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Understanding Your Customers & Their Requirements Kristine A. Morrill London, UK & Strasbourg, France Understanding Your Customers & Their Requirements Kristine A. Morrill London, UK & Strasbourg, France

 Credentials A founding partner of medeuronet – a pan. European company whose vision Credentials A founding partner of medeuronet – a pan. European company whose vision is to accelerate time to market and drive profitable sales growth for innovative, start-up companies, as well as managing director of KAMCommunications – a healthcare marketing communications company based in London

 Goals for this talk • Provide insight into challenges of practicing medicine in Goals for this talk • Provide insight into challenges of practicing medicine in 2010 • What about ophthalmology? • What about patients? • How you can help

 Practice & Patient Insight Practice & Patient Insight

 The Top 10 Challenges of Practicing Medicine in 2010 1. Rising operating costs The Top 10 Challenges of Practicing Medicine in 2010 1. Rising operating costs 2. Managing finances 3. Implementing electronic record keeping 4. Maintaining physician compensation levels; 5. Recruiting physicians; 2010 Medical Group Management Assoc. Survey 6. Collecting from patients who self pay 7. Negotiating contracts with payers 8. Managing teamwork and group dynamics 9. Modifying physician compensation methodology 10. Participating in CMS' Physician Quality Reporting Initiative, or PQRI. (US only)

 The Challenges of Practicing Medicine in 2010 This is not just a US The Challenges of Practicing Medicine in 2010 This is not just a US phenomenon! • In Europe: ▫ ▫ Governments are capping healthcare spending Rejecting code requests for new technology Reducing reimbursement Increasing regulatory requirements • In Australia, the Australian Medical association cites: ▫ Undue influence and constraints on medical practice by third parties such as governments, insurers • Developing countries have been particularly hard hit according to 1 study • The slow economy continues to impact consumer spending

 What about for Ophthalmology? • Similar to the rest of medicine, with some What about for Ophthalmology? • Similar to the rest of medicine, with some key exceptions: ▫ Looming shortage of ophthalmologists (US, France, in particular) ▫ Techno-medico-ethical economics According to practice management consultant John Pinto: ‘Medical technology has become a kind of sorcerer’s apprentice, generating a flood of potential benefits and an unsustainable escalation of costs’ ▫ The aging population puts an increased strained on ophthalmic services

 Typical Ophthalmology Patient in 2010 • Four primary age groups: ▫ ▫ Young Typical Ophthalmology Patient in 2010 • Four primary age groups: ▫ ▫ Young Baby Boomers – age 45 to 54 Old Baby Boomers – age 55 to 63 The Silent Generation – age 64 to 72 The GI Generation – age 73+

 Key Characteristics of the 4 Groups • Young and Old Baby Boomers ▫ Key Characteristics of the 4 Groups • Young and Old Baby Boomers ▫ AKA: The Never Satisified Generation ▫ Greater affluence: In 2004, UK Baby Boomers controlled 80% of the wealth in this country • Young Boomers key characteristics: ▫ Less optimistic, distrust of government, general cynicism • Old Baby Boomer key characteristics: ▫ Experimental, individualism, free spirited, social-cause oriented

 Key Characteristics of the 4 Groups • The Silent Generation ▫ Born between Key Characteristics of the 4 Groups • The Silent Generation ▫ Born between the Great Depression and WWII ▫ Key characteristics: Hard working, loyal, submissive, technology challenged, traditional • The GI Generation ▫ AKA ‘The Greatest Generation’ ▫ Perseverance and resilience, self-sacrifice, family, consensus and teamwork

 The Baby Boom Bulge • The largest population segment today (35%) ▫ Positives The Baby Boom Bulge • The largest population segment today (35%) ▫ Positives Growing old gracefully is not an option for this group Will not compromise on health and appearance – have worked long and hard for later years, want to enjoy and grow old beautifully and in health Willing to spend money on health ▫ Negatives Size of the population will put a tremendous strain on healthcare systems Growing levels of eye disease such as diabetic retinopathy and ARMD

 What It all Means • Ophthalmologists are feeling pressure from all sides: ▫ What It all Means • Ophthalmologists are feeling pressure from all sides: ▫ ▫ Patients Government/Insurers Rapidly evolving technology Shrinking practitioner population means greater workloads

 Your Role Your Role

 How Can We Help? • Certainly, ophthalmologists are under pressure in 2010 • How Can We Help? • Certainly, ophthalmologists are under pressure in 2010 • Meanwhile, your job is to grow your business and increase sales • So, how can you help? ▫ The answer is by helping your customers grow their own practices • Assisting your customers in being better businesspeople and marketers will pay off for you

 MD Support Programs • Develop cost-effective tools and programs for MDs • By MD Support Programs • Develop cost-effective tools and programs for MDs • By providing tools and programs, you build customer loyalty • These programs also provide additional face time and sales opportunities! • Plus programs can be built around new technology to help MDs see the financial advantages

 MD Support Programs • These tools and programs can take many shapes • MD Support Programs • These tools and programs can take many shapes • Cost is what you can afford – but you do need to plan on investing upfront • Good packaging and MD input in development are critical factors for success

 Some examples… Some examples…

Subsidize Articles & Abstracts • Find a local PR agency that can help your Subsidize Articles & Abstracts • Find a local PR agency that can help your customers develop articles • Offer assistance in drafting and submitting abstracts to your country meetings or Europeanwide meetings ▫ How many of you currently pay for customers to come to meetings like the ESCRS? • Enables you to get the word out on new products, while allowing the MD to promote his or her practice

 Sponsor Clinical Marketing Studies • Provide simple study plans to encourage MDs to Sponsor Clinical Marketing Studies • Provide simple study plans to encourage MDs to try new products and collect clinical data • Small studies of 20 to 30 patients enables MDs to develop knowledge that leads to product endorsement • Important to have agreement in place on use of data • If data is good, encourage MDs to speak and write about the results

 Practice Marketing Toolkit • Develop an electronic toolkit (provided on a CD or Practice Marketing Toolkit • Develop an electronic toolkit (provided on a CD or memory stick) that gives the MD tools to promote their practice…

Surgery Communication Pack • Newsletter template • Press release template • Key stats & Surgery Communication Pack • Newsletter template • Press release template • Key stats & advice • Patient brochure • Hard and soft copies • Guidance notes CD

 • Practical advice on do-ityourself PR and Marketing for ophthalmology practices • Complete • Practical advice on do-ityourself PR and Marketing for ophthalmology practices • Complete with templates for news releases and patient letters • Available to order at www. kamcommunications. com

 Provide Business Management Tools • Ophthalmologists are not trained to be businesspeople • Provide Business Management Tools • Ophthalmologists are not trained to be businesspeople • Yet, today they are expected to deal with a myriad of business issues • One possibility is to support their participation in workshops available at meetings like the ASCRS , ESCRS & AAO • There also books available

 • This book was written by an ophthalmologist who • Founded a medical • This book was written by an ophthalmologist who • Founded a medical practice • Got an MBA • Helped build one of the first MD-led practice management companies

 Help Develop a Simple Marketing Plan • Even in countries where MDs cannot Help Develop a Simple Marketing Plan • Even in countries where MDs cannot advertise or do public promotion, it’s possible to market • Marketing need not be expensive and elaborate ▫ Word of mouth marketing and social media marketing are among the simplest and most cost effective tools • Here’s an example of a plan developed for a UK ophthalmologist…

 Example marketing plan Example marketing plan

 The Goal • Create new sources for potential patients for a London-based cataract-refractive The Goal • Create new sources for potential patients for a London-based cataract-refractive clinic

Objectives - Boost enquiries and increase treatment rates -Drive consumers to the website / Objectives - Boost enquiries and increase treatment rates -Drive consumers to the website / enquiry line - Position OUR LASER CLINIC as the trusted, personal and recommended eye care provider for all needs - Implement activities that demonstrates a measurable Return On Investment - Create a point of difference

Challenges and opportunities • High consumer drop out rate between enquiry and treatment • Challenges and opportunities • High consumer drop out rate between enquiry and treatment • London centric which limits patient base and media appeal • No ‘new’ technology to announce • Strong competition Tighter consumer communication relationship from first enquiry Innovative 4 star hotel package and national aftercare treatment Wo. M recommendations Profile strong credentials as trusted brand Innovative incentive scheme – added value

Target audience Location (Geographic segmentation): • SE based (80% of patients – primary target) Target audience Location (Geographic segmentation): • SE based (80% of patients – primary target) • Outside SE (20% of patients, therefore drive awareness of added value package and national aftercare chain) Profile (Demographic segmentation): • Generation Y (18 to 35 year olds) ▫ Affluent and highly educated ▫ Tech savvy and ideal candidates as healthy eyes / ages • Generation X and baby boomers (35 to 60 year olds) ▫ Affluent and increasingly driven by vanity

Strategic approach 1. Staying “eye to eye” with consumers every step of their journey Strategic approach 1. Staying “eye to eye” with consumers every step of their journey ▫ Create a tighter model ▫ Introducing more frequent letters and engagement opportunities ▫ Buddy scheme 2. Creating a buzz in the city ▫ Taxi chat ▫ The cutting edge with hairdressers 3. Strategic alliances with mutually beneficial partners ▫ Hotels / Health spa / dating sites / companies

1. Eye to eye with consumers Develop a more frequent contact model for communicating 1. Eye to eye with consumers Develop a more frequent contact model for communicating with potential patients Enquiry Treatment Decision making 6 months later … Website generated email newsletter Letter / Brochure / CD (current offering) Buddy scheme introduction Incentive and new testimonials profiled (ideally matching their profile)

2. Creating a buzz • What is a bzzz campaign? ▫ Bzzz campaigns rely 2. Creating a buzz • What is a bzzz campaign? ▫ Bzzz campaigns rely on word of mouth ▫ Bzzz campaigns involve recruiting Bzz agents (influential people) to spread the word ▫ Third party recommendations are welcomed as consumers have an increasingly cynical view of direct marketing • Who are our third parties? ▫ ▫ ▫ ▫ Other patients (AV already running ambassador scheme) Hairdressers Beauticians Personal trainers Taxi drivers Celebrities Other eye care professionals – after care network

3. Strategic alliances • Step 1: Identify list of top tier partners to approach 3. Strategic alliances • Step 1: Identify list of top tier partners to approach • Step 2: Create short presentation clearly outlining mutual benefits of partnership • Step 3: Set up meetings /calls with partners to discuss the opportunities • Step 4: Create supporting joint branded literature ▫ Leaflet at both outlets ▫ Website links ▫ Loyalty schemes / incentives (includes staff treatment and customers)

Possible budget • Consultancy fee ▫ Time and expertise of PR agency (recommended, but Possible budget • Consultancy fee ▫ Time and expertise of PR agency (recommended, but not mandatory) • Implementation costs ▫ Third party costs associated with activity (excludes incentives) ▫ Account management costs to be billed on a monthly basis including phone / post / printing etc. • Eye to eye with consumer ▫ Fee: £ 3, 000 / Costs: £tbc (design of collateral) • Buzz campaign ▫ Fee: £ 3, 500 / Costs: £tbc (design of collateral) • Strategic alliances ▫ Fee: £ 5, 000 / Costs: £tbc allow costs for travel to meetings / design and print of collateral

 Keys to success • • Build a customer database Test drive your marketing Keys to success • • Build a customer database Test drive your marketing plan Revisit your marketing plan on a quarterly basis Most importantly, use tools to measure its effectiveness

 Some Other Marketing Options Some Other Marketing Options

 Harnessing the internet to drive practice growth Harnessing the internet to drive practice growth

 The wonders of the internet • The internet and the world of social The wonders of the internet • The internet and the world of social media on the internet are excellent, inexpensive marketing tools. Why? ▫ Quick access to a wide range of three key population segments: Geographic Demographic Psychographic

 Who Uses the Internet? • The people sitting in your customers waiting rooms! Who Uses the Internet? • The people sitting in your customers waiting rooms! • The internet knows no age boundaries. 3 in 5 over-45 s are now internet users, while usage among 45 -54 s peaks at 81% •

 Internet Usage by Age & Type Younger boomers (ages 45 – 54) • Internet Usage by Age & Type Younger boomers (ages 45 – 54) • Use email – 90% • Use search engines – 90% • Research products – 82% • Get health info – 74% • Get news – 70% Older boomers (Ages 55 -63) • Use email – 90% • Use search engines – 89% • Get health info – 81% • Research products – 79% • Buy something online – 72% Silent Generation (Ages 64 – 72) • Use email – 91% • Use search engines – 85% • Reseach products – 73% • Get health info – 70% • Get news/buy something online – 56% GI Generation (age 73+) • Use email – 79% • Use search engines – 70% • Get health info – 67% • Research products – 60% • Buy something online – 47%

The 6 key social media platforms* • • • Facebook My. Space Linked. In The 6 key social media platforms* • • • Facebook My. Space Linked. In Blogs Twitter You. Tube

 Keys to success with social media • Understand the benefits of social media, Keys to success with social media • Understand the benefits of social media, such as: ▫ Consumer & competitive insight ▫ Generating awareness & thought leadership ▫ Online reputation management (especially key in refractive surgery) • Incorporate the right values: ▫ ▫ ▫ Transparency Honesty Relevance Value Commitment

 Keys to success with social media • Keep your mind open to different Keys to success with social media • Keep your mind open to different types of online communities ▫ Keep track of patients’ interests & hobbies • Respect the rules of the site & the leader of the group • Don’t be the only one talking about a practice & services ▫ Encourage happy patients to log on & join in the conversation

 Don’t forget about email! • With all the hype & focus on social Don’t forget about email! • With all the hype & focus on social networking, it’s important to keep email in the mix • Inexpensive tool that allows you and your customers to reach hundreds quickly • Important to deliver value with the message ▫ Consider a quarterly practice e-mail newsletter • Many cost effective tools available for creating electronic newsletter and patient communications

 Measuring the effectiveness of a marketing plan Measuring the effectiveness of a marketing plan

 How to Measure Effectiveness • To ensure that you’re spending money wisely and How to Measure Effectiveness • To ensure that you’re spending money wisely and helping your customers • Do NOT expect instant results from any marketing initiative • On the other hand, don’t wait a year before following up with a practice ▫ People will forget and nothing will change • Build-in milestones that require assessment of progress -- no less than quarterly

 How to Measure Effectiveness • Track referral sources! ▫ Include a line on How to Measure Effectiveness • Track referral sources! ▫ Include a line on the patient information sheet/have staff log it into the patient records ▫ Keep a record of your sources • Track website traffic ▫ Surprisingly inexpensive ▫ Allows you to see how long visitors stay on the site ▫ You can gather demographic information

 How to Measure Effectiveness • Encourage MDs to use patients as referral sources: How to Measure Effectiveness • Encourage MDs to use patients as referral sources: ▫ Create a standard questionnaire that can be sent to each patient after they’ve had surgery ▫ Ask about practice impressions/overall experience/if they would recommend the practice ▫ Telephone survey -- have a staff member conduct a follow-up phone call to ask about their experience ▫ Follow-up with people who opted for treatment at another center

 How to start developing MD programs 1. Sit down and discuss your ideas How to start developing MD programs 1. Sit down and discuss your ideas with your team 2. Talk to your customers about what would help them 1. And not just your top 5 customers! 2. Talk to midsize and smaller customers, as well 3. Develop a plan that sets out: ▫ ▫ ▫ Your objectives Challenges and opportunities Tactics Tools for measuring effectiveness Schedule for implementation and budget

 You cannot succeed in marketing if you aren’t willing to take risks. It’s You cannot succeed in marketing if you aren’t willing to take risks. It’s just impossible.

6 Keys to Marketing in the Current Environment 1. Visibility – to stay top 6 Keys to Marketing in the Current Environment 1. Visibility – to stay top of the class, you must stay top of mind 2. Understanding – let people know that you understand that times are tough 3. Differentiate – Know your USP (Unique Selling Proposition) 4. Adapt – To grow, you have to get creative 5. Avoid the discount 6. Keep technology current

 5 Musts for Marketing Now 1. Spend smarter – have a well-thought out 5 Musts for Marketing Now 1. Spend smarter – have a well-thought out strategy and a detailed marketing plan ü Have a clear rationale for every activity 2. Encourage MDs to focus on their patient base – former & current patients are more likely to turn to a trusted source ü Plus, customer retention marketing is less expensive than attracting new patients 3. Keep an eye on market trends – pay attention to how patients are reacting to the recession 4. Invest in new technology/growth areas 5. Protect the marketing budget

 Final considerations • There is no “one size fits all” solution ▫ What Final considerations • There is no “one size fits all” solution ▫ What works in Brazil may not work in France • You do need to dedicate the time and attention • Teach MDs that it’s OK to think about patients as customers • And that a “great customer experience” is critical to success • Keep marketing & supporting your customes, even when business is slow

 Thank you for your attention! Thank you for your attention!