the marketing executive’s new agenda · the marketing executive’s new agenda growth....
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@karencorrigan
The Marketing Executive’s New Agenda Growth. Innovation. Transformation.
Carolinas Healthcare Public Relations and Marketing Society
Asheville, North Carolina November 21, 2013
Karen Corrigan
Corrigan Partners LLC
@karencorrigan
corriganpartners.com
@karencorrigan
The basis for competition in the health industry is rapidly changing . . .
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• Restructuring markets and intensifying competitor activities
• New value-based reimbursement methods and care delivery models
• Transformation of marketing through web, social and mobile technologies
@karencorrigan
5 forces to watch
1. The new economics of healthcare reform
2. Market restructuring and emerging delivery models
3. Evolution of brands in physical and virtual environments
4. Technologies that disrupt and transform
5. Growing, graying, connected consumers
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@karencorrigan
Volume vs. Value Economics
Today providers are rewarded for volume based transactions on individual patients. Reform models reward value based on episodes of care and outcomes:
Bundled payments
Pay for performance
Accountable care
Medical homes
Coordination of care
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Market force #1:
The new economics of healthcare reform
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Cost Restructuring
Coordinated Care Fragmented Care
Patient Centered Provider Centered
Payment for Value Payment for Volume
Care Systems Focused Facilities Focused
Care Team Accountability Physician Accountability
Longitudinal, Multi-Site Care Episodic, Hospital-Based Care Models
Efficient, Evidence-Based Care Inconsistent, Variable Methods
Electronic Paper
Cost Reduction
TODAY FUTURE
@karencorrigan
Market force #2:
Market restructuring; new delivery models
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Accountable care models and organizations
Hospital and health system mergers & acquisitions
Physician integration, employed 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
@karencorrigan
The underlying basis of competition is
changing – taxing even well
established healthcare brands.
Market consolidation and expansion,
service diversification and strategic
partnering are on the rise – fueled by
reform and accountable care clinical
management structures.
Web, social and mobile technologies
are changing everything! How we
learn, how we shop, how we manage,
how we engage, how we . . . . . . . .
Market force #3:
Evolution of brands in physical and virtual worlds
@karencorrigan
More often than not, a healthcare consumer’s brand experience begins online.
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88% 77% of online health seekers
began their last session at
a search engine such as
Google, Bing, or Yahoo
of Internet users age 14+
browse or research
products online
Healthcare consumers are online
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Looking for answers
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of online health diagnosers
talked to a clinician about what
they found online
35% of U.S. adults have used the
Internet to try to figure out
what medical condition they
may have
of online health
information research
is on behalf of
someone else
50%
53%
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Using new ways to find information
31%
52% of smartphone owners
gather health information
on their phones
of cell phone owners
have used their phone to
look for health
information
31% of American adults
own a tablet
computer
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Source: LaunchMedia
C2B Marketing Consumers have “reverse engineered” marketing.
@karencorrigan 13 Source: LaunchMedia
Pre-Tailing Consumers search websites, blogs, ratings, & brands before purchasing
@karencorrigan 14 Source: LaunchMedia
Hyper Transparency Quality, pricing, availability, offers, recommendations,
ratings are just a click away.
@karencorrigan 15 Source: LaunchMedia
Cloud Trust Consumers trust bloggers,
reviewers & social communities.
@karencorrigan
Market force #4:
Technologies that disrupt and transform
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@karencorrigan 17
the digital
practice
Technology is profoundly changing the way providers and patients interact.
@karencorrigan
Patients are coming to
the office better
prepared and more
knowledgeable about
their health.
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@karencorrigan
Diagnosis
Social Support
Medical Record
Treatment
Resources
Monitor Health
Caregiver Support Other
• 52 years old
• Breast cancer
“Fighting breast cancer is a
24/7 job. Treatment doesn’t
just happen in the clinic.”
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the social
patient 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.
@karencorrigan
Sources: Edison Research Multimedia Study 2011;
Comcast 2011 Social Report; TNW Social Media ; Business Insider
Women spend 7.9 hours per month on social sites – 30%
more time than men.
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@karencorrigan
Consumers use online forums to find
and talk about health care providers
Find A Doctor
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Mobile
Health
This segment of the
industry offers the most
promise. It's no
exaggeration to describe
consumers' and
physicians' embrace of
mobile health apps,
smartphones, and tablets
as transformational.
@karencorrigan
Mobile health is the convergence of web, social, smartphone,
tablet, telemedicine and remote monitoring technologies.
• Nearly 9 in 10 patients like the idea of remote
healthcare services
• 61% would like it delivered by a mobile device
Source: Price Waterhouse Coopers; 2010
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@karencorrigan
Market force #5:
Growing, graying, connected consumers
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Boomers will be the driving force; 10,000 turning 65 every day.
@karencorrigan
Not just a Florida and Arizona issue
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People 65 and Older
• 39.6 million in 2009:
12.9% or 1 in every
8 Americans.
• 72.1 million in 2030;
more than twice the
number in 2000 and
will count for nearly
20% of the
population.
@karencorrigan
What’s a marketing executive to do?
Understand the changing economic model
Step up brand building and strengthen competitive leverage
Master the use of data to inform strategy and marketing investments
Understand the marketing requirements of new lines of business
Identify growth opportunities; hardwire patient acquisition/retention
Orchestrate business, clinical and marketing alignment/accountability
Develop the marketing organization - structure, skills and systems
Master integrated search, social, mobile and content marketing
Dig deeper to gain insights into consumer needs and behaviors.
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@karencorrigan
Reform is advancing from two fronts
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Legislated Reform Mandates
Consumer Driven Innovations
@karencorrigan
Five critical roles for healthcare marketers
Growth Strategist
Brand Evangelist
Digital Change Agent
Experience Champion
Innovation Catalyst
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@karencorrigan
Role # 1:
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 to move aggressively to transform marketing practice from promotions-oriented tactics to growth-oriented strategic leadership.
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@karencorrigan
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 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
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@karencorrigan
Success requires a growth-oriented culture
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A strong 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 and profit targets
@karencorrigan
Role #2:
Brand evangelist
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• Brands influence consumer decision-making and choices regarding health and medical care.
• Brands shape the complex referral, contractual and transactional relationships among consumers, health services, physicians, hospitals and payers.
• 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.
The business of branding: Growth. Innovation. Leverage.
@karencorrigan
One of the Most Powerful Forces in Brand Building is
Focused Alignment
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Core
Purpose
Strategic
Vision
Brand Value
Proposition
Brand
Alignment
Customer
Experience
Value
Innovation
Fundamental reason we exist.
How we intend to compete.
The unique reason our
brand matters to
customers.
How we link our business strategy to customer
experience.
How we satisfy customer
needs and wants, and
deliver on the brand
promise, every time.
How we sustain
competitive advantage.
© Corrigan Partners LLC
@karencorrigan 35
Brand management must evolve to address and handle the complexities of:
Rapidly restructuring markets require new approaches to brand leadership
Newly developing care delivery models (ACOs, etc.)
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
@karencorrigan
In the emerging world of accountable care, we’re recognizing that the consumer’s
interaction with healthcare systems is changing from fragmented transactions to coordinated
care across time and continuum.
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@karencorrigan
Brands will not be about facility identities; they must, instead, embody the unique relationship and valued
experience consumers can expect from a comprehensive system of care.
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@karencorrigan
Our challenges – and opportunities – are to create brands that resonate with people, to deliver brand
experiences that create trusted relationships, and to build brands that become valued aspects of our
customers’, employees’ and physicians’ lives.
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@karencorrigan
Role #3:
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
Extend brand experience
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Healthcare marketing has changed . . . forever
Tracking Tracking Tracking
Activate Convert Close Delight
Strangers
Traditional
Search
Social Media
PR
Events
Sales
Call Center
Online Scheduler
Office Scheduler
Reviews
Social Media
WOM
Tracking
Engage
Visitors
Content
Search
Social Media
PR
Leads Patients Fans Tracking
Reminders
First Appointment
Awareness Consideration Selection Trial Advocacy
Co
ns
um
ers
M
ark
ete
r
@karencorrigan
Building digital marketing capabilities is job one!
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• Integrated, multi-channel strategies
• Web, social, mobile, search marketing
• Content marketing & management
• Integrated CRM/contact center
• Digital brandscaping
• Social commerce
• Community management
@karencorrigan
Lead the change . . .
• Help health system leaders and physicians understand how consumers use technology to search, select and use health care services.
• Understand the adoption patterns of technologies that support patient acquisition and retention.
• Master integrated search, social and content marketing – strategy, planning, execution, management.
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@karencorrigan
Role #4:
Experience champion
Be a champion for customer-centered decision-making and innovations that transform customer experience.
Customer experience is 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.
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@karencorrigan
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People
• Culture
• Beliefs
• Values
• Behaviors
Experience Design
Framework
Processes
• Scheduling
• Registration
• Treatment
• Hand-offs
Performance
• Service
• Quality
• Lean
• Six Sigma
Marketing
• Segments
• Products
• Channels
• Brand
Experience happens by design; not by accident
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@karencorrigan
What can marketers 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 . . .
Champion use of DESIGN to hardwire experience . . .
Become a fan of demonstration projects; experiment, learn, apply . . .
Educate, educate, educate . . .
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@karencorrigan
Role #5:
Innovation catalyst
Innovations advance strategy, build brand equity, and produce a better bottom line.
Innovation demands alignment of culture, capabilities and structure, as well as a laser focus on value-creation.
Transformation cannot happen without innovation.
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@karencorrigan
The 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.
Success stems from creative thinking, fresh solutions, and relevance to customers.
That puts marketing front and center as the curator of customer intelligence.
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@karencorrigan
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.
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@karencorrigan
So, how do I . . .
Create a future-ready, high-performing and efficient marketing operation; that will . . .
Better position the organization to compete as changing market dynamics reshape the competitive environment . . .
And achieve organizational growth and profitability goals?
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Embrace change, then drive transformation
@karencorrigan
Five bold moves
Change the marketing culture
Configure the new marketing organization
Acquire new competencies, capabilities and skills
Create a compelling case for change and bias for action
Communicate new roles, new rules, new expectations
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@karencorrigan
Bold move #1:
Change the strategy & marketing culture This requires a shift in thinking about marketing as tactical operations to a discipline that is strategic, cross-functional and bottom line oriented.
STRATEGIC
RESULTS ORIENTED
CROSS FUNCTIONAL
Focused on opportunities that drive growth and better business performance.
Orchestrated across strategy, marketing, clinical and business functions, with shared accountabilities for success.
Delivers on growth, revenue and profit targets.
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@karencorrigan
Bold move #2:
Configure the new strategy/marketing operation
Establish a future vision, role and scope for marketing
Restructure to align/integrate critical functions
Review and update staffing models and skills
Standardize planning and resource allocation modeling
Develop performance management standards & measures
Invest in the core technology infrastructure
Build a unified, high performance operation and culture
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@karencorrigan
Bold move #3:
Acquire new competencies, capabilities and skills
Strategic marketing planning
Market intelligence and business analytics
Brand building
Brand journalism
Market and customer creation abilities
Programming and product development
Sales, CRM, PRM, customer contact centers
Customer engagement proficiencies
Social commerce and community management
Real-time responsiveness
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@karencorrigan
Bold move #4:
Create a compelling case for change; bias for action
Growing revenue, improving business performance, increasing brand loyalty and building sustainable competitive advantage . . .
Build brands that attract customers and remain relevant as markets change
Develop highly targeted smart growth strategies across inpatient, ambulatory, retail and virtual sites
Drive successful growth of more tightly integrated physician partners
Redefine and leverage channel relationships
Create future-ready models of care delivery that optimize profitability under reform economics
Leverage web, mobile and social media technologies to attract and engage stakeholders
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@karencorrigan
Bold move #5:
New roles, new rules, new expectations Communicate new rules and expectations:
Marketing investments will be prioritized to strategic planning, business development, growth and financial performance imperatives.
Data and analysis will inform strategic marketing thinking and planning, and provide an evidence-based approach to marketing investment.
Strategy, marketing and operations will establish cross functional collaboration, decision-making and co-accountability for outcomes.
Time – and dollars – will be focused on fewer, more impactful activities; and activities and tasks that do not contribute to growth and improved competitive performance will be transitioned or eliminated.
Performance measures, monitoring and reporting systems will be developed and employed to track progress and outcomes.
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@karencorrigan
Key questions to get the conversation started . . . What is the current state of strategy and
marketing in terms of priorities, effectiveness, capabilities, skills, systems, structure and performance?
What is your vision for its future state? What is the gap between current- and future-state in terms of structure, processes, competencies and investments?
What are the opportunities and challenges in regards to changes in the delivery system; e.g., ACOs, care transformation, multiple geographies, expanding services portfolios, employed physician SBUs, etc.?
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@karencorrigan
Key questions to get the conversation started . . .
What strategy/marketing capabilities and controls are/should be held by the corporate operation; what is optimally administered by major business units?
How are advances in technology (digital, social media marketing, CRM, etc.) changing marketing practice, and what new infrastructure, skills and competencies will this require?
What are the optimal synergies and relationships between planning, marketing, PR, sales, etc., as well as with finance, IT and SBU operations to inform and support brand building, business development and growth priorities?
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@karencorrigan
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
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@karencorrigan
Questions. Comments. Discussion.
Karen Corrigan Founder/CEO Corrigan Partners [email protected] P 757.288.2480 @karencorrigan blog @ karencorrigan.com