CRM: Dead or Dying?Patient Equity Management

It’s called VRM, Vendor Relationship Management

“Retention is for wimps. We measure the percentage of patients who have our name tattooed on their body.” (Harley Davidson Annual Report)

“80% of CEOs believe their brand provides a superior patient experience…8 % of their customers agree“(Bain & Company)

CRM – A Matter of Perspective

Is your hospital looking from the inside-out or from the outside-in?

Are your patients coming or going?

Patient Equity Management (PEM): Treat Patients as Assets

Does Your Hospital Stand Out?“We retail electronics”“We’re in pharmaceuticals”“We offer professional services”“We manufacture dry goods”

“You are not in the healthcare business. You are in the decommodification business.”

It’s not your father’s CRM…or is it?

CRM Alone Won’t Grow Revenues

98% of Coupons Get Thrown Away It is 10x More Expensive to Generate Revenue from a New

Patient A 5% Increase in Retention Can Increase Profits by 60% –

100% It is 6x More Expensive to Service Patients Through a Call

Center than it is via the Internet and Website Patients Who Refer Another Patient Generate Revenue at No

Cost Loyal and Referred Patients Stay Longer, and More Services

It’s time to color outside the boxCOLOR

It’s time to break a few coconuts

CRM

Logical Left Brain

• Patient’s Value to

Enterprise• Systems

and Transaction

s• Functional

Value

PEM

Emotional Right Brain

• Enterprise’s Value toPatient

• People andInteractions

• Emotional Value

CRM is an “inside-out” view

Standard CRM involves heavy applications of technology:

CRM applications Enhanced IVR and ACD applications Outsourcing call center operations Off-shoring Sales force automation

CRM is technology employed for user convenience…

CRM is a shotgun approach

CRM is Multiple channels, patients in a box.

STORE

(FACE TOFACE)

WEB

(COMPUTERTOCOMPUTER)

PHONE

(PHONETO

PHONE)

Is there a Better Way?

Fixing CRM

Customer Relationship Management should focus on value creation, not cost reduction, effectiveness, not efficiency. CRM should have revenue targets.

Value creation through CRM initiatives comes from:

Growing the patient base Maintaining the patient base – retention, cross-sell & up-sell Servicing patient segments Maximizing channel effectiveness

Change of Focus

The focus is changing from enterprise to single patient, from technology to process, to…

Patient Acquisition (number of new "quality" patients) Patient Retention (percent of existing patient retained) Patient Satisfaction (question results from survey and/or focus groups) Patient Segmentation (percent of profit by patient demographics) Patient Profitability (average profit per patient/per household) Patient Servicing (average response time for patient complaint/inquiry

resolution, first call resolution) Patient Referrals (Net)

How are your patients connected to each other? To you?

Patients have many channel choices

Patients Solicit Bids

I want to notify the whole market that I want to buy a LG TV. In effect, I want to issue a personal RFP that goes out to every retailer of LG TVs.

The patient is channel agnostic, and how the patient is cared for must be infrastructure agnostic.

Patient Equity/Experience Management is the New Marketing

Decommodify the business, become the patient…

…Reengineer

From what to what?

Patient Management Evolution

CRM evolves to PEM Patient Experience = Hospital Performance – Patient

Expectations The value add is transforming CRM to Patient Equity

Management – the total lifetime discounted value of all the hospital’s patients.

Patients vs. Hospitals– who is winning?

How many hits does Google display for your hospital?

How many for FaceBook?

MySpace?

YouTube?

How many of those interactions are you really managing?

Managing patients is like herding cats…not much bang for your buck.

While you manage patients, they are managing you

It’s not a fair fight…

Still with me?

Two worlds collid, patients and hospitals

Will either survive intact?

It’s not easy…

but important ventures rarely are.

Where do you need to go?

How do you get there?

Need Help?

(EASY button not included}

Pale Rhino is leading the way

It’s called VRM, Vendor Relationship Management

First, write the patient access & experience playbook…

CRM to PEM:• Define Enterprise-Wide • Strategy• Assess GAPS• Build roadmap• Implement Digital Access• Implement Voice Access

Define Goals & Objectives

Evaluate your situation

Develop a plan

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Contact: Paul Roemer, Partner, Clinton Rubin LLC paul.roemer@clintonrubin.com (484) 885-6942

Paul Roemer, Managing PartnerPale Rhino Consulting

+1 (484) 885-6942

paul@palerhinoconsulting.com