2017 Value-Based Strategy to Gain Market Traction




The best way to start 2017 is to gather sales and marketing team together for a series of planning sessions to get everyone aligned and headed in the same direction.

This year will be a challenging year for healthcare market and sales leaders as more patients use the availability of service to guide them towards a general direction that’s in line with what their healthcare needs.

This paper can help market leaders improve productivity the entire value chain that can contribute to the gain market traction.

 

Consistency is the Key

MACRA reporting starts in 2017. However, it is trailed by unclear political and policy changes ahead in 2017. Healthcare providers are looking for the most innovative and least expensive strategies to keep their organizations functioning smoothly no matter what the uncertainty is.

Though, health spending will continue to grow over the next 10 years driven by changing economic conditions and faster increases in medical prices. According to a new analysis from the CMS’ Office of the Actuary, health spending grew at a rate of 5.8% in 2015. The existing issue will still be apparent in 2017.1 It is important to strategize the following market trends:

 

  1. Big on Analytics. According to a Research and Markets, the global healthcare big data analytics marketplace will likely be worth more than $34.27 billion by 2022.2 By 2017, there will be more algorithmic discovery against this data. This means that there will be an increasing number of programs that will help discover trends, correlations, and connections that are not easily identified by a lone data analyst looking at the data. Healthcare market leader are now seeing new interest in Artificial Intelligence in handling more strategic marketing decisions that eventually help CMOs succeed.4

 

  • Start with a small team; build out analytical capabilities.
  • Create data and analytics infrastructure; establish dashboards, performance metrics, and tracking.

 

  1. Healthcare Interoperability and Security. 2017 be bold when it comes to the blockchain. According to Deloitte, blockchain’s ability to bring decentralized entities together while enhancing data security uniquely positions it to help solve one of the most disturbing problems in health care today.5

 

  • Map and convene the ecosystem, design and execute experiments and consider the investment.
  • Do a regular HIPAA risk analysis and conduct security awareness with staff and build a culture of security.

 

  1. Consumerism in Healthcare. Consumerism is a trend that few hospitals are ready for. According to consulting firms Kaufman Hall and Cadent Consulting Group insights two-thirds of executives of more than 100 hospitals and health system believe that developing insights into patients’ behaviors and expectations are critical, less than one-quarter of healthcare organizations have the means to gather and analyze meaningful patient data.6

 

  • Ensure that consumerism is a clear C-suite priority by establishing a clear link to strategic and business-unit goals.
  • Research key competitive issues. Measure performance and use information for improvement.
  • Patient experience mapping and planning for future capabilities in alignment with consumer imperatives and market needs.
  • Create health navigator service to provide online chats and answer wellness emails.
  • Develop a virtual visit offering.

 

market based via pervanence

 

  1. Price Transparency. According to KLAS’s Healthcare Price Transparency Solutions 2016 report, most vendors offering solutions in the price transparency space are not very transparent about their work and with customer organizations.7 The report clearly signals the need for price transparency to attract the market.

Both price transparency and reference pricing have reduced costs in the long run. Based on a survey of more than 4,000 U.S. healthcare consumers, 69% said that interpreting healthcare terminology to determine the price is a significant barrier to decision-making.8 To compete in an era of price transparency, it is important to marketing consistent quality standard and offers a price competitive options.

 

  • Consider strategic pricing an above average priority to compete by having an advanced pricing strategy.
  • Use the same retail models as TripAdvisor, Yelp, and others for healthcare consumers.
  • Automated dashboards with key metrics can help provide leadership with transparency.
  • Easy-to-understand format so they can make the most of the price information resources. HFMA has developed Understanding Healthcare Prices: A Consumer Guide, to help consumers get answers to their questions about healthcare prices.9

 

Managing Data to Gain Market Advantage

 

Using data and analysis to provide visualizations allows the organization to view their risk metrics in almost real-time. It improves their ability to take advantage of the changing market conditions which can drive customer relationships and growth. According to our recent survey from KPMG, 55 percent of insurers say they are using D&A to improve risk management.10 Hospitals and health systems face leadership challenges that can hinder marketing objectives as they begin to transition to population-based healthcare:

Having the right technology is useful, successful implementation of any new analytical tool within healthcare organizations is a matter of adopting internal culture to turn data and analytics into part of the everyday workflow. Here are some factors to consider:

 

  1. Executive and Stakeholder Buy-in. It’s not enough to have the tools in place. Healthcare team need to use data as they need to understand the value and potential of analyzing and visualizing healthcare data. This requires a cultural change that must be facilitated by upper management.

 

  1. Plan Marketing Projects Ahead of Time. Organization should define its objectives and medical or business questions it wants to be answered before spending time and effort generating reports.

 

  1. Broad Access to Data. A strong analytical team gives easy access to data and allow them to draw their own insights from it.

 

Customers decide very quickly on whether they like the marketing message. Planning strategies in line with the executive leader’s perspective increase customer satisfaction. Following the strategies below can to maximize data in marketing as proven to be effective:

 

  • Strong Referral System. Professionalize referral process by creating create a referral guide. It should explains in detail how you work with a referral including your discovery and planning process.
  • It can reduce acquisition costs by as much as 50 percent, lift revenues by 5 to 15 percent, and increase the efficiency of marketing spend by 10 to 30 percent.11 To make care personalized, it is important to house various IT systems into a real-time, holistic profile to gain actionable insight that fosters better decision making and enables personalized service then engage with the patient using personalized communication that enables them to better manage their health.
  • Unique Selling Proposition (USP) or Unique Value Proposition (UVP). Consider what is the most important value customer remember. Find solution to provide uniquely offered in the facility and understand patient’s population distinctively well.

 

Lean Strategy to be Market Essential

 

Health care is a unique industry, insulated from conventional market. A hospital’s reputation reflect valuable information about its performance and may spread widely.

Harvard Business Review found that higher-performing hospitals have greater market share control and experience higher growth in that market share over time than do their lower-performing competitors. Even for emergency conditions, Medicare patients are willing to travel to higher-performing hospitals to receive better care.12

Being lean is important to being market essential. The strategy had in the healthcare since it drives systematic problem-solving. Combining financial strength, market position, and technology leadership with an organizational focus on speed, agility, and simplicity builds a strong market brand. These specific strategies helped providers to build a competitive advantage:

 

  • Commitment to Simplicity at the Highest Levels. GE’s famous strategy of “number one or number two globally excise the power of simplicity. It create a value-stream map to brainstorming solutions to measuring success.
  • Continuous Campaigning. Providers are reaching prospective patients year-round with an active campaign strategy.
  • Patient Journey Mapping. Funnel engagement by listening to people to implement ideals for efficiency. Engage them in what you are doing and not just show them the ROI once a year.
  • Think Beyond Care and Treatment. Market awareness for the unique value of the hospital thorough approach in terms of research and creative development. University Health System in San Antonio, TX, highlighting its quality of care in a 30-second television ad emphasizing the importance and difference made by having a hospital that also has access to the expertise, knowledge, and research of a university.13

 

Digital Media Revolution

 

Healthcare marketers are turning to new strategies to better engage patients and provide them with relevant, personalized healthcare information. According to New York Times, more patients utilize their social network to make healthcare decisions rather than clinical quality .Patients may be more directly attuned to how satisfied they, or their friends and family, are with care.14 A good example is how Henry Ford Health System made it interesting for their Facebook audience by developing a video to showcase information in a compelling way.15

Most digitally savvy marketing organizations have also experienced revenue uplift of 20 to 40 percent.16 One of the strategies like agile analytics shaped has shown an ever-larger percentage of the organization’s marketing activities. 16

Automated marketing is a new tool in which we are also very interesting. Email information on a wellness program for walk-in clinics send subsequent messages on what they click or don’t click. A good example is Dignity Health and Go Health Urgent Care partnership with Uber to provide free flu shots.17 The following strategies were seen effective in the digital media age:

 

  • Reaching Goals with Content Marketing. According to MDG, 40% of consumers take action based on the information they discover.18 It is important to provide valuable content in individualized approach by listening to patient and family advisory councils and via an online patient panel.
  • Target Market Audience. Create content for specific niche groups, like minorities, medical tourists, or young mothers, will be more likely to gain traction and traffic. Niche audiences tend to be more passionate about their specific interests, values, and hobbies.19
  • Social Media Marketing: Social media is equivalent to ‘word of mouth’ marketing. Over 40% of consumers say that information found through social media affects the way they deal with their health.20 It is important to get people in the organization involved in social media because many employees have specialized knowledge or industry insight that can help them connect with healthcare consumers on a more personal, actionable level.

 


References:

  1. https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/Downloads/Proj2015.pdf
  2. http://www.marketwired.com/press-release/global-3427-billion-big-data-in-healthcare-market-2015-2022-2096318.htm
  3. http://numericanalytics.com/four-trends-that-will-shape-your-analytics-strategy-by-2017/
  4. http://www.enterpriseinnovation.net/article/will-artificial-intelligence-replace-cmos-1863395835
  5. https://www2.deloitte.com/us/en/pages/life-sciences-and-health-care/articles/blockchain-in-insurance.html?nc=1
  6. http://medcitynews.com/2016/11/consumer-trend-healthcare-one-hospitals-ready/
  7. http://www.klasresearch.com/about-us/press-room/2016/06/15/transparency-is-lacking-in-price-transparency-market
  8. http://www.alegeus.com/insights/research-reports/2016-alegeus-moments-of-truth-research-explores-consumer-spending-saving-in-healthcare
  9. https://www.hfma.org/consumerguide/
  10. https://home.kpmg.com/xx/en/home/insights/2016/10/getting-strategic-value-from-d-and-a-fs.html
  11. https://www.onespot.com/resources/content-marketing-stats/
  12. https://hbr.org/2016/12/research-perhaps-market-forces-do-work-in-health-care-after-all
  13. http://www.healthleadersmedia.com/marketing/university-health-system-ads-focus-possibilities
  14. http://www.nytimes.com/2016/08/23/upshot/the-life-changing-magic-of-choosing-the-right-hospital.html
  15. http://digital.technicaldr.com/p/4065004952/2016/06/27/the-6-best-ways-to-get-more-patient-referrals-online
  16. http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/agile-marketing-a-step-by-step-guide
  17. https://newsroom.uber.com/dignity-health-gohealth/
  18. https://www.marketingcloud.com/blog/heathcare-digital-advertising/
  19. http://www.healthleadersmedia.com/marketing/3-hospital-marketing-trends-watch-2017?page=0%2C1
  20. http://growmypracticeonline.com/four-ways-social-media-effects-your-medical-practice-marketing-and-the-statistics-to-prove-it/

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