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Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing [email protected] 859-257-2296 April 14, 2011 Presentation to Beryl Patient Experience Conference I recommend you go to UK HealthCare

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Page 1: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Word-of-Mouth Unfettering Marketing’s Most Powerful Ally

William R. Gombeski Jr.

Director Strategic Marketing

[email protected] 859-257-2296

April 14, 2011Presentation to Beryl Patient Experience Conference

I recommend you go to UK HealthCare

Page 2: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Presentation ObjectivesWhile it has always been available for marketers to use, word-of-mouth marketing has been poorly understood, undervalued, and underutilized as a marketing strategy. This presentation will:

1. Review role of word-of-mouth (WOM) in growing referrals from physicians, and consumers and employees

2. Present findings of a study of new patients and the influence of word-of-mouth in their selection process.

3. Discuss the difference between marketing-stimulated WOM vs. experience-based WOM. Examples of marketing-stimulated WOM tools will be provided.

4. Introduce marketing-induced WOM and provide insights into and examples of how to generate.

5. Touch on role of marketing in increasing patient-experience based WOM.

2

Page 3: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Presentation Outline

• Categories of Word-of-Mouth• Marketing-stimulated WOM• Marketing induced WOM• Growing patient experience-based

WOM

• Implementing Word-of-Mouth• WOM tactics practitioners can use• Measuring WOM• Social Media and WOM

• Word-of-Mouth Takeaways • Lessons Learned• Benefits of WOM• Concluding thoughts

3

• Overview• Description of UK HealthCare and the

market situation leading to a WOM focus

• WOM Insights

• UK HealthCare WOM strategy

• Research Insights• Financial value of WOM influenced

patients

• 2010 WOM studies

• Other research studies

Page 4: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

4

UK HealthCare

Clinical

Two hospitals – 800 beds900 Physicians/dentists8,000 employees34,000 Admissions500,000 Kentucky Clinic Visits72,000+ Emergency Room Visits

Colleges of HealthProfessions

MedicineNursingDentistryPharmacy Health SciencesPublic Health

Bluegrass Area

850,000 Primary MarketBluegrass MusicHorse IndustrySite of Recent 2010 World Equestrian Games

UK BasketballBourbon Capital of the World

Page 5: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

2003 2004 2005 2006 2007 2008 2009 2010 2011*

19,098 19,664

22,269

24,754

27,272

33,04032,090 32,355

34,000 +

5

MarketingFocusBegins

*Projected

Organization has Moved from a 25th

Percentile to a 75th percentile AMC Based on Admissions

Page 6: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

62%

20%

6% 5%2%

63%

25%

6% 5%2%

58%

29%

8%5%

1%

52%

36%

7%5%

1%

51%

38%

8%

2%1%

50%

39%

6% 4%1%

Some Influence*Physician 68%WOM 56%Marketing 32%Payers 7%Other 2%

6

Other

Physicianinfluenced Word-of-Mouth

Marketing Payer

Source: New patient decision making studies 2005 – 2010.

05 06 07 08 09 10 05 06 07 08 09 10 05 06 07 08 09 1005 06 07 08 09 10 05 06 07 08 09 10

Most Influential Reason for Choosing UK HealthCare

*2010 Spring Data n= 566

Page 7: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

WOM Definition

Word-of-mouth is a reference to passing of information from person to person. Originally the term referred specifically to oral communication (literally words from the mouth), but now includes any type of human communication, such as face-to-face, telephone, e-mail, and text messaging.

Wikipedia

7

Page 8: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Factors in Choosing a Primary Care Physician

4%

1%

2%

5%

7%

7%

7%

17%

23%

26%

56%

Other

Advertisement

Newsletter from a healthcare organization

Hospital website

Phone book

Hospital staff member

Online quality rankings site

Health insurer website

Recommended by another physician

Health insurance network

Recommended by family/friend

8

Q11: Do you have a primary care or personal physician?Q: When you were first looking for a new primary care physician, where did you look or who did you talk to about finding a new doctor?

87% of folks have a

primary care physician.

Source: 2010 Study of 400 U.S. consumers by Klein and Partners

Page 9: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

9

How Positive WOM Helps

In health care, positive WOM from an experienced and trustworthy source can speed up decision making by reducing the discomfort of making a medical decision. In particular WOM helps to overcome:

1) the risks of possible adverse consequence

2) the difficulty of evaluating the technical quality of health care professionals

3) sorting through complex information for decision making.

Ferguson, RJ et al“Loyalty and Positive Word-of-Mouth…”Health Marketing Quarterly23(3):59-77, 2006

Page 10: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Why Hasn’t WOM Been More on the Radar Screen of Marketers

Communication from a satisfied customer to a potential customer.

10

The Portable MBADesk Reference 1994

Page 11: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

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Text Author WOM Space Total Book Pages

Marketing Management1976

Philip Kotler 3 pages 529

Leslie’s Public Relations Handbook

1976

Phillip Lesley 0 pages 557

Strategic Marketing1982

David Cravens 0 pages 456

Social Marketing 1989

Phillip Kotler, Eduardo Roberto

3 pages 401

Consumer Behavior 1997

Hoyer, MacInnis 3 pages 495

Marketing Management2000

Philip Kotler 2 pages 718

Marketing2007

Lamb, Charles. Hqair, Joseph. McDaniel, Carl

2 pages 321

Marketing/PR Textbooks and Devoted WOM Space

Page 12: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

WOM Marketing Only Recently Received Attention

12

2006 2007* 2008 2008 2010

1991 1994 1994 2001 * 2005 *

* Best

Page 13: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Earliest Health Care WOM Marketing Review Article

13

Discovery is the finding out of something that existed previously yet was unseen or unknown.

Journal of HealthCare Marketing

Page 14: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Word-of-Mouth (Peers) Greatest Source of Information for New Outpatients

n %

Source Influence

Ratio

Peers 144 50% .55

Physician 98 34% .63

Marketing 35 12% .17

Payers 10 4% .36

Total 287 100%

14

Source: Gombeski, Fay et al“Evaluating Promotional Strategy Effectiveness for a Health Care Organization”Journal of Business Research17(1): 81-89, 1988

Page 15: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Most influential Source of Information Cited by Referring Physicians in Referral

Decision

Patient 44 49.5%

Interpersonal Interaction 28 31.5%

Peer Physicians (WOM) 12 13.5%

Mass Media 2 2.2%

Special Media 2 2.2%

Payer 1 1.1%

Total 89 100%

15

Source: Gombeski, Carol, Lester “Influencing Decision- Making of Referring Physicians”Journal of Health Care Marketing 10(4): 56-60, 1990

Page 16: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Growing Employee Word-of-Mouth

16

3%

7%

8%

9% 9%

58%54%

61%

75%

1999 2000 2001 2002 2003 1996 1998 2001 2003

Percent of Patients Most Influencedby an Employee

Employees Who Would RecommendHospital

(% Very or Moderately Likely)

•Trained Employees about Marketing Role •Taught How to Provide Word-of-Mouth

Gombeski et al“Harnessing Employee Marketing Power”Marketing Health Services2004, Spring : 49-51

Page 17: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Admitted Patients Influenced by Word-of-MouthYale–New Haven Hospital

1999 2000 2001 2002 2003 2004

18%

22%

27%30%

28%30%

17

William R. Gombeski, Jr./Clayton Medeiros“Model Behavior”

Marking Health Services24(3): 26-31

2004

Page 18: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Likelihood to Recommend

18

Chandler Hospital Emergency Department

2005 2006 2007 2008 2009 2010

66.9 67.6

64.9

75.9

80.1

82.3

2005 2006 2007 2008 2009 2010

79.581.2

84.2 84.3 84.3 83.7

Page 19: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

19

A. Attract More Acutely ill Patients

1. Expand physician marketing

2. Support hospital networking/alliances

3. Market key product lines

4.Introduce regional marketing campaign

B. Grow Public Familiarity with UK HealthCare Brand

5. Expand media relations with public relations

6. Develop comprehensive program/product information

7. Develop information-based advertising campaign

8. Ongoing promotion of new hospital and

construction coverage

C. Increase Word-of-Mouth Marketing

9. Introduce community outreach

10. Grow patient/visitor marketing

11. Develop employee communication program

12. Expand customer service program

D. Increase Marketing Effectiveness

13. Develop market research/program evaluation

14. Expand call center

15. Enhance UK HealthCare Web site

16. Initiate database/direct marketing program

Relatively low customer satisfaction

Limited capacity to grow

High UK brand awareness, low image/understanding of

UK HealthCare and itsproducts

Need to grow UK HealthCareesprit de corps

Objectives Challenges Strategies

Aggressive local competition

2005-2008 Marketing Plan

Grow Selected Volume

Build Stronger Relationships

Enhance Organizational

Image

Page 20: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

20

Strategic Marketing

Bill Gombeski

Communications& Advertising

Call Center Product Line Management

Physician/Hospital Liaison

Customer Service

Graphic Design

Customer Communication

Internet

Advertising Management

Point of Service

Internal Communication

Market TrackingProgram EvaluationPrimary ResearchDatabase Marketing

Cancer

Heart

Children’s

KNI

Orthopedics & SM

Digestive Health

All other services

Health Promotion

Community Outreach

Good Samaritan

Physician Visitation

Physician Marketing

Hospital Relations

Physician Service Recovery

Referring PhysicianSatisfaction

Service Measurement

Service Improvement

Patient/Visitor Information

Service Recovery

Employee Satisfaction

Volunteers

Satisfaction Measurement

Service Training

Physician Hotline

Consumer Hotline

Nurse Triage

After Hours Answering Service

Marketing Department Structure

Market Research & Database Marketing

Jan Taylor

Jason Britt

Wanda Adkins

SuzanneSpringate

Tanya Wray

Karen Riggs

Dr. LofgrenDr. DePriest

Page 21: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Enhancing Patient Care by Improving Both the Clinical and Marketing Experience

21

Before Visit During Visit After Visit

Marketing Communication

Clinical Care

Page 22: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

22

WOM Marketing Strategies

Page 23: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

UK HealthCare Marketing Strategies

Attract more acutely ill patients

Grow public familiarity with UKHC brand

Increase Word-of-Mouth Marketing

Increase marketing effectiveness

23

Develop Health Information Based Program

Increase Community Outreach

Grow Patient/Visitor Marketing

Develop Employee Communication Program

Expand Customer Service

Initiate Database Marketing Program

WOM Strategies

Major Strategies

Page 24: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

WOM Strategy #1Develop Information Based Program

24

Takeaway

UK HealthCare can answer my health questions.

UK HealthCare is the smart choice for patient care because they specialize in treating my condition with the latest techniques and technology.

Health Resource

Advanced

Medicine

Page 25: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Health Information Resource

Advanced

Medicine

Key WOM Generating Communication Tools

25

Page 26: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Key WOM Generating Communication Tools

26

Health Information Resource

Advanced

Medicine

Page 27: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

27

Health Information Resource

Advanced

Medicine

Key WOM Generating Communication Tools

Page 28: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

28

WOM Strategy #2Increase Community Outreach

Page 29: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

WOM Strategy #3Grow Patient/Visitor Marketing

29

Wall RacksDigital Signage Posters

Page 30: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

WOM Strategy #4Expand Employee Communication Program

Employee Medical Services Guide

30

Page 31: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

WOM Strategy #5Expand Customer Service

Patient Guides

31

Page 32: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

WOM Strategy #6Initiate Database Marketing Programs

32

Page 33: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

2005 2006 2007 2008 2009 2010 *

0

9,223

22,062

34,89940,256

36,085

33

* Through March 2011

36,000+ WOM Advocates

Page 34: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

% of Calls a Month to Consumer Call Center Due to Word-of-Mouth

34

3%

6%7%

10%

16%

13%

05 06 07 08 09 10

% Calls due to Family, Friends, Co-workersUK Health Connection Call Agents

1-800-333-8874 or (859)257-1000 n= 326 n= 1,156

Page 35: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Presentation Outline

• Categories of Word-of-Mouth• Marketing-stimulated WOM• Marketing induced WOM• Growing patient experience-based

WOM

• Implementing Word-of-Mouth• WOM tactics practitioners can use• Measuring WOM• Social Media and WOM

• Word-of-Mouth Takeaways • Lessons Learned• Benefits of WOM• Concluding thoughts

35

• Overview• Description of UK HealthCare and the

market situation leading to a WOM focus

• WOM Insights

• UK HealthCare WOM strategy

• Research Insights• Financial value of WOM influenced

patients

• 2010 WOM studies

• Other research studies

Page 36: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

36

First-Year Reimbursement by Most Influential Source

Value of Selected New Patients

Source: Decision Making Studies Spring/Fall 2009

Payer (n=14) Physician (n=346) WOM (n=248) Marketing (n=50)

$10,715 $10,276

$8,635 $7,970

Page 37: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

WOM Most Influential Source for Commercial Patients

37

Commercial (n=171) Medicare (n=128) Medicaid (n=123)

40%

52%

59%

43%40%

33%

8% 6% 6%8%

2% 2%

Health Professional

Word-of-Mouth

Marketing / PR

Insurance

Page 38: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Profile of WOM Influenced

38

72%

58%50% 46%

44% 43% 41% 41% 40% 39% 39% 38% 38% 37% 36% 36% 35%27%

17%

• Patients more involved in the decision

• Tend to be older

• Aware of advertising

Source: 2010 New Patient Decision Making Study N=214

Page 39: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

39

Word-of-Mouth Interview Guide

You said family/friend/employee/neighbor was the most influential reason for choosing UK HealthCare.

• Content: What was said that made you choose UKHC?

• Channel: How or where did you hear this info?

Page 40: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Source of Word-of-Mouth

40

81%

n=54

Family Friends Coworker Neighbor Physician Other / Many Sources

39%

33%

7%2%

11%7%

Page 41: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Content of Word-of-Mouth Message

41

Quality Service Access Value Don't Know

80%

15%

2% 2% 2%

Page 42: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Word-of-Mouth Message

42

61% Good Experience

Good Patient Experience

Good Patient / Good Physician

Experience

Good Physician Experience

Marketing / General

Reputation

37%

14%10%

39%

n=52

Page 43: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Sample Comments

Good Patient Experience Mrs. X heard about UK HealthCare from two friends, one who she works with and one who

does her nails. Both said that UK is a good place to go for woman’s health. Both of her friends had good experiences at the woman’s clinic.

Good Doctor Experience She chose UK for her health care needs because she has heard great things about the

particular doctor that she is seeing and stated that he has performed the procedure she is having done multiple times.

Marketing/ Reputation I see ads, and ran across information about 12 best doctors in neurology, see lots of

information on UK-- many sources over the years.

43

Page 44: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Marketing Word-of-Mouth Comments

Best Place Best Doctors Best Product Academic Medical Center

8 8

2 2

44

Page 45: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

New Patient Decision Making

45

50%

24%

15%

6%4%

1%

Experienced Based Word-of-Mouth

Marketing-StimulatedWord-of-Mouth

Marketing

Source: 2010 New Outpatient Decision–making study and callback interviews n = 578 and 52 respectively

Physician

Insurance

Other

Most Influential Source

Page 46: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Presentation Outline

• Categories of Word-of-Mouth• Marketing-stimulated WOM• Marketing induced WOM• Growing patient experience-based

WOM

• Implementing Word-of-Mouth• WOM tactics practitioners can use• Measuring WOM• Social Media and WOM

• Word-of-Mouth Takeaways • Lessons Learned• Benefits of WOM• Concluding thoughts

46

• Overview• Description of UK HealthCare and the

market situation leading to a WOM focus

• WOM Insights

• UK HealthCare WOM strategy

• Research Insights• Financial value of WOM influenced

patients

• 2010 WOM studies

• Other research studies

Page 47: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

WOM Continuum

47

Traditional MarketingThinking

Traditional MarketingWith Marketing-Stimulated WOM

Traditional Marketing with Natural, Marketing Stimulated and Marketing-Induced WOM

Organization

Potential Customer

WOM Influenced Customer

WOM Induced Customers

Modified from Mark Hughs, Buzz Marketing 2010 p3

Page 48: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Marketing-Stimulated WOM

“Forty percent of Word-of-Mouth recommendations occur in conversations that start with a reference to a newspaper article, television or radio show, or advertising.”

48

Research by Brad Fay in Lynn ThorneWord-of-Mouth Advertising2008

Page 49: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Marketing-Stimulated WOM

I received a call from a lady that had called our call center to receive some information from a banner ad. She told me how wonderful our literature was and how thoughtful and great it was that we sent a letter with the literature. She wanted to know if she could forward the information she got to her family and friends. She wanted me to let everyone know in the Marketing Dept and Call Center that from a consumer level, she thought we are doing a wonderful job.

Peggy FosterUK HealthCareDepartment of Marketingwww.ukhealthcare.uky.edu

7/27/2006

49

Page 50: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Marketing-Stimulated WOM

50

July 7, 2010 Phone Call

Bettie – Please mail 3 copies of the latest MADMagazine to:

Alan Steinberg215 South Peterson AvenueLouisville, KY 40206-2538

He called to say he wanted to give them to friends because he thought it was the best issue yet.

Page 51: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

28% of Medicare patients receiving the binder recommended the

Personal Health Organizer to a friend

51

Marketing-Stimulated WOM

75% discussed/shared the fact sheet with one or more

friends, family

70% discussed this with an average of two people 10%

wanted extra copies

Page 52: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Generating Marketing-InducedWord-of-Mouth

52

Marketing-Induced Word-of-

Mouth

?

Stimulated Word-of-Mouth

Marketing

15%

Marketing Directly

Responsible

6%

Page 53: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Making it Easy!

Marketing-Induced word-of-mouth is the actions initiated by Marketers to make it easier for the public, prospects and customers to talk positively about your

organization and services.

53

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Marketing Induced WOM

54

• 2.2% sign up for UK House Calls

• 1.8% recommend we send it onto a family member, friend, etc.

New Patient Follow-Up Letter

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House Calls

55

MarketingInduced

1.8% (3/6)

Sign up for House Calls

2.2% (4)

159

Mailed a

Week

Page 56: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Share Button

0

12

26 2520

37

51

33

18

56

2009 2010

Episodes of Shared Information

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• 88% read/skimmed

• Guide Location: 53% at work, 28% at home, 6% in car

• 16% had taken action; called for appointment;

called for information

• 34% discussed with someone else

• 66% agreed to distribute to other employees

Survey of Employees One Month After

57

n=32

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58

Downstream Impact of Employee Medical Guide

66%

Marketing Induced WOM

34%

Marketing Stimulated

WOM

16%

Direct Action due to Marketing

117

11

32

n’s

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New Patient Decision Making

59

50%

24%

15%

6%4%

1%

Experienced Based Word-of-Mouth

Marketing-StimulatedWord-of-Mouth

Marketing

Source: 2010 New Outpatient Decision–making study and callback interviews n = 578 and 52 respectively

Physician

Insurance

Other

Most Influential Source

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Information to Make Experience Better

60

Consumer Medical GuideDecision-Making

Tools

In Case of Emergency Card

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Patient ExperienceWord-of-Mouth Generating Strategies

61

• Provide personal attention-Doctor plays with son first, chats then starts appointment-I like my doctor because she listens well

• Be proactive and also follow-up calls-Reminder calls-Doctor calls after visit

• Provide beneficial information-Told me my blood type-The doctor explained possible side effects and what to do for each if they occur after I get home.

Provide information about process-MRI techs walked family member through process before got MRI-Nurse said you will feel a pinch before giving a shot

Provide unexpected, added-value services-Doctor gives me his e-mail address-Received personal health organizer

= Marketing Can Impact Source: Medicare Patient Advisory Group

Page 62: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Presentation Structure

• Categories of Word-of-Mouth• Marketing-stimulated WOM• Marketing induced WOM• Growing patient experience-based

WOM

• Implementing Word-of-Mouth• WOM tactics practitioners can use• Measuring WOM• Social Media and WOM

• Word-of-Mouth Takeaways • Lessons Learned• Benefits of WOM• Concluding thoughts

62

• Overview• Description of UK HealthCare and the

market situation leading to a WOM focus

• WOM Insights

• UK HealthCare WOM strategy

• Research Insights• Financial value of WOM influenced

patients

• 2010 WOM studies

• Other research studies

Page 63: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Additional UK HealthCare WOM Tactics

1. Website Share Buttons2. Employee Medical Guide3. Consumer Medical Directory4. T-shirts5. Health Registries6. Personal Health Organizer7. Advances & Insights8. HealthSmart!9. House Calls10. Making A Difference11. Call Center Letter12. Health Talk WOM Card13. GI Letter14. Handout Dr.’s CV/Baseball Cards15. Stroke Card16. Telephone Callbacks17. ICE Card18. Customer Advisory Groups

63

Page 64: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

T-shirts Provide Stimulus For Conversation

64

“RT@eryder: Just got 2 sweet Saddle Up SAFELY shirts. Will Proudly sport them at horse shows, clinics and 4H events! Thanks UK HealthCare”

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Registries

65

Page 66: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Doctor CVs/Baseball Cards

66

Two Page CVs

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Health Information Cards

“If you would like additional cards to

share with family or friends call

859-323-4843.”

67

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33% of HealthSmart! Readers When Asked, Wanted Extra Copies to Share

68

Telephone Callbacks

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Letters

69

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70

Behaviors Six Weeks After Attending Health Talks

Endometriosisn=105

Cancern=36

Men’s Healthn=51

Shared Informationwith others

72% 83% 74%

Talked to others with same disease

45% 40% 32%

Recommended organization to others

23% 22% 31%

Source: Gombeski et al“Marketing Impact of Health Education Programs”Journal of Hospital Marketing11(2): 91-103, 1997

Page 71: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Customer Advisory Groups

• Medicare Patient Advisory Group

• Physician Advisory Group

• Social Media Advisory Group

• Medical Center Employee Advisory Group

• Main Campus Employee Advisory Group

• E-Community Advisory Group

• Markey Cancer Center Advisory Group

71

Gombeski WR, Taylor Jan, et al. “Customer Advisory Groups,”Health Marketing Quarterly 27(1) 1-11, 2010.

Page 72: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Measuring Word-of-Mouth

• Influences– Before you chose to come to UK HealthCare, you may have read, seen or heard something

about us. Please check all the things that influenced you in your decision to come to UK HealthCare?

– Of the items checked, what influenced you the most?

• Likelihood to Recommend– Likelihood of your recommending this hospital to others– Would you recommend this hospital to your friends and family– Likelihood of your recommending our practice to others

• Recommendation Behavior– In the past 12 months, how many times, if any, have you recommended a specific UK

HealthCare physician to someone?– To the best of your knowledge, how many of those recommendations led to appointments

being made?

• Online Conversations– Monitor online conversations to track where and how often your brand is mentioned

72

Page 73: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

73

BLOGS

forumsFacebook

Social Networking

Hernia ForumAnterior Cruciate Ligament Answers Forum

External AffairsCancer ResearchSaddle Up SAFELYClinical OpsCancer Nutrition

36 Videos – 19,701 Video Views

UK HealthCare 1,190Kentucky Children’s Hospital 3,727Markey Cancer Center 1,952UK HealthCare Spanish 20Saddle Up SAFELY 60

1,123 Followers

Social Media at UK HealthCare

As of March 31st, 2011

Page 74: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

SocialBuzz CommentsMost Recent “Meaningful” Comments

Source: SocialBuzz Tracking – February and March, 2011

Total Good Experience

Bad Experience

Wayfinding New Hospital

Other

21

9

7

31 1

74

Page 75: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Social Media & WOM

• Can't say enough good things about Kentucky Children's Hospital!! Thank you all so much! (3/10/2011)

• Would like to thank all of the staff at UK Medical Center that where involved in Wayne's recovery and all of my family and friends that were there for us during his stay in the CT ICU. Without them it would have been rough. Again thank you all and God bless. (3/1/2011)

• Just had to thank my friends Edith Ferguson and Dr. Andrew Bernard for making my life at the University of Kentucky Hospital, Kentucky Clinic, and Good Sam Hospital possible and great experiences. You are the best-my journey is often so hard and I would not have wanted to have traveled it without you. (2/13/2011)

• I have been going to UK Sports Medicine for a while now, I hurt my knee and was seen by Dr. Darren Johnson, I can't say enough about him or the staff, they are amazing. I actually went 2 weeks ago tomorrow and he said there is nothing more he can do, so he is sending me to Dr. Lattermen, does anyone know much about him? Any advice would be appreciated. (10/19/2010)

• Love Dr. Latterman. He specializes in knees. (10/20/2010)

75

Page 76: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Social Media Data

76

Fall 08n=525

Spring 09n=411

Fall 09n=420

Spring 10n=566

Fall 10n=524

Some Influence 3.3% 3.9% 3.3% 1.1% 1.1%

Most Influence 0.0% .5% 0.0% 0.0% 0.0%

New Patient Decision Making StudiesPercent of New Patients Indicating Social Media Influenced Their Decision to Choose

UK HealthCare

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77

KY Consumers, Social Media and Healthcare

Source: 2010 KY Consumer Study

17.70%

31.00%

21.50%

13.60%

18.00%

38.60%

28.30%

18.60%17.40%

26.50%

17.50%

10.70%

Opionions shared by members of my social network can be trusted

I would add a business to my social network if they provided

valuable information

Social networks are a good way to learn about businesses and

products

Social networks are a good way to learn about heathcare, including

healthcare providers, medical conditions and treatments

Total (N-393) 30-44 (N=164) 45-69 (N=229)

Page 78: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

78

% of Yes

% of Total

Forums 59.6% 14.5%Blogs 50.9% 12.4%Wikis 15.8% 3.8%Facebook 14.0% 3.4%YouTube 5.3% 1.3%MySpace 3.5% 0.9%Twitter 1.8% 0.4%Other (please specify) 21.1% 5.1%

5.6%

No, 71.4%

Yes, 23.0%

Q: Have you ever used any Social Media resources to acquire information about a particular doctor, hospital or treatment you were considering for yourself or someone else?Q: Which of these Social Media have you used to acquire information about health care in general? (Check all that apply)

Source: E-advisory group, 2010 n=248

Social Media and Healthcare Information

Page 79: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Presentation Structure

• Categories of Word-of-Mouth– Marketing-stimulated WOM– Marketing induced WOM– Growing patient experience-based

WOM

• Implementing Word-of-Mouth– WOM tactics practitioners can use– Measuring WOM– Social Media and WOM

• Word-of-Mouth Takeaways — Lessons Learned— Benefits of WOM— Concluding thoughts

79

• Overview• Description of UK HealthCare and the

market situation leading to a WOM focus

• WOM Insights

• UK HealthCare WOM strategy

• Research Insights• Financial value of WOM influenced

patients

• 2010 WOM studies

• Other research studies

Page 80: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

Lessons LearnedWOM is a Channel of Communication Marketers

can Use

• WOM is more than an outcome of a customer experience, it is a major channel of communication and influence.

• People primarily talk about products and services in person, although email, social media etc. could become more important.

• People like to share information – ask them how many brochures they want, or always send two copies.

• WOM accelerates customer decision making.

80

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Lessons Learned WOM Marketing is a Body of Knowledge/ Skill

Set Marketers Need to Master

• Marketers need to incorporate WOM tools into their marketing programs to increase likelihood of WOM conversation.

• WOM marketing can be more powerful than initial marketing activity.

• WOM is an important leading marketing indicator of future business.

• WOM should be tracked to understand the full impact of a marketing program – otherwise marketers may not be conveying the true impact of their marketing efforts.

81

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Lessons LearnedWord of Mouth can be Increased

• WOM is naturally stimulated by good marketing.

• Marketers can accelerate WOM conversations though use of tools to make it easier to share and via marketing-induced activities.

• Marketers can also impact patient experienced WOM.

• WOM starts with employees and current customers – make them more powerful by giving them knowledge.

82

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Benefits of Strong Word-of-Mouth to Your Organization

• Increases clout of marketing efforts because it speeds up decision making

• Intuitively has longer staying power than other forms of marketing

• Increase the pool of people talking about your organization and products

83

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84

Word-of-Mouth Becoming MoreImportant

“ Market research shows that the sick are relying more on the recommendations of fellow patients and less on the

reputation of companies and endorsers in deciding whether to seek treatment and what drugs to ask for.”

Jonathan RockoffWall Street Journal

Thursday, February 15, 2010Page 6

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Marketing Stimulated and Induced Word-of-Mouth can Provide a Competitive Advantage

85

Organization A Organization B

Patient Experience

WOM

Initial Marketing

Marketing – StimulatedWOM

Patient Experience

WOM

Initial Marketing

Marketing - Stimulated

Marketing Induced

Marketing Induced

% Consumers Likely to Recommend a Health Care Organization

Page 86: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

WOM a Measure of Brand Strength

86

Brand Promise

BrandFamiliarity

Brand Dialogue

Brand Experience

Gombeski, WR, Britt JCopyright 2008

Brand Equity

-Awareness- Familiarity-Preference-Relevance

-Likelihood to recommend

-Loyalty

Page 87: Unfettering Marketing’s Most Powerful Ally · Word-of-Mouth Unfettering Marketing’s Most Powerful Ally William R. Gombeski Jr. Director Strategic Marketing. bill.gombeski@uky.edu859-257-2296

You can never be too rich, too thin, or too good at marketing.

Stephen Burnett

“Reflections on Becoming a

Great Marketing Organization”

in Kellogg on Integrated Marketing

p 203, 2003

87