Channel Threading is the intentional connection of multiple Channels with the understanding of how they will be used to complete an outcome for your Customer. Doing it well creates distribution channels that are linked together in a meaningful way and enables healthcare companies to create personalized products and messaging.

1. Do Your Channels Work Together?
a presentation by Kevin Riley
for the AHIP Institute
Wednesday June 12, 4:30 – 5:45 PM
This content is property of Kevin Riley & Associates – All Rights Reserved.

2. Synopsis
Session:
What Are Your Retail Health Channels and Do They Work Together
Ultimately, the winners in retail health will not focus on helping consumers
navigate through the maze of health options available, but will work to remove
the maze altogether. As the maze is different for every individual, the most
successful health plans will know who their customers are ahead of time and
will understand their preferences. This session will explore how to create retail
channels that are linked together in a meaningful way to enable health
insurance plans to personalize their products and messaging for each
individual – and still drive down their overall costs.
Session Objectives:
• Evaluate the types and preferences for various retail health channels.
• Understand the critical “do’s and don’ts when implementing your retail health
strategy.
• Learn how to build a channel threading strategy for healthcare consumers.

3. About the Author
Principal at Kevin Riley & Associates | Health Model Innovation
• former chief innovation officer of Florida Blue (Blue Cross Blue Shield of
Florida) and founder and former president/CEO of GuideWell
• founder of modelH.org, an open-sourced platform for designing healthcare
business models.
What is Health Model Innovation (modelH)? The
systematic development of profitable and sustainable
healthcare business models by creating and/or realigning
the activity systems that improve member experience,
boost provider performance, and enable payer cost
control.
follow me on @kevineriley, linkedin, slideshare

4. Channel Threading is the
intentional connection of multiple
Channels with the understanding
of how they will be used to
complete an outcome for your
Customer.

5. We are talking about Channel Threading

6. Doing it well creates distribution
channels that are linked together
in a meaningful way and enables
healthcare companies to create
personalized products and
messaging.

7. Source: Business Model Canvas by Alex Osterwalder
This is a standard business model canvas

8. Your Channel
(communication, distribution, or service)
is where where your
Value Proposition is delivered
to your Customer.

9. Source: Business Model Canvas by Alex Osterwalder
Your Channel is a key Building Block

10. Customers often use multiple
Channels to decide upon and
purchase (or consume) a given
Value Propositions.

11. Consumers
want a choice
of retail
channels
48.0%
33.5%
18.5%
Useful, Not Crucial Very Important Doesn't Matter
Source: Econsultancy Multichannel Retail Survey

12. Consumers
research on the
web before
buying in a
store
29.9%
62.7%
7.4%
Always Sometimes Never
Source: Econsultancy Multichannel Retail Survey

13. Source: Vibes Mobile Consumer Survey August 2012
Consumers use their phone to
shop

14. Source: Vibes Mobile Consumer Survey August 2012
Consumers “shop” you in your store

15. Consumers
(adult) with a
smartphone
in the U.S.
47.0%
53.0%
Smartphone Other/None
Source: Yankee Group

16. “Retailers that fail to put in place
effective multichannel capabilities
will lose out on 15% to 30% of
revenue in their category by
2015, and struggle to compete
effectively for digitally influenced
revenues in retail.”
Source: Booz & Company The Mandate for Multichannel Retail Evaluating Supply Chain Models

17. Channel Threading starts with
understanding the Customer's
Purchase Journey.

18. Recognize
Problem
(JTBD)
Seek out
Information
Evaluate
Alternatives
Make a
Purchase
Decision
Post-Purchase
Behavior
Standard Consumer Purchase Journey

19. A Purchase Journey is the steps a
customer takes in deciding to buy
and use a given Value Proposition
(product). It involves the Channels
in which the steps take place as
well as the affect that Key
Influencers and Intermediaries
may have upon the outcome.

20. In healthcare it is very complex

21. Some example purchase journeys across
various product categories
Source: PWC 2012 Global multichannel consumer survey

22. There are two parts to the Journey
- the Purchase and the Usage
Both of these matter equally in
healthcare, but they do not get
equal treatment.

23. What makes customers mad in a
healthcare purchase journey?

24. Recognize
Problem
(JTBD)
Seek out
Information
Evaluate
Alternatives
Make a
Purchase
Decision
Post-Purchase
Behavior
Pain Points in a Healthcare Purchase Journey
Unexpected costs
arise when using
the product
Customer does
not understand
how to use the
product
properly
Customer enrolls
but they are not
“enrolled”
Product selection
confusing & pricing
inconsistent across
channels
Research does not
add clarity to the
buying process

25. So how do you thread
multiple retail channels?

26. First pick which Customer
Segments matter most to you.

27. Then build what Channel(s) matter
most to them, in order of priority to
their need only to what is perceived
as Value.

28. Craft an orchestrated Experience
across them.

29. Then add what adds Value (both
known and unknown).

30. But build with the end in mind.

31. What happens when you Channel
Thread without regards to good
Experience design?

32. Watch this video!
http://youtu.be/qxf4LKSddS4

33. Link: http://healthmodelinnovation.com/how-we-do-it/

34. Link - www.modelH.org

35. Questions?
Kevin Riley & Associates | Health Model Innovation
kevin@healthmodelinnovation.com
www.healthmodelinnovation.com