Customer Experience Management for Healthcare

Customer Experience Management Applied to

HealthcareMichael J Krivich, FACHE, PCM

Founder and Independent Consultantthe michael J group

Patient Experience Management

A healthcare provider’s ability to deliver an experience that sets it apart in the eyes of its payers, physicians and consumers from its competitors - traditional and

non-traditional - serves to increase their spending and loyalty to the brand.

© the michael j group 2011. All rights reserved.

The wave of change is already here!


The patient moves between different personas

Individuals are only patients in one-third of their total interactions with you.

The other two-thirds of their encounters with you as a healthcare provider, is as a consumer.

Physicians and insurance companies are customers too.Only a small portion of your total interaction with markets and

channels is with patients.


Patient experience management is not new

Customer Experience first introduced by Pine and Gilmore in a Harvard Business Review Article, 1998.

The concept of Experience Management is just now beginning to move into healthcare as Patient Experience.

The Patient Protection and Affordable Care Act places the consumer at the center of the healthcare universe.

As healthcare becomes more of a commodity over time, healthcare consumers will engage in shopping behavior based on price and quality. They will be demanding a better experience.

The consumer of health services should now be at the center of all that you do.


Patient experience management transforms organizations

Calling Customer Experience Management “Patient Experience Management” is a mistake. This limits your view of the world and the application of this process across all markets, segments and channels.

Customer Experience Management transforms the operations and processes of the healthcare provider around the needs of individual consumers regardless of what they are called, delivering high value and memorable experiences. It is no longer “all about the internal hospital” it’s “all about the customer”.

Experience Management is not just the “hospitality” services.

For example- a four to five hour discharge process is unacceptable in Customer Experience Management because that is built around your needs, not the customer’s.


Patient experience management transforms organizations

Experience Management requires a shift in organizational focus from inside-out to outside-in.

Requires a complete and thorough understanding of all customers, their needs and their organizational touch points - externally and internally.

Represents the discipline and processes to comprehensively manage a consumer cross-channel exposure, interactions and transactions with the healthcare provider, service and brand.

Requires you to see the patient as an individual customer with distinct needs and expectations.


Patient choice will be partially based on experience

In a McKinsey study published November 2007, McKinsey Quarterly -A Better Hospital Experience, they found that the majority of 2,000 commercial insurance and Medicare patient would change hospitals to receive a better experience. ◦ 20% of a patients choice is based on the clinical care experience or reputation, ◦ 41% is on the nonclinical experience ◦ 39% is based on doctors recommendation.

The most surprising finding, was that of the 100 physicians also surveyed, they are often willing to accommodate their patients' request!

Doctors will move patients and honor their request for a better hospital experience.


Patient experience management boosts revenue

In a HealthLeaders Media article from October 8, 2010, How to Boost Post-Discharge Revenue, Customer Service:◦ Improving the customer/patient experience with the business office can

realize cash improvements of 20-30%.

2007 Operationalizing Customer Intelligence in the Contact Center, Business Communications Review: ◦Customer retention increased by 15% year-over-year for best-in-class CEM

practitioner; by 1% for industry-average CEM practitioner; 0% for laggards.◦Customer satisfaction increased 19% year-over-year for best-in-class CEM

practitioners; 6% for industry -average; 3% for laggards.◦ Profits increased 8% year-over-year for best-in-class CEM practitioners;

increased 6% industry-average; decreased 8% for laggards.


Patient experience and customer service go hand-In-hand

Customer Experience Report North America 2010, Forrester Research found a number of interesting facts. Some of the most interesting:◦Of those who decided to stop using an organization:

73% was due to rude staff; 51% due to unknowledgeable staff; 55% due to issues not resolved in a timely manner.

◦79% of customers who had a negative experience told others;◦59% of consumers recommend a company because of its service;◦40% purchase from a competitor because of their reputation for

great customer service.


Complete understanding of all customer

expectations

Improve systems, processes, products

and training

Higher quality, efficiency and

accuracy

Lower operating costs

Lower prices to customers

Realize high customer satisfaction levels

Retain customers

Improve market share &

revenue

Customer Experience Model


The patient experience bucket List

Clear senior management and organizational support; Clear definition of the customer(s); Clear goals and objectives how the project will impact customers; The experience is designed for every stage of the customer lifecycle,

from initial deployment to ongoing support; There is a plan for testing the impact on customers; Resources- human, operating budget, capital budget and time are

allocated; Voice of the Customer (VoC) program to gather ongoing feedback to

monitor the customer experience over time; Clear definition of measurable success for the healthcare organization

and customer.


What does it take?

CommitmentOrganizational changeResourcesTimeVision


About the michael J group

the michael J group is a healthcare marketing consultancy delivering exceptional strategic marketing plans, customer experience management, product launch plans, sales training and integration of sales and marketing programs, new product launch, media relations and brand development to hospitals, health plans, insurance companies, pharmacogenetic, medical device and the pharmaceutical industries. Specializing in bringing start-ups to market.

For more information contact: Michael J Krivich, FACHE, PCM, Principal and Founder at 815-293-1471, or visit us on the web at www.themichaeljgroup.com, or my blog Healthcare Marketing Matters.
