Has Healthcare Marketing Failed to Articulate Value?

On Monday, October 10, 2011, Deloitte released their latest Issue Brief, The Public View of Health Care Reform. I would also recommend highly that you read the 2011 Survey of Health Care Consumers in the United States.

Anyhow two items caught my attention from the Public View report out of many. The first is that and I quote: "Consumers perceive a complex, wasteful system sensing a lack of value for what is spent". "Consumers are critical of the U.S. health care system performance: 22 percent give it a favorable report card grade of "A" or "B" while 36 percent of consumers give it a grade of "D" or "F". In the second report, 2011 Survey of Health Care Consumers: " Satisfaction with U.S. health care system is low. 8 in 10 consumers see no system improvement and 3 in 4 believe other countries' systems are better. "

When you look at these consumer perceptions, one realizes very quickly that healthcare organizations are unable to articulate value. All that time, energy, resources and creativity spent to communicate that you are a quality healthcare provider has failed.

Why?

It is simple really, healthcare organizations have never talked about value. Never defined their brand in terms of what is the value, of what you do for the consumer. Much healthcare marketing communication is about you having "best" physicians in the region, or great high-tech equipment, we care and pictures of shinny new rooms and buildings. My favorites include "spa-like atmosphere", "world-class" and "unique".

Anyone wonder, why the giggle factor goes way up for consumers when they see this nonsense? They don't believe it, and it doesn't mesh with their experience. It may make you feel good and your Board happy, but at the end-of-the-day, it's not working.

What you are is doing is damaging your brand.

Sooner rather than later, you are going to have to articulate your messaging around the value that your brand brings the consumer. You can't run away or hide from it anymore. If you're not messaging brand value, then you are not being heard in the market. Sometimes, the reality of what you believe to be true, clashes with what the consumer wants from you. If you were doing your market research, you would have known this.

At some point, healthcare organization will have to develop strong value propositions. And communicate those brand value propositions to consumer. Communicating in meaningful ways about value that refrains from insulting the consumer with simplistic, self-centered messaging, that only increases the giggle factor in your market.

If you don't, that sound you hear, are the 40 percent of people in your market (Deloitte, 2011 Survey of Health Care Consumers in the United States), that would leave for what they perceive are better healthcare services starting their cars.

How Integrated is Marketing Into Your Organization?

In a day and age, when consumers are bombarded from all directions and media for attention, it would seem, that marketing should play a more important role your internal organization and culture, than it may appear. No intent is made to downgrade your activities and internal communications about what marketing is accomplishing. But rather, asking a thoughtful question to consider.

Is marketing at the table then the Finance Department is staring to develop the annual financial plan and budget assumptions?

Is marketing at the table when the yearly business plan is in the initial stages of development?

Is marketing at the table when the product managers are deciding new product enhancements, new products, features and benefits?

Is marketing at the table when Human Resources is putting its headcount budget together and recruitment strategies?

Is marketing at the table when the annual sales plan is developed?

Not simply yes or no.

I think it is more a question of perception and opportunity, than what is right or wrong. But it seems to me, with so many avenues for consumers to learn about, and experience you, a marketing operation that is highly integrated into the organization and its culture, will find more success, brand awareness, market strength and revenue, compared to those companies where that's not the case.

Think of the power of a highly focused organization where marketing is fully integrated into most, if not all decision-making and planning? Employees become your strongest brand advocate through their engagement and contact with customers. Products and services are developed with enhancements that consumers want, not what someone thinks are needed. Growth plans based on market trends and developments, that have you meeting market demand and creating new markets, instead of adjusting your products and services to meet the financial plan revenue and return targets, forcing consumers into what you want.

Seems backwards to me, but that is U.S. business when compared to many other parts of the world, where it starts with the customer first and plans are developed and executed from there.

The world is so interconnected, that companies can no longer afford to have planning and decision-making processes that do not include marketing. That is more than an employee newsletter. Or sending out some update emails, displaying the new ad campaign or holding organizational meetings to explain what marketing is doing,

It is really about fostering and growing a marketing culture in the organization, where everyone has a stake in the outcome. That starts with leadership and a champions voice in the organization, C-suite and Board leadership that no longer accepts the status quo. This is about organizational change and the willingness to be not just successful, but a highly successful market leader. Without that, then a marketing focused organization is not possible.

Remember, if you're not the lead dog, the view never changes.

You can find me on:
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If you are interested in exceptional strategic marketing consulting, you can reach me through my web site the michael J group; email- michael@themichaeljgroup.com; or phone, by calling me at 815-293-1471.

How Integrated is Your Marketing With Communications?

How much more effective would your marketing campaigns in traditional, online, social, mobile and Public/Media relations be, if you made a conscious effort to frame your messaging in your communications campaigns around the main brand and key messages you use in your marketing campaigns?

More often than not, brand messages in healthcare communications sometimes lack the level of integration and planning needed across vehicles and channels. Little, if any attention, is given to using communications as a strategic and integrative vehicle in the overall marketing effort. With so many different marketing activities and channels required to cut through the clutter, in order to leverage your key messages, you can no longer afford to not have your communications highly integrated with marketing.

Is that lack of integration a missed opportunity?

We are expected by our audiences to advertise, write white papers, create case studies, write impactful sales materials, partner with leading market research organizations to present "groundbreaking" topical surveys and results, as well as produce other materials.

People see, read and hopefully the key messages resonate, advancing the brand, generating sales leads, or in some cases, bring a sense of accomplishment to internal audiences, because in the end, all of these materials are "about us". Activity measurement as opposed to outcomes measurement.

Integrated communications can provide you with a continuous brand presence in the market that you cannot afford through paid efforts. It can successfully build positive impressions and solid opinions which after a while, will come to be believed about your organization.

If you are not integrating your brand messaging into your communication efforts internally and externally, your losing the opportunity of a lifetime, and potentially your markets.

You can continue the conversation with me on:
LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich
Web site: http://www.themichaeljgroup.com

For more information, or to discuss your strategic healthcare marketing, customer experience management, marketing/sales integration or start-up needs, you can learn more at my web site the michael J group; email- michael@themichaeljgroup.com; or phone by calling me at 815-293-1471.

Can Transparency on Outcomes and Quality, Increase Volume, Revenue and Market Share?

Tough economy and getting worse. Hospital volume, scripts and specialty drug orders, flat or down. Little differentiation among competitors in many healthcare verticals. New proposed cuts in Medicare and Medicaid spending. High unemployment with no end in sight. Political gridlock. Healthcare payment models evolving from production payment focused on care delivered, to pay-for-performance based on quality outcomes. Price competition. And finally, a growing empowered healthcare consumer, taking control and playing an active part in the healthcare decision-making process.

With all this transpiring, most are taking the same past course of marketing action. Advertise services by making claims of world-class service. "Me too" messaging, attempting to driving volume because we focus all of our efforts and resources around you. (Isn't that what you are supposed to do anyway?) Sales forces all focusing on the same a therapy or drug class in specialty pharmacy which, in most cases, is the same as the specialty pharmacy down the street.

But nearly everyone, is missing the most important piece of the puzzle to generate demand, revenue and market share.

Where is the outcomes and quality data?

One area that is greatly lacking in most healthcare marketing, is an intelligent dialogue on your outcomes with your audiences. Payors', pharma and medical device, have recognized this and are leading in the use of quality and outcomes data to drive decision-making. It is time for the rest of the healthcare industry to catch up.

And in my experience, it works. Driving demand, volume, revenue and market share.

I maintain that even in this economy, there are healthcare dollars out there. Healthcare consumers willing to spend those dollars, if only that had a compelling reason to do so. With all other marketing avenues exhausted, healthcare executives weary from being in "survival mode" and facing new revenue pressures, one would think healthcare marketing would be able to answer some of these challenges.

Maybe it's time to give the healthcare consumer be it employer, individual or family, or any other stakeholder you can identify, quality and outcomes data to make decisions?

That's really the only avenue left for healthcare providers, to start talking about quality and outcomes. Engaging in a meaningful dialogue, that goes beyond accreditation logos and quality awards from third parties, to an actual honest-to-goodness quality and outcomes disclosure and discussion.

Few healthcare providers are willing. Most are afraid of this direction. But, it's a strategy and tactic that can break the current cycle of avoidance and loss. Leadership. Courage. The ability to be visionary. Recognizing that your customers, are best served by the healthcare organization that places them first in a meaningful way.

You have some choices here. Stay the course and do what you have been doing. Get lost in an endless paralysis by analysis loop. Mimic your competitors. Talk about quality and outcomes in vague terms. Or, be the first in your market, to establish a clear strategic marketing plan, focused on your healthcare consumers, about your brand in terms of quality and outcomes.

Sooner or later, you are going to have to do this.

If you are not willing to change, then don't expect a different outcome from doing the same old healthcare marketing that you have been.

You can continue the conversation with me on:
LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter:    http://www.twitter.com/mkrivich
Web site: http://www.themichaeljgroup.com

For more information, or to discuss your strategic healthcare marketing, customer experience management, marketing/sales integration or start-up needs, you can learn more at my web site the michael J group; email- michael@themichaeljgroup.com; or phone by calling me at 815-293-1471.

Are You Using Your Patient Educational Materials in Your Marketing Efforts?

When you consider all the time, resources and effort spent, in developing patient educational materials, by specialty pharmacies along the therapies of RA, MS, HIV/AIDS, Oncology and Transplant, payers, PBMs, pharmaceutical manufactures, disease-specific associations and hospitals, one would surmise that an opportunity exists, to use them in broader channel marketing efforts.

Pharma and disease-specific associations have great and innovative marketing programs around patient education. After that, specialty pharmacy's, PBMs, and hospitals, not so much. I think that their use in marketing campaigns will depend greatly on the quality of the materials. And in some cases, they are pretty poorly written and designed. Sometimes lacking all together.

But are all healthcare segments, especially specialty pharmacies, missing an opportunity to truly differentiate themselves in a lookalike marketplace?

I know. We all think we are the best at what we do, offering considerable expertise, advice and education to improve the health, compliance, adherence and healthcare IQ quotient of our patients. Is that really the case, or, is it just to show payers that you are engaged in direct patient education, supplementing the investment in out-bound call center infrastructure, using computer based clinical information systems, etc.

Patient education is a great medium to reinforce your brand, your brand promise and create customer evangelists. But that of course assumes, that you are doing original work in patient education. And not, just throwing together one-page disease information sheets, or using information from associations or pharma. Just because you throw some patient education materials in a med box, pass them out at a health and wellness fair, or use another other channel for distribution, doesn't mean that you are accomplishing anything. Other than your materials possibly reaching the recycle bin.

This is by no means a knock on any association or pharma materials, for they are great sources of information and advice. They just lack an organizational imprint of who you are, your brand and brand promise, to be able to showcase the breadth and depth of your knowledge and expertise. And that imprint doesn't mean putting your logo on the materials.

Besides the pervasive fear of competitors seeing what you are doing, patient education materials need to be on your web site, in easily accessible and downloadable formats. You can use QR codes in your mobile marketing, that take individuals to the patient education section. Reference them in your communications programs. Build a marketing strategy around them to differentiate you from other providers.

Be the first and everyone else looks like a "me too".

Sometimes, the simplest marketing strategy is the one that creates customer evangelists, improves health and well-being and positions you as a leader in your healthcare vertical.

Don't discount the importance of patient educational materials in your marketing and what they can do for you.

You can continue the conversation with me on:

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

For more information, or to discuss your strategic healthcare marketing, customer experience management, marketing/sales integration or start-up needs, you can learn more at my web site the michael J group; email- michael@themichaeljgroup.com; or phone by calling me at 815-293-1471.

Are You Engaged in Disruptive Healthcare Marketing?

This is not about guerilla marketing. I am writing about engaging in what I call Disruptive Healthcare Marketing (DHM). DHM is a process that moves you from looking like a "me too" in your healthcare marketing, to forcing competitors into changing their game, reacting to you.

If for the sake of argument, you can agree that there is little meaningful differentiation, healthcare is becoming a commodity, price competition is beginning, and the healthcare consumer is becoming more empowered and taking control, then why would you continue to market the same old ways and play follow the leader in your industry vertical? Isn't that the definition of insanity? Doing the same thing over and over again and expecting a different result.

Disruption is occurring across healthcare on a daily basis and well into the foreseeable future. So why isn't healthcare marketing keeping pace?

Much healthcare marketing is like Lemmings in a herd, falling over the cliff because everybody else is. If your marketing is so effective, then why do executives, especially in hospitals, talk of being in survival mode? Sounds like what you have been doing isn't working.

Disruptive Healthcare Marketing is contrarian in nature.

That's right, DHM is contrarian in nature, because you don't follow the leader and change a few things in an effort to look different, with the same essential message. It's about finding those meaningful points of differentiation that your consumer is looking for that will resonate. You ask the hard questions. You do the grunt work. You challenge conventional thinking. You challenge the culture and beliefs of the organization. You look at why someone is taking a particular strategy path, and understand why they aren't doing something else. You lead. It's about going in a different sustainable directions that builds volume, revenue and market share.

Everyone is chasing the same healthcare consumer and looking the same in the process.

Really, is your customer/patient satisfaction that much different from your competitors? Are your hi-tech medical devices so amazing that healthcare consumers and purchasers will flock to your doors? Can your valet service "out customer experience" the healthcare provider on the other side of town? Can your specialty pharmacy clinical sales tell you, without a 50 slide deck, in 25 words or less, how you are better than a competitor? Can you do a presentation to an insurer that that's not 80 slides of, all about you?

Are you saying to your marketing department, look what they did?

If yes is the answer to any of the questions, then you are not engaged in Disruptive Healthcare Marketing.

A Disruptive Healthcare Marketing model can look like this:

Disruptive Healthcare Marketing utilizes marketing in a strategically focused plan, to provide meaningful differentiation, positions you as the leader and create a brand story with lasting marketplace presence. It is highly integrated, sustainable and focused. DHM changes the organization. It will make you uncomfortable. But then, if you're not uncomfortable, then you really aren't changing.

Insert any audience in the center of the model and you have Disruptive Healthcare Marketing. Integrated, coordinated and not based on what your competition is doing, but upon you, your brand and your differentiable, sustainable message points.

Change or be changed. You decide.

You can continue the conversation with me on:
LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich
Web site: http://www.themichaeljgroup.com

For more information, or to discuss your strategic healthcare marketing, customer experience management, marketing/sales integration or start-up needs, you can learn more at my web site the michael J group; email- :michael@themichaeljgroup.com or phone by calling me at 815-293-1471.

Have Direct-Care Healthcare Providers Become a Commodity?

In a most robust discussion on LinkedIn, in the Society for Healthcare Strategy and Market Development group page, regarding meaningful differentiation in healthcare, a question was posed by one of the participants, that received no comment, but is very important.

Has healthcare become a commodity?

If we look at the definition of a commodity as I remember it from my graduate econ classes, a commodity has the following properties: It is produced and sold by many companies; There is generally uniform quality between competitors' that sell or provide it; There is demand for the product or service; And it is supplied without qualitative differences between one company's products and services from another.

Sounds like a hospital, doctor, home care agency, infusion center and specialty pharmacy company to name a few.

When you think about it in this light, I would maintain that the majority of healthcare providers can be considered commodities, with a few notable exceptions, such as the Mayo Clinic, The Cleveland Clinic, M D Anderson and a few select others. Maybe not to patients at this time, but to employers, insurance companies, the self-insured and governments to name a few, that healthcare providers are commodities.

In the absence of qualitative data on quality and outcomes, that would generally available and understandable to consumers, then how does one tell the difference between direct-care providers?

For example, hospitals nearly all have the same clinical programs and services, JACHO accreditation, technology, insurance contracts, community- based medical staff's, MOBs. surgical-centers , ERs etc. It's the old a hospital, is a hospital, is a hospital argument.

A consumer really can't tell on the face of it, meaningful qualitative differences between providers. And I don't think it is because they can't or don't have the ability, but because they simply don't have the right information. Since healthcare consumer's can't identify and hence don't know, what those differences are, the direct-care providers in the healthcare industry are allowing their healthcare vertical to become commoditized. Everyone looks the same.

With the introduction innovative tools from payers, (Are you ready for price competition?) where insurance plan members at Aetna's Payment Estimator, WellPoint's AIM subsidiary and United Heath with its Innovation Center , allow members to compare and shop on price and determine their co-pay or deductible for their out-of-pocket expense, you have the introduction of consumer shopping behavior. And these tools are not just limited web site use. They have mobile applications as well in most cases. What we see is that these tools, interject a new level of commoditization to hospitals, physicians and others. The assumption is that quality is equal across providers.

Say what you want about the quality argument. Until you can qualitatively define your quality as better than a competitor, just saying you provide quality care is a hollow argument.

As consumers become more price conscious and take more control in the decision-making process, it behooves direct-care healthcare providers to become more market differentiable, based on qualitative data. You may not like it, but the sooner you get ahead of the commoditization spiral, if that is even possible, the better off you will be.

Healthcare is rapidly changing, from a provider-controlled and dominated decision-making model, to a consumer-controlled, decision-making model. And in a consumer-controlled model, absent meaningful and understandable qualitative differentiation, healthcare services become just another commodity. One that is in the end whose purchase will be based on price.

Now there's real healthcare reform.

You can continue the conversation with me on:

LinkedIn: http://www.linkedin.com/in/krivich0707

Twitter: http://www.twitter.com/mkrivich

Web site: http://www.themichaeljgroup.com

For more information, or to discuss your strategic healthcare marketing, customer experience management, marketing/sales integration or start-up needs, you can learn more at my web site the michael J group; email- michael@themichaeljgroup.com; or phone by calling me at 815-293-1471.