Building Loyalty and Trust Through Continuous

EngagementDaniel Hart

Agenda• Industry Challenges• From Patient to Consumer• The Evolving Healthcare Business Model• A Retail and Digital Mindset• Engagement & Loyalty Leaders• Making the Transition

Challenging Road Ahead for Providers• Traditional, Volume-based

Business Model Under Pressure

• Changing Reimbursement Models

• Declining Utilization• Thin Margins• Government Mandates• Penalties / Rewards• Risk Transfer / Share• Shift to Population Health

And a New Challenge…

ConsumerTomorrow

• Informed, Shared Decisions

• Highly Engaged/Empowered

• Socially Connected

• Financial Incentives

• Mobile – Technology Savvy

• Consolidated, Comprehensive View of Health Information

PatientToday

• Uninformed

• Limited Engagement

• Isolated Individual

• Limited Consequences

• Fragmented Health Information

Consumer Behavior is Changing

Source: Advisory Board

8 out of 10 adults use the Internet and…

Source: Pew Research

“Do It Yourself” Healthcare on the RiseWearable tech, smartphone-linked devices and apps will become increasingly valuable in care delivery.

Mobile Health Apps Becoming Regular Part of Care

Sources: PwC, RBC Capital Markets, The Health Management Academy

Utilization of Wearables – Beyond Fitness

The Evolving Healthcare Business Model…an increasing portion of healthcare consumers will price shop for services, making brand loyalty and perception of value increasingly important… …hospital executives realize they need to better

understand their customer base and build their brand, engage consumers, and create loyalty…

…the need for leading healthcare systems to become more consumer-centric operators is a key business imperative…

Source: William Blair & Company; A.T. Kearney

… Digital / Social Media is re-shaping the healthcare IT market … consumers and healthcare providers are turning to digital and social communities to connect, learn, and engage…

• To be a consumer-centric operator means shifting to a retail-oriented mindset and focusing on traditional consumer business building blocks such as:─ Branding─ Market Research and Segmentation─ Customer Acquisition─ Customer Experience─ Customer Loyalty─ Innovation – e.g., mobile and other technology offerings

• In the age of the consumer, smart firms obsess about serving and delighting customers – and they use digital channels to do it.1

A Retail and Digital Mindset

1 Forrester Research, Inc.

• Consumers have many choices and are increasingly informed decision makers

• Brand plays a significant role in purchasing decisions regarding complex products and services

• Building a relationship with consumers before they have a need for a product/service is key

• Continuous and proactive communication is required vs. one-off interactions

Selling to Consumers is Fundamentally Different

And How to Reach Consumers is Changing

Source: McKinsey & Company

R. I. P.The Marketing Funnel

The New Marketing Reality: Continuous Engagement & Digital Communities

Source: McKinsey & Company

Engagement & Loyalty Leaders• In common: Deep customer relationships and communities built before and after a

transaction• Relationships often driven by unique and engaging digital content

Williams-SonomaWilliams-Sonoma is known for its omnichannel retail model, embracing both its brick and mortar locations and digital, as well as its approach to product, customer experience and engaging content.

• Goal: ─ “Inspiring cooks everywhere”─ To enhance the quality of our customers’ lives at home

1 Hammock, Inc.

• What they do well1:─ Provide learning opportunities that help customers

get the maximum value from their products and services

─ Use media and content to build long-term customer relationships that focus on shared passions and knowledge

─ W-S audience is in search of education / personal passions. “Delivering engaging content” is considered as important as the products and services they provide.

Williams-Sonoma Stock Price – Last 5 Years

How Providers Can Make the TransitionTo succeed in the new era of healthcare, providers must revisit how they reach and engage consumers and embrace the marketing reality of continuous engagement.

Where to start? Revisit digital marketing strategy and consider an integrated approach to the following:• Online Branding• Content Marketing• Consumer-Focused Digital Tools• Mobile Solutions

Branding• Building brand affinity - before the need for care - is critical in

today’s market• Consumers make decisions about complex services based on

brand• Many facilities may only focus on traditional paid media• Must also consider owned media (e.g., online properties) and

earned media (customer-created channels) – each impact the perception of brand

• Digital efforts create competitive differentiationQuestions to Ask:• What are you doing to build your brand in your market?• Do you have a comprehensive strategy to expand your digital footprint?• How are you interacting with your community online?

Content

Sam Decker, Mass Relevance

Content Marketing: Creating or curating non-product content - be it educational, entertaining, etc. - and publishing it to contact points with customers to get their attention, to focus them on topics around your solution, and pull them closer to learning more about you.

Questions to Ask:• How are you currently doing content marketing? Consider earlier

consumer business examples.• Does your content facilitate relationships with consumers before service

is needed? Are you providing avenues for research?• Do you offer different types of content to engage consumers in your

community?• Are you reaching consumers and patients in your community with email

marketing or content on social media?

Consumer-Focused Digital Tools• Digital tools help to create an

engaged and invested consumer• Personalization and the ability to

customize information create stickiness

• Amazon, Yahoo!, ESPN, Nike - all good examples

Questions to Ask:• Are you offering enough ways for

consumers to interact with your digital properties?

• Do your current digital efforts give consumers a reason to return and regularly engage with your brand?

Mobile Solutions• Smartphones are clearly the device of choice and

provide another avenue by which consumers can engage with your brand

• Content, tools, relationship management information can all be delivered effectively via mobile

• Mobile solutions can facilitate continuous interactions with messaging, notifications, etc.

• iOS and Android required

Questions to Ask:• Recall earlier market data trends regarding consumer device

usage. What mobile solution(s) do you currently offer?• Is your content available on any device – anytime, anywhere?

An integrated approach to Branding, Content, Digital Tools, and Mobile Solutions provides the foundation for

Continuous Engagement & Digital Communities

Most importantly, it assists providers in developing loyalty and trust and succeeding in the new era of healthcare.

In Summary• Shifting market landscape for providers• The healthcare consumerism movement is here to stay• A retail and digital mindset is imperative

─ The old way of doing business is unsustainable─ Continuous engagement / digital communities is the new reality for every industry, not just

healthcare─ Must focus on “owned” and “earned” media─ Take an integrated approach to online branding, content, digital tools and mobile

• Williams-Sonoma is “inspiring cooks everywhere”… how could you elevate your brand to “inspire health and wellness everywhere” in your community?

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