Ohio Association of Child Caring Agencies (OACCA) How To Embrace New Marketing Tactics & Shift Away From Traditional Marketing Models

Ohio Association of Child Caring Agencies (OACCA)

How To Embrace New Marketing Tactics & Shift Away From Traditional Marketing Models

Howard Shiffman, Senior Associate OPEN MINDSApril 29, 2014

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1. You have a very large unrestricted endowment

2. You have guaranteed sources of future funding for what you do

3. You have no competition for your current sources of revenue

4. You are in a market with little change in either financing or service delivery

You Need No Marketing When. ..

If this is your

organization, you should sit in on a different

session. . .

OPEN MINDS © 2014. All rights reserved.

“Traditional marketing — including advertising, public relations, branding and corporate communications — is dead. Many people in traditional marketing roles and organizations may not realize they're operating within a dead paradigm. But they are. The evidence is clear.”

• —Bill Lee, • Harvard Business Review, August 2012

3OPEN MINDS © 2014. All rights

reserved.

I. Trends Driving The End Of Traditional MarketingII. The New Role Of Consumers Demands A

New Approach To MarketingIII. New Tactics For Successful Marketing In

Today’s EnvironmentIV. Forward Thinking Marketing StrategiesV. How To Adapt Your Organization’s Marketing Plan For The Future

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Agenda


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I. Trends Driving The End Of Traditional Marketing


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Technology is Here: Welcome To The Graveyard Of Traditional Marketing Strategies


The Information Age…DATA

Technology to build relationships

“Bait and Hook” no longer works

Evolved buyer habits.. Being Informed/InvolvedLimited dollars

New Service Delivery ….Transparency

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What “Killed” These Strategies?


Marketing meant advertising (and branding)

Advertising needed to appeal to the masses

Advertising relied on interrupting people to get them to pay attention to your messageAdvertising was one-way communication

Advertising was exclusively about selling products

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What Marketing Used To Be


Businesses have traditionally been in the role of producing products or services that help a customer get the job done. In return the customer pays money.

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Old Customer Value Proposition

What the firm does

• Delivers products and services

Value to customer

• Gets the job done

Value to firm

• Provides money

This is now an old fashioned way of doing things…


New Customer Value Proposition


• Reference programs

• Communities & Social media

• Events• Advisory Boards• User Groups• Knowledge Centers

Measureable business value delivered

Increased social capitalExpanded peer networkIncreased professional status and reputation

Opportunities to partner, comarket and

designOpportunities to deliver

thought leadership

ReferralsReferencesInfluencers

Word of MouthImproved Strategy

Increased knowledge base

What the firm does

• Delivers products and services

Value to customer

• Gets the job done

Value to firm

• Provides money

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II. The New Role Of Consumers Demands A New Approach For Marketing


reserved.

With More Consumers With Coverage, There Is More Consumer Choices• Consumers have a new and more complex

role◦ Medicare -- and Medicare Advantage◦ Medicaid – and Medicaid managed care and

Medicaid premium support◦ Traditional insurance have rising coinsurance,

copayments, and deductibles◦ Increasing use of consumer-directed health plans

• “Safety net” taking on a whole new meaning in states with Medicaid expansion

• “Penalties” for lack of consumer participation in health management

OPEN MINDS © 2013. All rights reserved.12

OPEN MINDS © 2014. All rights reserved. 12

Consumers Are Paying More Out-of-Pocket

$307.7 billion or 11.4% of the total health care budget • Mental health – In 2005 consumers footed $13.56 billion,

or 12%, of $113 billion total market spending• Addiction treatment – In 2005, consumers paid for $5

billion, or 22.7%, of $22 billion total market spending• Mental health hospitalization – In 2011, the average cost

per-person spending paid out-of-pocket was $766 • Addiction-related hospitalization – In 2011, the average

cost per-person spending paid out-of-pocket was $889



More Transparency In Fees• Competition based on price is happening• The internet has created more venues for

fee transparency



More Transparency In Performance Measures• Many initiatives to measure and report on

“performance”



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New Tactics For Successful Marketing In Today’s Environment


Marketing is more than PR

PR is for more than just a mainstream media audience

You are what you publish

People want participation and not propaganda

Marketing is about delivering content at the precise moment your audience needs it

The internet has now made public relations PUBLIC

Your content now has be customer-centric—write for your audience(s)—not you!

People all over the world can see your message

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New Rules Of Marketing & PR


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Consider Your Audience

Message differentiation

based on target

audience

Consumers

PayersProviders


Deliver what you promise

Promptly fix things when they go wrong

Know your customer’s problems

Create peer networks among your customers

Provide your customers additional opportunities…either with you or with others

Always remember…you have leverage19

Create A Great Value Proposition


• Advocates• Influencers• Contributors

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Accessing Your Best Resource for Increasing Market Share

In other words…


• Provide positive information about you to their colleagues, networks, and industry audiences.

• Example: Consumer, consumer’s family member or caregiver

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The Hidden Potential Of Customers – Advocates

How Customers Act On Your

BehalfReferrals

References

Testimonials

Speaking

Videos

Interviews

Blog Posts

Social Networking Sites

TweetsOPEN MINDS © 2014. All rights

reserved.

• Experts with a neutral or objective view and share their expert opinions

• Examples: Associations, payers, government entities, authors, researchers, universities

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The Hidden Potential Of Customers – InfluencersHow Customers

Act On Your Behalf

Articles

Blog Posts

Speaking

Books

Interviews

Webinars

Attending events

Creating industry publications

Testing and commenting on new products or

offersOPEN MINDS © 2014. All rights

reserved.

• Provide insights or knowledge in a variety of ways—often for free—that helps you. (Not always individuals, but other companies who share data about you)

• Example: More involved patients, board members, partner organizations, local community collaborators

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The Hidden Potential Of Customers – Contributors

How Customers Act On Your Behalf

Input or feedback to improve your offers

Input to develop new servicesInnovate your products on their

ownCreating apps

Provide data or info that adds new value to existing offerings

Provide services and support to other customers

Improve your strategy and focus

Help you gain a position of thought leadership in your

industryProvide contacts and access to

new sources of valuable information OPEN MINDS © 2014. All rights

reserved.

◦ Referring other customers to you, taking calls, and accepting site visits from your sales prospects to help close deals

◦ Participating in your customer advisory boards to keep your R&D efforts grounded

◦ Having key-customer executives participate in higher-level forums and communities to help keep your strategy focused on top customer issues Local legislative advocates Local government entities, i.e., policy planning, school boards Community leadership Advocacy groups

Existing customers can be your best resource for new ones!

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Engaged Customers Will Take Other Steps Too


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III. How To Adapt Your Organization’s Marketing Plan For The Future


Plan to accomplish organizational mission and objectives through specific tactics responding to a changing environment while making best use of available resources

Best practice strategic planning is framed in terms of the overall organization’s sustainability and is market-focused

Your strategic plan is the basis for your marketing plan

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It All Starts With Your Strategic Plan. . .


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1. Develop vision of future competitive advantage and market positioning

2. Scenario-based strategic plan incorporating alternate future positioning options3. Detailed plans – marketing, financial, operational, technology, capital, HR, etc. – to implement strategy and future vision4. Key performance metrics and metrics-based management to track strategy implementation (and allow mid-course adjustments)5. Optimization of current operations to keep current programs as competitive (and profitable) as possible as long as possible

6. New service model development to support future vision

7. Collaborations as needed to facilitate new market vision

The Strategy Development & Implementation Cycle


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1. All the business activities involved in directing the flow of services from the provider to the customer – the business function responsible for organizational revenues

2. Understanding the needs of customers and developing a service that meets those needs at an acceptable cost

3. Act of promoting, selling, and distributing a product or service

What Is Marketing?

The more competitive a

market is, the more important marketing

competency is to an

organization’s success. . .


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Customers – Payers,

Consumers, & Influencers

Producers of Services

Two Forces in Competitive Market

Marketing is the function that assures that customers select a particular producer


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Intersection Of Strategic Planning & Marketing Planning

Key To Functional Areas:

MarketAnalysis

DefineMarket

Segments

CompetitorAnalysis

DetermineDifferentiationOpportunities

Define Missionand Key

Objectives

InternalAnalysis

Select Target Market Segment and Position

Develop MarketingPromotion and Tactics

Plan

Set Target Priceand Cost.

Measure StrategicPerformance

Develop OperationsPlan and Finance Plan

Re-EngineerTo AchieveTarget Cost

Marketing Strategic PlanningFinance


1. Overall organizational vision and mission – which shapes market positioning

2. Markets to pursue3. Service lines to offer4. Revenue and return required for each

service line

Key Market-Related Decisions Are Made During The Strategic Planning Process


reserved.

• Organizational strategy to guide revenue generating activities

• Defines tactics (and customer interface) between the organization, its services, and its customers

• Must align to and build off of the strategies and tactics in the strategic plan

What Is A Marketing Plan?

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It all starts with the top line. . . How much revenue does your organization need to meet its

mission and objectives?

The strategic plan sets service lines – and revenue

and return required for each service line. . .

The marketing plan is all about how to engage customers (payers,

consumers, and donors) to make that happen.


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Product (what to offer)

Price (rates and rate structure)

Place (sales distribution

method)

Promotion (communication

for customer positioning)

Press and public (communication

to press and publics)

Political (political advocacy and

lobbying)

The Traditional ‘Marketing Mix’ (4Ps) Is Now The 6Ps


• The purpose of segmentation is to determine the differences among buyers in order to develop specifically targeted marketing initiatives that meets customer interests and needs.◦ Example by consumer – Women, mature adult, child, suburban, etc.◦ Example by service need – Co-occurring, depression management, TBI, health

home, etc.

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Market Segmentation Increasingly Important

New ConsumersChild Protective ServicesHealth and Human Service AgenciesFoster Care AgenciesJuvenile Justice

Potential & Present

Residential Payer Sources for a specific service line


• Revenue and other marketing objectivesPhase 1: Marketing

objectives from organizational strategy

• Service line descriptions and metrics• Analysis of market and customers• Competitive analysis

Phase 2: Market analysis

• Marketing strategies to engage customers and generate revenue

Phase 3: Marketing strategy development

• Developing marketing tactics for each strategy• Marketing budgetPhase 4: Marketing

tactical planning

• Implementation planning• Marketing plan timelinePhase 5: Marketing plan

implementation35

Elements In The Marketing Planning Process


• Revenue for current service -- Net revenues in service X will be $X million in this fiscal year

• New contract acquisition – Win five new competitive contracts via proposal process

• New service line development -- Service Y will be developed and have two customers by the end of this year

• New service line feasibility analysis -- Market research conducted on new service concept Z and decision made whether to develop service within the first 6 months of the year

• Revenue diversification -- Decrease % of total revenue from Medicaid from 93% to 88% by increased new service sales of X services

Phase #1: Marketing ObjectivesCommon Organizational Marketing Objectives


Example Of Marketing Objectives • Objective #1: Increase the financial stability of the

residential treatment program by establishing an average daily census of 250 and average daily rate of $225 in next fiscal year

• Objective #2: Selectively expand profitable community-based programs to match market needs and changing demands and increase community-based revenue by 100% - from $16M to $32 M in next fiscal year

• Objective #3: Increase and diversify revenue streams overall by expanding Medicaid billing to 25% of total revenue decreasing Federal/state grant revenue to less than 50% in next fiscal year

• Objective #4: Create better outcomes in the foster care program by reducing the number of disrupted foster home placements by 20% from last fiscal year in 2014.


1. Service line definitions and metrics – what services do you offer and how do they ‘stack up’ against the competition

2. Analysis of market and customers – what are the available sources of funding and what customers control that funding? What do those customers want?

3. Competitive analysis – who is competing with you for customers and their funding?


Phase #2: Market Analysis For Marketing Planning

Phase #3: Marketing Strategy Development


Achieve Marketing Objectives

=• Revenue• More

Customers• New

Services• Diversificati

on• Profitability

Market Environment

• Regulation• Customer

Preference• Competitors

Marketing strategies – the plan to achieve objectives in the face of

environment

Objective #1: Increase the financial stability of the residential treatment program by establishing an average daily census of 250 and average daily rate of $225 in next fiscal year.

The Marketing Strategies: 1. Establish the XXXX School as a “center of excellence” for

the treatment of children and youth with special needs across all payer types

2. Garner an increasing share of referrals from educational consultants

3. Increase the number of managed care contracts 4. Win residential treatment contracts with the surrounding

states and the counties in those states5. Improve the conversion rate of inquiries to admissions


Example Of Marketing Strategies: Residential Program Revenues

Objective #2: Selectively expand profitable community-based programs to match market needs and changing demands and increase community-based revenue by 100% - from $16M to $32 M in next fiscal year.

The Marketing Strategies: 1. Aggressive marketing of current community-based

services (50% of increase)2. Development of new community-based services

(40% of increase)3. Acquisition (10% of increase)


Example Of Marketing Strategies: Increase Community-Based Service Market Share

Objective #3: Increase and diversify revenue streams overall by expand Medicaid billing to 25% of total revenue, decreasing Federal/state grant revenue to less than 50% in next fiscal year.

The Marketing Strategies: 1. Develop more contracts with Medicaid managed care

plans for current services2. Conduct market research and feasibility analysis of

offering a case rate-based program to Medicaid managed care plans

3. Increase consumer marketing to Medicaid populations eligible for current services


Example Of Marketing Strategies: Diversification Strategy

• Objective #4: Create better outcomes in the foster care program by reducing the number of disrupted foster home placements by 20% from last fiscal year in 2014.

• The Marketing Strategies: 1. Create a foster care crisis team available to

foster parents and market this program to payers

2. Offer managed care a pilot project that is financially supported by a pay for performance bonus for successful outcomes in foster care

Example Of Marketing Strategies: Improved Outcome Strategy


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IV. Forward ThinkingMarketing Strategies


Marketing Tools

Referrals

Newsletters

Reports, case studies

Social Media

Website

Customer communities

Corporate Magazine

Word of mouthSpeaking

Analyst reports

Industry events

Life events

Private events

Broadcast media

Webinars Teleconference

s


reserved.

1. Thought Leadership

2. Website Content

3. Social Media• Blogging• Video and Podcasting

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Three Important Marketing Strategies


‘Thought Leadership is establishing a relationship with and delivering something of value to your stakeholders and customers that aligns with your brand/company value.

In the process you go well beyond merely selling a product or service and establish your brand /company as the expert in that field and differentiate yourself from your competitors.’

—Craig Badings

Thought leadership should be an entry point to a relationship. Thought leadership should intrigue, challenge, and inspire even people already familiar with a company. It should help start a relationship where none exists, and it should enhance existing relationships.

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1. Thought Leadership


White Papers, Case Studies, and Articles

eBooks

Blogs

eNewsletters

Webinars

Research and Survey Reports

Audio and Video48

Forms Of Thought Leadership


• Do NOT write about your company and its products or services

• Ask what problems can you solve• Understand your audience• Write for your audience—storytelling rules!• Create titles that grab attention• Promote your efforts • Let the media know your point of view• Track your results

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How To Build Your Thought Leadership Regimen


You become a key Influencer

Your expertise builds your brand

You become “the” authority in the public eye

You change the conversation about your industry and your solutions

You don’t have to spend lots of dollars to get it out there

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Why Thought Leadership Works


The Buyer’s Decision JourneyAwareness and education phase

Solution phase

Selection phase

Website gravity

• Thought leadership• Peer Information• Access to peer communities

• Thought leadership• Competitor

differentiation• Customer videos

• Customer ROI case studies

• Community affirmation• Reference calls, site

visits

Target early adopters and influencers

Thought leadership must address buyers’ business issues

Emphasize emotional factors

Help your buyer make the business case


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• Does your website have a purpose?• Is your content tailored to meet your

purpose?• Are your service options clearly defined?• Have you organized your site for intended

audiences?• Have you established a pathway for visitors

to contact you?• Is your website visually attractive?

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2. Key Factors In Managing Your Web Presence


Content is key

Understand your clients’ needs and then address them

Create peer interaction, not just client interaction

Share information often

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Making Your Website Work


• Social media is the use of web-based and mobile technologies to turn communication into interactive dialogue.

• Social media is "a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, which allows the creation and exchange of user-generated content."

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3. Social Media


• Facebook• LinkedIn• Twitter• YouTube

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Social Media Options


Face Book : In January 2013, the

countries with the most Facebook users were:

United States with 168.8 million

members

Brazil with 64.6 million members

India with 62.6 million members

Indonesia with 51.4 million members

Mexico with 40.2 million members

All total 309 million members or about 38.6 percent of Facebook's 1

billion worldwide members.


Social Media: Face Book

57OPEN MINDS © 2014. All rights reserved.

Social Media: LinkedInAs of January 2013, LinkedIn reports

more than 200 million acquired users in more than 200 countries and territories

LinkedIn has 21.4 million monthly unique U.S. visitors and 47.6 million globally

In June 2011, LinkedIn had 33.9 million unique visitors, up 63 percent from a year earlier and surpassing MySpace

Twitter is an online social networking service and micro-blogging service that enables its users to send

and read text-based messages of up to 140 characters, known as "tweets”

Gained worldwide popularity, with over 500 million registered users as of 2012, generating over 340

million tweets daily

Twitter has become one of the ten most visited websites on the Internet


Social Media: Twitter

YouTube was founded in 2005

In 2006, YouTube was purchased by Google for $1.65 billion in stock

In 2007, YouTube went global

In March 2013, YouTube had 1 billion viewers per month


YouTube


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Generation YAge 18-32

Generation XAge 33-48

Baby BoomersAge 49-67

Matures68+

• 90% Facebook• 55% Linkedin• 55 % Twitter• 97 % YouTube

• 77% Facebook• 59% Linkedin• 92% YouTube

• 71% Facebook• 46% Linkedin• 81% YouTube

• 59% Facebook• 58% YouTube

Informatics & Analysis…Use Of Social Media (Example)

1. Target a specific audience2. Be a thought leader3. Be authentic and transparent4. Create LOTS of links5. Encourage people to contact you6. Participate in the discussion7. Make it easy to find you8. Encourage people to BOOKMARK9. Try new things!

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9 Tips for Optimizing Your Social Networking


• Blogs are usually maintained by an individual with regular entries of commentary, descriptions of events, or other material such as graphics or video.• Most blogs can be interactive, allowing visitors to leave comments and even message each other via widgets on the blogs and it is this interactivity that distinguishes them from other static websites.• As of February 2011, there were over 156 million

public blogs in existence.

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Blogs


Requires minimal investment to establish.

Requires commitment to provide updates and new information to stay relevant.

Requires strategic approach to information shared as everyone can see your information and point of view.

Requires intentional content—what purpose will the blog serve?

Requires constant moderation if visitors can comment.

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An Effective Blog


You-Tube is still the most popular, but more and more are showing up!

Doesn’t have to be expensive

Don’t make it long

Show what you’ve done

Show what is possible

Focus on solutions and ideas

Feature your customers to showcase your impact

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Video & Podcasting


V. Discussion


reserved.

• Do you have a Marketing Strategy in your organization?

• What is your organization doing to become a thought leader with:◦ consumers ◦ payers ◦ Donors

• What technologies are you using in your marketing program? How are you using social media?

Discussion


reserved.

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Documents

Ohio Association of Child Caring Agencies (OACCA) How To Embrace New Marketing Tactics & Shift Away From Traditional Marketing Models