operationalizing & advancing your crm strategy team to align your crm programs to your annual...

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

Chapter 8 3

Here we go! While there are important differences between healthcare CRM systems, success is often primarily determined by two things.

Operationalizingand advancing yourCRM strategy

Operationalizing and advancing your CRM strategy 4

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 up front 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.


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:

https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/consumer-business/consumer-review-8-the-growing-power-of-consumers.pdf

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.



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.


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 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.


Measuring CRM successIt’s necessary 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 CRM


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 =


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.


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

https://thedma.org/marketing-insights/marketing-statistics/data-marketing-statistics/








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.


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

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

CRM 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

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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