operationalizing & advancing your crm strategy and then align your demand generation,...
TRANSCRIPT
1Chapter 8
The Definitive Guide to Healthcare CRM
A practical guide for successful CRM selection, implementa-tion, and value creation
Operationalizing & Advancing Your CRM Strategy
EXCERPT FROM:
The Definitive Guide to CRM: A Practical Guide for Successful
CRM Selection, Implementation, and Value Creation
2
In this chapter, we’ll answer your questions about:
• What are the keys to successful CRM implementation and
value creation?
• Who do we need on our team for success?
• How do we measure success?
• What future capabilities and benefits can I get from a
healthcare CRM?
Chapter 8
Here we go! While there are important differences between healthcare CRM systems, success is often primarily determined by two things.
Operationalizingand advancing yourCRM strategy
Chapter 8 3
NUMBER ONE
Your strategy and processes
During the CRM database build, the hard cross-
functional work to identify, document, and enable a
multitude of consumer journeys should begin, because
you can’t become a consumer-centric organization
looking through an internal lens! Now is the time for
your team to align your CRM programs to your annual
plan, and then align your demand generation, lead-
lifecycle, service, and patient retention processes to how
today’s healthcare consumers choose providers and
make treatment decisions.
Just remember that your best research upfront will only
answer half the questions about what will ultimately
motivate consumers and deliver your desired business
results. The other half will only be answered when you
start rolling out CRM programs and measuring their
performance. Without CRM in place, marketers typically
work from intuition, but modifying your processes to
look at real-time campaign and conversion data and
respond accordingly is critical to CRM success.
Operationalizing and advancing your CRM strategy 4
NUMBER TWO
Your people
Marketing is increasingly becoming a technical
discipline that requires proficiency with data and
technology solutions. Your CRM operational leader must
be comfortable using technology and interpreting large
amounts of data to make decisions. This role isn’t for
everyone, so before you “designate” someone, carefully
evaluate the skills of your team and make sure you
have the right person in place or choose a vendor that
offers a fully managed marketing service.
“Consumer engagement needs to go beyond the marketing function, it
requires better collaboration across different parts of the organization
in managing different touch-points with consumers.”
Source
AnalyticalResults-DrivenGood Communicator StrategicData-Oriented
CRM operational leader traits:
Operationalizing and advancing your CRM strategy 5
Know where to start Having the right strategy, processes, and people is
essential for long-term CRM success, but don’t
let not having all of them keep you from getting
started. The best CRM implementations adhere to
the adage, “Think big; start small; move quickly.”
Hint! Small wins will increase stakeholder buy-in across
your organization, and increase your chances for success over the short and long term. Get
started. Demonstrate value. Then, evolve.
Think Big Start Small Move Quickly
• If you think big, you’ll position yourself to achieve the grand vision of what you want your CRM to ultimately deliver.
• If you start small, you won’t get stuck in analysis paralysis, or feel the need to wait until all your campaigns are mapped out or your website personalization strategy is perfect. Perfect can be the enemy of good enough!
• Talk to your vendor about a “Quick Start” program that will allow you to launch campaigns as soon as your prospect database is built. You shouldn’t have to wait for all the heavy lifting associated with data extracts and system integrations to occur before you start to execute the most basic programs, like
New Movers and inbound lead management.
Operationalizing and advancing your CRM strategy 6
1. Cooperate with all the vendor’s requests related to data extracts, integration, and testing.
Top 10 Must-Dos
Tip: Getting the right data in place, which includes the right integrations, requires an earnest effort and commitment from you and your stakeholders. While the technical aspects of getting the right data extracts done are not typically problematic, the bigger challenge often lies in getting IT/IS to prioritize the CRM project. For this reason, it’s critically important to involve IT/IS leadership in the CRM decision process from the onset.
Tip: Personas and journey maps are important strategic tools that help provide an in-depth understanding of who your target consumers are, what they need, and how they interact with your organization across all touch-points. In addition, these tools can be critical for sharing consumer insights across the organization, building buy-in, and helping teams take targeted action to improve consumer experience. They have many uses beyond CRM, so investing in them is well worth the effort.
2. Identify your most important goals and objectives, starting with your annual plan and your CRM business case.
Given how endless your possibilities are when using CRM, the “things to do” list can vary by vendor and strategic plan, but to get you started, we’ve created an abridged list of the top 10 must dos to get your CRM programs up and running:
3. Outline a set of CRM programs and tactics for the first three to six months in partnership with the vendor or consultant.
4. Develop the requisite personas and consumer journey maps needed to support the CRM campaigns and programs that will deliver against those objectives.
Operationalizing and advancing your CRM strategy 7
5. Create the right creative and content for the campaigns. Don’t just use what you have, because the right creative, by channel, is just as important in driving response as identifying the right audience.
6. Ensure your team gets the training they need to be successful.
7. Implement A/B testing, monitor the initial programs closely, and optimize where it makes sense. Depend on your vendor partner for guidance as to when is “too soon” or “soon enough” to start adjusting.
Tip: Measuring results and tracking performance are key to validating your CRM strategy. Splitting an audience segment into two groups and testing variations of content will help you learn more about what your consumers prefer and can help you make more informed choices in the future for, hopefully, even better performance.
8. Complete a check-up after three to six months, and consider re-engaging with your vendor’s services. Evaluate additional services that could take you to the next level.
9. Engage with your vendor’s community to learn and share best practices.
10. Communicate your successes early and often. Continue to build enthusiasm and buy-in at all levels of the organization.
Operationalizing and advancing your CRM strategy 8
Measuring CRM successIt’s necessary — and arguably mandatory — to have a measurement program that ensures your CRM programs transform from mere plans to reality, delivering against the objectives and goals outlined in your CRM business case and strategic plan. After all, reporting and analytics reside at the intersection of marketing art and marketing science and give you the ability to prove the impact of your marketing efforts.
All CRM vendors provide some level of marketing
measurement and analytics, but the depth of
functionality — especially in terms of measuring
impact on revenue and ROI — varies greatly, from
extremely basic to extremely deep. As you work with
your CRM vendor partner or consultant, refer to
your CRM business case and clearly articulate which
metrics are required to satisfy internal expectations
and inform future decisions.
Healthgrades' Healthcare CRM
Operationalizing and advancing your CRM strategy 9
NEED SCREEN
Campaign response by channel Response rate measures how many targeted
consumers respond to a marketing campaign.
You can calculate this by dividing the number
of responses by the total number of possible
responses. A response rate is an early indicator
of targeting effectiveness, but is only loosely
correlated to more important mid-funnel and
bottom-of-the-funnel metrics like Leads by Source
and Revenue, and is therefore not the ultimate
measure of marketing success.
HERE ARE SOME METRICS TO CONSIDER:
Leads by sourceNot all leads will come from CRM activity. In fact,
sometimes the best leads come from passive
inquiries such as an individual engaging with your
website, social media, or other marketing efforts.
Track these inquiries to show how marketing
channels have helped attract visits, leads,
and patients. This will allow you to compare
different sources and evaluate which provides
the best return.
For example: You’ve conducted a direct mail campaign in which you sent 1,000
postcards, and you received 50 responses. Your response rate was 50/1000, or 5%.
1,000 POSTCARDS SENT 50 RESPONSES =
Operationalizing and advancing your CRM strategy 10
Cost per lead (CPL) by campaign and channelHow much you spend for each lead you get.
Cost per acquisition (CPA)How much you spend for each new patient
you get.
Campaign revenue and contribution margin,by service line and procedureRevenue is easy to measure, but contribution
margin is more complex and more valuable to
CFOs. Contribution margin is the difference
between the dollars you collect for an encounter
and the costs associated with that encounter.
Your costs, however, go far beyond what you
spend on marketing. To calculate contribution
margin, you’ll need to work with Finance to
determine your organization’s actual costs
at a procedural level. The goal of measuring
contribution margin is to ensure you’re bringing in
the right mix of patients, payers, and procedures
to increase profit.
Cumulative pipeline growth and forecast accuracyBeing able to accurately measure leads by stage
and predict when those leads will convert to
appointments and procedures is important to
ensure operational alignment. Some campaigns,
like bariatrics for example, have a very long tail
and can generally take twelve to eighteen months
to convert to procedures and deliver an ROI.
Monitoring the number of incoming leads — and the
rate at which those leads convert to appointments,
then procedures, then revenue — is essential for
revenue forecasting and capacity planning.
Change in payer mixA report of your charges by payer-class tells you to
whom you are providing services. This information
is invaluable for the strategic management of your
consumer marketing strategies, including analysis
of overall contribution margin and the potential
addition of new services and providers. Setting up
a “payer-class” or “financial class” categorization
in the CRM is key to this analysis.
Operationalizing and advancing your CRM strategy 11
Patient retention rate (PRR)It costs significantly more to acquire a new patient
than it does to retain an existing one. This makes
it important to measure how successful you are at
maintaining relationships with existing patients.
To do this, divide the total number of patients at
the end of a given period by the total number of
patients at the beginning of the same period, and
multiply that number by 100 (patients are generally
considered consumers that have had utilization
within the prior 24-month period). Once you know
your PRR, you can work on improving it.
Consumer lifetime value (CLV; often referred to as Consumer Value-to-Date) Understanding CLV allows you to prioritize and
focus efforts toward retaining the most profitable
patients while finding new consumers that fit the
same patterns. This metric allows you to better
align service line campaigns to grow wallet share
and help you determine where to offer loyalty
programs.
33%of elite marketers say having
the right technologies for data collection and analysis is the most useful in understanding
customers
Source
Operationalizing and advancing your CRM strategy 12
TREND ONE
Top 3 trends shaping the future of CRMFor the past several years, changing consumer behaviors have forced provider organizations to evolve their approach to consumer experience and how they market. New competitive dynamics and the rapid proliferation of personalized digital experiences in other industries have been at the heart of the Healthcare CRM boom. As we look to 2018 and beyond, what are the top three trends that will impact the continued adoption and evolution of CRM technology?
The use of CRM data to power highly personalized experiences across websites and social channels will expand quickly.
Just because some CRM vendors have added “website” or
“social integration” to their feature list does not mean they
have mature capabilities in these channels. In fact, most
have barely scratched the surface. Going forward, your
organization should continue to explore new possibilities
for using web and social channels to track to a wider set of
consumer behaviors and interact with consumers in a more
timely, relevant, and helpful way across more channels.
Operationalizing and advancing your CRM strategy 13
CRM usage will expand beyond the marketing department into more parts of the consumer lifecycle.
CRM vendors, especially the new generation of
Software-as-a-Service vendors, have historically
focused primarily on the business problem of patient
acquisition and service line revenue. Going forward,
CRM will focus on a broader set of business problems
across all parts of healthcare consumer lifetime
value, including relationship marketing workflows that
improve cross-sell opportunities, consumer loyalty,
referrals, and retention. As you master the basics of
CRM campaigns, continue to evolve your strategy to
address new use cases that can have a positive impact
on both consumer loyalty and program ROI.
TREND TWO
Operationalizing and advancing your CRM strategy 14
CRM
Beyond
Referrals
Customer loyalty
Retentions
Relationship marketing workflows
individual consumers at the moment of interaction
and will empower you to dynamically adjust your
spending between programs based on a real-time
understanding of program ROI. AI will also help CRM
vendors increasingly provide benchmarks that will help
you contextualize
your results.
Artificial Intelligence (AI) will automate more marketing decisions and further improve CRM-driven ROI.
Artificial intelligence is everywhere right now, and
CRMs will eventually get AI upgrades, as well. When
it comes to healthcare CRM, big data refers to all the
information created by today’s consumers — from
keywords they use and content they share, to the
webpages they visit, emails they open, medications
they take, and the steps they achieve in a single day.
Today, all that data is just noise, but AI will begin
to turn that noise into actionable insights at an
aggregate and individual level. For example, service line
and procedure scoring, which informs segmentation
and targeting, will evolve from a rules-based system
to a self-learning algorithm. Also, AI will allow your
marketing systems to predict the best offer for
CRM
TREND THREE
Operationalizing and advancing your CRM strategy 15
There you have it…
everything you ever wanted to know (and then some) about healthcare CRM. Whether your organization is a first-time CRM buyer or looking to replace an existing healthcare CRM with a contemporary solution designed for the digi-tal era, now you understand why CRM is the technology that will propel your organization into the new era of relationship-based marketing and consumer experience enablement with quantifiable results.
Undoubtedly, healthcare CRM is constantly evolving. We’ll continue to stay on the forefront of CRM trends and keep you up-to-date with our website, blog, and CRM resources at https://partners.healthgrades.com/systems/healthcare-crm.
CONCLUSION
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