1. Marketing Defined
“Marketing is the distinguishing, the unique function
of the business... It is not a specialized activity at all.
It encompasses the entire business. It is the whole
business seen from the point of view of its final results,
that is, from the customer’s point of view...”
Peter Drucker (1954)
2. Marketing & Profitability
A Cornerstone in Business: The Profit Triangle
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Competitive Advantage
We must differentiate ourselves in order to attract and retain patients.
3. 2010 Marketing Goals
Customer Value Creation
- Target profitable customer segments
- Increase customer value
- Increase customer/market awareness
Internal Operations
- Improve operational efficiencies as it relates
to the customer experience
Competitive Advantage
- Improve competitive position
4. Customer Value Creation
GOAL: Target profitable customer segments
Current Patient Demographics
Total: 1,437 Patients
The most attractive segment is not the largest % of
customer base, it’s the largest % of annual revenue.
5. Customer Value Creation
Questions to Consider...
How can we better track our customer
segmentation so that profitability is
easily determined?
Are there other meaningful ways in which
customers should be segmented (other than
demographics)? Is this being tracked?
Do you consider a primary care physician
a supplier, a customer, or both?
How should we segment and target the most
profitable primary care physicians?
6. Customer Value Creation
GOAL: Increase customer value
Core Value Proposition
States the unique benefits the product/service is to provide to customers.
Ex) Amex Traveler’s Cheques - “Accepted Everywhere”
What is Impact Orthopaedics’
Core Value Proposition?
Should be important, distinctive, superior, communicable,
preemptive (not easily copied), affordable, & ideally, profitable.
7. Customer Value Creation
GOAL: Increase customer value
Total Customer Experience
Where can value be added? Where is their opportunity for differentiation?
Discussion with Initial Phone Call Appointment Front Desk
Referral Source (Apptmt/Info) Reminder Call Check-In
Waiting Room Exam Room Exam Room H & P with
Experience Check-In Wait Experience Dr. Jones
Front Desk Follow-Up
X-Ray Discharge
Check-Out Phone Calls
8. Customer Value Creation
GOAL: Increase customer value
Service Offerings & Other Preferences
Customer
Survey Results
9. Customer Value Creation
Questions to Consider...
How can we effectively communicate our
core value proposition to our customers?
What are some ways we can increase the
value we offer to our customers in order
to sustain competitive advantage?
- Service offerings?
- Resources Available to Patients?
- Patient Appreciation?
- Others?
10. Customer Value Creation
Questions to Consider...
How can we effectively communicate our
core value proposition to our customers?
What are some ways we can increase the
value we offer to our customers in order
to sustain competitive advantage?
- Service offerings?
- Resources Available to Patients?
- Patient Appreciation?
- Others?
11. Customer Value Creation
GOAL: Increase customer awareness
Referral Sources and Marketing Mix
Customer
Survey Results
12. Customer Value Creation
Customer Awareness Meets Customer Service
“The only path to
profitable growth may
lie in a company's ability
to get its loyal customers
to become, in effect, its
marketing department.
- Frederick Reicheld, 2003
Source: Frederick Reicheld, “The One Number
to Grow” Harvard Business Review (December
2003): p 52
13. Customer Value Creation
Questions to Consider...
What are some ways we can foster this idea
of “promoters” in our patient base? How
about with primary care physicians?
Do you agree with the survey responses
with regard to marketing mix (the relative
effectiveness or ineffectiveness of each
medium)? If not, why?
Can you suggest more cost-effective ways to
increase awareness than with mass media?
14. Internal Operations
GOAL: Improve operational efficiencies
Total Customer Experience
Are there opportunities for process improvements?
Discussion with Initial Phone Call Appointment Front Desk
Referral Source (Apptmt/Info) Reminder Call Check-In
Waiting Room Exam Room Exam Room H & P with
Experience Check-In Wait Experience Dr. Jones
Front Desk Follow-Up
X-Ray Discharge
Check-Out Phone Calls
15. Internal Operations
Questions to Consider...
How can we better utilize Athena to
improve the total customer experience?
Are there redundancies in the system
that can be eliminated (especially those
that impose on the patient)?
16. Competitive Advantage
GOAL: Improve competitive advantage
Areas of Service Differentiation
Where/How do these traits fit into the Total Customer Experience?
• Reliability - perform service dependably & accurately
• Responsiveness - ready and willing to give prompt service
• Assurance - knowledgeable, courteous employees who
convey trust and confidence
• Empathy - caring, individualized attention to customer needs
• Tangibles - physical resources are there to make it real
17. Competitive Advantage
Questions to Consider...
Who are our biggest competitors?
What customer value do they offer to
their patients that we do not?
How do they differentiate themselves from
other practices? Is it obvious?
What are some strategies we can use
to specifically attract patients away from
our competitors?