As healthcare becomes more of a commodity over time, healthcare consumers will engage in shopping behavior based on price and quality. They will be demanding a better experience.

1. Customer Experience
Management Applied to
Healthcare
Michael J Krivich, FACHE, PCM
Founder and Independent Consultant
the michael J group

2. Patient Experience Management
A healthcare provider’s ability to deliver an experience
that sets it apart in the eyes of its payers, physicians
and consumers from its competitors - traditional and
non-traditional - serves to increase their spending and
loyalty to the brand.
© the michael j group 2011. All rights reserved.

3. The wave of change is already here!
© the michael j group 2011. All rights reserved.

4. The patient moves between different personas
 Individuals are only patients in one-third of their total
interactions with you.
 The other two-thirds of their encounters with you as a
healthcare provider, is as a consumer.
 Physicians and insurance companies are customers too.
 Only a small portion of your total interaction with markets and
channels is with patients.
© the michael j group 2011. All rights reserved.

5. Patient experience management is not new
 Customer Experience first introduced by Pine and
Gilmore in a Harvard Business Review Article, 1998.
 The concept of Experience Management is just now
beginning to move into healthcare as Patient Experience.
 The Patient Protection and Affordable Care Act places
the consumer at the center of the healthcare universe.
 As healthcare becomes more of a commodity over time,
healthcare consumers will engage in shopping behavior
based on price and quality. They will be demanding a
better experience.
 The consumer of health services should now be at the
center of all that you do.
© the michael j group 2011. All rights reserved.

6. Patient experience management transforms organizations
 Calling Customer Experience Management “Patient Experience
Management” is a mistake. This limits your view of the world and the
application of this process across all markets, segments and channels.
 Customer Experience Management transforms the operations and
processes of the healthcare provider around the needs of individual
consumers regardless of what they are called, delivering high value and
memorable experiences. It is no longer “all about the internal hospital” it’s
“all about the customer”.
 Experience Management is not just the “hospitality” services.
 For example- a four to five hour discharge process is unacceptable in
Customer Experience Management because that is built around your
needs, not the customer’s.
© the michael j group 2011. All rights reserved.

7. Patient experience management transforms organizations
 Experience Management requires a shift in organizational
focus from inside-out to outside-in.
 Requires a complete and thorough understanding of all
customers, their needs and their organizational touch
points - externally and internally.
 Represents the discipline and processes to
comprehensively manage a consumer cross-channel
exposure, interactions and transactions with the
healthcare provider, service and brand.
 Requires you to see the patient as an individual customer
with distinct needs and expectations.
© the michael j group 2011. All rights reserved.

8. Patient choice will be partially based on experience
 In a McKinsey study published November 2007, McKinsey
Quarterly -A Better Hospital Experience, they found that the
majority of 2,000 commercial insurance and Medicare patient
would change hospitals to receive a better experience.
◦ 20% of a patients choice is based on the clinical care experience or
reputation,
◦ 41% is on the nonclinical experience
◦ 39% is based on doctors recommendation.
 The most surprising finding, was that of the 100 physicians also
surveyed, they are often willing to accommodate their patients'
request!
 Doctors will move patients and honor their request for a better
hospital experience.
© the michael j group 2011. All rights reserved.

9. Patient experience management boosts revenue
 In a HealthLeaders Media article from October 8, 2010, How
to Boost Post-Discharge Revenue, Customer Service:
◦ Improving the customer/patient experience with the business office can
realize cash improvements of 20-30%.
 2007 Operationalizing Customer Intelligence in the Contact
Center, Business Communications Review:
◦ Customer retention increased by 15% year-over-year for best-in-class
CEM practitioner; by 1% for industry-average CEM practitioner; 0%
for laggards.
◦ Customer satisfaction increased 19% year-over-year for best-in-class
CEM practitioners; 6% for industry -average; 3% for laggards.
◦ Profits increased 8% year-over-year for best-in-class CEM practitioners;
increased 6% industry-average; decreased 8% for laggards.
© the michael j group 2011. All rights reserved.

10. Patient experience and customer service go hand-In-hand
 Customer Experience Report North America 2010,
Forrester Research found a number of interesting facts.
Some of the most interesting:
◦ Of those who decided to stop using an organization:
 73% was due to rude staff;
 51% due to unknowledgeable staff;
 55% due to issues not resolved in a timely manner.
◦ 79% of customers who had a negative experience told others;
◦ 59% of consumers recommend a company because of its service;
◦ 40% purchase from a competitor because of their reputation for
great customer service.
© the michael j group 2011. All rights reserved.

11. Complete understanding
of all customer
expectations
Improve systems,
processes, products
and training
Higher quality,
efficiency and
accuracy
Lower
operating costs
Lower prices to
customers
Realize high customer
satisfaction levels
Retain customers
Improve
market share &
revenue
Customer
Experience Model
© the michael j group 2011. All rights reserved.

12. The patient experience bucket List
 Clear senior management and organizational support;
 Clear definition of the customer(s);
 Clear goals and objectives how the project will impact customers;
 The experience is designed for every stage of the customer
lifecycle, from initial deployment to ongoing support;
 There is a plan for testing the impact on customers;
 Resources- human, operating budget, capital budget and time are
allocated;
 Voice of the Customer (VoC) program to gather ongoing feedback
to monitor the customer experience over time;
 Clear definition of measurable success for the healthcare
organization and customer.
© the michael j group 2011. All rights reserved.

13. What does it take?
 Commitment
 Organizational change
 Resources
 Time
 Vision
© the michael j group 2011. All rights reserved.

14. About the michael J group
 the michael J group is a healthcare marketing consultancy
delivering exceptional strategic marketing plans, customer
experience management, product launch plans, sales training
and integration of sales and marketing programs, new product
launch, media relations and brand development to hospitals,
health plans, insurance companies, pharmacogenetic, medical
device and the pharmaceutical industries. Specializing in
bringing start-ups to market.
 For more information contact: Michael J Krivich, FACHE,
PCM, Principal and Founder at 1-815-351-0671, or visit us on
the web at www.themichaeljgroup.com, or my blog
Healthcare Marketing Matters.
© the michael j group 2011. All rights reserved.