Matt Montgomery, senior vice president overseeing the healthcare division at Buxton, a consumer analytics firm, discusses how the success of organizations depends upon their ability to understand their customers.
Q: One current concern for healthcare organizations is an increasingly competitive market for healthcare services. What is the most important step healthcare facilities can take to market themselves effectively to consumers?
Matt Montgomery: The most important thing that existing facilities can do to understand potential customers and the performance of their services is to unlock the data they already have at their disposal such as patient demographic information, including patient age and location, as well as information about the volume of various procedures by consumer segment. This data provides a treasure trove of insight as to how facilities are effective and how they can become more effective.
This data can provide facilities with a great deal of information about patient demographics, which then can be interpreted and coupled with commercially available data sets to identify segments of consumers that are the best potential customers and provide insight about their lifestyles and media preferences. Facilities can ensure that their marketing is effective and efficient by knowing as much about their customers as possible and using this data in their market planning process.
Q: There seems to be trend of more savvy consumers in the healthcare market and this will likely continue to increase as the government works to make comparison data more widely available. How can healthcare facilities prepare for the effects of this?
MM: Healthcare facilities have to be proactive about communicating how they differentiate themselves from their competitors. Physician referral networks are not nearly as strong as they were five, or even, two years ago. We are definitely seeing more and more consumer-driven healthcare with increased patient choice and transparency. With all the data that is available to consumers, facilities need to be able to cut through the noise.
Healthcare facility leaders need to determine points of differentiation and formulate a plan to spread that message to consumers. They must develop clear and concise messages to communicate these points of differentiation to the right potential patients. By using internal and commercially available data, facilities can ensure they are targeting the right consumer segment using the best method of communication to effectively reach that segment.
Q: What is the most effective and efficient method for healthcare facilities to spread their message?
MM: The answer to that question really depends on who is determined to be the best potential customer, based on the data. Once you determine your best potential customer, you can cross-reference it with data on media preferences and determine which media are going to be most effective at reaching that consumer segment. This data can help leaders answer questions like, “Should I purchase a billboard, and where should it be located?” and “Should I use direct mail, e-mail or both?”
Q: What is the biggest mistake healthcare facilities make in marketing their facilities?
MM: Facilities need to employ a long-term strategy to their efforts and must apply a scientific understanding to guide the strategy. For many facilities, this strategy should address both retaining and recruiting patients. In today’s economy it is much easier to retain patients than to recruit new ones. Thus, facilities should develop a two-pronged approach to their marketing strategy.
Facilities that invest in direct mail or advertisements as opportunities presented to them from vendors are not being effective or efficient with their marketing dollars. There seems to be a misconception about the immediate effectiveness of marketing efforts. Many facilities seem to believe that if they simply distribute information about their services then patients will be beating down their door for appointments.
Because healthcare is unique in that patient need varies, facilities must build brand awareness over time. By reaching potential customers with multiple messages over time, facilities can increase the likelihood they will be top of mind when the need for a surgery or other healthcare service presents itself. Facility leaders cannot think that one communication is enough to make a significant impact on consumer choice.
Matt Montgomery (mmontgomery@buxtonco.com) leads Buxton’s HealthCare ID Division, providing consulting leadership to a number of healthcare entities in their market planning and marketing efforts.
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