I invite you to attend a webinar I will present this week on The Implications of Retail Health and The Future of Health Insurance on Tuesday, January 8, 2013, from 2:00 PM – 3:15 PM ET.
Retail health— from convenient care clinics in drugstores to the emerging insurance exchanges mandated by healthcare reform—has the potential to reshape the provider and payer markets. Health plans are taking a position by investing in technology, assisting members with price and quality transparency, and developing innovative care networks that broaden member access.
This webinar, in brief, is about how consumer-directed healthcare empowers “shoppers” by providing them with information about price and treatment options so that they can pursue cost-saving opportunities. As a result, a growing number of managed care organizations are adding retail health stores and clinics within their networks. Consumers want convenience in their health care options, which is right in line with retail channels.
What You Will Learn
This webinar will outline how you can best position your organization for success via retail health.
We will explore the origins and evolution of retail healthcare with an eye toward emerging trends that will impact your business.
I hope to show you how retail health coupled with consumerism can impact member behaviors—improving quality and cost.
We will also look at the impact of retail clinics on member access, costs, and quality.
Finally, we will examine how plans might formulate a retail health strategy to encompass market-based initiatives coupled with reform-driven mandates.
Listen to a podcast I gave where I discussed why health plans have a lot to learn from retailers. In this discussion, we cover many topics related to retail health, its evolution and its trajectory. We also discuss some upcoming talks I am giving.
What You Will Learn
This drive towards consumerism is spanning all industries – how are health plans reacting?
How can plans continue to attract and retain members in a competitive marketplace?
What are some of the key takeaways that attendees can look forward to this March?
I believe that Innovation Takes Excitement and Collaboration, and Should Be Fun too. I made this decision based on a visit to a very innovative medical facility in Tampa, Florida.
In 2012, I had an opportunity to visit the Center For Advanced Medical Learning And Simulation (CAMLS). It was a rewarding experience and I was highly impressed at how much had been invested in innovation around both medical practices and collaboration. More than just a cutting edge surgery training facility, CAMLS the physical place – is designed to facilitate adult learning and team collaboration. The idea stemmed from coupling the USF medical department with the innovation department to create something new that allows for a disruptive way to teach new doctors about care, as well as help other healthcare partners to think differently about building medical devices.
According to their website, CAMLS is “a 90,000 square foot, state-of-the-art, three-story facility with every possible form of health professional education and training, for individuals and teams, under one roof. CAMLS integrates simulation technology, aviation science, team training, and evidence-based best practice into innovative programs with measurable outcomes.”
What Did I Learn?
The lessons I took about innovation from visiting this wonderful new facility are three fold.
1. Innovation takes (and creates) excitement,
2. Innovation takes collaboration, and
3. Innovation should be fun.
1. Innovation Takes Excitement
What struck me right off the bat was the level of excitement among the faculty at CAMLS – about the building itself, and the enterprise that they were engaged in. Seeing that much focused excitement and commitment by the leaders of the organization gave me great hope that this enterprise was going to have sufficient staying power.
This is not always so with many of the innovation efforts I have seen. Often times, innovation is an afterthought to what is considered most important to a company’s core strategy. In as much, the work is assigned to existing team members who are led by the classic big company manager. This model almost always ensures that you will get mediocre results. It takes a lot of effort to sustain a disruptive innovation practice and most legacy managers do not have it. They are too concerned about their status, and do not want to rock the boat and truly push the envelope. This translates into a fear to take chances and a reluctance to push for innovation’s needs over and above the rest of the company’s wants.
2. Innovation Takes Collaboration
Next, innovation takes collaboration. The notion of the lone scientist thinking up how to change the world is really a fallacy. As discussed in the book Where Good Ideas Come From: The Natural History of Innovation, big ideas are really a series of smaller ideas coming together to form something that is meaningful to the market. Edison had a team of professionals working with him to determine the right size filament for his light bulb. CAMLS itself is a co-laboratory that brings multi-disciplinary thinkers together on a common problem. True to the concept of The Medici Effect: Breakthrough Insights at the Intersection of Ideas, Concepts, and Cultures, I was glad to see that CAMLS was designed to bring together scientists, doctors, academics, business people, and students to work on innovative medical ideas.I advocate that every company should have its own innovation space – a place to think and train on new methods like rapid prototyping. A place to have customers provide feedback on our products and services and a place that will fuel an organization’s movement to a more innovative system.If your current training facilities do not invoke/inspire interest and a spirit of learning – consider extending them to be part of the imagination space.
Think of it as a Library where you are allowed to talk, experiment, and interact on topics of importance to your company. At CAMLS they treat their training as a means to have doctors and care providers walk thru the life of their patients. They use their simulation centers to teach how to deliver both good and bad results to a patient and video it to review in private. Here they extend what the doctor is learning beyond just medicine; they are teaching connectivity to humans in need.
But a word of caution on this idea – companies and the people that work for them change – what is needed today will be old hat tomorrow. If you are going to build your own innovation center – don’t pour it in concrete. Meaning, save room for new ideas and build it modularly so sections that are no longer relevant can be removed.
3. Innovation Should Be Fun
One last point I want to make is that innovation should have a strong dose of fun in its’ application. After all, what’s the point of changing things if you not changing them for the better. Nothing to add here specifically other than when you find yourself taking your innovation efforts too seriously – you may want to find something else to do.
In Summary
I believe CAMLS is set-up for success and I will be following them and watching their progress throughout the next couple of years. I invite you to do the same. Here is a quick video that I put together of what I saw.
I had the opportunity to spend some time at Microsoft recently toting their new retail stores and their innovation center. They seem to have a laser focus on the consumer and their new product lines are exciting. Here is to the old dog learning new tricks.
Here is a quick video that I put together of what I saw. I was impressed to say the least.
2013 was a big year for me. I resigned as Chief Innovation Officer of a major insurance plan at the end of 2012 to pursue what I consider to be the culmination of things I have been working on for well over a decade. I call this Health Model Innovation. My technical definition for it is to develop profitable and sustainable business models by creating and realigning the activity systems that improve member experience, boost provider performance, and enable payer cost control. Simply put, my goal is drive start-up businesses and new product lines that create disruptive change in the healthcare space.
This alone will be a big challenge for me in 2013. But I also need to save some time focusing on my personal health. That’s why in 2013 I am publicly challenging myself to exercise regularly and validating my journey through verifiable data. That means I’m recording the exercise that I do so that I have the data about my progress. Based on Wired magazine’s Thomas Goetz and his work on the “quantified self”, I will be using several tools to reach health goals and track my progress.
So you all know, I am fully aware that no one besides myself and my wife and child care about this endeavor – but my hope is that my fear of public shaming for not sticking to my guns pushes past my desire to take a nap or procrastinate. Moreover, I want this to be a sustained effort. I am a big believer in the power of habit, so I am trying to re-establish a good habit of daily exercise through the combination of incentives and dis-incentives – and a little bit of fun along the way.
Getting the Data
Nike+ FuelBand
To get the data I want, I need to start with a pedometer. Better yet, an accelerometer. You might be asking, “Kevin, what is the difference between an accelerometer and a pedometer?” Well, from a mechanical standpoint, accelerometers measure vertical acceleration, while pedometers are much simpler and only respond to vertical acceleration. Another difference is around $100 price point.
So, my accelerometer of choice is the Nike+ FuelBand. Keep in mind, I tested most of the major brands: the FitBit Classic, the BodyMedia FIT LINK, and the Striiv Smart Pedometer. First, I wanted something that was simple. Second, I wanted something that was unobtrusive. Third, I wanted something I would remember to carry with me at all times. For these reasons I settled on the Nike+ FuelBand – however, I am not sure the Nike+ FuelBand is as accurate as the FitBit, as it seems to count movement that I do not consider exercise – like typing up a new BLOG.
In any case, this is what I will be wearing to collect data on my exercise whether I’m doing P90X, running or sweating it out at boot camp in the morning.
Xbox Kinect
Another means to acquire data is using my Xbox Kinect. By now if you are unaware of what these nifty little devices do, you really must get out more. The Xbox Kinect is a motion sensing “camera” that inputs data into the Microsoft Xbox 360 video game console. At its launch in 2010, it set the Guinness World Record for being the “fastest selling consumer electronics device” with 8 million units sold in its first 60 days.
Along with the device though you need a game. I bought the new Nike+ Kinect Training. This game “creates a personalized, dynamic workout program based on your body, performance, fitness goals, schedule, and level of commitment.” You can check it out here. So far I like it.
The Workout
I was an athlete in college, and I am far from that now. I sustained a pretty severe back injury and my flexibility is something I am constantly fighting with. Moreover, I am pretty busy with work and being a father and husband. Finally, I can get bored doing the same thing too long.
So knowing all this – I have opted for a mix of the workouts provided in P90X (although not all of them), the Nike+ Kinect Training Game, riding my bike 1X per week, running 2X per week, and trying to do Yoga 2-3X per week.
Staying Motivated
For me, staying motivated is a mix of incentives and dis-incentives. The dis-incentive part is my public commitment to track and publish the data of my workouts and write about my progress on occasion. Fortunately, my Nike FuelBand publishes the data “auto-magically” for me, as does the Kinect game. I also need to mark things in the – old fashion way – and send a tweet now and again. So if you do not see a tweet now and again about my workouts – send me a not-so-gentle reminder. Finally, I am using some wellness apps to help me set goals, record progress, and win prizes.
RunKeeper
RunKeeper is a mobile app and website that helps keep track of running, walking, biking activities. Since running and riding my mountain bike are part of my regimen, I might as well track them and compare them against my friends. I also gave myself a goal inside of Run Keeper – to run in a 5K race by Feb 23, 2013. I think I may need to push that out a month or so.
There are several useful and cool features that RunKeeper provides. First, I can look for a local 5K to run in. I wanted to select the GATE River Run on March 9th (yes, I know that is past the 23rd) and then I remembered I will be at SXSW in Austin, TX at that time. I will need to keep looking for something that fits my goals and my schedule.
The second useful feature is a training plan. I signed up for the Beginner 5K plan that Mike Deibler M.S., C.S.C.S put together. Sweet!
Finally, I downloaded the iTunes App and uploaded it to my iPhone and iPod Touch that I will carry with me when I run.
Everymove
I also joined Everymove. This is part of the incentive portion of my program. My reasoning is if I am going to exercise anyway, I might as well get some rewards for it. I looked at several of these reward programs – CoolLeaf, ShapeUp, Trim Challenge, and a few more. The idea behind these companies is connecting health and wellness related vendors with consumers in a manner that drives access to discounts through activity. In some cases, they get employer and insurance companies to sponsor and even subsidize “points” that their employees and members earn for healthy behavior. It works well with airlines and hotels, why not health?
Nike Missions
Finally and just for fun, I am going to try out the Nike Fuel Missions. Nike has once again taken things to the next level by integrating their activity tracking products with a game that is powered by the user’s activity. This is something much bigger than Microsoft Kinect. Take a look.
Final Words
So as I get ready to embark on this journey, I ask that you all feel free to keep me honest and motivated. Here is to a healthy and happy new year for all of us.
Do Healthcare Companies need a Chief Exp. Officer?
What do I mean by Experience? Great customer-focused companies have built their business around the voice and perspectives of their customers. Healthcare companies, more specifically health insurance companies, are typically not primarily viewed as consumer-centric entities. The Affordable Care Act is a major impetus in changing healthcare from an almost industrialized, business-to-business modality to a retail one. This change is also driving healthcare companies to adopt the best practices of big box retailers and banks. One of those practices, albeit still somewhat new, is to have a C-level position dedicated to bringing emphasis on the customer to the forefront, as well as to govern the traditional business in how they “go retail.”
I advocate that all healthcare companies follow suit – provider, payers, and everyone in between – and create a Chief Experience Officer or Chief Customer Experience Officer.
Forrester has done some great research (April 2011 “Customer Experience Index, 2011: Health Insurance Plans”) on how customers feel about various industries. In 2009 health insurance ranked near the bottom at 51% – in 2011, it remained relatively unchanged – at 53%. What makes it worse is that other forms of insurance, like auto and life, rank much higher at 72%, so there should be no excuse for the healthcare companies to be satisfied with status quo. To also be perceived as lower than the cable companies is shocking, as it is nearly impossible in my experience to find someone who thinks they create great customer experiences.
Source Forrester Research
Too many companies equate customer experience with customer service (or support). Service is a part of what makes a great overall customer experience. Experience is a lot more than just service and is certainly more than just a measure of your “first call resolution.” If you are more worried about solving the problems you create, as opposed to ceasing to cause problems altogether, you have missed the boat. Furthermore, if you consider “first call resolution” to technically be a good experience when the customer stays on the same phone call but talks with 3 or 4 “support specialists” and managers then you have again missed the boat.
WIKI defines “customer experience” as: “the sum of all experiences a customer has with a supplier of goods or services, over the duration of their relationship with that supplier. From awareness, discovery, attraction, interaction, purchase, use, cultivation and advocacy.”
This works for me. What is to be understood from this is that many single experiences accumulated together provide an overall customer experience, which in turn drives the attitudes and behaviors of a customer towards a company. Let’s take a look at what this might look like for an average healthcare consumer.
A Consumer’s Healthcare Vignette
Sam is employed and has his benefits through his employer. His company has sponsored an annual worksite wellness event where Sam gets his blood glucose and cholesterol checked. Sam also plans to get a full diagnostic screening using ultrasound technology sometime this year from his in-network primary care provider. He also scheduled an annual physical that includes a full blood lipid panel workup. Additionally, Sam has access to a kiosk located in his worksite clinic to check and report on his glucose levels. He also has a WebMD account through his employer but chooses not to use it because he perceives it as too complex. Sam’s wife gets a mailer from their insurance company inviting them to come in at the newly opened insurance retail center. If they do so – they get a free screening.
None of these experiences communicate to each other electronically, and none of them automatically or conveniently store Sam’s data in his Microsoft Health Vault account.
Because his previous annual physical showed a high glucose score, Sam was identified as pre-diabetic. He has received messages and calls about pre-diabetes care options from a “consultant” at his insurance provider. He wonders if this nurse works for his doctor and if not, does his doctor know she is calling and what she is saying. He wonders if his doctor would agree?
This only gets more confusing the more we go on. Consumer oriented or consumer focused companies understand and plan for an intentional customer experience. To drive a consistent customer experience (a branded experience) across all of your channels, you need someone in control who has both the purview and the spine to get things done. This example is where a Chief Experience/Customer Experience Officer comes in.
What is a Chief Experience Officer?
This C-level position is most commonly referred to as the Chief Customer Officer (CXO), though other titles are used: Chief Client Officer (at OptumHealth), Chief Experience Officer (at Cigna), or Executive Vice President, Member Experience (at USAA). What is important to note is that these individuals are empowered to design, orchestrate, and improve customer experiences across every customer interaction.
In The Rise Of The Chief Customer Officer, a report by Forrester Research, they looked closely at this growing corporate trend. In summary, the report found that the role is far beyond just fixing the problems of unhappy customers. It is ultimately responsible for determining how to accelerate the practice of customer-centricity throughout an organization by teaching the techniques and building the capabilities that are needed to serve a consumer. This report, like many reports that deal with change management, also echoes the need for change to stem from the executive management team, which brings the impetus for change to the company and the customer’s voice into the boardroom.
Influence agreement on what and how to deliver the greatest value to customers
Establish metrics for defining relationships and value creation with customers
Drive accountability through the organization for those data and metrics
Clarify a common approach and process for driving the work across the organization
The Key Takeaways
So what should you get if your take the leap and create your own CXO role?
Better Design
You cannot have a good experience without good design. The CXO must be a believer in the principles of User Centered Design and invest in bringing those techniques into their company. In this role, creativity – not productivity is the key to business success. In my opinion, the incumbent should serve as the chief design officer as well. It does not mean that the CXO has to be a great designer, but they must appreciate the need for great design, recognize when they do not have it, and push to ensure they get it across all touch-points. This consistency can also be served by having a strong partnership with the brand team and brand officer.
Better Consistency
Consistently clear messages and appealing design only come when a company has a common design language and consistent design principles. If your company does not integrate the communications and consumer experience efforts, you will send mixed and probably confusing signals to your customers – without even trying. Brand is brand, and should stay that way. But ensuring the promise of the brand is delivered in a consistent and clear way, across channels, synchronized for maximum effectiveness, requires a CXO, in partnership with business operations and the brand team, to bring it to action.
Better Transparency
Consumers’ standards for clarity have changed. Regardless of what industry you are in, the best-in-class retailers are setting your customers’ expectations for a clear understanding of your products, their price, and what you are going to do when something goes wrong. But it is complex to deliver a good customer experience. Forrester analyst Liz Boehm says it best when she states the goal “it is not simply to provide what the consumer wants but provide it in a way that gives them information about something they might not want to understand.” Your customers expect you to have access to the same information about them as Amazon does, and the same winning attitude as Zappos does. Chances are that you are probably not there on either count right now. The role of the CXO is to bridge the communication gap and close the consumer’s disconnect between expectations and reality.
Can it work at a legacy Healthcare company?
How do we make it (customer experience focus) work? This question is a far better question for healthcare companies to ask then- can it work? For any healthcare company that is preparing to conduct business in an environment impacted by reform, the voice of the customer is, and should be, a priority. I advocate here to create the role and office of a CXO to drive, help lead, and manage your company’s journey towards ensuring that the customer’s perspective is always brought to the forefront, storefront, and boardroom for consideration in all business decisions.
It bears repeating that the CXO role is not a senior support role. A company should not, as Forrester’s research indicates, rush to appoint a CXO in the attempt to solve poor customer satisfaction ratings. As Hagan suggests in his HBR article, creating a CXO requires three preconditions for success:
a mandate to differentiate based on customer experience, preferably from the CEO,
a portfolio of successful projects that create buy-in across the organization, and
a uniform understanding on the leadership team for what the position can accomplish.
While all retail companies must place emphasis on their customers’ perspective, a brand new C-level position may not always be necessary. As Manning states, the work of the CXO function is vital to achieving customer-centricity, but may be able to be fulfilled by an existing executive dedicated to overseeing and linking different functional groups, with the ultimate objective of maximizing customer and corporate value. Whether you appoint a CXO or not, it is clear that healthcare companies will benefit from a single executive, sitting on the executive management team, focused exclusively on the customer experience.
Some quick tips to get started
I plan to write more on these later but should you decide to create a CXO role here is a basic
6-step plan to get you started.
Announce the Role and its Premise
Design the Framework in which the role it will Exist and Operate
Define the Resources internal and external to the Department
Explain the Process, Tools, and Techniques that will support the framework
Outline the Governance model for the strategy and work
Publish the Metrics for Measurement
Here are some other good sources on Customer Experience.
In the mid-2000s, I was part of a disruptive movement in healthcare to build nurse practitioner run clinics within grocery store settings. These clinics, called convenient care clinics (CCCs), in essence, are limited in scope (acute care, minor illnesses, and preventative healthcare services) and located in retail stores, supermarkets, and pharmacies. The idea was that the market needed to expand distribution of these types of services to meet demand and that by building them in locations close to where people live and work, and not require an appointment for medical care. This movement was dubbed Retail Health at the time and led by Minute Clinic, Take Care Health, and others. I helped three of these CCCs – two were quite successful, one not so much.
Retail Health disrupted again when insurance companies started building retail stores to attract consumers and sell their insurance products. To my knowledge, the first of these was done with the largest insurer in Florida. I was at Florida during the expansion of these stores and saw them grow in both usage and size. They started out in the 800sq. feet range and now are free standing 5000 sq. feet buildings. The idea here is that a company that is facing a shift to a retail market as a means to establish positive brand awareness directly with consumers by creating a retail location where customers can buy and receive service for their insurance products.
Source: Minute Clinic
Selling Insurance to the Consumer Market
Since the first store was created, many have followed suit, albeit with differing store footprints and models. Some of these are UnitedHealthcare, WellPoint (Anthem), Highmark, many of the blue plans, and Humana. Humana actually started with a partnership with Max-Wellness stores and opted to try a different approach.
Could this be the equivalent of the beginning of the “burger wars”? What is also telling is the number of large and regional insurers that are in a “wait and see” approach – not yet ready to commit the resources to a direct retail footprint. I would expect to see others follow suit in the coming years, but with a mix of smaller and kiosk-related storefronts. GuideWell has also innovated even more by creating one of its retail centers as a member clinic under the blue umbrella. Early signs look like this idea is getting a good reception by members.
These retail “centers” are designed to sell to individual consumers. Companies that are pursuing this channel as a key element of their consumer strategy feel this model provides three competitive differentiators:
Reduce Sales Cycle
1. It shortens the sales cycle – Buying insurance is confusing, and even frightening to many. It is an expensive product with little consumer understanding, and poor “user documentation.” Having a high-touch sales rep there to explain all of the options and implications will create a better sales experience for the consumer and in all likelihood shorten the sales cycle.
Reduce Post Sales Service
2. It cuts down on post-sales service – because consumers are in theory more informed about the product they have just purchased, post sales service should correspondingly be less. Ask any insurer and they will tell you – it is expensive to provide customer service for their products. The current model is equivalent to a doctor treating the symptoms as opposed to the source of a sickness. Regardless of industry, most service issues are a result of poor consumer information leading to lost expectations.
Increase Consumer Trust
3. It creates a high level of trust – Health insurance is not a high margin business, and new regulations are greatly restricting how much insurers can make and spend on non-medical related costs. For insurers to make the revenues they need to survive, they must sell additional, or “ancillary” products. Upselling directly correlates to consumer trust. No consumer will buy more from a vendor that has given him or her a poor product or poor experiences. If the high touch environment is better at informing the consumer about the product, which leads to better satisfaction and usage of the product, it stands to reason that trust will be increased as well. With more trust comes the opportunity to upsell. This is true in any retail market.
Useful for Small Employers
These retail stores also make a great outlet to serve small business. With the implementation of the Reform Act, it is highly anticipated that most small employers will send their employees to find insurance on the exchanges. In this environment, retail centers can be a real benefit to individuals who in many cases have never had the advantage of a fully dedicated HR manager or benefits advisor helping them with their healthcare decisions. The centers in effect can become an outsourced human resources department, wellness center, and benefits advisor all in one.
Source: GuideWell
Disrupting the Disrupters
So where is this trend headed? I had the opportunity to give some market advice to an interesting retail health startup out of Tennessee called Bernard Health. The basic gist of their model is to sell insurance directly to consumers via retail outlets through salaried sales reps, not commissioned sales and service reps. They are concentrating on the Medicare Market.
These retail locations are similar to ones created by the insurance companies but different in two major factors. First, they are not selling their own product. Second, is their store footprint.
Source Bernard Health
The Best Insurance Product for Each Customer
On point one, because they are selling the best product available for the customer they are working with, and not their best product, they, in theory, have a higher trust factor with the consumer. Couple this with the fact that their reps are salaried and not commissioned, and you have an interesting model. When last I spoke with Bernard Health, they were tracking 50 appointments per month, which was on par with traffic seen by benchmarking against similar retail settings, like a Jackson Hewitt store. It would be interesting to see the close ratio per appointment of their sales team versus a branded store by one of the big insurers. Do shoppers at the branded insurance stores purchase the product available because they like Trane, or do they go to get information and then comparatively shop it elsewhere?
Built to Be Profitable
The second difference is the store footprint. I know some of the blue retail stores in Florida are in the 5000 square foot range. They are quite nice. And their experience is a good one. Compare this against Bernard Health’s much smaller retail location. I am not certain you can even sell enough individual plans to pay for the large, or every medium sized store but perhaps they offer a better channel for customer service. Most insurance companies rate in the 70% satisfaction range for the call centers. These retail settings are much, much higher.
Are These a Good Idea?
Will they have any success? This profitability is yet to be seen. They do not have the marketing budgets that the majors have, but they have the “trust” advantage on their side. Insurance is one of the least trusted industries in the country. Having a non-biased advocate to help you make sense of the system may be just what the doctor ordered. I wish Bernard Health, and all of these retail health efforts the best of luck and a prosperous 2013.
I just wrapped up giving a condensed version of my Workshop 1a – Claim your customer at the 4th Annual Medicare Advantage Strategic Business Symposium in San Juan, Puerto Rico. It was a fantastic group, and we all learned from each other. Participants ranged from major insurance plans to renowned hospitals, and everything in between.
We went through how to create personas specific for a Medicare market so that product developers at these companies will be able to create something that is meaningful for a specific audience. You can see my intro deck here.
According to John Pruitt, personas are “detailed descriptions of imaginary people constructed out of well-understood, highly specified data about real people”.
Every healthcare company should become familiar with and practice the discipline of persona development. This realization is a result of The Affordable Care Act changing the market from wholesale to retail. As I have said many times before – retail means a focus on the consumer’s wants, not your products. As consumers are offered a choice of competing products, healthcare companies need to create offerings that have a clear value proposition or risk losing share. A standard method for persona development looks something like the following:
But person creation for healthcare, in my opinion, has some points to keep in mind, which I refer to as tenants. I describe these in brief below, but I will focus on them in depth in future posts.
Tenant #1 – All of this Exists in an Ecosystem
All of this exists in an ecosystem, only some of which is in your control. A good persona has detail about the user’s needs, attitudes, and behaviors, and a great one includes the most important and relevant influencers as well. Outside of the patients themselves (note: I did not say member or customer), healthcare influencers in my model are comprised of:
The provider – including all care providers and health information providers, such as doctors, family members, Oprah, Google, …
The payer – this is the insurance company and their intermediaries, such as brokers, employers, government, organizations, …
The purveyor – or those entities selling the products and tools we need to get and stay healthy, such as the pharmaceutical companies, Nike, gyms, trainers, …
Your personas must take into account the dynamic of this ecosystem and provide insight into how the person is influenced in a positive and negative way about their health and your product(s). This will help not only the product designers but also the product marketing team later down the road.
Tenant #2 – You are a Retailer Now
Dear healthcare company, you are a retailer now, get used to it and act like one. As I mentioned earlier, the healthcare market is being forced into a retail setting. This is not just for the payers but includes the care providers as well. Groups like The Cleveland Clinic and Mayo figured this out early on and established themselves as the Zappos of their trade.
It is important for companies new to retail to understand that retail has its own rules – and the customer has the advantage. According to Willard N. Ander and Neil Z. Stern in their book Winning at Retail: Developing a Sustained Model for Retail Success, a successful retailer will only try and sell to one value position, and customers who prioritize that value position will shop at them. This means you can be Wal-Mart, or Target, but not K-mart.
One of the axioms of direct-to-consumer business is that you cannot be all things to all people. This means no more talking about your Medicare market as Over 65. The diversity of people over 65, in their health, and health knowledge, and how they shop is varied. Lumping them into one market with one set of products means you will be meaningless to all. It is time to pick a horse and commit to the race.
Tenant #3 – Customers Behaviors Vary
Your customers attitudes (may) stay the same, but their needs and behaviors do not. People do not think of their health holistically. Instead, they break things down into jobs-to-be-done, as described by Clayton Christensen. A single person, based on their changing health jobs-to-be-done and knowledge specific to them, can change their behavior and attitudes. This means that the same person you lump into one segment can have very different behaviors associated with the different aspects of their health.
Smart healthcare companies have to realize this. Infinite customization of health products is a pipedream at this point. But matching a product to a like grouping, and being flexible enough to modify interactions based on a current job-to-be-done is crucial for creating lifetime customers, and the resulting value a company gets from that.
To Thine Own Self Be True
Healthcare companies, as all good retailers must know what they are capable of and should optimize their capabilities to 1) create meaningful value exchanges with customers around a specific value position, and 2) capture all of the data involved in a consumer making a purchase decision, not just the outcome of that decision.
You cannot just have a traditional “enROLLment” system. Instead, you need a “ROLLing” system that moves with the customer through their health decisions, capturing all of the nuances along the way – and then uses that data, and some logical inferences, to create relevant and reasonable predictions for additional consumer needs.
Healthcare companies are trying to be innovative – but are their very natures preventing them from realizing success? My question is a simple one – how can you take the best of what is necessary and combine it with the best of what is available and form something both new and necessary?
The Premise
Can you make gold from lead? Actually, it turns out that you can. It really is possible and has been done at Yale University in the 1970s. However, it turns out that it takes significantly more energy (and cost) than it is worth in return. Juxtapose this with the question, “Can a legacy healthcare company be agile and innovative enough to change itself and its environment?” And even if they can turn themselves into “gold”, is it worth the cost?
The Hypothesis
I believe we must combine the necessary with the available and pick the best source for each – and work very, very hard to ensure they grow, together. We know that healthcare is approaching a “cliff” – and the hands at the wheel are the same ones that helped create the current dysfunctional system. This includes the patient, as well the insurance plans, the care providers, and the purveyors of all things health-related (like pharmaceutical companies). We know that we must alter course. The Affordable Care Act has given the impetus to force a change. But to change course, we need to change the system. The system, like a living being, is interconnected and will resist change applied externally. Moreover, change to any one part of it without consideration to the impacts on the rest of the ecosystem is futile. As the laws of physics tell us, things at rest tend to stay at rest. Businesses are similar. Unless there is an external catalyst forcing movement, companies, like objects, will stay put (and stagnate). There is an alternative to innovation at gunpoint – it comes in the form of taking a proactive approach to change. However change from within is really, really hard to do. But it can be done. Why not combine the best parts (contributions) of a start-up company with the necessary (working) parts of a legacy company to form agile, yet comprehensive, solutions to the dilemma? I believe this can be done through 3 simple steps:
Place innovation front and center by embracing the successful attributes of start-ups,
Create ecosystems of stakeholders that include patient, provider, and plan, and
Simultaneously find the operational efficiencies needed to address rising costs.
I know this works because I have done it. But it takes a lot of effort to start the process for a breakthrough. It takes even more energy and communication to keep it going.
In the spirit of the Christmas season, I will be (re)giving a talk entitled Maximizing Member Engagement through Technology. This will take place on December 19th at 2:00 pm ET.
This webinar will cover a variety of efforts to connect with consumers in the marketplace, and how to use technology properly as both a channel and an experience. I gave this same talk this summer and it was so well received I was asked if I would do it again.
The Internet has transformed the way healthcare is managed and delivered. It significantly reduces costs, builds strong relationships with customers, and allows for tailoring of message on a faster delivery channel. As such, the question is not who is searching for health info online, but rather “who isn’t”?
My basic premise of this talk is that technology should serve as a means to help educate, navigate, plan, motivate and choose from suitable solutions for health care needs, anticipated and otherwise. If this sounds informative to you, or perhaps helpful to your own work – please join me.
What You Will Learn
During this webinar you will explore how a leading health plan developed these best practices and learn:
Optimize member engagement through technology.
Maximize the potential of retail health.
Increase member engagement through direct consumer marketing.
So, my accelerometer of choice is the Nike+ FuelBand. Keep in mind, I tested most of the major brands: the FitBit Classic, the BodyMedia FIT LINK, and the Striiv Smart Pedometer. First, I wanted something that was simple. Second, I wanted something that was unobtrusive. Third, I wanted something I would remember to carry with me at all times. For these reasons I settled on the Nike+ FuelBand – however, I am not sure the Nike+ FuelBand is as accurate as the FitBit, as it seems to count movement that I do not consider exercise – like typing up a new BLOG.
