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PAGE 1 The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island Amelia Island, Florida November 13–15, 2016 How Consumerism Impacts Successful Brand Building in Healthcare Presented by Ryan Donohue on November 15, 2016 2 Session Roadmap Board View of Branding Branding Myth Busters Keys to Branding Discussion

How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

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Page 1: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 1The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

How Consumerism Impacts Successful Brand Building in Healthcare

Presented by Ryan Donohue on November 15, 2016

2

Session Roadmap

• Board View of Branding

• Branding Myth Busters

• Keys to Branding

• Discussion

Page 2: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 2The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Board View of Branding(for the Healthcare World)

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• Slogans, jingles, logos, pretty pictures, etc.

• A waste of money during challenging times

• Something only Marketing worries about

• A luxury for the most affluent hospitals

What is NOT a Brand?

Page 3: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 3The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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A Plausible Definition of Brand

BRAND EXPERIENCE

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Presentation & appearanceWay-findingCleanlinessCare environment

E-MarketingWebsiteSocial mediaMobile marketing

DIGITAL CHANNELS FACILITY

BUSINESS AND COMMUNICATION TOOLS

AdvertisingPublic RelationsCollateralDirect mailPublicationsFormsPatient bills

Staff attitude Staff knowledgeStaff presentationService response & follow-up

EMPLOYEE AND PHYSICIAN INTERACTION

BRAND

A Typical Composition of Brand

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PAGE 4The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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• The gut feeling others have about us

• What keeps the customer coming back

• The reason our employees enjoy their jobs

• Our most important asset

What is a Brand?

8SOURCE: NRC’s national consumer survey, n size = 278,824

22.1

42

65.9

73.6

82.8

87.7

89.8

90.6

Hospital has religious affiliation

Hospital is academic/research facility

Family/friends recommend

Conveniently located

Previous experience with hospital

Your doctor recommends

Hospital participates in insurance plan

Reputation of hospital

How important are the following factorsin selecting your health care?

Brand Perception Drives Business

Page 5: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 5The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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• #1 goal: convert consumer to patient

• The biggest driver of hospital preference is “hospital treats me as a person”

– Second biggest driver is “puts my interests above profitability” and third is “my doctor practices there”

• 1 to 1 relationship with consumer is key

True Brand Strategy

Page 6: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 6The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Why is Branding Important?

• Consumers saw reform as a shakeup

• The grand arrival of “the discerning consumer”

• Heightened competition for limited “mindshare”

• Non-healthcare brands invading

• Rapid consolidation

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• Lack of ownership is a key barrier to branding

• Great brands have an “owner” of the brand –and behind every owner is an enforcer

• The chief marketer must keep the CEO apprised of brand strategy – and in return – the CEO must give guidance and resources

Who Owns Brand Strategy?

Page 7: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 7The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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When Brands Collide

#1: Two equal brands become one

#2: Bigger brand(s) acquire smaller brand(s)

#3: An existing brand expands

#4: An affiliation or partnership is formed

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Are You Approaching a Brand Collision?

Are we in a position to stand alone and survive the healthcare landscape post reform?

Is our historical sentiment clouding our ability to consider brand collision scenarios?

Are there brands we can partner or affiliate with to strengthen our brand and our operations?

How can we leverage & extend our brand?

Page 8: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 8The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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BrandingMyth Busters

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Truth or Myth:If We Change Our

Name We Will Lose Loyal Patients

Page 9: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 9The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Myth #1: Name Change = Patient Loss

• Common fear – especially at board level

• Fear of alienating loyal patients/stakeholders by changing name they know and value

• Especially strong sentiment in these contexts:• Acquisitions

• Smaller communities

• Faith-based organizations

• Long-standing organizations

• Organizations with strong brand awareness/perception

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Myth #1: Name Change = Patient Loss

Old Name New Name Location

Faulkner Hospital Brigham & Womens Faulkner Hospital Boston, MA

University Hospital University of Cincinnati Medical Center Cincinnati, OH

Provena; Resurrection Presence Health Chicago, IL

Catholic Healthcare West Dignity Health San Francisco, CA

Pardee Hospital Pardee UNC Hendersonville, NC

Gunderson Lutheran Health System Gunderson Health System La Crosse, WI

Palomar Pamarado Health Palomar Health Escondido, CA

Iowa Health System UnityPoint Health Des Moines, IA

St. Luke's Hospital & Health Network St. Luke's University Health Network Bethlehem, PA

Greenville Hospital System Greenville Health System Greenville, SCSOURCE: Becker’s Hospital Review

Page 10: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 10The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

19SOURCE: NRC’s Market Insights national survey, 2012-2014, n sizes vary by market

Myth #1: Name Change = Patient Loss

New Brand Name Awareness(Year Before)

Awareness(Year After)

Loyalty(Year Before)

Loyalty(Year After)

Brigham & Womens Faulkner Hospital 0.7 1.3 1.5 2

University of Cincinnati Medical Center 7.4 7.8 7.7 8.7

Presence Health 6.6 5.9 6.3 6

Dignity Health 3.9 3.4 3.5 4.3

Pardee UNC 0.6 0.7 0.7 0.8

Gunderson Health System 60.6 59.5 56.6 52.8

Palomar Health 9.8 10.4 7 6.8

UnityPoint Health 40.7 39.5 45.5 43.6

St. Luke's University Health Network 31.7 37.5 27.9 31.6

Greenville Health System 55.2 60 44.4 60.4

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Truth or Myth:If We Change Our

Name We Will Lose Loyal Patients

Page 11: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 11The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Myth #1: What You Need to Know

• Yesterday’s name may not work tomorrow

• 6 of 10 brands saw an increase in awareness

• 7 of 10 brands saw an increase in loyalty

• Decreases stemmed from more drastic changes or suffered from painful execution of rebrand

• Disclaimer: A pain-free name change assumes effective transition

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Truth or Myth:The More Brands

the Better

Page 12: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 12The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Myth #2: The More Brands the Better

• Common sentiment – especially at the executive and board level

• Brand extensions proliferate healthcare:

• New facilities

• New services

• New donations

• ACOs and other similar offerings

• Endorsed brand architectures (2, 3, 4, even 5 layers)

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Myth #2: The More Brands the Better

• We love to weave a tangled web in healthcare – despite consumer confusion at all time high

• Six high profile clients were studied closely:

- 3 attempted to expand # of brands

- 3 attempted to unify (downsize) # of brands

• Brand expansion is an exciting prospect but can become a cautionary tale

Page 13: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 13The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

25SOURCE: NRC’s Market Insights national survey, 2012, n sizes vary by market

Myth #2: The More Brands the Better

System Name Model% System name mentioned

% Facility name mentioned

Wake Forest Baptist Unified 86% 14%

ProMedica Unified 80% 20%

Beaumont Health System Unified 79% 21%

Providence Health & Services Endorsed 58% 42%

BJC Healthcare Endorsed 46% 54%

University Hospitals Endorsed 42% 58%

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Truth or Myth:The More Brands

the Better

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PAGE 14The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Myth #2: What You Need to Know

• “The Rule of Simplicity”A healthcare organization is far more likely to have success driving consumers to see, recognize, recall, value and form loyalty to one brand supported by only one name.

• Supporting multiple brands can create confusion and frustration among internal audiences – and further the us vs. them mentality

• A single brand identity my translate into a more consistent customer experience across services

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Brand Case:SCL Health

(Denver, CO)

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PAGE 15The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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SCL Health Facts• Founded in 1857

• 8 Hospitals

• 150 Ambulatory locations

• 15,000 Associates

• 500 employed providers

• 3 safety net clinics

• Children’s Mental Health Treatment Center

The Road to a Unified Brand: SCL Health

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Winning the Boardroom

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PAGE 16The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Winning the Breakroom

• 12 month rollout plan• Spent 6 months building internal brand• Every associate engaged

– Talking points– Promotional videos– Signing & hanging posters– New badge pulls & lanyards– Integration to mission, vision and values

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Winning the Living Room

• Led with core message of differentiation: a system of “people healing people”

• Harped on 1 to 1 relationship building• Calls to action were focused on wellness• The new brand was not the news –

instead it was the destination for those interested in something different

Page 17: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 17The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Results – Growth in Web Traffic

New Web CMS

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Results – Growth in Social Engagement

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PAGE 18The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Keys toBranding

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Key #1: Find Your Brand’s Blueprint

Page 19: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 19The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Key #1: Find Your Brand’s Blueprint

Shadow Endorser

Not Connected

TokenEndorser

StrongEndorser

Co-Drivers

MasterDriver

DifferentIdentity

SameIdentity

BrandedHouse

Sub-Brands

EndorserBrands

House ofBrands

BrandRelationship

Spectrum

SOURCE: HBR, 2004

Saturn(GM)

Lexus(Toyota)

Hampton Inn(Hilton)

Courtyardby Marriott

SonyBravia

HP Deskjet

FedExNissan Japan,Nissan USA

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Key #1: Find Your Brand’s Blueprint

• Is there logic behind your brand architecture?

• Does your brand architecture fit who you are?

Are ALL services and resources identified?

Are ALL services and resources clearly tied together?

Are consumers able to follow your brand architecture?

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PAGE 20The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Key #2: Simplify Your Brand

• Healthcare is inherently confusing

• Customers seek a 1:1 relationship w/ brands

• Consumers value unified brands & “systemness”:

• 65 percent said they were more likely to choose a hospital that is part of a system

• 31 percent said it makes no difference

• 4 percent said they were less likely to choose a hospital that is part of a system

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Key #2: Simplify Your Brand

• In branding LESS is MORE

• Assess every separate brand:

Why is this brand separate?

Does this brand serve us better by being unified?

Do consumers understand all these brands are connected?

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PAGE 21The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Key #3: Positioning Your Brand

• A simple brand foundation must be followed by a smart positioning strategy

• Positioning is the intersection of value and need

• Positioning is where concept meets reality

• Positioning is where many brand strategies begin to unravel

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• What is the competitive set? • Who are customers considering?

• Why should customers choose you over competitors?– Benefits provided, beyond functional, to create uniqueness– Identity of the brand: what the brand stands for; reinforcing characteristics

• How should the brand deliver on the value proposition positioning and deliver the promised benefits?

– Supporting “facts”, big or small, that provide a basis for the customer to believe that the brand is capable of delivering on the positioning

TARGET

FRAME OF REFERENCE

POINT OF DIFFERENCE

REASONS TO BELIEVE

• What are their needs?• Who are the priority customer segments?

CURRENTSTATE

• What is our current brand according to consumers? • What is the current position of our brand?

Key #3: Positioning Your Brand

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PAGE 22The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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SOURCE: National Research Corporation’s MARKET INSIGHTS study, 2011-2015, average annual n sizes vary from 208 (qual) to 278,824 (quant)

0%10%20%30%40%50%60%

BrandArc Differentiation Index – National

2011 2012 2013 2014 2015

Key #3: Positioning Your Brand

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PAGE 23The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Key #3: Positioning Your Brand

• Quality Care• Safe Care• Board Certified Docs• Friendly Nurses/Staff

FunctionalBenefits

• Telemedicine• Online Pricing Index• Targeted Service Offer• Community Impact Brief

Unique Benefits

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Key #4: Promote Your Brand

• Where strategy begins and ends• Sets the tone for all communication• Time intensive (patience required)• Intangible in every way

• Where strategy begins and ends• Sets the tone for all communication• Time intensive (patience required)• Intangible in every way

BRANDING

ADVERTISING• The tactical extension of strategy• Brings brand positioning to life• Money intensive (for the most part)• Tangible and highly visible internally

• The tactical extension of strategy• Brings brand positioning to life• Money intensive (for the most part)• Tangible and highly visible internally

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PAGE 24The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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• Behind every great campaignis a single document

• Sometimes called the ‘Research Brief’ or ‘Campaign Brief’

• If a creative brief cannotbe formed, the campaignshould not move forward

Key #4: Promote Your Brand

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Key #4: Promote Your Brand

“Don’t let your employees first lay eyes on the

campaign during their morning

commute.”

Kelly BrockmeierSt. Vincent’s

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PAGE 25The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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• Measurement allows understanding of the perceptions and behaviors regarding the brand

• Removes internal biases and assumptions

• Reveals market trends and predicts behaviors

• Without measurement, assumptions grow, decision-making suffers and inactivity thrives

Key #5: Measure Brand Efforts

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• All areas of consumer perception must be measured to understand current state of the brand

• The Big Three Consumer/Brand Measures:– Consumer awareness of your brand– Consumer sentiment on your brand’s image & quality– Consumer loyalty toward using and recommending your brand

• Measurement makes the intangible tangible

• If it cannot be measured it does not exist!

Key #5: Measure Brand Efforts

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PAGE 26The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Evidence

Relevance

Consequence

Action

Your performance is quantified by an outside party.

Your performance is matched to the performance of others.

You process the potential negative effects of poor performance.

You take action to avoid unwanted consequences.

The Feedback Loop

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Have we thought about our brand strategy?

How do our consumers feel about us?

Do we measure our brand performance?

What is the board’s role in branding?

Is our brand built for the reform era?

Questions for Discussion

Page 27: How Consumerism Impacts Successful Brand Building in ...€¦ · Why is Branding Important? •Consumers saw reform as a shakeup •The grand arrival of “the discerning consumer”

PAGE 27The Governance Institute’s Forum on Consumerism & Transparency – The Ritz-Carlton, Amelia Island

Amelia Island, FloridaNovember 13–15, 2016

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Reading List

• “Brand Equity in Healthcare” (Donohue/TGI, 2011)

• “Zag” (Neumeier, 2006)

• “Joe Public Doesn’t Care About Your Hospital” (Bevolo, 2016)

• “The Heart of Change” (Kotter/Cohen, 2002)

• “The New Gold Standard” (Michelli, 2008)

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In Summary

• Your brand is the experience you provide

• Your brand must be owned/supported/measured

• Your brand must be rooted in strategy, positioned for your market and ready for the change ahead

• Your brand must be lived and breathed everyday

• Your brand is everything – keep it in focus