Creating a queue

for aged care services

OR

How to build the future

customer pipeline

HFMA Finance in Aged Care Conference

September 21, 2017

Nicola Reynolds, General Manager - Customer Innovation and Marketing

The Burning Platform…..

The game has changed for the sector….

The Old Paradigm

Government

Peak bodies/ industry

Referrers –professional and allied

health

Providers

Advocacy, PR/Coms,

Government Relations

Business to business

relationship marketing,

events, brochures etc.

Funding Flow -

down from on

high

The New Paradigm

Demand generation

brand advertising to

create awareness:

mass advertising,

digital, PR etc.

Lead generation

‘call to action’

advertising –

‘choose us’

Relationship

marketing:

advocacy, events,

sales etc

Prospect pool – 1.7M Victorians

865k potential end-user clients

10k referrers –i.e. allied health

professionals

? 500 Providers

Consumer

determines

which providers

will get Govt.

funds/direct $$

‘Creating a queue’ is no longer

relevant.

The new game to grow…..

Building the future customer

pipeline

5

From around 10,000 ‘invested’ audience:

To around 1,700,000 busy, disengaged,

confused potential audience who don’t

care about us…

(until they need to care about us)

The new game is about ‘eyeballs’,

volume and reach

The acquisition challenge:

7

• Characteristics of the aged-care buying cycle

• Customer churn impacts – standing still is not an option

• Budget, resource, expertise impacts

“The new battleground for marketing-led growth” – excerpt from international study of 125,000 consumers across 350 brands

• Consumer buying patterns have changed – largely due to

digital environment

• Consumers twice as likely to choose a brand if targeted in

early awareness stage

• A direct correlation early awareness and market share =

sustainability and growth

• This means reaching a much broader market much earlier =

new investment required

• Being early ‘in mind’ is only the first

step in engagement with consumer

(Source: McKinsey Quarterly, February 2017)

8

Benetas’ response:The Future Customer Engagement and Conversion Funnel: Objective: To cultivate, find, attract, convert and keep the future customer

Genera

l com

munit

y:

Beneta

s su

pport

s an a

gein

g f

riendly

socie

ty

10,000 people

(estimated)Industry Referrers,

Government,

Employees

1.7M people

(estimated)Family Decision Makers

Potential Clients

Future CustomerProspective CustomerNew

Customer Current CustomerPast

Customer

Awareness Consideration Preference Action Retention Recommendation

9

And we have to ‘stay on their radar’ in a ‘broken’ customer journeyG

enera

l com

munit

y:

Beneta

s su

pport

s an a

gein

g f

riendly

socie

ty

Future

CustomerProspective

Customer

New

Customer

Current

Customer

Past

Customer

Awareness Consideration Preference Action Retention Recommendation

My A

ged C

are

Port

al Regis

trati

on

Future customer

is directed to

My Aged Care

Portal

Service ‘call to action’ advertisingBrand awareness advertising

Key break

in

customer

journey

10

Work back from annual client targets to estimate conversion

rates at each point of the customer journey

11

Residential

Home Care

Retirement Living

1 Market Sizing Benetas is relevant to me Find

2 Market Insights Benetas understands me Find

3 Brand Strategy Benetas is distinct from other service providers Attract

4 Brand awareness advertising I know about and like Benetas Attract

5Call to Action/ Sales

CampaignsBenetas has the service I need Convert /Keep

6

Customer Channel

Infrastructure: Web/Customer

Centre

Benetas is easy to deal with across all touch points Convert/ Keep

7Reputation (advocacy,

research, social dividend)Benetas has a great reputation, they advocate for older people Cultivate

8 Internal brand Benetas is a great place to work Attract/Convert

Building the pipeline requires a number of integrated projects:

Eight Steps of the Future Customer Strategy

12

And how this translates into growth (Source: ‘Mastering three strategies of organic growth’ McKinsey, 2017)

13

c

c

c

c

c

c

The change from:

Estimated 10,000 audience

(Government, referrer and peak body market)

Assume marketing budget of $500k

= average $50 per audience reach

To:

Estimated 1.7million Victorians (potential aged care service

decision-makers and users) while continuing to target 10,000

Government/referrer audience

Assume marketing budget of $500k

= average 0.30c per audience reach

Just one example of what this means….

What it takes to grow in the

new environment

IT Investment (Gartner Report):

1-2% of revenue to maintain BAU

3-5% of revenue to Build

5-11% of revenue to Grow

15

Marketing investment (E&Y

‘Getting market ready’ review):

1-2% of revenue to maintain BAU

3-5% of revenue to Build

5-11% of revenue to Grow

Let’s recap:

What this means for

your organisation:

• Need to set context for growth

• Don’t get sucked in by ‘our industry is unique’.

It’s all about the consumer.

• Normalise the change while reiterating that it’s a very

long game

• Then create a strategy which systematically addresses the

change

• Watch out for the latest quick fix panacea

16

Building the pipeline for the future:

Some things I’ve learnt along the way

17

• Stakeholders will not understand the seismic impact of change

• Continue to paint the big picture and tell the WHY

• Current PM and business case processes often will not work

• Use numbers – but don’t get hung up on perfection

• Demonstrate opportunity loss rather than focus on tech features

• ‘Call out’ where current approval methods ‘force’ clarity prematurely

• Build in agile methodology incrementally and demonstrate discrete wins

• Even when stakeholders are ‘nodding in agreement’ check

that there really is shared understanding and

‘name the gaps’

• Don’t under-estimate comfort with pre-existing strategies

• Bide my time – but have all ready to go

when context changes

Ultimately the game is about producing

sustainable growth so we’ll be here to meet

the aged care needs of the future.

18

Case study example: How elements worked together to

increase share of market from 10 to 13% over 5 years

Fund

injections

19

Case study example 2: How elements worked to

increase patronage by 78% growth over 5 years

Fund

injections

Special

case to

Minister

for funds

20

Thank you

Any questions?