staff members when they form their
  opinions about their hospital care
  (Sanford 2011)

• 30 percent of today’s financial reimbursement is tied to a
  standardized survey, the Hospital Consumer Assessment of
  Healthcare Providers and Systems (HCAHPS)
• The factors of emotions, trust
  and control can influence a
  customer experience

• An organization’s commitment
  to an emotional platform can
  facilitate decisions regarding its
  processes, people and physical
  assets
  (Dasu, Sriram, Chase, 2010)
• Different stages of the
service cycle and different
service offerings will lead to   Positive
                                                                Hospital Discharge

different emotions

• For example, at a general
hospital, the parents of a
healthy new baby will be in a   Neutral     Admission
very different emotional place
than the relatives of a patient
who has just been admitted to
the intensive care unit                                  Treatment
(Dasu, Sriram, Chase, 2010)      Negative   Problem
                                            Discovered


                                                                      Time
• Consistent customer service performance goes a long way
  toward building trust

• Although credentials, testimonials and recommendations
  are frequently important factors in trust, many customers
  make their judgments based on other cues, including a
  person’s behavior, problem solving skills and ability to
  communicate clearly
• Service providers design for control in two ways:

   – allowing people to have behavioral control over parts of
     the service delivery process

   – through cognitive control where even though
     customers can’t influence the process, they can see
     enough of the system to know that it’s well managed
• Customer service is a strategic imperative that belongs at
  the same table as strategic planning, marketing
  communications, branding and advertising

• Without a solid customer service focus, hospitals may begin
  to lose important managed care contracts and contracting
  abilities and therefore lose a large percentage of their
  insured customer base and have trouble remaining
  competitive in their area
• Customer service has to moved from being considered a
  “cost” to one of investment

• It is very quickly becoming a calculated driver that will be
  vital in providing brands with unique points of
  differentiation and businesses with sustainable competitive
  advantage

• In this age of service transition and increasing managed
  care market competition, hospitals must remain focused on
  quality and the consumer's needs, wants, and demands
• If your customer service is to become a strategic
  differentiator, it has to embody a new set of rules,
  guidelines and best practices
  (Jaffe 2010)
– As was evidenced by the “Motrin Moms” story,
  Johnson & Johnson’s inability to address a mob
  of angry bloggers cost the brand its entire
  campaign

– A listening strategy tied to customer sentiment
  needs to be on, 24 x 7 x 365
• Every single employee in an organization
  represents the company

• They are a window into or out of the business;
  and as far as your customer is concerned, they
  are the only window
• Train customer service to anticipate and respond to
  customers who have a word-of-mouth distribution platform
  such as a website, blog, podcast or, community pulpit

• Be proactive with collecting information from customers—
  either through registration forms, profiles or surveys

• Ask them explicitly: do you have a blog, and if so, document
  the URL and research the blog
• “Customer Service” should not be any different from
  “serving customers”

• Be specific; suggest ideas; offer information of value; or
  recommend solutions from which both you and your
  customers will benefit
• Solve problems in real time

• The more time that elapses between problem and solution,
  the greater the risk of that problem mushrooming out of
  control
• Building on several of the earlier new rules is one fairly
  counterintuitive one:
   – service can actually become a source of revenue for hospitals—not just
     directly (i.e., new business from old customers); but also indirectly
     (i.e. new business from new customers.)
• The more time elapses, the more likely a customer is to
  move a problem from the private to public and intensify it
  to a fever pitch
• Marketing is not a campaign; it’s a commitment
   – We need to visibly demonstrate our commitment to our customers in
     practice and in action
   – They need to explicitly feel its effect and benefits
• Old customer service “spoke when it was spoken to”
   – New customer service anticipates requirements, listens
     attentively for customers in need, and proactively
     searches for problems to fix

• Whether anticipating next steps or responding to a clear
  and present complaint, as long as there’s action, there’s the
  potential to turn a negative into a positive
• Feedback loops need to be active, direct and effective at
  improving, evolving and moving the business forward

• This highlights an organization with an entirely new set of
  criteria, beliefs and characteristics that reflect a company
  truly in touch with its customer base
What does
     What is                        How can you be sure
                      being “show
  “backstage” in                    that customers who
                     ready” mean?
      your                          are wrong are wrong
  organization?                         with dignity?


                                     Are employees ever
                                      guilty of providing
                                       robotic service?
What opportunities                   How do they know?
are there to teach
    customers
 something they                        How does the
  may not have                       Everything Speaks
 known before?                      philosophy apply to
                                     your work setting?
• Value is based on unique, personalized experiences of
  consumers

• Customer service will need to be as important a goal as
  clinical quality

• The ability—or inability—to serve customers in this way will
  prove to be the ultimate differentiator that separates the
  winners from the losers

• Organizations will have to learn to focus on one consumer
  and their experience at a time, even if they serve 100
  million consumers
Questions?




             www.linkedin.com/in/tomroman/
•   Howard, Julie. "Hospital Customer Service in a Changing Healthcare
    World: Does it Matter?" Journal of Healthcare Management 44.4 (1999):
    312-25. ABI/INFORM Complete; ProQuest Health Management; ProQuest
    Research Library. Web. 23 Dec. 2012.
•   Sanford, Kathleen D. "A New Customer Service Partnership for Hospitals
    and Physicians." Healthcare Financial Management 65.12 (2011): 48-52.
    ABI/INFORM Complete; ProQuest Health Management; ProQuest Research
    Library. Web. 6 Jan. 2013.
•   http://changethis.com, The Customer Service Manifesto
    Joseph Jaffe Published March 3, 2010 6:00 p.m, Accessed 12/21/2012
•   Dasu, Sriram, and B. Chase Richard. "Designing the Soft Side of Customer
    Service." MIT Sloan Management Review 52.1 (2010): 33-9. ABI/INFORM
    Complete; ProQuest Health Management; ProQuest Research Library.
    Web. 1 Jan. 2013.
•   Thorpe, Dayle I. "Total Quality Service: Principles, Practices, and
    Implementation." Academy of Marketing Science.Journal 25.1 (1997): 90-
    2. ABI/INFORM Complete. Web. 6 Jan. 2013.
•   Fottler, Myron D., et al. "Comparing Hospital Staff and Patient Perceptions
    of Customer Service: A Pilot Study Utilizing Survey and Focus Group
    Data." Health Services Management Research 19.1 (2006): 52-66.
    ABI/INFORM Complete; ProQuest Health Management. Web. 6 Jan. 2013.
•   Havenstein, Heather. "Motrin Aching from Social Media Backlash."
    Computerworld 42.47 (2008): 10-. ABI/INFORM Complete; ProQuest
    Research Library. Web. 1 Jan. 2013
•   Snow, Dennis. Lessons from the Mouse: A Guide for Applying Disney
    World’s Secrets of Success to your Organization, Your Career and Your
    Life. Orlando Fl, Snow and Associates, 2010
•   Thorpe, Dayle I. "Total Quality Service: Principles, Practices, and
    Implementation." Academy of Marketing Science.Journal 25.1 (1997): 90-
    2. ABI/INFORM Complete. Web. 6 Jan. 2013.
•   Fottler, Myron D., et al. "Comparing Hospital Staff and Patient Perceptions
    of Customer Service: A Pilot Study Utilizing Survey and Focus Group
    Data." Health Services Management Research 19.1 (2006): 52-66.
    ABI/INFORM Complete; ProQuest Health Management. Web. 6 Jan. 2013.

Today's hospital customer service

  • 1.
    Today's Hospital CustomerService Mission Critical in Today’s Marketplace Thomas Roman www.linkedin.com/in/tomroman/
  • 2.
    • Examine whatconfronts today’s competitive hospital care environment • Discuss ways in which Customer Service can be designed into the health-care delivery systems • Look at the impact of social networking, connectedness and new rules of Customer Service
  • 3.
    It is tangible, impactful and actionable • Customer Service is linked to functional quality and measured by attributes commonly experienced by consumers • Elevating customer service to the same level of importance as clinical quality requires two things: data about service levels and a look at hospital practices and cultural norms that may get in the way of service
  • 4.
    • Through themid 1990’s, treating or thinking of patients as, “Customers” would have generated outrage among health- care workers and administrators (Howard 1999) • Although patients may be consumers of our services, physicians have traditionally been considered hospitals' primary customers • Patient’s don't differentiate between employees and independent medical staff members when they form their opinions about their hospital care (Sanford 2011) • 30 percent of today’s financial reimbursement is tied to a standardized survey, the Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS)
  • 5.
    • The factorsof emotions, trust and control can influence a customer experience • An organization’s commitment to an emotional platform can facilitate decisions regarding its processes, people and physical assets (Dasu, Sriram, Chase, 2010)
  • 6.
    • Different stagesof the service cycle and different service offerings will lead to Positive Hospital Discharge different emotions • For example, at a general hospital, the parents of a healthy new baby will be in a Neutral Admission very different emotional place than the relatives of a patient who has just been admitted to the intensive care unit Treatment (Dasu, Sriram, Chase, 2010) Negative Problem Discovered Time
  • 7.
    • Consistent customerservice performance goes a long way toward building trust • Although credentials, testimonials and recommendations are frequently important factors in trust, many customers make their judgments based on other cues, including a person’s behavior, problem solving skills and ability to communicate clearly
  • 8.
    • Service providersdesign for control in two ways: – allowing people to have behavioral control over parts of the service delivery process – through cognitive control where even though customers can’t influence the process, they can see enough of the system to know that it’s well managed
  • 9.
    • Customer serviceis a strategic imperative that belongs at the same table as strategic planning, marketing communications, branding and advertising • Without a solid customer service focus, hospitals may begin to lose important managed care contracts and contracting abilities and therefore lose a large percentage of their insured customer base and have trouble remaining competitive in their area
  • 10.
    • Customer servicehas to moved from being considered a “cost” to one of investment • It is very quickly becoming a calculated driver that will be vital in providing brands with unique points of differentiation and businesses with sustainable competitive advantage • In this age of service transition and increasing managed care market competition, hospitals must remain focused on quality and the consumer's needs, wants, and demands
  • 11.
    • If yourcustomer service is to become a strategic differentiator, it has to embody a new set of rules, guidelines and best practices (Jaffe 2010)
  • 12.
    – As wasevidenced by the “Motrin Moms” story, Johnson & Johnson’s inability to address a mob of angry bloggers cost the brand its entire campaign – A listening strategy tied to customer sentiment needs to be on, 24 x 7 x 365
  • 13.
    • Every singleemployee in an organization represents the company • They are a window into or out of the business; and as far as your customer is concerned, they are the only window
  • 14.
    • Train customerservice to anticipate and respond to customers who have a word-of-mouth distribution platform such as a website, blog, podcast or, community pulpit • Be proactive with collecting information from customers— either through registration forms, profiles or surveys • Ask them explicitly: do you have a blog, and if so, document the URL and research the blog
  • 15.
    • “Customer Service”should not be any different from “serving customers” • Be specific; suggest ideas; offer information of value; or recommend solutions from which both you and your customers will benefit
  • 16.
    • Solve problemsin real time • The more time that elapses between problem and solution, the greater the risk of that problem mushrooming out of control
  • 17.
    • Building onseveral of the earlier new rules is one fairly counterintuitive one: – service can actually become a source of revenue for hospitals—not just directly (i.e., new business from old customers); but also indirectly (i.e. new business from new customers.)
  • 18.
    • The moretime elapses, the more likely a customer is to move a problem from the private to public and intensify it to a fever pitch
  • 19.
    • Marketing isnot a campaign; it’s a commitment – We need to visibly demonstrate our commitment to our customers in practice and in action – They need to explicitly feel its effect and benefits
  • 20.
    • Old customerservice “spoke when it was spoken to” – New customer service anticipates requirements, listens attentively for customers in need, and proactively searches for problems to fix • Whether anticipating next steps or responding to a clear and present complaint, as long as there’s action, there’s the potential to turn a negative into a positive
  • 21.
    • Feedback loopsneed to be active, direct and effective at improving, evolving and moving the business forward • This highlights an organization with an entirely new set of criteria, beliefs and characteristics that reflect a company truly in touch with its customer base
  • 22.
    What does What is How can you be sure being “show “backstage” in that customers who ready” mean? your are wrong are wrong organization? with dignity? Are employees ever guilty of providing robotic service? What opportunities How do they know? are there to teach customers something they How does the may not have Everything Speaks known before? philosophy apply to your work setting?
  • 23.
    • Value isbased on unique, personalized experiences of consumers • Customer service will need to be as important a goal as clinical quality • The ability—or inability—to serve customers in this way will prove to be the ultimate differentiator that separates the winners from the losers • Organizations will have to learn to focus on one consumer and their experience at a time, even if they serve 100 million consumers
  • 24.
    Questions? www.linkedin.com/in/tomroman/
  • 25.
    Howard, Julie. "Hospital Customer Service in a Changing Healthcare World: Does it Matter?" Journal of Healthcare Management 44.4 (1999): 312-25. ABI/INFORM Complete; ProQuest Health Management; ProQuest Research Library. Web. 23 Dec. 2012. • Sanford, Kathleen D. "A New Customer Service Partnership for Hospitals and Physicians." Healthcare Financial Management 65.12 (2011): 48-52. ABI/INFORM Complete; ProQuest Health Management; ProQuest Research Library. Web. 6 Jan. 2013. • http://changethis.com, The Customer Service Manifesto Joseph Jaffe Published March 3, 2010 6:00 p.m, Accessed 12/21/2012
  • 26.
    Dasu, Sriram, and B. Chase Richard. "Designing the Soft Side of Customer Service." MIT Sloan Management Review 52.1 (2010): 33-9. ABI/INFORM Complete; ProQuest Health Management; ProQuest Research Library. Web. 1 Jan. 2013. • Thorpe, Dayle I. "Total Quality Service: Principles, Practices, and Implementation." Academy of Marketing Science.Journal 25.1 (1997): 90- 2. ABI/INFORM Complete. Web. 6 Jan. 2013. • Fottler, Myron D., et al. "Comparing Hospital Staff and Patient Perceptions of Customer Service: A Pilot Study Utilizing Survey and Focus Group Data." Health Services Management Research 19.1 (2006): 52-66. ABI/INFORM Complete; ProQuest Health Management. Web. 6 Jan. 2013. • Havenstein, Heather. "Motrin Aching from Social Media Backlash." Computerworld 42.47 (2008): 10-. ABI/INFORM Complete; ProQuest Research Library. Web. 1 Jan. 2013 • Snow, Dennis. Lessons from the Mouse: A Guide for Applying Disney World’s Secrets of Success to your Organization, Your Career and Your Life. Orlando Fl, Snow and Associates, 2010
  • 27.
    Thorpe, Dayle I. "Total Quality Service: Principles, Practices, and Implementation." Academy of Marketing Science.Journal 25.1 (1997): 90- 2. ABI/INFORM Complete. Web. 6 Jan. 2013. • Fottler, Myron D., et al. "Comparing Hospital Staff and Patient Perceptions of Customer Service: A Pilot Study Utilizing Survey and Focus Group Data." Health Services Management Research 19.1 (2006): 52-66. ABI/INFORM Complete; ProQuest Health Management. Web. 6 Jan. 2013.