Tuesday, May 11, 2010

Tapestry Marketing - Weaving an effective hospital marketing plan

So what is Tapestry Marketing?

Is it an analogy? Maybe, depending on how you look at it.

Tapestry Marketing is a new way of looking at stand-alone hospital and multi-hospital system marketing. It encompasses the “traditional” aspects of marketing, but acknowledges the special needs of hospital, the interplay of physicians and their influence on the process, patient insurance coverage and limitations, the needs of the consumer and the healthcare organization.

Tapestry Marketing is new. You will not find it in any text books. It is not taught in graduate school. It is a concept. A philosophy of marketing that is designed to cut through the clutter and bring a hospital or multi-hospital system out of the run an ad, hold a community program, send a newsletter marketing mentality.

Tapestry Marketing is learning how to weave a colorful, comprehensive, integrated multi-channel marketing program that drives brand, generates revenues and dominates the competition. A methodology to achieve market success, show Return on Marketing Investment (ROMI) and bring you, the marketing leader, to the senior management table as a strategic player.

Please note: Tapestry Marketing is ©Michael J Krivich, FACHE, PCM 2010. All rights reserved.

A Tapestry Marketing plan is no longer than 10 pages.

That's it folks. Any marketing plan longer than 10 pages will not be implemented. Looks great but is generally a lot of words, to say what you will do when you will do it and how you will measure it.

Page 1: Mission and Vision Statement:
-A clear mission statement for the product line and the marketing plan will help to focus the efforts. The mission statement is the purpose and starting point from all which flows. It is important to evaluate your mission statement in light of changing environmental conditions and helps to keep you focused as an organization on what you are about. This will help you in evaluating the objectives you develop latter in remaining consistent with the mission of hospital or health system xyz.

Questions for guidance:
– Who are we? Who do we serve? How do we serve them? What are the limits of what we do? Does everyone have a shared understanding of our mission?

Page 2: Situation Analysis:
– Examine your current marketing program or examine your internal and external environment to understand where you are today and how you arrived at that point in time.

Questions for guidance :
– Describe your past experiences relative to the financial, human and capital resources as well as the strengths and weaknesses of your service/product line. Describe the cultural, societal, economic and demographic trends existing in your world. What other marketing opportunities can be identified from the strengths and weaknesses?

Page 3: Market Research:
– Surveys and discussion groups formal and informal, sales reports and market intelligence are the best ways to really understand your market for the purposes of developing a marketing plan. But a self-evaluation can also be helpful in answering the following questions and thus understanding your market. Here are some categories for self-evaluation: service/ product excellence; service/product attributes versus the competition; ease of use; customer service; service/product literature cost.

Questions for guidance:
- Why did insurance plans, physicians, employers and individuals choose our services/products? Why do some choose others? What does the industry and community think of us? What are competitors saying?

Page 4: Identify Target Segments:
– The goal here is to match your service and product line strengths with people most likely to be influenced by those strengths. Describe your target group in detail. Where are they located? What part of the service/ product value equation will influence them? Can they afford your services? What are their needs?

Questions for guidance:
- What types of customers are most likely to choose our services as it currently exists? What types of customers’ might choose our services if we make some affordable improvements or changes? What are the financial requirements in determining price and service?

Page 5: Marketing Strategy:
– Brainstorm for ways to develop and communicate the right messages for your service and for ways to create the right service or product line improvement/s. Develop measurable goals.

Questions for guidance:
- What are the quantifiable goals for the marketing program? How will they be measured? What will be offered to the key decision makers in relation to the Service or Product Line? How will the key decision-makers use the service Place? What is the message to be communicated to the key decision makers Promotion? What must the key decision-makers give up to purchase Price?


Page 6- 8: Marketing Tactics and Budget:
– When executing marketing strategies, it is important to get the basics right, be clear about who is doing what and track progress carefully. First and foremost, the strategy must be communicated and supported. All employees of the organization need to understand the message, including which elements of it are the main focus and which are the important facts supporting it. All employees need to understand their role in disseminating the message. All employees need to understand the goals of the marketing program and why they are important. Give a detailed account of each aspect of the strategy that will be put into operation.

Questions for guidance:
– What actions will we take? Who will be responsible for implementing each action? When is it to be accomplished and how much does it cost? What are the growth targets and how will we measure the results?

Page 8 - 9: Evaluate the Strategies:
– Your basic messages are unlikely to change dramatically from year to year, but your strategies should be evaluated quarterly so that weaknesses can be identified and strengthened, or strategies can be adapted to meet new market needs.

Questions for guidance:
– Did we achieve our goal/s? Which strategies should we continue? What have we learned? What are the new targets created from this evaluation?

Page 10: Next Steps:
- A wrap-up of major learning's including not only success but failures as well. You planned, you did, you checked, you acted. The PDCA process of the Dr. W Edwards Deming Quality Cycle. Now, what do you want to do next?

Questions for guidance:
-What do we need to do to take marketing to the next level? How do we communicate our financial contribution ROMI (Return on Marketing Investment) to organizational senior leadership to build the business case for more resources? How do we intend to use this planning format in our budget justification?

I can be reached at 815-293-7471 or via email michael@the michaeljgroup.com to answer any questions. I do have a Word template for this format and it is available. Contact me for pricing details.

Thursday, March 25, 2010

The Future of Healthcare Marketing Under Reform

Why do we need marketing?

I can see it now, CFOs and other senior managers in hospitals and health systems around the country going … “Tell me again…why do we need marketing? After all by 2014, millions of uninsured will be insured. Sure we face reimbursement cuts, but we can weather that” and the conversation goes on……

Marketing will be more important than ever!

As we enter the brave new world of healthcare reform, several significant events will take place over the coming couple of years for which most healthcare organizations are not prepared for:

Transparency
Bundling
Value purchasing
Demand management
Consumer choice

What will be required is a refinement of marketing strategies, tactics, integrated messaging and excellence in execution for the brave new healthcare world. Marketing needs to be closely aligned with the organizational strategic, business development and financial plans

The new marketing environment.

Competition is not going by the wayside. It will only increase as more for-profit corporations with deeper pockets enter the market. Mergers and acquisitions will not go by the wayside either. As a matter of fact, I would not be surprised to see more mergers and acquisitions by healthcare organizations in preparation for 2014.

The most profound change due to reform is that you really no longer have patients. You have true consumers. The new “patient” is a consumer who is already or will be, price-savvy, quality-conscious, knowledgeable and demanding.

Hospitals have little if any experience in true direct to consumer retail marketing. I believe that reform finally takes the last step in commoditization of healthcare where people will buy on price and quality. The market equation going forward is BtoB, BtoBtoC and BtoC.

Strategic Marketing Plan, Tactical Marketing Plan and Flawless Execution.

You will need a strategic marketing plan leading to a tactical marketing plan for each of the following audiences that you must flawlessly execute. The market is a hash mistress and without these three components, you will find out how harsh the market can be. Your audiences are:

Consumers
Physicians
Insurance companies
PPOs
TPAs
Medicare and Medicaid
Legislators at the State and Federal Level
Employers
Your employees
Self-employed
Other health systems
Pharmaceutical manufactures*
Home Health agencies
Social Service Agencies
Community groups
Retail pharmacies
Ambulatory treatment centers i.e. infusion services

A little explanation about why pharmaceutical manufacturers as an audience is warranted here.

Over 600 drugs in the development pipeline are either infused or injected medications requiring medical administration that fall into what is known as the specialty pharmacy area. The cost of drugs and changes in insurance plans regarding physician “buy and bill” practices find very few physicians participating.

This leaves a market open to the Walgreens, Apria’s and others of the world who already have existing infusion centers and it can be assumed are planning to increase their presence in the healthcare market. Failure to enter this market in a timely fashion means you could be leaving potentially millions of dollars on the table to the likes of Walgreens and others who are refining and expanding those strategies and already have the pharma relationships that will give them access to these drugs.


Moving forward.

There will be more on healthcare marketing and reform going forward. But for now, a lot of work is needed aligning healthcare organizations and marketing departments to the new market under reform. That will require leadership, decisiveness as well as the ability to refine strategies and execute them flawlessly.

I can be reached directly at 815-293-1471 or michael@themichaeljgroup.com for healthcare interim executive management, marketing strategy development, public and media relations, and crisis communications services

Monday, March 15, 2010

Experience Mapping Adds Value to Your Marketing Efforts

What is experience mapping?

This is a marketing analytic technique that allows you to identify the communication channels and categories of service that individuals move though in a relationship building process. It allows you to more fully understand visually the relationship, and messaging opportunities. Created originally by the Boston Consulting Group for retail shoppers, I have taken the concepts and applied to healthcare. This analysis can be used for any audience or service-line. For our purposes today, here is a simplified version of a patient experience map.

First create a chart that contains 5 columns or more and three rows. Each column is a different chevron and each row contains different information. Touch points can be in multiple columns.

What an experience map looks like:

The Patient Experience

First column first row box: Relationship Iinitiation

First column second row box: Patient is exposed to hospital information

First column third row box: Referral Touch Points:

Family; Friends; Physician referral service; Wellness program; Advertising; Direct mail; News articles; Web site; Call center; Employees; Community programs; Chat rooms; Social media; Health insurance; Government; Employer; JCAHO etc.

Your matrix of chart should be at least five columns by three rows. Now complete columns and rows for Evaluation- Patient considers information; Utilization - Initial utilization; Patient management - Managing the patient relationship; Payment - Patient action.

What it all means:

Now these chevrons and listings are not all inclusive, nor should they be. This exercise requires the marketing department to lead the discussion seeking input from all corners and levels of the organization. The right chevrons, with the right touch points can lead to aha moments for the organization while providing a not before seen picture of how the sum of the individual experiences work together- separate yet one experience in totality. Think of the possibilities and ideas that this can generate in how you message and coordinate the experience of your medical staff, employees, service-line efforts, referral services, community programs etc.

This simple yet effective tool, done correctly can assist greatly in creating an integrated strategy-based and tactical organizational or service-line marketing plan across the hospital. The end result is a more effective and integrated messaging; creation of a stronger brand and new opportunities to differentiate yourself from your competitors.

If you would like an example of experience mapping, just drop me a line at michael@themichaeljgroup.com and I will be glad to send you one.

If you need assistance or would like more information, I can be reached directly at 815-293-1471 or michael@themichaeljgroup.com for marketing strategy development, public and media relations, and crisis communications consulting services

Monday, February 8, 2010

Calculating Return on Marketing Investment for Healthcare Organizations

Much has been made of the need for calculating a Return on Marketing Investment (ROMI) for healthcare organizations. Most often regulated to producing brochures and other items of interest, healthcare marketing departments need to exercise a leadership position and talk the financial language of senior management.

Below is an example of an actual ROMI computation for a multi-hospital organization. This of course assumes that you can identify and pull down the information that you need across many platforms of the organization to produce such a result. If you can great, if you can’t then you need to broaden your technological capability and move towards a higher level of computerization and system integration that you already experience.

Work with your finance department. They are a great source of information. With a high degree of collaboration and understanding their viewpoints and perspectives regarding marketing you can lead and make a difference. By answering questions, concerns and opinions with solid data, you can move the discussion form marketing does “stuff’ to marketing is a financial contributor to the organization.

The method can be adapted to any campaign and provides you with the data fields and logical analysis you need. This has been heavily edited to hide the organization. The full report was quite large and contained an entire programmatic evaluation of the Physician Referral Call Center with recommendations for improvement to increase scope and capabilities. This portion is most applicable for today’s conversation.

How to complete a ROMI Analysis

PRCC ROI

An analysis was undertaken to look at the ROMI of the Physician Referral Call Center. The analysis matched a database of call center name records for the period to financial records which had already been downloaded. The analysis produced the following results:

9,102 call records were matched with utilization and financial data.

9,102 calls resulted in a total of 9,121 encounters in the ER, Inpatient and Outpatient categories of service.

751 encounters were ER
177 returning encounters
573 first time encounters

1,105 encounters were Inpatient
530 returning encounters
699 first time encounters

7,267 were Outpatient
2,014 returning encounters
5,253 first time encounters

Total charges for all encounters equaled $22,522,649

Charges for new encounters all services totaled $16,085,198 or 71 percent of the total charges

Average charge per ER encounter $1,304

Average charge per Inpatient encounter $13,581

Average charge per Outpatient encounter $903

Gallup measures loyalty at 68 percent (would return for service) which means that for every 100 patients 32 would not return for care- therefore:
ED- 57 returning encounters captured that would not have returned
Inpatient – 170 returning encounters captured that would not have returned
Outpatient- 645 returning encounters captured that would not have returned

Incremental charges counted returning encounters not loyal
ER - $74,337
Inpatient- $2,308,851
Outpatient- $582,505
Subtotal charges counted: $2,965,693

Overall market share in primary and secondary service area is 14.53 percent. The number of first time encounters have utilized us above market presence is therefore:
ER 573 first time encounters, 83 not countered, 490 counted –
Inpatient – 699 first time encounters, 101 not counted, 598 counted
Outpatient – 5,253 first time encounters, 763 encounters not counted, 4,490 counted

Based on an overall market share of 14.5 percent the incremental charges counted for new encounters not because of market presence:
ER - $638,960
Inpatient – $8,121,438
Outpatient – $4,054,470

Total Charges counted: $12,814,868

Discount from gross charges for Medicare, Medicaid, Managed Care, Bad Debt and Charity Care @ 65% is $8,326,644

Net Revenue: $4,488,224

PRCC program costs: $233,410

Net contribution: $4,254,814

ROI 18.22:1

You can reach me at themichaeljgroup@aol.com or by calling 815-293-1471 for strategic marketing consulting services.

Thursday, January 21, 2010

What is your Blue Ocean Marketing Strategy?

Stumped?

Simply put, a Blue Ocean strategy is one where you redefine a market and dominate. By doing that you are swimming in a Blue Ocean free of your competition instead of swimming in the bloody Red Ocean of competitors beating each other up day-in and day-out.

For your information, a really good book is out on Blue Ocean strategy. I highly recommend you buy and read it. No specific plug or name provided nor payments here in accordance with FTC, FCC and SEC regulations. Search any of the fine book sellers out there for the text.

So how does this apply to healthcare marketing?

Healthcare is undifferentiated and for all practical purposes a commodity. Hospitals, health system, physicians and other providers have similar programs and services, have the same managed care contracts, share physicians etc., etc., etc, across multiple competitors.

The commoditization of healthcare is accelerating even more so now with the entrant of non-traditional providers who are competing on price and service, which is a deadly combination for traditional healthcare providers who are slow to change.

Hence a Blue Ocean strategy by major for-profit competitors actualized and in development in traditional healthcare services that is redefining markets and will eventually allow them to dominate. All the while you swim in the bloody Red Ocean of the “me too” look alike competition for the healthcare consumer.

Just because you package the same mouse trap differently than others, doesn’t mean it’s any different.

Developing what I call a Blue Ocean marketing strategy in truth stems from becoming a Blue Ocean strategy organization. Marketing leadership and organizational transformation at its best and you have can take the opportunity to grow professionally, personally. Be the innovator and show marketing as proactive rather than reactive.

Learn, apply and find your Blue Oceans to swim too from the bloody Red Oceans of unproductive competition.

You can reach me at 815-293-1471 or themichaeljgroup@aol.com for marketing strategy consulting services.

Friday, January 8, 2010

A Lesson in Public Relations Continues

What a case study for healthcare!

The Chicago Bears just can't get it right. This has been a continuing comedy of PR errors that only leaves you scratching your head.

Damage control.....

Day after the press conference, the President of the team goes on the media tour to clarify statements on what the organization meant. (See my previous post) Damage control pure and simple.

It gets even better......

Then it turns out the press release about the firings was wrong and that really two of the assistants weren't fired, but were more like employee-at-will kind of relationships with no contracts. The offensive coordinator and his position coaches had contracts and will be paid. Probably some legal issues now because of that.

PR lesson continued.....

Look. For your own PR efforts, you control the message and the day when you decide to go public. Winning or losing a PR battle is not controlled by the media, it is your responsibility. You, through your actions or inaction's will determine whether you are successful or not. There was no reason in the world for the Chicago Bears to lose the media and message battle. All they did by this comedy of errors is further reinforce to the fan base, local media and national audiences that management is clueless about what to do. The Bears have lost any benefit of the doubt that remained. If this goes south when the 2010 season starts, the fire storm will be unrelenting. Sports fans have long memories.

What you can do to avoid this......

First, admit (and your ego will get bruised) that you may not have a clue about what to do.

Next, listen to your PR staff if you have any, and I am assuming at this point they know what they are doing.

Develop the right messages and practice, practice, practice with whomever you are sending out there to represent the organization. Limit the CEO or president's exposure.

Make sure the press release is right the first time.

If you have never been in a crisis communication situation before, bring in outside expertise. You can not handle it by yourself. This is no time to learn by doing, too much is at stake.

Physicians, patients and the media in your community will remember what you did or did not do for a very long time.

If you don't do it right on a day that you can control the outcome through right planning, thought and action, then you have no one to blame but yourself.

I can be reached at 815-293-1471 or by email to themichaeljgroup@aol.com

Wednesday, January 6, 2010

A Lesson in Public Relations

The Chicago Bears held a press conference on January 5, 2010, after a dismal at best season long performance by management, the coaching staff and players. No need to go into the gory details; the lesson here is how not to handle public relations.

For weeks now, the media and public has been in an uproar over team performance. This was exacerbated by a perceived lack of indifference and arrogance by the team leadership. Clearly a crisis communications situation if anyone in the PR department at Halas Hall was paying attention.

The Press Conference

A press conference is held, they trot out the team President, General Manger and Head Coach all in that order. The President speaks, apologizes and was contradictory in his remarks about the situation being unacceptable, change is needed, mistakes were made, but things are going to stay essentially the same. He spoke for 20 minutes which was 15 minutes too long.

The GM gets up apologizes, says mistakes were made, change is needed, but things are going to stay essentially the same and I would make the same decisions the same way again. He also has a different message than the team president. Q and A ensures.

Head Coach gets up, has a different message than the other two, is arrogant and testy that he is being questioned about any of this and never admits to making any mistakes. Change is needed but things are going to be the same. He fires his entire offensive staff, demotes himself from being the defensive coordinator and life goes on.

The PR department for the Chicago Bears should be fired in mass for that performance. As a marketing and PR professional this was an embarrassment.

What Went Right?

Virtually nothing.

What Went Wrong?

Virtually everything.

Let Me Count the Ways

Lack of organizational understanding of the need to handle this as a crisis communication situation
Different, conflicting senior management messages
Testy responses to questions
Lack of preparation by speakers in understanding the seriousness of the communication
Poor speaker body language
No overriding organizational message
Organizational arrogance
Lost messaging opportunity
Appearance of offense to blame for the season
All three senior managers appearing not to be accountable
The organization furthering to anger the media and fan base

What struck me about was the similarity to how I have seen hospitals and healthcare systems handle crisis communication situations and public relations.

Is it not true that any press is good press! And the Bears are getting a lot of bad press locally, regionally and nationally.

PR Lessons for Hospitals and Healthcare Systems

Understand the nature of the situation
Be transparent
Be proactive in how you intend to address the situation
Limit the amount of time senior leaders i.e. the CEO or president speak
Make sure everyone has the same message and is on board
Develop strong organizational messaging of care and concern
Don’t scapegoat
Don’t blame others or give the appearance of blaming others
Don’t tell people things will change when things are not changing
Practice, practice, practice
Anticipate hard questions and do a strong Q&A document
Bring in an outside PR firm for another viewpoint
Understand that your reputation is built up over a long time and can be destroyed in a few short minutes
Remember that it is not just a three day story
Watch your body language
Know your facts about past performance, reporters will be prepared

I can reached at 815-293-1471 for marketing and PR consulting, or via email at the themichaeljgroup@aol.com