“Marketing is the distinguishing, the unique functionof the business... It is not a specialized activity at all.It encompasses the entire business. It is the whole
business seen from the point of view of its final results, that is, from the customer’s point of view...”
Peter Drucker (1954)
Marketing Defined
Marketing & Profitability
PROFIT
Cust
omer
Val
ue C
reati
on Internal Operations
Competitive Advantage
We must createvalue in order to attract
and retain patients.
We must be efficientin order to preserveour profit margin.
We must differentiate ourselves in order to attract and retain patients.
A Cornerstone in Business: The Profit Triangle
2010 Marketing Goals
Customer Value Creation - Target profitable customer segments - Increase customer value - Increase customer/market awareness
Internal Operations - Improve operational efficiencies as it relates to the customer experience
Competitive Advantage - Improve competitive position
Customer Value Creation
GOAL: Target profitable customer segments
Current Patient DemographicsTotal: 1,437 Patients
The most attractive segment is not the largest % ofcustomer base, it’s the largest % of annual revenue.
Customer Value Creation
How can we better track our customersegmentation so that profitability is easily determined?
Are there other meaningful ways in which customers should be segmented (other thandemographics)? Is this being tracked?
Do you consider a primary care physiciana supplier, a customer, or both?
How should we segment and target the mostprofitable primary care physicians?
Questions to Consider...
Customer Value Creation
Core Value PropositionStates the unique benefits the product/service is to provide to customers.
Ex) Amex Traveler’s Cheques - “Accepted Everywhere”
What is Impact Orthopaedics’Core Value Proposition?
Should be important, distinctive, superior, communicable,preemptive (not easily copied), affordable, & ideally, profitable.
GOAL: Increase customer value
Customer Value Creation
GOAL: Increase customer value
Total Customer ExperienceWhere can value be added? Where is their opportunity for differentiation?
Discharge
Initial Phone Call(Apptmt/Info)
Exam RoomCheck-In
Follow-UpPhone Calls
H & P withDr. Jones
Front DeskCheck-In
Front DeskCheck-Out
AppointmentReminder Call
Exam RoomWait Experience
Discussion withReferral Source
Waiting RoomExperience
X-Ray
Customer Value Creation
GOAL: Increase customer value
CustomerSurvey Results
Service Offerings & Other Preferences
Customer Value Creation
How can we effectively communicate ourcore value proposition to our customers?
What are some ways we can increase thevalue we offer to our customers in orderto sustain competitive advantage?
- Service offerings? - Resources Available to Patients? - Patient Appreciation? - Others?
Questions to Consider...
Customer Value Creation
How can we effectively communicate ourcore value proposition to our customers?
What are some ways we can increase thevalue we offer to our customers in orderto sustain competitive advantage?
- Service offerings? - Resources Available to Patients? - Patient Appreciation? - Others?
Questions to Consider...
Customer Value Creation
GOAL: Increase customer awareness
CustomerSurvey Results
Referral Sources and Marketing Mix
Customer Value Creation
Customer Awareness Meets Customer Service
Source: Frederick Reicheld, “The One Number to Grow” Harvard Business Review (December 2003): p 52
“The only path toprofitable growth may
lie in a company's abilityto get its loyal customersto become, in effect, itsmarketing department.
- Frederick Reicheld, 2003
Customer Value Creation
What are some ways we can foster this ideaof “promoters” in our patient base? How about with primary care physicians?
Do you agree with the survey responseswith regard to marketing mix (the relativeeffectiveness or ineffectiveness of eachmedium)? If not, why?
Can you suggest more cost-effective ways to increase awareness than with mass media?
Questions to Consider...
Internal Operations
GOAL: Improve operational efficiencies
Total Customer ExperienceAre there opportunities for process improvements?
Discharge
Initial Phone Call(Apptmt/Info)
Exam RoomCheck-In
Follow-UpPhone Calls
H & P withDr. Jones
Front DeskCheck-In
Front DeskCheck-Out
AppointmentReminder Call
Exam RoomWait Experience
Discussion withReferral Source
Waiting RoomExperience
X-Ray
Internal Operations
Questions to Consider...
How can we better utilize Athena toimprove the total customer experience?
Are there redundancies in the systemthat can be eliminated (especially thosethat impose on the patient)?
Competitive Advantage
GOAL: Improve competitive advantage
• Reliability - perform service dependably & accurately
• Responsiveness - ready and willing to give prompt service
• Assurance - knowledgeable, courteous employees whoconvey trust and confidence
• Empathy - caring, individualized attention to customer needs
• Tangibles - physical resources are there to make it real
Areas of Service DifferentiationWhere/How do these traits fit into the Total Customer Experience?
Competitive Advantage
Questions to Consider...
Who are our biggest competitors?
What customer value do they offer to their patients that we do not?
How do they differentiate themselves fromother practices? Is it obvious?
What are some strategies we can useto specifically attract patients away fromour competitors?