Marketing Update

Providence Physician GroupOctober 2006

Outline

• Revisit Goals and Objectives

• Review Tactics

• Take-Aways

• 2007 Plans

Original Marketing Goals

1. Establish new brand image

2. Achieve top of mind awareness Name Change

3. Create preference for ProvPG

4. Increase volume by attracting new patients

5. Increase volume by retaining current patients

6. Increase volume by increasing visits among current patients

Tactics

• Advertising

• Web

• Collateral

• Signage and Displays

• CRM

Advertising

• Large Branding Color Ads

• Large Branding B/W Ads

• Smaller Service Promise Ads

• New Provider Advertising

Large Color Ads

Large Black and White

Small Black and White Ads

Branding Campaign

• Phase One: Fourth Quarter 2004– $70,000 (included color ads)

• Phase Two: First Quarter 2005– $10,000 (supplemented with new provider ads)

• Phase Three: Third Quarter 2006– $50,000 (B/W only)

New Provider Advertising

• Complement Branding Ads

• 18 new providers

• $3,500-$4,000 budget per provider

• Seattle Times, Herald, + local papers

• Consistent presence January 2005 through today

Cost: $35,000 per year (incl. photographer plus media placement)

New Provider Advertising

Website

Marketing Materials

Marketing Materials

Marketing Materials

Signage and Displays

CRM Marketing Initiatives

1. Direct Mail Image Campaign

2. New Movers Program

3. Reminder Program for Patients

4. Summer Mailer

Image Direct Mail

Image Direct Mail

• 88,671 total households mailed– 66,604 non-patients– 22,678 patients (pre-database build)

• Four mailings in 2005:– June, August, October, December

• ROI… at least $260,464 (earliest program - tracking started in June 2005)

Image Direct Mail

Patient Portion of Mailing:22,067 mailed19,826 used services89.84% utilization rate

Control Group:1,207 excluded1,035 used services85.75% utilization rate

4.09%904 patients

Image Direct Mail

What does this mean?

904 people (additional visits)

$300,464 revenue* (PEMC/ProvPG)

- $40,000 cost of the program

$260,464 post-marketing profit

*based on average PEMC profit margin

Image Direct Mail

Non-patient Portion of Mailing:66,604 mailed3,832 used services5.75% utilization rate

Control Group:3,678 excluded191 used services5.19% utilization rate

.56 %

not considered statistically significant

New Movers Program

New Movers Program

New Movers Program

Initial Package1,900 packages mailed per month (averaging)

$1.64 per package (includes postage and mailing list)

$38,000 per year

Follow-up Mailer1,900 cards mailed per month$ .64 per mailer (includes postage and mailing list)

$15,000 per year

$53,000 current annual program cost**based on number of new movers available

New Movers Program

Mailed Group:16,278 mailed (tracking started in July 2005)

344 used services2.11% utilization rate

Control Group:1,654 excluded 29 used services1.75% utilization rate

.36 %

not considered statistically significant

Patient Reminder Program

Lifetime Connections:• Annual screenings and immunizations

reminder cards• Customizable by age and gender

Patient Reminder Program

2,824 packages mailed per month (averaging)

$1.05 per package (includes postage and processing)

$36,000 current annual program cost(we are under

our estimated

annual cost

of $55,000 )

Patient Reminder Program

Mailed Group:19,291 mailed (tracking started in Oct. 2005)

9,667 used services50.11% utilization rate

Control Group:1,077 excluded 538 used services49.95% utilization rate

.16 %

not considered statistically significant

Summer Mailer

Summer Mailer

10,000 mailed in Mid-July 2006

Cost:$7,000 printing and mailing$5,000 free ice pack (gift)$12,000 program cost

ROI data not available yet.

Take-Aways

• Even with ROI tools in place, it is hard to measure Marketing effectiveness– Cannot measure ROI in all vehicles (advertising, web, collateral)

– Hard to measure patient loyalty/satisfaction/turnover– CTA not urgent for physician groups… delays in response

• Currently looking at ways to improve CRM programs (Packaging/Offers)

• NM and LTC programs are intuitively strategic

• Volumes and new patients seem to be climbing steadily (Marketing efforts?)

• Need to market to remain competitive (TEC)

2007 Plans

• Continue with New Movers Program – Offer different gifts and test– Make the mailer more dynamic by location

• Continue Lifetime Connections – Offer different gifts and test– Change the criteria to reach more people– Cross-sell using the ad space

• Continue with Service Promise and New Provider Ads

Questions?

Marketing Update

Providence Physician GroupOctober 2006

BudgetProvPG 2007 Budget Projection -- PRIMARY CARE*

Type Description Itemized TotalCRM** $130,000

LTC Program $55,000New Movers Program $69,000New Movers Brochures $6,000

New Providers $22,850New physician Photographs $2,850New Physician Advertising $18,000Sign Changes $2,000

Marketing Other $27,000Print Print Advertising - Branding $20,000Merrill Brochures and Collateral $5,000Misc. Misc. Displays, Banners $2,000

2007 Total $179,8502006 Total $160,751

Number of New Patients

700

900

1100

1300

1500

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