ADVANCED CRM: THE ENABLING ELEMENT OF

MODERN MARKETING

MEET THE PRESENTERS

Chris Restle Director of Strategy and Insights

True North Custom

Kellie Spellman Director of Business Development & Marketing

Houston Methodist St. John Hospital

✪  The Current State of Healthcare CRM

✪  Healthcare CRM: The Basics

✪  Advanced CRM: Targeting

✪  Advanced CRM: Execution - Event Triggers & Marketing Automation

✪  Advanced CRM: Measurement

✪  Advanced CRM: Uniting Systems

✪  Advanced CRM: Leveraging Data to Develop Content

✪  Advanced CRM: Loyalty

✪  Key Takeaways

✪  Q&A

WHAT WE’LL COVER

HEALTHCARE CRM: CURRENT STATE

Where is your organization with CRM? - How many people are buying lists for mailings? •  Community lists? •  Doc lists? •  Business lists? - How many people have a CRM system, also known as a marketing database? - How many people are using patient data to track their campaigns? •  Direct mail? •  Email? •  Patient loyalty? •  Web form completions…class registrations? Enewsletter sign-ups? Social

media tracking? - How many people are using patient data to track physician relations success? Employer relations? Population health?

*The State of Digital Marketing in Healthcare in 2015 Industry Perspective: Where We Are, Where We’re Headed -White Paper, November 2015

HEALTHCARE CRM: THE BASICS

Marketing and Patient Acquisition Attract Communicate with relevant content to current and potential patients to garner their business Engage and Connect Activate them through an event, web form, find a physician phone call Collect their demographic data Convert Becomes a patient Continue communication and marketing through cross-selling of relevant services and events

Attract!

Engage and Connect Engage potential patients by giving them something of value •  Interesting content •  Find a physician, send a gift, offer an interesting class •  Collect their data through a web form or call center •  Exchange of value…you give them something of value and they in

return give you more data intelligence about them

Convert Track whether they become a patient •  Did they come to the service you were promoting? •  Did they have the procedure that was marketed to them? •  Did they visit that primary care physician to which they were

referred? Use a Customer Relationship Management database to track if prospects are converting to patients

Interoperability

Database Composition Customer intelligence from disparate systems is integrated into a single system designed for targeted communications and measurement

Data: Hospital, Clinic/Employed Physician, and Call Center + Third-party Consumer Info

Merge, purge, de-dupe, group into households

Conduct data hygiene Apply demographic, socio-economic

and behavior variables, including self-reported conditions and prescriptions

Apply predictive models for insurance and healthcare services

The Value of CRM •  Push the boundaries of traditional marketing and target the right

people, at the right time, with the right message •  Market profitable, priority services using highly targeted, direct

marketing messages •  Ability to measure every campaign, showing you your Return on

Marketing Investment (ROMI)

ADVANCED CRM: ENABLING MODERN TARGETING

Targeted campaigns enabled by data: ▪  Demographics ▪  Lifestyle ▪  Behavioral ▪  Social Media ▪  Geography ▪  Birthday ▪  Self-Reported Health Conditions ▪  Predictive Models ▪  Payer Type ▪  Pre-existing Diagnosis and Procedure

Codes ▪  Patient vs Prospect Status ▪  Physician Relationship Status ▪  Recent Encounter

Informed by Encounter Data/Events/Call Center

Informed by External Data Sources

Mapping Capabilities

Courtesy of Tea Leaves Health

ADVANCED CRM: ENABLING MODERN EXECUTION

Traditional Direct Marketing •  Mailed to all based on demo selects •  Launch date – February (Heart month) •  Single message to all audiences •  Potential for capacity issues

(screenings)

Event Trigger Marketing “Talk to me when I need you”

•  Reach out with just the right message at just the right time – maximize response rate

•  Sustainable growth of patients

•  Patient gets the right services when it matters

Triggers tell us:

Something has changed and/or Someone is more likely to respond NOW

Cardiology Campaign example – monthly trigger •  Hypertension diagnosis •  Diabetes diagnosis •  ER encounter with chest pain •  Health risk assessment shows a smoker, increased risk for stroke/heart attack, or

overweight/obese •  Self-reported interest in heart disease collected via call center or website • Attended Cardio-related class

• Birthday for people at high risk for cardiology

ADVANCED CRM: MARKETING AUTOMATION

Marketing Automation Use regular monthly or quarterly communication followed with yes/no logic to continually engage prospects and move them through the engagement continuum.

Courtesy of Tea Leaves Health

Courtesy of Tea Leaves Health

Sample Automated Campaign Monthly find-a-doc campaign for employed physician group where a direct mail and email are sent every month to new targets that fit the criteria -  Patients that had no PCP in the ED -  Prospects with likely good insurance that live near the clinics

Response Summary

Source Mailing List Patient Respondents Response Rate

# % # % % Patient 28,595 25.5% 1,217 57.4% 4.3% Qualified Prospects 21,676 19.3% 587 27.7% 2.7% Prospects 61,859 55.2% 316 14.9% 0.5% New Movers 0 0.0% 0 0.0% 0.0% Unique Total 112,130 100.0% 2,120 100.0% 1.9%

•  42 drops – 7 months and a drop for each of 7 regions •  Tracking at the employed physician clinic level

Automated Find-a-Doc Reporting

•  Overwhelming value in the payer mix from targeted CRM campaigns •  System experienced 88.1% commercial/managed care through the

find-a-doc campaign

•  Continually have a market presence with low expense and high returns

Find-a-Doc Reporting

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

Respondents

Courtesy of Tea Leaves Health

Measuring other marketing assets Call Center, affinity groups, web registrations, classes, etc

Courtesy of Tea Leaves Health

ADVANCED CRM: ENABLING MODERN

MEASUREMENT

Metrics versus ROI Metrics • Digital marketing offers multiple views into online response behavior:

• Email clicks/ opens, Trackable Phone Numbers, Social Shares, Site, Pages visited/Time per page

• Digital Marketing is meant to Engage, Inform and Influence

• Decisions based on real-time metrics should be to optimize content, approach, timing to maximize effect

• The desired, immediate action from Digital Marketing will not necessarily translate into Joint Replacement or Bariatric Surgery after a 3 month campaign

Goals and Expectations need to match Tactics

Metrics versus ROI ROI • Measurement of services consumed by those marketed to, after the receipt of communications

• Comparison of marketing targets utilization against a control group to remove what would have normally occurred

• Calculate the true marketing effect that you get to take credit for

551 721

418 601

763 865 787 684

JAN FEB MAR APRIL

CONTROL TARGETS

Control Group (expected)

Targets (Actual)

Incremental

Encounters 2028 3451 1423

Avg Contribution Margin Per Encounter

$1953 $2274 $321

Total Contribution Margin $9,951,515 $11,494,713 $1,543,198

SEE THE BIG PICTURE OF MARKETING’S IMPACT

CRM Results Reporting •  After five years of implementing CRM and making a standard across

the system, CHRISTUS Health was able to prove significant results

•  2,132 campaigns from August of 2010 through July of 2015

•  In FY15 (July 1, 2014-June 30, 2015) approximately 800 campaigns -500 direct mail -300 email

Corp Household – DM+EM – Lifetime Passive

Patients

Respondents Response Rate Average CM Total CM ROMI Targets 260,466 55.3%

$5,040 $1,312,748,640

$39 Projected 236,967 50.3% $1,194,313,680 Difference 23,499 5.0% $118,434,960

Prospects

Respondents Response Rate Average CM Total CM ROMI

Targets 81,839 12.3% $3,518

$287,909,602 $33 Projected 68,048 10.3% $239,392,864

Difference 13,791 2.1% $48,516,738

Qualified Prospects

Respondents Response Rate Average CM Total CM ROMI Targets 51,174 33.9%

$4,708 $240,927,192

$20 Projected 46,777 31.0% $220,226,116 Difference 4,397 2.9% $20,701,076

Marketing Lift: Respondents 41,687 Contribution Margin $182,270,714

ADVANCED CRM: UNITING SYSTEMS

Using CRM in PRM, ERM and Population Health •  CRM database can track the success of physician relations,

employers relations and complement population health campaigns •  Can also be helpful for health plan campaigns or getting the

uninsured to choose a health insurance exchange plan - CHRISTUS used the system to target past patients that did not have insurance who continually used the system - Succeeded in converting more than 12,000 patients in FY15 from uninsured into being on some type of plan - Average additional payments per converted patient was $6,000

PRM Results •  Program implemented system-wide in FY14 •  17 Physician Relations Managers in place across the system •  Physician Relations Growth reporting FY15 Q2, change over

previous year quarter •  Patient growth for A-B docs:

- 42% increase; 28,557 patients •  Contribution margin for A-B docs:

- 46% increase; 9,852 patients - $20.8M in contribution margin

ERM Reporting •  CRM database gives you the ability to track the success of employer

relations campaigns •  One CHRISTUS region regularly tracked its events and

communications with employees of engaged employers to show the contribution margin into the hospital, and also the affect of a healthier workforce on the employers’ bottom line

Population Health Campaigns

•  CRM system complements population health by reaching the 90% through wellness campaigns

•  10% of chronic patients can be communicated and managed through population health/care management system

•  Sample campaigns include: -Mammo reminders -Annual physical reminders -Diabetes maintenance visit reminders

The Right Message… Leveraging Data for

Content Development

Instant Insights •  Custom Content can happen in parallel with audience development •  With ever increasing ability to target individuals, and platforms that

can talk to them wherever they are, content MUST be relevant and match the audience

•  Household level insights can drive development of hyper-relevant content

Sample Research Service Line Campaign Population Overview – 79,684 addresses meeting campaign criteria that includes: -10 Mile Radius around facility

Instant Insight: • Age • Gender • Ethnicity •  Income • Language spoken at home • Occupation • Level of Education • Presence of Children/Age Range

Instant Insight: • Top Health Risks • Self-Reported Conditions • Social IQ • Model for opening email • Likelihood Positive Payer Type

TAKEAWAYS

THINK INTEGRATION (AND GET I.T. INVOLVED EARLY AND OFTEN)

ALIGN CONTENT STRATEGY WITH THE CONSUMER

CONSIDER BENEFITS BEYOND MARKETING

✪  Service Line Growth Management

✪  Population Health/Cost Conservation

✪  Community Wellness

✪  Physician Relations

✪  Employee Engagement

THANK YOU! Email crestle@truenorthcustom.com to receive a free custom analysis to

identify opportunities in your market.