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Slide 1: Healthcare IT Strategy CRM: Dead or Dying?
Slide 2: It’s called VRM, Vendor Relationship Management 1
Slide 3: “Retention is for wimps. We measure the percentage of customers who have our name tattoed on their body.” (Harley Davidson Annual Report) “80% of CEOs believe their brand provides a superior customer experience…8 % of their customers agree“ (Bain & Company) 2
Slide 4: CRM – A Matter of Perspective Is your firm looking from the inside-out or from the outside-in? 3
Slide 5: Are your customers coming or going? 4
Slide 6: Does Your Firm Stand Out? “We retail electronics” “We’re in pharmaceuticals” “We offer professional services” “We manufacture dry goods” "We're not in the xyz business. We're in the decommodification business.” 5
Slide 7: It’s not your father’s CRM…or is it? 6
Slide 8: CRM Alone Won’t Grow Revenues  98% of Coupons Get Thrown Away  It is 10x More Expensive to Generate Revenue from a New Customer  A 5% Increase in Retention Can Increase Company Profits by 60% – 100%  It is 6x More Expensive to Service Customers Through a Call Center than it is via the Internet and Website  Customers Who Refer Another Customer Generate Revenue at No Cost  Loyal and Referred Customers Stay Longer, Buy More Products and Services 7
Slide 9: COLOR It’s time to color outside the box 8
Slide 10: It’s time to break a few coconuts 9
Slide 11: CRM Logical Left Brain •Customer’s Value to Enterprise •Systems and Transactions •Functional Value CEM Emotional Right Brain •Enterprise’s Value to Customer •People and Interactions •Emotional Value 10
Slide 12: CRM is an “inside-out” view CRM involves heavy applications of technology:      CRM applications Enhanced IVR and ACD applications Outsourcing call center operations Off-shoring Sales force automation 11
Slide 13: CRM is technology employed for user convenience… 12
Slide 14: CRM is a shotgun approach 13
Slide 15: CRM is Multiple channels, customers in a box. PHONE WEB (PHONE TO PHONE) STORE (FACE TO FACE) (COMPUTER TO COMPUTER) 14
Slide 16: Is there a Better Way? 15
Slide 17: Fixing CRM Customer Management should focus on value creation, not cost reduction, effectiveness, not efficiency. CRM should have revenue targets. Value creation through CRM initiatives comes from:  Growing the customer base  Maintaining the customer base – retention, cross-sell & upsell  Servicing customer segments  Maximizing channel effectiveness 16
Slide 18: Change of Focus The focus is changing from enterprise to single customer, from technology to process, to…       Customer Acquisition (number of new "quality" customers) Customer Retention (percent of existing customer retained) Customer Satisfaction (question results from survey and/or focus groups) Customer Segmentation (percent of profit by customer demographics) Customer Profitability (average profit per customer/per household) Customer Servicing (average response time for customer complaint/inquiry resolution, first call resolution)  Customer Referrals (Net) 17
Slide 19: Where is business headed?  Non-store retailing. The customer acquisition cost, clicks versus bricks is much lower.  Some retailers employ a bricks CRM strategy to meet the needs of their clicks customers.  An M x N relationship exists among customers and their preferred retail channel.  Market leaders are deploying joint solutions of CRM and CEM – customer experience management. CEM employs an “outside-in” view of the company/customer relationship. 18
Slide 20: How are your customers connected to each other? To you?
Slide 21: Customers have many purchase and channel choices 20
Slide 22: Customers Solicit Bids I want to notify the whole market that I want to buy a SONY plasma TV. In effect, I want to issue a personal RFP that goes out to every retailer of SONY plasma TVs. 21
Slide 23: The customer is channel agnostic, and how the customer is cared for must be infrastructure agnostic. Customer Experience Management is the New Marketing 22
Slide 24: To decommodify, become the customer… …Reengineer 23
Slide 25: From what to what? 24
Slide 26: Customer Management Evolution  CRM evolves to CEM  Customer Experience = Vendor Performance – Customer Expectations  The value add is transforming CEM to Customer Equity Management – the total lifetime discounted value of all the firm’s customers. 25
Slide 27: Customers vs. Vendors – who is winning? How many hits does Google Reader display for your firm? How many for FaceBook? MySpace? YouTube? 26
Slide 28: How many of those interactions are you managing? 27
Slide 29: Managing customers is like herding cats…not much bang for your buck. (of course I’ve heard of cats) 28
Slide 30: It’s not a fair fight… While you manage them, they are 29 managing you
Slide 31: It’s called Vendor Relationship Management, VRM 30
Slide 32: Still with us? 31
Slide 33: Two worlds have collided, customers and vendors Did either survive intact? 32
Slide 34: It’s not easy… but important ventures rarely are. 33
Slide 35: Where do you need to go? How do you get there? 34
Slide 36: Need Help? 35
Slide 37: (EASY button not included} 36
Slide 38: Healthcare IT Strategy can lead the way 37
Slide 39: It’s called VRM, Vendor Relationship Management 38
Slide 40: First, write the playbook… CRM to CEM: •Define goals/objectives •Evaluate the situation •Define expectations •Develop a plan •CRM •CEM •VRM •Social networking •Implement 39
Slide 41: Define Goals & Objectives 40
Slide 42: Evaluate your situation 41
Slide 43: Develop a plan 42
Slide 44: Social Networking 43
Slide 45: +1 (484) 885-6942 +1 (610) 384-1811 paulroemer@Healthcareitstrategy.com Paul Roemer, Managing Partner Healthcare IT Strategy, LLC Contact: Paul Roemer, Partner, Clinton Rubin LLC paul.roemer@clintonrubin.com (484) 885-6942 44