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Understanding Your Customers & Their Requirements

Gain insight into the challenges and requirements of practicing medicine in 2010, with a focus on ophthalmology and patient needs.

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Understanding Your Customers & Their Requirements

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  1. Understanding Your Customers & Their Requirements Kristine A. Morrill London, UK & Strasbourg, France

  2. Credentials A founding partner of medeuronet – a pan-European company whose vision is to accelerate time to market and drive profitable sales growth for innovative, start-up companies, as well as managing director of KAMCommunications – a healthcare marketing communications company based in London

  3. Goals for this talk • Provide insight into challenges of practicing medicine in 2010 • What about ophthalmology? • What about patients? • How you can help

  4. Practice & Patient Insight

  5. The Top 10 Challenges of Practicing Medicine in 2010 • Rising operating costs • Managing finances • Implementing electronic record keeping • Maintaining physician compensation levels; • Recruiting physicians; 6. Collecting from patients who self pay 7. Negotiating contracts with payers 8. Managing teamwork and group dynamics 9. Modifying physician compensation methodology 10. Participating in CMS' Physician Quality Reporting Initiative, or PQRI. (US only) 2010 Medical Group Management Assoc. Survey

  6. The Challenges of Practicing Medicine in 2010 This is not just a US phenomenon! • In Europe: • Governments are capping healthcare spending • Rejecting code requests for new technology • Reducing reimbursement • Increasing regulatory requirements • In Australia, the Australian Medical association cites: • Undue influence and constraints on medical practice by third parties such as governments, insurers • Developing countries have been particularly hard hit according to 1 study • The slow economy continues to impact consumer spending

  7. What about for Ophthalmology? • Similar to the rest of medicine, with some key exceptions: • Looming shortage of ophthalmologists (US, France, in particular) • Techno-medico-ethical economics • According to practice management consultant John Pinto: ‘Medical technology has become a kind of sorcerer’s apprentice, generating a flood of potential benefits and an unsustainable escalation of costs’ • The aging population puts an increased strained on ophthalmic services

  8. Typical Ophthalmology Patient in 2010 • Four primary age groups: • Young Baby Boomers – age 45 to 54 • Old Baby Boomers – age 55 to 63 • The Silent Generation – age 64 to 72 • The GI Generation – age 73+

  9. Key Characteristics of the 4 Groups • Young and Old Baby Boomers • AKA: The NeverSatisified Generation • Greater affluence: In 2004, UK Baby Boomers controlled 80% of the wealth in this country • Young Boomers key characteristics: • Less optimistic, distrust of government, generalcynicism • Old Baby Boomer key characteristics: • Experimental, individualism, free spirited, social-cause oriented

  10. Key Characteristics of the 4 Groups • The Silent Generation • Born between the Great Depression and WWII • Key characteristics: Hard working, loyal, submissive, technology challenged, traditional • The GI Generation • AKA ‘The Greatest Generation’ • Perseverance and resilience, self-sacrifice, family, consensus and teamwork

  11. The Baby Boom Bulge • The largest population segment today (35%) • Positives • Growing old gracefully is not an option for this group • Will not compromise on health and appearance – have worked long and hard for later years, want to enjoy and grow old beautifully and in health • Willing to spend money on health • Negatives • Size of the population will put a tremendous strain on healthcare systems • Growing levels of eye disease such as diabetic retinopathy and ARMD

  12. What It all Means • Ophthalmologists are feeling pressure from all sides: • Patients • Government/Insurers • Rapidly evolving technology • Shrinking practitioner population means greater workloads

  13. Your Role

  14. How Can We Help? • Certainly, ophthalmologists are under pressure in 2010 • Meanwhile, your job is to grow your business and increase sales • So, how can you help? • The answer is by helping your customers grow their own practices • Assisting your customers in being better businesspeople and marketers will pay off for you

  15. MD Support Programs • Develop cost-effective tools and programs for MDs • By providing tools and programs, you build customer loyalty • These programs also provide additional face time and sales opportunities! • Plus programs can be built around new technology to help MDs see the financial advantages

  16. MD Support Programs • These tools and programs can take many shapes • Cost is what you can afford – but you do need to plan on investing upfront • Good packaging and MD input in development are critical factors for success

  17. Some examples…

  18. Subsidize Articles & Abstracts • Find a local PR agency that can help your customers develop articles • Offer assistance in drafting and submitting abstracts to your country meetings or European-wide meetings • How many of you currently pay for customers to come to meetings like the ESCRS? • Enables you to get the word out on new products, while allowing the MD to promote his or her practice

  19. Sponsor Clinical Marketing Studies • Provide simple study plans to encourage MDs to try new products and collect clinical data • Small studies of 20 to 30 patients enables MDs to develop knowledge that leads to product endorsement • Important to have agreement in place on use of data • If data is good, encourage MDs to speak and write about the results

  20. Practice Marketing Toolkit • Develop an electronic toolkit (provided on a CD or memory stick) that gives the MD tools to promote their practice…

  21. Surgery Communication Pack • Newsletter template • Press release template • Key stats & advice • Patient brochure • Hard and soft copies • Guidance notes CD

  22. Practical advice on do-it-yourself PR and Marketing for ophthalmology practices • Complete with templates for news releases and patient letters • Available to order at www.kamcommunications.com

  23. Provide Business Management Tools • Ophthalmologists are not trained to be businesspeople • Yet, today they are expected to deal with a myriad of business issues • One possibility is to support their participation in workshops available at meetings like the ASCRS , ESCRS & AAO • There are also books available

  24. This book was written by an ophthalmologist who • Founded a medical practice • Got an MBA • Helped build one of the first MD-led practice management companies

  25. Help Develop a SimpleMarketing Plan • Even in countries where MDs cannot advertise or do public promotion, it’s possible to market • Marketing need not be expensive and elaborate • Word of mouth marketing and social media marketing are among the simplest and most cost effective tools • Here’s an example of a plan developed for a UK ophthalmologist…

  26. Example marketing plan

  27. The Goal • Create new sources for potential patients for a London-based cataract-refractive clinic

  28. Objectives - Boost enquiries and increase treatment rates -Drive consumers to the website / enquiry line - Position OUR LASER CLINIC as the trusted, personal and recommended eye care provider for all needs - Implement activities that demonstrates a measurable Return On Investment - Create a point of difference

  29. Challenges and opportunities • High consumer drop out rate between enquiry and treatment • London centric which limits patient base and media appeal • No ‘new’ technology to announce • Strong competition Tighter consumer communication relationship from first enquiry Innovative 4 star hotel package and national aftercare treatment WoM recommendations Profile strong credentials as trusted brand Innovative incentive scheme – added value

  30. Target audience Location (Geographic segmentation): • SE based (80% of patients – primary target) • Outside SE (20% of patients, therefore drive awareness of added value package and national aftercare chain) Profile (Demographic segmentation): • Generation Y (18 to 35 year olds) • Affluent and highly educated • Tech savvy and ideal candidates as healthy eyes / ages • Generation X and baby boomers (35 to 60 year olds) • Affluent and increasingly driven by vanity

  31. Strategic approach 1.Staying “eye to eye” with consumers every step of their journey • Create a tighter model • Introducing more frequent letters and engagement opportunities • Buddy scheme 2.Creating a buzz in the city • Taxi chat • The cutting edge with hairdressers 3.Strategic alliances with mutually beneficial partners • Hotels / Health spa / dating sites / companies

  32. 1. Eye to eye with consumers Develop a more frequent contact model for communicating with potential patients Treatment Enquiry Decision making 6 months later … Website generated email newsletter Incentive and new testimonials profiled (ideally matching their profile) Letter / Brochure / CD (current offering) Buddy scheme introduction

  33. 2. Creating a buzz • What is a bzzz campaign? • Bzzz campaigns rely on word of mouth • Bzzz campaigns involve recruiting Bzz agents (influential people) to spread the word • Third party recommendations are welcomed as consumers have an increasingly cynical view of direct marketing • Who are our third parties? • Other patients (AV already running ambassador scheme) • Hairdressers • Beauticians • Personal trainers • Taxi drivers • Celebrities • Other eye care professionals – after care network

  34. 3. Strategic alliances • Step 1: Identify list of top tier partners to approach • Step 2: Create short presentation clearly outlining mutual benefits of partnership • Step 3: Set up meetings /calls with partners to discuss the opportunities • Step 4: Create supporting joint branded literature • Leaflet at both outlets • Website links • Loyalty schemes / incentives (includes staff treatment and customers)

  35. Possible budget • Consultancy fee • Time and expertise of PR agency (recommended, but not mandatory) • Implementation costs • Third party costs associated with activity (excludes incentives) • Account management costs to be billed on a monthly basis including phone / post / printing etc. • Eye to eye with consumer • Fee: £3,000 / Costs: £tbc (design of collateral) • Buzz campaign • Fee: £3,500 / Costs: £tbc (design of collateral) • Strategic alliances • Fee: £5,000 / Costs: £tbc allow costs for travel to meetings / design and print of collateral

  36. Keys to success • Build a customer database • Test drive your marketing plan • Revisit your marketing plan on a quarterly basis • Most importantly, use tools to measure its effectiveness

  37. Some Other Marketing Options

  38. Harnessing the internet to drive practice growth

  39. The wonders of the internet • The internet and the world of social media on the internet are excellent, inexpensive marketing tools. Why? • Quick access to a wide range of three key population segments: • Geographic • Demographic • Psychographic

  40. Who Uses the Internet? • The people sitting in your customers waiting rooms! • The internet knows no age boundaries. 3 in 5 over-45s are now internet users, while usage among 45-54s peaks at 81%

  41. Internet Usage by Age & Type • Silent Generation (Ages 64 – 72) • Use email – 91% • Use search engines – 85% • Reseach products – 73% • Get health info – 70% • Get news/buy something online – 56% • GI Generation (age 73+) • Use email – 79% • Use search engines – 70% • Get health info – 67% • Research products – 60% • Buy something online – 47% • Younger boomers (ages 45 – 54) • Use email – 90% • Use search engines – 90% • Research products – 82% • Get health info – 74% • Get news – 70% • Older boomers (Ages 55-63) • Use email – 90% • Use search engines – 89% • Get health info – 81% • Research products – 79% • Buy something online – 72%

  42. The 6 key social media platforms* • Facebook • MySpace • LinkedIn • Blogs • Twitter • YouTube

  43. Keys to success with social media • Understand the benefits of social media, such as: • Consumer & competitive insight • Generating awareness & thought leadership • Online reputation management (especially key in refractive surgery) • Incorporate the right values: • Transparency • Honesty • Relevance • Value • Commitment

  44. Keys to success with social media • Keep your mind open to different types of online communities • Keep track of patients’ interests & hobbies • Respect the rules of the site & the leader of the group • Don’t be the only one talking about a practice & services • Encourage happy patients to log on & join in the conversation

  45. Don’t forget about email! • With all the hype & focus on social networking, it’s important to keep email in the mix • Inexpensive tool that allows you and your customers to reach hundreds quickly • Important to deliver value with the message • Consider a quarterly practice e-mail newsletter • Many cost effective tools available for creating electronic newsletter and patient communications

  46. Measuring the effectiveness of a marketing plan

  47. How to Measure Effectiveness • To ensure that you’re spending money wisely and helping your customers • Do NOT expect instant results from any marketing initiative • On the other hand, don’t wait a year before following up with a practice • People will forget and nothing will change • Build-in milestones that require assessment of progress -- no less than quarterly

  48. How to Measure Effectiveness • Track referral sources! • Include a line on the patient information sheet/have staff log it into the patient records • Keep a record of your sources • Track website traffic • Surprisingly inexpensive • Allows you to see how long visitors stay on the site • You can gather demographic information

  49. How to Measure Effectiveness • Encourage MDs to use patients as referral sources: • Create a standard questionnaire that can be sent to each patient after they’ve had surgery • Ask about practice impressions/overall experience/if they would recommend the practice • Telephone survey -- have a staff member conduct a follow-up phone call to ask about their experience • Follow-up with people who opted for treatment at another center

  50. How to start developing MD programs • Sit down and discuss your ideas with your team • Talk to your customers about what would help them • And not just your top 5 customers! • Talk to midsize and smaller customers, as well • Develop a plan that sets out: • Your objectives • Challenges and opportunities • Tactics • Tools for measuring effectiveness • Schedule for implementation and budget

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