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The Definitive Guide to Healthcare CRM

A practical guide for successful CRM selection, implementa-tion, and value creation EXCERPT FROM:

The Definitive Guide to CRM: A Practical Guide for Successful

CRM Selection, Implementation, and Value Creation

Chapter 6

Building the Business Case for CRM

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In this chapter, we’ll answer your questions about:

• How do I build a business case for healthcare CRM and convince

internal stakeholders to act?

• Do I need to convince teams outside of marketing of the need

for CRM?

• Does my business case need to be focused more on enterprise-

wide consumer experience applications?

• What topics and tone should my business case follow?

• How can I present the cost and future benefits in an effective

manner?

• What timeline to implementation and early success should I

prepare my executives for?

Chapter 6

Building the business case for CRMThe CRM business case should do more than define the financial return on investment; it should also outline a consumer-centric vision and the road map for getting there, serving as a planning tool going forward.

Irrespective of whether your organization is considering investing in CRM for use primarily by the marketing department or has a more comprehensive enterprise vision that covers areas like operations, financial services, and clinical care, the fundamental components of the CRM business case are always the same.

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Today, most CRM initiatives are led by marketing leaders that must present a compelling CRM business case to secure funding and buy-in from leadership, as well as their security, compliance, and IT counterparts.

A MARKETING-CENTRIC CRM BUSINESS CASE SHOULD:

Identify the short-term and

long-term benefitsand risks

Outline the financial and

strategic goals and expectations

Includemeasurements usedto monitor progress

and evaluate theprogram

Summarize the benefits,

costs, and risks of inaction

Building the business case for CRM 4

Executives looking to build a broader, enterprise-focused CRM business case have a steeper hill to climb.

An enterprise-wide CRM business case should be

honest and thorough, set realistic expectations, and

provide a solid framework for discussion and problem

solving. It should consider the organization’s current

situation and objectives and foster an understanding

of potential CRM benefits, costs, and risks, beyond

traditional marketing use cases.

A COMPLETE, MATURE, ENTERPRISE-WIDE CRM BUSINESS CASE SHOULD:

Establish a shared CRM vision

Outline theroad map forachieving that

vision

Help prioritize allocation of

corporate resources

Provide measurable department-level

accountability for CRM projects

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Six key ingredients in a CRM business case

Executive Summary

Whether you’re creating a marketing-centric or enterprise-wide business case, you need to begin your argument by boiling your entire CRM business case down to just a few sentences.

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“Every member of the four-person digital marketing team spends about 30 hours a month trying to navigate our complicated Excel spreadsheets to manage consumers, leads, and calculate campaign ROI. CRM software will help us solve this problem within a year, saving us at least $750 per month, per employee. In addition, marketing has been asked to deliver a more personalized website experience in 2018, which cannot be achieved without real-time access to consumer data. Finally, healthcare CRMs enable marketing to measure their revenue contribution and are proven, conservatively, to generate returns of $4-$8 for every dollar spent on a digital marketing campaign.”

Building the business case for CRM 6

EXAMPLE

Challenge

Clearly lay out the problem your business is encountering, as you see it. What are the specific issues affecting productivity or losing money that business software might solve?

It may seem scary at first to point out the trouble

with your data and measurement today,

but it is unlikely you’ll get permission

to move forward unless the full extent

of the problem is understood by the

executive team.“ Today, our campaign prep requires a large manual effort and constant updates. When those updates aren’t done in real time, they lead to redundant follow-ups. This is inefficient and wasteful, and it annoys potential consumers and patients who receive multiple contacts from us. These spreadsheets also contain PHI, which is at risk of data theft or breach.

In addition to the employee and consumer impact, we are currently unable to accurately calculate marketing’s bottom-line revenue impact. Beyond leads, we can only estimate the final ROI for campaigns, which means we are likely over — and under-estimating in certain channels and media programs.”

PROBLEM!

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Building the business case for CRM 7

EXAMPLE

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Building the business case for CRM 8

Solution

Show how CRM speaks specifically to the problem(s) you’ve described.What will CRM enable you to do that you are unable to do now?

“A formal CRM system will house our important consumer information in a central database that stakeholders across the organization can easily access, based on role-based permissions to ensure proper security and compliance. This database will be search-able and update in real time, keeping everybody on the same page for every contact, limiting consumers’ exposure to our marketing messages. In addition, it will power personalized web experiences and give us full visibility into the lead pipeline, lead management, and revenue impact of each campaign we run, so we can mitigate operational bottlenecks that compromise ROI and make data-driven investment decisions.”

SOLUTION

EXAMPLE

MANAGEMENT

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Building the business case for CRM 9

Cost

Itemize all the costs associated with implementing and maintaining a CRM solution.

Yes, choosing the specific software vendor you’re going to use will take time and impact the final numbers, but you can still provide an estimate that gets close regarding the cost of the subscription, implementation, consulting fees, etc.

New hires Implementation

Subscription Consulting fees

Future Benefits

You’ve already covered the specific ways you’ll deliver a near-term ROI, so now it’s time to focus on the less tangible or potential future benefits your organization might receive from the software. These benefits include things such as improved population health, increased quality outcomes, and a more cohesive approach to consumer experience.

“Today, we talk about becoming a consumer-centric organization that engages with individuals in our community for improved health and lifetime wellness, but we are not operationally aligned or data empowered to achieve these goals. CRM will provide stakeholders across the enterprise with a unified view of consumers in our market, as well as each individual consumer, to help us better identify at-risk individuals, engage them around specific health conditions, and align our marketing and clinical efforts to positively influence their behaviors well beyond the clinical setting.”

$EXAMPLE

Execution Timeline

Once you’ve laid out your case for why CRM is important and how your team, organization, and consumers will benefit from it, provide a realistic estimate of how long it will take to get the system in place. Be sure to consider the time needed for strategic planning, implementation, and training.

ONGOING OPTIMIZATION: Continued strategy execution, management, and campaign optimizations

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Building the business case for CRM 10

There you have it…

everything you ever wanted to know (and then some) about healthcare CRM. Whether your organization is a first-time CRM buyer or looking to replace an existing healthcare CRM with a contemporary solution designed for the digi-tal era, now you understand why CRM is the technology that will propel your organization into the new era of relationship-based marketing and consumer experience enablement with quantifiable results.

Undoubtedly, healthcare CRM is constantly evolving. We’ll continue to stay on the forefront of CRM trends and keep you up-to-date with our website, blog, and CRM resources at https://partners.healthgrades.com/systems/healthcare-crm.

CONCLUSION

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