Value Marketing in Healthcare

What really was the impetuous for today's blog was a two-page, full-page spread from a major healthcare system. It caught my attention for the fact that there was a lot of copy and it was all about us. I looked for the value proposition and the compelling reason why this is important to me, but could not find any. A very expensive way to talk at someone.

With healthcare changing so rapidly, is it time to move healthcare advertising beyond "all about us" to the value and benefit we bring to you, the healthcare consumer. I mean, unless you are a brand new provider in the market, you have been telling your audiences all about your features and benefits for years now. They get it.

In today's world, it's about value and benefit to the healthcare consumer.

In today's world, it's about the answering the healthcare consumers question of what is my ROI for using you?

In today's world, you need to have a compelling value proposition with messaging that provides clear and understandable benefits to the healthcare consumer.

Value Marketing

Value marketing really, is making the case to your healthcare consumer how you are solving a problem, offering a solution, giving results and even making them happy.

Value marketing is a creative exchange between people and organizations in the marketplace. It is a dynamic transaction that constantly changes based on the needs of the individual vies a vie what the healthcare organization has to offer.

So instead of talking about what you do every day, talk about what the value and benefit is of what you do.

Instead of talking about programs and services that everybody else has, talk about the value and benefits those same programs and services and what they bring to the healthcare consumer.

Instead of saying we have the latest high-tech gizmo, talk about the value and benefit of what that latest, greatest high-tech gizmo brings to the healthcare consumer.

Instead of just talking about Healthgrades or Thompson Reuters Top 100 awards for care, talk to your healthcare consumer about the value and benefit of that award.

Instead of talking at your audiences, talk to them. Talk to them about your value and how you can solve their health problem by offering a value based solution to their healthcare concerns.

It's time for healthcare CEOs, Boards and healthcare marketers to stop doing over and over again those things that are out-of-touch with the new reality that is healthcare. The healthcare consumer is awakening and demanding more. More proof. More value. More benefit for them, not for you.

Note:


Back in August, I wrote about revenue opportunities under the Patient Protection and Affordable Care Act. Well, starting on Januarys 1, 2011, preventive services must be covered for all health plan members. So better get that preventive screening solution in place. It's a loss leader but the downstream revenue opportunity is large. Please see that August 2010 blog on what to do.

You can continue the conversation with me on:

LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich

Michael Krivich is Fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association and can be reached at michael@themichaeljgroup.com or 815-293-1471 for consulting services in strategic marketing, integration of sales and marketing, media relations and interim marketing executive leadership assignments. Huthwaite SPIN selling trained and a Miller Heiman Strategic Selling alumni, both highly respected and successful international sales training organizations , I can lead your organization though the challenge of integrating sales and marketing.

Marketing to the Networked Patient

Healthcare is changing at a far more rapid pace that at any time in its history. I am not referring to the pharmaceutical or technological advances which have no doubt improved the quality of care and in most cases, the quality of life as well.

Since 1983 with the introduction of DRGs, we as an industry have been touting the benefits of wellness, individual responsibility in health and the patient taking an active role in their healthcare. Much has changed since that time and much has remained the same. But now, the game has really changed.

Welcome to the age of the networked patient.

The networked patient is someone who has an intense curiosity about their health condition, expects to have an active role in making healthcare decisions and this is most important, they want control of their health information. They use in internet, social media and seek out others. They read and study about their health condition. They ask questions and will seek out alternatives. The look at providers from a quality standpoint and make judgments based on that information. They want an answer to their own needs.

The patient is asking what is their ROI by using you?

The days are quickly passing by where we can assume that we are still in control of the overall care and treatment process and information without much questioning or interaction by a patient. And you know what, that is not a bad thing.

Marketing to the networked patient

There are some key to keep in mind when starting to market to the networked patient:.

Your brand, your brand promise and messaging is all important;

Quality data transparency, reporting and patient access to same is everything;

 Access to their own health information 24/7 is a deal breaker if not provided;

Talk about the patient experience and outcomes;

Don't insult this patient with messaging that is all fluff, about us or is just plain condescending;

All communication needs to be personalized talking to the patient not at them;

Use all available communication channels- Iphone apps, email, social media, web site blue button, direct mail, etc.

Be creative, this is uncharted territory so limits are nonexistent and don't place any on yourself. Stop saying, why we can't do something, start saying how we can. This is a major change in the way healthcare is administered and delivered in the U.S. Providers need to recognizing that the age of the healthcare consumer is upon us. Failure to do so will be at your own peril.

You can continue the conversation with me on:

LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich

Michael Krivich is Fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association and can be reached at michael@themichaeljgroup.com or 815-293-1471 for consulting services in strategic marketing, integration of sales and marketing, media relations and interim marketing executive leadership assignments. Huthwaite SPIN selling trained and a Miller Heiman Strategic Selling alumni, both highly respected and successful international sales training organizations , I can lead your organization though the challenge of integrating sales and marketing.

Selling the Physician to Increase Volume and Revenue

Any number of healthcare organizations are looking to increase admissions to drive revenue and volume by associated physicians. Some providers are returning to the days of employing physicians and that seems to be making a big comeback due to the Patient Protection and Affordable Care Act (PPAAC). Here's hoping lessons learned from the last go around of physician employment will result in fewer mistakes this time.

Sales staffs are popping up all over like weeds-in-a-field, complete with goals and objectives, territories and sales quotas for specific docs along identified and profitable disease-states. In most cases they are managed by people who have never sold anything in their life. Little understanding of the relationship sales cycle, what is important to the physicians, their needs and ultimately their patients. The first time the sale person comes back to the organization with "This needs to change" request, it all breaks down because nobody internally wants to really change anything. We just want volume and revenue. Besides, with all the Stark considerations we really can't do too much anyway.

What's wrong with this picture?

Too sell to physicians successfully, you need more than office lunches and how are the kids kind of conversations. Its about their experience in admitting, treating and referring patients to your emergency room, hospital, pharmacy, surgical center or a home care agency to name a few of the providers docs deal with on a daily basis. Everyone is out there with the send to me, me, me, message. And that can't go on any longer.

Its more than your own perceived features and benefits.

This is a relationship sell and your sales team needs to be on track with a common sales methodology that they all use. Leaving it up to the nice person in the medical staff office to do this because she makes the docs laugh, or assigning a sales managerial function to someone who has never sold a day in their life, especially in healthcare, is a receipt for disaster.

Be ready to make changes in how you do things. When your sales person comes back, and says he or she is finding a trend in obstacles physicians are encountering in admitting or practicing medicine in your organization, be ready to make meaningful changes. If not, your just wasting your time and money sending out people to increase volume and revenue from a physician or multispecialty group. Nothing worse than over-promising and under-delivering.

10 Steps for Success

1. Hire a sales manager that has healthcare sales experience. Make it a VP level position at the senior management table. They drive strategy to make sure it is in sync with the organizational business plan and financial objects, as well as act as an agent for internal change.

One of the great weaknesses in healthcare senior management is that people who are very well educated, read an article, go to a seminar and then think they know everything they need to know too implement a strategy. Healthcare leadership has got to change in this new consumer driven environment and learn they don't know everything. The sooner you make that realization the more successful you will be.

2. Hire trained healthcare physician sales individuals. Lots of people from pharma and medical device companies make great hospital and other healthcare provider sales representatives.

3. Make sure that everyone is using the same sales methodology, techniques and materials. All sales and marketing materials should be designed for use in for the specific point in the sales cycle.. One size does not fit all.

4. Use a sales database system like SalesForce.com for example for accountability, tracking, etc., and make sure your marketing department has full access to the information. Mine the data for strategy and new opportunities.

5. Integrate your marketing and sales efforts from day one. You have to avoid the internal conflicts which arise and those "Marketing is clueless about what we need" or "The feet on the street don't sell it like we want them too", kind of conversations. Integrate and create a joint sales marketing committee to solve a lot of that. Make sure your marketing team is trained in the sales methodology the sales force is using. Marketing should also be attending sales calls.

6. Establish joint goals, objectives and revenue targets for sales and marketing. Share in the pain, share in the gain.

7. Make meaningful changes to your products and services based on the needs and expectations of your customers. That does not mean one-offs, but changes across the enterprise that will benefit many.

8. Remember it's about the brand, your brand promise and how your brand delivers upon those expectations.

9. Make sure that the entire organization knows what you are doing. Nothing more embarrassing or damaging when someone at any level of the organization is clueless and can't be supportive of the sales and marketing efforts. Makes you look like you do not know what you are doing.

10, Evaluate, monitor performance, make changes as needed in the program or staff and start the cycle again.

To your success.

You can continue the conversation with me on:

LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich
facebook: http://www.facebook.com/michaelkrivich

Michael Krivich is Fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association and can be reached at michael@themichaeljgroup.com or 815-293-1471 for consulting services in strategic marketing, integration of sales and marketing, media relations and interim marketing executive leadership assignments. Huthwaite SPIN selling trained and a Miller Heiman Strategic Selling alumni, both highly respected and successful international sales training organizations, I can lead your organization though the challenge of integrating sales and marketing.

Putting the Patient Experience in Healthcare Advertising

Living in a large metropolitan area with some pretty well recognized system heavyweights and Academic Medical Centers, I am fortunate enough to see a good deal of hospital advertising. Anyhow, happy smiling patients, doctors looking intently into a microscope, nice building exterior shots and high-tech equipment all promoting a central system brand. High production values and in most cases using hired talent instead of employees. One even made the claim of being one of the top 10 hospital systems on the country.

I have said it before and I am saying it again, where is the differentiation? And what does the statement: "We are one of the top-10 hospital systems in the country" mean?

So I thought I would go to their web site expecting to see some kind of explanation on the award, but I was sadly mistaken. All the site had in the About Us was top-10 again. Okay, is that in customer satisfaction, financial performance, system integration? What exactly does that mean?

Food for thought

Healthcare is changing and marketing needs to change along with it. Especially on how we approach the market, differentiate our systems, communicate value and benefit and build brand. If we continue to portray ourselves as "gee whiz" look at us with all these high-tech tools and research, all the while telling the consumer its really all about us without offering up a strong brand promise and call-to-action, than what is the point of spending all that money?

Why tell someone that you are one of the nation's top-10 health systems and not define what that means? Unless of course it has more to do with operations, IT integration and finance and less to do with quality of medical care. Then if that is the case, you are being disingenuous in your advertising and leading consumers to a conclusion that is not true as it relates to the visuals, copy and content of your advertisement.

The patient experience will differentiate you

If you focused the ad concept, copy and visuals on the patient experience and how it all fits together for the patients benefit, then you are differentiating. It is no longer about you, but about the patient. You can still tell your story, but in a much more powerful and compelling way. You can create a recognizable brand promise and value equation which the consumer will understand.

An example

If you want a really good example of patient experience advertising look at the Cancer Centers of America ads. Part testimonial, part patient experience, they get it. So why is that so difficult in a crowded health care market where everyone looks the same, has the same insurance plan contracts, shares medical staff and offers essentially the same medical services and high-tech equipment?

Focus on the patient.

Focus on their needs.

Focus on the patient experience to drive volume and revenue.

Focus on the patient experience to differentiate yourself.

This has got to change

Most healthcare organizations are frozen in time, even more so now with the Patient Protection and Affordable Care Act. They are either doing nothing or are caught in a vicious planning cycle with no end in sight. Neither acting or reacting, most healthcare organizations are missing out on valuable market opportunities. They are doing what they have always done, approaching the market like consumers are idiots and are only impressed with high-tech machines, smiling happy patients, exterior building visuals and doctors looking into microscopes. There will be winners and losers. And that is already being determined while you wait and try to figure out what it all means.

Start meeting consumer needs and build your brand around expectations and framing those expectations to your advantage.

Anyhow, when was the last time you saw a smiling happy patient in a hospital outside of having a baby?

You can continue the conversation with me on:

LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich
facebook: http://www.facebook.com/michaelkrivich

Michael Krivich is Fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association and can be reached at michael@themichaeljgroup.com or 815-293-1471 for consulting services in strategic marketing, integration of sales and marketing, media relations and interim marketing executive leadership assignments. Huthwaite SPIN selling trained and a Miller Heiman Strategic Selling alumni, both highly respected and successful international sales training organizations , I can lead your organization though the challenge of integrating sales and marketing.