@karencorrigan

The Marketing Executive’s New Agenda Growth. Innovation. Transformation.

Carolinas Healthcare Public Relations and Marketing Society

Asheville, North Carolina November 21, 2013

Karen Corrigan

Corrigan Partners LLC

@karencorrigan

corriganpartners.com

@karencorrigan

The basis for competition in the health industry is rapidly changing . . .

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• Restructuring markets and intensifying competitor activities

• New value-based reimbursement methods and care delivery models

• Transformation of marketing through web, social and mobile technologies

@karencorrigan

5 forces to watch

1. The new economics of healthcare reform

2. Market restructuring and emerging delivery models

3. Evolution of brands in physical and virtual environments

4. Technologies that disrupt and transform

5. Growing, graying, connected consumers

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@karencorrigan

Volume vs. Value Economics

Today providers are rewarded for volume based transactions on individual patients. Reform models reward value based on episodes of care and outcomes:

Bundled payments

Pay for performance

Accountable care

Medical homes

Coordination of care

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Market force #1:

The new economics of healthcare reform

@karencorrigan 5

Cost Restructuring

Coordinated Care Fragmented Care

Patient Centered Provider Centered

Payment for Value Payment for Volume

Care Systems Focused Facilities Focused

Care Team Accountability Physician Accountability

Longitudinal, Multi-Site Care Episodic, Hospital-Based Care Models

Efficient, Evidence-Based Care Inconsistent, Variable Methods

Electronic Paper

Cost Reduction

TODAY FUTURE

@karencorrigan

Market force #2:

Market restructuring; new delivery models

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Accountable care models and organizations

Hospital and health system mergers & acquisitions

Physician integration, employed medical practices

Ambulatory, post acute and retail diversification

Academic, technology and business partnerships

Multi-market, multi-state expansion initiatives

Enterprise IT/EHR/website strategies

Co-branding/co-marketing relationships

@karencorrigan

The underlying basis of competition is

changing – taxing even well

established healthcare brands.

Market consolidation and expansion,

service diversification and strategic

partnering are on the rise – fueled by

reform and accountable care clinical

management structures.

Web, social and mobile technologies

are changing everything! How we

learn, how we shop, how we manage,

how we engage, how we . . . . . . . .

Market force #3:

Evolution of brands in physical and virtual worlds

@karencorrigan

More often than not, a healthcare consumer’s brand experience begins online.

@karencorrigan 9

88% 77% of online health seekers

began their last session at

a search engine such as

Google, Bing, or Yahoo

of Internet users age 14+

browse or research

products online

Healthcare consumers are online

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Looking for answers

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of online health diagnosers

talked to a clinician about what

they found online

35% of U.S. adults have used the

Internet to try to figure out

what medical condition they

may have

of online health

information research

is on behalf of

someone else

50%

53%

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Using new ways to find information

31%

52% of smartphone owners

gather health information

on their phones

of cell phone owners

have used their phone to

look for health

information

31% of American adults

own a tablet

computer

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Source: LaunchMedia

C2B Marketing Consumers have “reverse engineered” marketing.

@karencorrigan 13 Source: LaunchMedia

Pre-Tailing Consumers search websites, blogs, ratings, & brands before purchasing

@karencorrigan 14 Source: LaunchMedia

Hyper Transparency Quality, pricing, availability, offers, recommendations,

ratings are just a click away.

@karencorrigan 15 Source: LaunchMedia

Cloud Trust Consumers trust bloggers,

reviewers & social communities.

@karencorrigan

Market force #4:

Technologies that disrupt and transform

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@karencorrigan 17

the digital

practice

Technology is profoundly changing the way providers and patients interact.

@karencorrigan

Patients are coming to

the office better

prepared and more

knowledgeable about

their health.

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@karencorrigan

Diagnosis

Social Support

Medical Record

Treatment

Resources

Monitor Health

Caregiver Support Other

• 52 years old

• Breast cancer

“Fighting breast cancer is a

24/7 job. Treatment doesn’t

just happen in the clinic.”

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@karencorrigan 20

the social

patient Digital marketing gives us real time access to the

patient at the very moment they are interested; social

engagement gives us deep insights into consumer

needs and wants.

@karencorrigan

Sources: Edison Research Multimedia Study 2011;

Comcast 2011 Social Report; TNW Social Media ; Business Insider

Women spend 7.9 hours per month on social sites – 30%

more time than men.

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@karencorrigan

Consumers use online forums to find

and talk about health care providers

Find A Doctor

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@karencorrigan 23

Mobile

Health

This segment of the

industry offers the most

promise. It's no

exaggeration to describe

consumers' and

physicians' embrace of

mobile health apps,

smartphones, and tablets

as transformational.

@karencorrigan

Mobile health is the convergence of web, social, smartphone,

tablet, telemedicine and remote monitoring technologies.

• Nearly 9 in 10 patients like the idea of remote

healthcare services

• 61% would like it delivered by a mobile device

Source: Price Waterhouse Coopers; 2010

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@karencorrigan

Market force #5:

Growing, graying, connected consumers

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Boomers will be the driving force; 10,000 turning 65 every day.

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Not just a Florida and Arizona issue

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People 65 and Older

• 39.6 million in 2009:

12.9% or 1 in every

8 Americans.

• 72.1 million in 2030;

more than twice the

number in 2000 and

will count for nearly

20% of the

population.

@karencorrigan

What’s a marketing executive to do?

Understand the changing economic model

Step up brand building and strengthen competitive leverage

Master the use of data to inform strategy and marketing investments

Understand the marketing requirements of new lines of business

Identify growth opportunities; hardwire patient acquisition/retention

Orchestrate business, clinical and marketing alignment/accountability

Develop the marketing organization - structure, skills and systems

Master integrated search, social, mobile and content marketing

Dig deeper to gain insights into consumer needs and behaviors.

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@karencorrigan

Reform is advancing from two fronts

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Legislated Reform Mandates

Consumer Driven Innovations

@karencorrigan

Five critical roles for healthcare marketers

Growth Strategist

Brand Evangelist

Digital Change Agent

Experience Champion

Innovation Catalyst

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@karencorrigan

Role # 1:

Growth strategist

In nearly every other industry, marketing is valued as a revenue-generating business competency critical to driving growth, brand loyalty and better financial performance.

Now is the time to move aggressively to transform marketing practice from promotions-oriented tactics to growth-oriented strategic leadership.

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@karencorrigan

Revenue generation is the priority . . .

For the foreseeable future, health systems will be operating with competing and somewhat conflicting objectives as they attempt to optimize volumes for core clinical programs, while simultaneously building accountable care systems and capabilities.

Marketing executives must help health systems transcend the ‘pay for volume’ and ‘pay for value’ markets

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@karencorrigan

Success requires a growth-oriented culture

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A strong partnership and co-accountability with clinical operations, IT, finance, HR and other core business functions are critical to:

Driving alignment across the network (operations, IT, physicians, contracting, etc.)

Understanding changing payment methods and business models

Delivering on revenue and profit targets

@karencorrigan

Role #2:

Brand evangelist

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• Brands influence consumer decision-making and choices regarding health and medical care.

• Brands shape the complex referral, contractual and transactional relationships among consumers, health services, physicians, hospitals and payers.

• Strong brands attract the best talent, and can be leveraged to benefit recruitment and retention.

• Brands are about growth, revenue, profitability, market leverage, staff commitment and customer loyalty.

The business of branding: Growth. Innovation. Leverage.

@karencorrigan

One of the Most Powerful Forces in Brand Building is

Focused Alignment

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Core

Purpose

Strategic

Vision

Brand Value

Proposition

Brand

Alignment

Customer

Experience

Value

Innovation

Fundamental reason we exist.

How we intend to compete.

The unique reason our

brand matters to

customers.

How we link our business strategy to customer

experience.

How we satisfy customer

needs and wants, and

deliver on the brand

promise, every time.

How we sustain

competitive advantage.

© Corrigan Partners LLC

@karencorrigan 35

Brand management must evolve to address and handle the complexities of:

Rapidly restructuring markets require new approaches to brand leadership

Newly developing care delivery models (ACOs, etc.)

Hospital and health system mergers & acquisitions

Physician integration and owned medical practices

Ambulatory, post acute and retail diversification

Academic, technology and business partnerships

Multi-market, multi-state expansion initiatives

Enterprise IT/EHR/Website strategies

Co-branding/co-marketing relationships

@karencorrigan

In the emerging world of accountable care, we’re recognizing that the consumer’s

interaction with healthcare systems is changing from fragmented transactions to coordinated

care across time and continuum.

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@karencorrigan

Brands will not be about facility identities; they must, instead, embody the unique relationship and valued

experience consumers can expect from a comprehensive system of care.

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@karencorrigan

Our challenges – and opportunities – are to create brands that resonate with people, to deliver brand

experiences that create trusted relationships, and to build brands that become valued aspects of our

customers’, employees’ and physicians’ lives.

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@karencorrigan

Role #3:

Digital change agent Web, social networking and mobile technologies are revolutionizing business processes everywhere and marketers can be change agents by helping health systems better understand how to employ these technologies to:

Reach and engage consumers

Acquire and retain customers

Improve patient-provider relationships

Support patients with care management

Promote better clinical care and decision-making

Facilitate workplace communications and productivity

Extend brand experience

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@karencorrigan 40

Healthcare marketing has changed . . . forever

Tracking Tracking Tracking

Activate Convert Close Delight

Strangers

Traditional

Search

Social Media

PR

Events

Sales

Call Center

Online Scheduler

Office Scheduler

Reviews

Social Media

WOM

Tracking

Engage

Visitors

Content

Search

Social Media

PR

Leads Patients Fans Tracking

Reminders

First Appointment

Awareness Consideration Selection Trial Advocacy

Co

ns

um

ers

M

ark

ete

r

@karencorrigan

Building digital marketing capabilities is job one!

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• Integrated, multi-channel strategies

• Web, social, mobile, search marketing

• Content marketing & management

• Integrated CRM/contact center

• Digital brandscaping

• Social commerce

• Community management

@karencorrigan

Lead the change . . .

• Help health system leaders and physicians understand how consumers use technology to search, select and use health care services.

• Understand the adoption patterns of technologies that support patient acquisition and retention.

• Master integrated search, social and content marketing – strategy, planning, execution, management.

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@karencorrigan

Role #4:

Experience champion

Be a champion for customer-centered decision-making and innovations that transform customer experience.

Customer experience is about meeting customer expectations every day in every interaction through DESIGN – administrative systems, appointment scheduling, meeting and greeting, clinical processes, customer engagement, billing, follow-up, etc.

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@karencorrigan

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People

• Culture

• Beliefs

• Values

• Behaviors

Experience Design

Framework

Processes

• Scheduling

• Registration

• Treatment

• Hand-offs

Performance

• Service

• Quality

• Lean

• Six Sigma

Marketing

• Segments

• Products

• Channels

• Brand

Experience happens by design; not by accident

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@karencorrigan

What can marketers do?

Employ innovative research techniques to generate rich insights into customer needs, wants, expectations . . .

Bring customers and providers together in planning and design sessions . . .

Articulate the link between brand value proposition and experience . . .

Champion use of DESIGN to hardwire experience . . .

Become a fan of demonstration projects; experiment, learn, apply . . .

Educate, educate, educate . . .

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@karencorrigan

Role #5:

Innovation catalyst

Innovations advance strategy, build brand equity, and produce a better bottom line.

Innovation demands alignment of culture, capabilities and structure, as well as a laser focus on value-creation.

Transformation cannot happen without innovation.

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@karencorrigan

The role has never been more crucial

Creating new markets, moving market share, developing new sources of revenue, building brand loyalty, improving profitability, and sustaining competitiveness are all goals of innovation.

Success stems from creative thinking, fresh solutions, and relevance to customers.

That puts marketing front and center as the curator of customer intelligence.

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@karencorrigan

Promote less talk, more action

Healthcare consumers are frustrated by the complexities of access, fragmentation of care, lack of communications, and other aspects of their experiences.

Most of the industry is woefully behind in providing on-line conveniences such as scheduling and customer communications.

Opportunities for innovations that take the hassle out of healthcare are sizable.

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@karencorrigan

So, how do I . . .

Create a future-ready, high-performing and efficient marketing operation; that will . . .

Better position the organization to compete as changing market dynamics reshape the competitive environment . . .

And achieve organizational growth and profitability goals?

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@karencorrigan 50

Embrace change, then drive transformation

@karencorrigan

Five bold moves

Change the marketing culture

Configure the new marketing organization

Acquire new competencies, capabilities and skills

Create a compelling case for change and bias for action

Communicate new roles, new rules, new expectations

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@karencorrigan

Bold move #1:

Change the strategy & marketing culture This requires a shift in thinking about marketing as tactical operations to a discipline that is strategic, cross-functional and bottom line oriented.

STRATEGIC

RESULTS ORIENTED

CROSS FUNCTIONAL

Focused on opportunities that drive growth and better business performance.

Orchestrated across strategy, marketing, clinical and business functions, with shared accountabilities for success.

Delivers on growth, revenue and profit targets.

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@karencorrigan

Bold move #2:

Configure the new strategy/marketing operation

Establish a future vision, role and scope for marketing

Restructure to align/integrate critical functions

Review and update staffing models and skills

Standardize planning and resource allocation modeling

Develop performance management standards & measures

Invest in the core technology infrastructure

Build a unified, high performance operation and culture

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@karencorrigan

Bold move #3:

Acquire new competencies, capabilities and skills

Strategic marketing planning

Market intelligence and business analytics

Brand building

Brand journalism

Market and customer creation abilities

Programming and product development

Sales, CRM, PRM, customer contact centers

Customer engagement proficiencies

Social commerce and community management

Real-time responsiveness

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@karencorrigan

Bold move #4:

Create a compelling case for change; bias for action

Growing revenue, improving business performance, increasing brand loyalty and building sustainable competitive advantage . . .

Build brands that attract customers and remain relevant as markets change

Develop highly targeted smart growth strategies across inpatient, ambulatory, retail and virtual sites

Drive successful growth of more tightly integrated physician partners

Redefine and leverage channel relationships

Create future-ready models of care delivery that optimize profitability under reform economics

Leverage web, mobile and social media technologies to attract and engage stakeholders

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@karencorrigan

Bold move #5:

New roles, new rules, new expectations Communicate new rules and expectations:

Marketing investments will be prioritized to strategic planning, business development, growth and financial performance imperatives.

Data and analysis will inform strategic marketing thinking and planning, and provide an evidence-based approach to marketing investment.

Strategy, marketing and operations will establish cross functional collaboration, decision-making and co-accountability for outcomes.

Time – and dollars – will be focused on fewer, more impactful activities; and activities and tasks that do not contribute to growth and improved competitive performance will be transitioned or eliminated.

Performance measures, monitoring and reporting systems will be developed and employed to track progress and outcomes.

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@karencorrigan

Key questions to get the conversation started . . . What is the current state of strategy and

marketing in terms of priorities, effectiveness, capabilities, skills, systems, structure and performance?

What is your vision for its future state? What is the gap between current- and future-state in terms of structure, processes, competencies and investments?

What are the opportunities and challenges in regards to changes in the delivery system; e.g., ACOs, care transformation, multiple geographies, expanding services portfolios, employed physician SBUs, etc.?

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@karencorrigan

Key questions to get the conversation started . . .

What strategy/marketing capabilities and controls are/should be held by the corporate operation; what is optimally administered by major business units?

How are advances in technology (digital, social media marketing, CRM, etc.) changing marketing practice, and what new infrastructure, skills and competencies will this require?

What are the optimal synergies and relationships between planning, marketing, PR, sales, etc., as well as with finance, IT and SBU operations to inform and support brand building, business development and growth priorities?

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@karencorrigan

The business enterprise has two and only two

basic functions: marketing and innovation.

Marketing and innovation produce results;

all the rest are costs.

Peter Drucker

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@karencorrigan

Questions. Comments. Discussion.

Karen Corrigan Founder/CEO Corrigan Partners karen@corriganpartners.com P 757.288.2480 @karencorrigan blog @ karencorrigan.com