In the healthcare industry, powerful demographic, economic, societal, technology and legislative forces are converging to change the underlying basis for competition. For health systems, new economic models, disruptive technologies and transformation of care delivery systems are front and center – challenging marketing executives to better understand and anticipate the impact of this change.

1. Healthcare Marketing Executives:
Are You Ready for the Future?
National Research Corporation
2013 Market Insights Summit
Las Vegas, Nevada
Karen Corrigan
Corrigan Partners LLC
@karencorrigan
corriganpartners.com

2. The basis for competition in the health
industry is rapidly changing . . .
2
• Restructuring markets and intensifying
competitor activities
• New value-based reimbursement methods
and care delivery models
• Transformation of marketing through web,
social and mobile technologies

3. 5 forces marketers must watch
1. The new economics of healthcare reform
2. Market restructuring and emerging delivery models
3. Evolution of brand in physical and virtual environments
4. Technologies that disrupt and transform
5. Growing, graying, connected consumers
3

4. 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
4
Market force #1:
The new economics of healthcare reform

5. 5
Cost Restructuring
Coordinated CareFragmented Care
Patient CenteredProvider Centered
Payment for ValuePayment for Volume
Care Systems FocusedFacilities Focused
Care Team AccountabilityPhysician Accountability
Longitudinal, Multi-Site CareEpisodic, Hospital-Based Care Models
Efficient, Evidence-Based CareInconsistent, Variable Methods
ElectronicPaper
Cost Reduction
TODAY FUTURE

6. Focus of the marketing executive . . .
 Understand the changing economic model and
the implications for marketing strategy.
 Understand not only the top line revenue
implications of customer acquisition, but also the
bottom line impact of key segments.
 Help your organization better prepare for and
relate to consumers under new delivery models.
 Build your marketing team’s customer acquisition
and customer retention capabilities
6

7. Market force #2:
Market restructuring; new delivery models
 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
7

8. Focus of the marketing executive . . .
 Master the use of data to inform marketing
strategy and focus investments.
 Understand the marketing requirements of new
lines of business
 Develop marketing structures, skills and systems
to support multiple markets, facilities, SBUs.
 Be a catalyst for innovation; push for and
support care delivery and service innovations.
 Step up brand building to strengthen competitive
leverage across all lines of business.
8

9. 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
9

10. 10
The social and mobile Web has completely
changed the speed, efficiency and ease with
which consumers can engage with each other
and has had a tremendous impact on brands.
Managing Content Marketing
Robert Rose and Joe Pulizzi

11. 11
C2B Marketing
Consumers have
‘reverse engineered’
marketing.
Source: LaunchMedia

12. 12
Pre-tailing
Consumers search
websites, blogs,
ratings, brands
before purchasing.
Source: LaunchMedia

13. 13
Hyper
Transparency
Quality, pricing,
availability, offers,
recommendations,
ratings are just a
click away.
Source: LaunchMedia

14. 14
Cloud Trust
Consumers
trust bloggers,
reviewers,
social
communities.
Source: LaunchMedia

15. Focus of the marketing executive . . .
 Help executives understand brand as a strategic
asset to drive growth and business performance.
 Strengthen factors that drive differentiation and
increase competitive leverage.
 Build solid strategies for multi-facility, multi-
services and multi-market systems
 Orchestrate business, clinical and marketing
alignment to deliver consistent brand experiences
 Align brand identity and experience across web,
social & mobile environments, including health
IT/EMR/patient, physician and employee portals
15

16. Market force #4:
Technologies that disrupt and transform
16

17. 17
the digital
practice
Technology is profoundly
changing the way providers
and patients interact.

18. 18
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.

19. 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
19
mobile
health

20. 20
Personal
search
80% of internet users have looked
online for information about
health topics such as a specific
disease or treatment. This
translates to 59% of all adults.

21. 21
Health Wellness Nutrition
content marketing
Engaging the right audiences, in the right places, at the right time to
drive revenue and brand loyalty is the goal of content marketing.

22. Focus of the marketing executive . . .
 Understand that consumers today no longer have
purely offline or online experiences but weave
technology through nearly every point of
contemplation, purchasing and use of products
and services.
 Understand the adoption patterns of technologies
that support care delivery and care management;
and explore opportunities for creating points of
differentiation in access, timeliness, convenience
and customer service.
 Master integrated search, social and content
marketing – strategy, planning, execution,
management.
 Build digital media capabilities and fluency – full
speed ahead!
22

23. Market force #5:
Growing, graying, connected consumers
23
2011 was significant in that it marked the first
year that baby-boomers began turning 65; and
for the next 15 to 20 years, about 10,000
people will turn 65 years old every single day.
Boomers will be the driving force in
the coming decades . . .

24. Not just a Florida and Arizona issue
24
People 65 and Older
• 39.6 million in 2009,
representing 12.9% of
the U.S. population – 1 in
every 8 Americans.
• Darker areas on the map
are regions where the
percentage of people
over 65 exceed the
average.
• By 2030, there will be
about 72.1 million older
persons, more than
twice their number in
2000 and will count for
nearly 20% of the
population.

25. Focus of the marketing executive . . .
 Assess aging trends and demand implications in
your marketplace.
 Dig deeper to gain meaningful insights into aging
consumer needs and behaviors.
 Identify growth opportunities, and drive niche
strategies, services, and program development.
 Help your organization understand that the new
“senior” will demand more choices, be less
tolerant of bad service and inconveniences,
won’t necessarily follow doctor’s orders, believe
that 70 is the new 50 . . . and expect to be
treated accordingly.
25

26. Five critical roles for healthcare marketers
 Growth Strategist
 Brand Advocate
 Digital Change Agent
 Experience Champion
 Innovation Catalyst
26

27. Role # 1:
The marketer as 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 for chief marketing
officers to move aggressively to
transform marketing practice from
promotions-oriented tactics to growth-
oriented strategic leadership.
27

28. 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
28

29. Success requires a growth-oriented culture
29
Marketing’s 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 growth and profit
targets.

30. Role #2:
The marketer as brand advocate
The business of branding: Growth. Innovation. Leverage.
• 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.
30

31. 31
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
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

32. 32
One of the Most
Powerful Forces in
Brand Building is
Focused Alignment – in
the ‘Bricks and Mortar’
World as Well as the
Digital One
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.
How we sustain
competitive advantage.
© Corrigan Partners LLC

33. 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
 Build the brand
Role #3:
The marketer as digital change agent
33

34. A comprehensive web, social and mobile capability, integrated
with clinical IT systems such as EMR and patient portals, and
embedded in physical environments, is no longer optional for
organizations that want to remain relevant.
34
Lead the change . . .

35. Building digital marketing capabilities is job one
Invest in digital marketing structures, capabilities
and support systems:
• Integrated, multi-channel strategies
• Integrated web, social, mobile marketing
• Content marketing & management
• Integrated CRM/contact center
• Mobile media development & marketing
• Digital brandscaping
• Social commerce
• Community management
35

36. Role #4:
The marketer as experience champion
 Be a champion for customer-centered decision-
making and innovations that transform customer
experience.
 Drive understanding across the health system that
customer experience is more than HCAHPS scores
. . . it’s 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.
36

37. 37
People
• Culture
• Beliefs
• Values
• Behaviors
Brand-Driven
Experience
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

38. What can marketing 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 . . .
 Keep experiences authentic…authentic to your brand value proposition,
authentic to customer expectations, authentic to capabilities . . .
 Champion use of DESIGN to hardwire experience . . .
 Become a fan of demonstration projects; experiment, learn, apply . . .
 Educate, educate, educate . . .

39. Role #5:
The marketer as innovation catalyst
Transformation of care delivery systems, business
processes, and market strategies are top priorities
for health systems:
 Innovations advance strategy, build brand
equity, and produce a better bottom line.
 Innovation rarely happens by chance; it
happens more through the purposeful creation
of innovation competencies and processes.
 Innovation demands alignment of culture,
capabilities and structure, as well as a laser
focus on value-creation.
 Transformation cannot happen without
innovation.
39

40.  Creating new markets, moving market
share, developing new sources of revenue,
building brand loyalty, improving
profitability, and sustaining competitiveness
are all goals of innovation.
 Marketers can help by creating a focused
customer-centered approach to innovation
and developing the platforms to drive
creative solutions.
 Success stems from creative thinking, fresh
solutions, and relevance to customers.
 That puts marketing front and center as the
curator of customer intelligence.
Marketing’s role has never been more crucial
40

41. 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.
 So why aren’t more marketers driving changes in
the customer experience realm?
41

42. 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?
42

43. 43
Embrace change, then drive transformation

44. Five bold moves to transform marketing
 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
44

45. Bold move #1:
Change the 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 marketing, clinical and business
functions, with shared accountabilities for success.
Delivers on growth, revenue and profit targets.
45
45

46. Bold move #2:
Configure the new 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
46
46

47. Bold move #3:
Acquire new competencies, capabilities and skills
 Strategic marketing planning
 Market intelligence and business analytics
 Brand building and management
 Market and customer creation abilities
 Product development
 Sales, CRM, PRM, customer contact centers
 Customer engagement proficiencies
 Social commerce and community management
 Cross-channel content strategy and management
 Digital media fluency (web, mobile, social, etc.)
 Real-time responsiveness
47

48. 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
48

49. 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.
 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.
 Marketing performance measures, monitoring and reporting systems will
be developed and employed to track progress and outcomes.
49

50. Key questions to get the conversation started . . .
 What is the current state of 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 marketing opportunities and
challenges in regards to changes in the delivery
system; e.g., care transformation, multiple
geographies, expanding services portfolios,
employed physician SBUs, etc.?
50

51. Key questions to get the conversation started . . .
 What 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?
51

52. 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
52

53. Questions. Comments. Discussion.
Karen Corrigan
Founder/CEO
Corrigan Partners
karen@corriganpartners.com
P 757.288.2480
@karencorrigan
blog @ karencorrigan.com