Marketing Beyone ROI

1. Cincinnati Alliance For Healthcare Marketing March 5, 2009 Presented by Patrick T. Buckley MPA President and CEO PB Healthcare Business Solutions LLC PB H ealthcare B usiness S olutions LLC Strategy, Marketing, Management for Health Care® ©2008 PB Healthcare Business Solutions LLC The material contained herein is protected and intended for use by clients and associates of PB Healthcare Business Solutions LLC, and may not be reproduced or distributed without the express written consent of PB Healthcare Business Solutions LLC.

6. In Many Organizations, Hospital Marketing Struggles To Prove Its Value CMO

7. Observation #1: In many health systems, marketers have suffered from narrow and outdated stereotypes, some which have been self-inflicted.

11. ROI Approaches

13. I N V E S T M E N T RETURN Image Campaign Service Line Campaign Single Procedure Promotion $ $ The most effective application of the traditional ROI measure is to focus on specific high revenue to expense procedures that can be tracked to specific physicians

16. Observation #3: Then why would you staff or budget for your marketing program according to the median in an association survey? Would you buy a medium size pair of pants because it’s the most popular size in the store? Or would you buy the pair that fits you best? Relying On “Norms” and Averages Can Be Dangerous To Your Long-Term Marketing Health!

20. TRADITIONAL MEASURES OF MARKETING PERFORMANCE Build our awareness and preference Increase inpatient market shares Create positive media coverage Sustain and increase physician referrals Improve customer satisfaction

21. NEXT LEVEL MEASURES OF MARKETING PERFORMANCE Attraction and retention of strong performers Improvements in physician/provider business relationships Improvements in our community’s health status Innovations in customer service and in the way we price, deliver, and engage customers in “healthing themselves” Others:

22. CURRENT LEVEL THINKING NEXT LEVEL THINKING Focus On Winning Market Share Focus On Changing The Market Focus On Promoting Services Focus On Innovating Processes: “What Can We Do Better?” Focus On Short Term Results Focus On Long-Term and Sustained Results Focus On Post-service surveys Focus On Making The Right Experience in Real Time Offer Product >Market It Product Occurs From Re-Defining Practices, Based on Customers’ Value Assessment Linear Solutions Integrated Solutions

23. Case Study: Apple I-Pod and SONY Walkman* Photos courtesy of Apple, Inc. and SONY, Inc.

24. CURRENT LEVEL THINKING APPROACH RESULT SONY “command and control” Own its own music, compete with other music labels Precipitous drop in sales revenues Missed a major opportunity to connect with customers NEXT LEVEL THINKING APPROACH RESULT APPLE “diffused ownership” Develop I Tunes Store where consumer picks and chooses music from several labels. Make store compatible with all MP3 players Huge success—a win/win for all of the music labels, APPLE, and consumers.

25. So What Can Marketers Do To Strengthen Perceptions Of Their Value To Their Employers?

28. PB H ealthcare B usiness S olutions LLC Strategy, Marketing, Management for Health Care SM 262-408-5549 www.pbhealthbiz.com