1

The State of Digital Healthcare in 2017Session 223, February 23, 2017

Kathy Divis, President & Co-Founder, Greystone.Net

Rob Klein, Founder & CEO, Klein & Partners

2

Speaker Introduction

Kathy Divis, Bachelor of Science-Marketing from the University of Nebraska-Omaha and an MBA from the University of Alabama-Birmingham

President & Co-Founder

Greystone.Net

3

Speaker Introduction

Rob Klein, Bachelor of Marketing from Michigan State University & Masters in Advertising from Michigan State University

Founder & CEO

Klein & Partners

4

Conflict of Interest

Kathy Divis, Bachelor of Science-Marketing – University of Nebraska-Omaha & MBA – University of Alabama in Birmingham

Rob Klein, Bachelor of Marketing – Michigan State University & Masters in Advertising – Michigan State University

No real or apparent conflicts of interest to report – except on the football field!

5

Agenda (Survey Topic Chapters)

• Healthcare Marketing Leadership Index

• Online and Digital Marketing Techniques Used

• CMS, CRM, and Marketing Automation

• ROI and KPIs

• Web Innovations

• Importance/Effectiveness of Digital Marketing Efforts

• Driving Digital Transformation of the Healthcare Brand

• Resources

• Key Take-aways

• Recommendations From the Research for Providers

6

Learning

• Describe the state of digital marketing in healthcare in 2017

• Identify the digital tools most frequently being deployed by healthcare marketers

• Recognize what software tools are being used most frequently for content management systems (CMS), customer relationship management (CRM) systems, marketing automation, etc.

• Discuss your organization's deployment of digital marketing techniques against your peers and understand how your level of resources (FTEs, dollars, etc.) compare

7

An Introduction of How Benefits Were Realized for the Value of Health IT

Satisfaction: Satisfaction really is ‘transactional’, but most consumers want a ‘relationship’ with a brand. And, CMS, CRM and digital marketing strategies help healthcare organizations develop a strong brand relationship – which leads to satisfaction and more importantly to brand loyalty.

Marketing: IT plays a critical role in ‘customer acquisition’ or what packaged goods companies call ‘trial.’ This survey highlights the role marketing-based IT plays in attracting new customers to the brand, managing existing customers and supporting the growth of consumerism in healthcare.

S

M

8

• Deployed via an online survey tool

• Promoted to healthcare marketers for three weeks from August 12 to 30, 2016

• 230 healthcare marketers and digital professionals in US completed the survey

– A sample size of 230 yielded a sample error of +/-5.4% at the 90% Confidence Level

So, what did we learn?

Survey Method

9

10

11

12

13

14

15

Note: 2015/2016

11% in 2015

16

17

23% in 2015

18

19

20

21

22

Use of KPIs is

NOT gaining

ground

23

24

On average, 39%/41%of Website visitors use Mobile to

access their site

Note: 2015/2016

57% in 2015

25

43%/51%

Have a Mobile

App for

CONSUMERS

17%/33%

Have a Mobile

App for

PHYSICIANS

Note: 2015/2016

26

Advanced digital

marketing activities are

up significantly from 2015

across the board

27

28

29

Is the lack of

cyber security

the culprit here?

30

2015 2016

31

That means just 46%have a properly funded

virtual front doorBut only 61% of these

healthcare marketers feel

their website is funded

appropriately as the

virtual front door

75% of these healthcare

marketers view their

website as its new ‘virtual

front door’

32

76% in 2015

33

It still comes down to

three things:

1) Money

2) Silos

3) Managing change

34

Overall Star Rating

Scores based on gSight℠, an online

website experience

survey

35

8% in 2015

36

MAPPING THE

35%/49%have mapped the ‘Mobile’

customer journey

46%/62%have mapped the ‘Digital’

customer journey

Note: 2015/2016

37

38

39

Expect budget to be lower next year – 11%

Expect budget to be higher next year – 29%

Expect budget to be unchanged next year – 52%

Total [Operating & Salary] Marketing Budget

Median Operating Budget: $3.1m

Median Salary Budget: $2.1m

Total [Operating & Salary] Digital and

Interactive Marketing Budget

Median Operating Budget: $950k

Median Salary Budget: $700k

Total [Operating & Salary] Website

Development Budget

Median Operating Budget: $640k

Median Salary Budget: $468k

40

41

42

• The healthcare industry remains behind other industries in digital marketing efforts

• Healthcare organizations are either already using social media or have no plans to do so. Very few organizations not currently using social media are planning to do so in the future

• In 2015, only 50% of the survey respondents reported using a CRM system, while 65% report using a CRM in 2016. Significantly more respondents say their CRM is integrated well with their website, compared to last year

• Use of a marketing automation tool has doubled from 2015, from 23% to 48%

• There is a lot of room for improvement in achieving the digital goals of healthcare organizations

Key Take-aways

43

• A significant number of survey respondents reported that they plan to upgrade or

change their CMS platform or redesign either their website or intranet in the

coming year

• Advanced or emerging digital activities, such as wearables, IoT or beacon

technology, are still not being used much by healthcare organizations

• As in 2015, the top three challenges/barriers continue to be:

Money

Silos

Change

Key Take-aways (cont’d)

44

• Some disturbing potential trends reported by the respondents are:

• Insufficient senior leadership commitment

• Lack of required skills among staff

• Unclear objectives

• Healthcare marketers are more confident in the effectiveness of their websites

than last year, but their confidence still lags far below how actual visitors rate their

website experiences

• Almost one-half of the respondents report that their organization has mapped the

Mobile customer journey and 62% have mapped the Digital customer journey

• This is up from 35% and 46%, respectively, from last year

Key Take-aways (cont’d)

45

• 61% of the survey respondents reported conducting usability testing and 57% said

they conduct web visitor satisfaction research. This is an increase from 50% and

47%, respectively, from last year

• The survey respondents remain optimistic about their future budget resources, with

29% expecting an increase in their marketing budgets next year and 52% expecting

their budget to remain the same

• Survey respondents consider personalization/one-to-one marketing and ROI to be

their top two most pressing concerns

• Provider-side healthcare is below the Marketing Leadership index for online retailers

and banking. However, it performs better than insurers in digital activities

Key Take-aways (cont’d)

46

Recommendations and Opportunities• There is both an opportunity - and need - for marketers to better identify their digital

KPIs and develop dashboards/templates for communicating results and

effectiveness to the executive team.

• The transition of healthcare from a MarCom to a MarTech focus means that

marketing is becoming more technology-based, which requires effective CRM and

Marketing Automation systems. It is incumbent on marketers to fully understand the

challenges, benefits, and ROI of both as they choose and deploy these platforms.

• Since the top priorities in digital marketing for 2017 are the continued deployment of

personalization/one-to-one marketing techniques and the documentation of ROI,

marketers must really and quickly begin to transition to a MarTech focus.

47

• There is an opportunity for innovative organizations to take lead positions in the

deployment and use of emerging technologies like the Internet of Things, wearables,

beacon, etc.

• If a healthcare organization hasn’t yet mapped both its digital and mobile journey, it is

important to do so in the near term. This is particularly necessary as consumers expect

a seamless experience when moving between and among a health system’s mobile

and desktop environments.

• There is a need for marketing executives to continue to educate their C-suite

colleagues on the value of digital marketing so the traditional barriers (i.e., money,

silos, and reluctance to change) can be broken down. This is particularly important as

they fight for senior leadership support and the budget and staff to implement the

technology-based marketing initiatives.

Recommendations and Opportunities

48

An Introduction of How Benefits Were Realized for the Value of Health IT

Satisfaction: Satisfaction really is ‘transactional’, but most consumers want a ‘relationship’ with a brand. And, CMS, CRM and digital marketing strategies help healthcare organizations develop a strong brand relationship – which leads to satisfaction and more importantly to brand loyalty.

Marketing: IT plays a critical role in ‘customer acquisition’ or what packaged goods companies call ‘trial.’ This survey highlights the role marketing-based IT plays in attracting new customers to the brand, managing existing customers and supporting the growth of consumerism in healthcare.

S

M

49

Questions

• Kathy Divis (kdivis@greystone.net, @KathyDivis, https://www.linkedin.com/in/kathyldivis)

• Rob Klein (rob@kleinandpartners.com, https://www.linkedin.com/in/kleinbrandman)

• Reminder: please complete online session evaluation