Healthcare Marketing: We’re Going Mobile

March 6, 2010

With the increased penetration of smart phones, consumers are becoming more and more dependent on their cell phones for just about every form of communication.   This presents opportunities for companies, hospitals and brands to market themselves to consumers.

Over 82% of Americans now own a cell phone.  And 60% of those phones are less than a year old.  The increase in smart phones is growing exponentially.  And smart phones are equipped with more and more communication and information options. Soon the cellphone will be used for almost all forms of communication and information gathering – texting, emailing, internet search, GPS, electronic coupons, and more.

Consumers are connected to each other and the world via their cell phones. This creates opportunities for brands to market themselves to consumers via mobile marketing. One of the compelling advantages for mobile marketing is its omnipresence. Frank Powell recently discussed omnipresence as one of the advantages of mobile marketing in an article in Mobile Marketer.  He cites that mobile phone users are within arm’s reach of their phone 90% of their waking hours.  And much of this time is when other media are not available. Mobile phones are not location-centric but are person-centric.  They are where the owner is.

Powell cites in his article two main reasons why mobile marketing can be so powerful

1. Customers can always be reached.

2. Customers can almost always be interrupted.

Although the invasive nature of cellphones cause heartburn for many people, it is a medium that cannot be ignored.  Just as social media has begun to be included in hospital’s marketing plans, we must turn our eyes to mobile marketing and be ready to take advantage of the unlimited opportunities it will offer.  Never before has there been a medium that is so ever-present with our customers and patients. And there has never been a medium upon which our customers and patients have been so dependent.


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Hospital Marketing: Online Display Ads Improve Search Performance

March 6, 2010

Recent studies indicate that online banner ads dramatically improve search results for both paid and organic search.

Significant money is now being spent on internet display advertising.  Many have questioned the effectiveness of such expenditures.  However some recent studies have shown that online display ads are very effective and  in ways that were unexpected.

A recent study by the Atlas Institute, “Where Can You Find Your Customer: The Intersection of Search and Display” indicate that internet visitors who are exposed to both search and display advertising convert at a 22% percent higher rate than by search alone.

Similar results were revealed in a study by Comscore, “The Silent Click: Building Brands Online”. Comscore found that internet visitors exposed to display ads spend surprisingly 55% more time on the site and viewed 51% more pages than those not exposed to online display ads.

Yes organic search is still better than display ads for search but when display ads are combined with organic search the results are significantly better than with either one alone.  This means to maximize a brand’s effectiveness on the web, both search optimization for organic search and online display ads are essential?

Just like in traditional media, multiple exposures  over different media or venues increase effectiveness. The same is true for the web. A combined, integrated, coordinated marketing approach will yield the maximum results.

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Healthcare Marketing: The Power We Hold with Smart Phones

February 26, 2010

The American Red Cross has raised over $25 million with their “Text for Haiti Relief” effort.  

You may think texting is just for the kids.  We see teens and young adults texting all the time.  It is their primary mode of communication.  But make no mistake about it, texting is a powerful force -  even among adults.  The Red Cross’s use of texting to contribute $10 to the Haitian Relief Fund has raised over $25 million thus far.   At $10 per text, that translates into 2.4 million texts.

So texting is not just for the kids.  The effort by the Red Cross effort proves that people in very different demos utilize test messaging. And it proves texting can be very useful for more than just social communication.  In this case texting has even become a powerful force in fund-raising.  About 20% of all the funds raised for Haiti relief by the Red Cross have come from texting “Haiti” to 90999 to make a $10 contribution.

Just a year or so ago, who would have thought that $25 million could be raised from texting?  Texting is becoming more mainstream and is showing its usefulness in marketing.

This is a wake up call to healthcare marketers that text is emerging as a significant and powerful tool. Just when we decide to dip our toes in social media like Facebook and Twitter, along comes texting.  The Red Cross demonstrates the impact and power smart phones and texting are becoming.  It can no longer be ignored.

We are just on the front end of the learning curve of what cellphones and smart phones can do.  Marketers must pay attention, learn and explore creative uses for texting. $25 million dollars is a lot of money, especially in increments of $10.  A whole new adventure is in front of us.  There will be countless possibilities and opportunities to effectively use text messaging to achieve useful and worthwhile objectives.  What power we hold in our hands!


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Hospital Marketing: A Decade of Change – Behind Us and Ahead of Us

February 24, 2010

The changes that have occurred during the past 10 years are amazing!  The 2000’s have been a remarkable decade for consumers.  And the marketing implications are enormous.      

Josh Bernoff of Advertising Age recently wrote an article listing some of the dramatic changes that have occurred since the start of 2000.. It’s interesting to look at the changes he cites and consider the marketing implications of those changes.

In 2001 Bill Gates, referred to the decade as “The Digital Decade”. What a prophet he has proven to be.  To prove that he was right, consider some of the numbers:

  • When the decade began, there were 2.6 million broadband households in the U.S. – one in 40 homes.  Now there are 80 million – two thirds of the population.
  • In 2000, there were no DVRs.  Today they are in 31 million and 51 million HDTVs.
  • There are now 270 million mobile phone subscriptions in the U.S. – out of 307 million adults.  In 2000 there were practically no smartphones.
  • Portable digital music players now reach 76% of all households.  In 2000 the iPod had not been introduced.
  • There are now over 350,000,000 active Facebook users.  There were none in 2000.
  • Google just celebrated its 10th anniversary.  Ten years ago, Google wasn’t a noun or a verb.
  • Spending on digital marketing has grown from $6.2 billion in 1999 to $25.6 billion or 12% of all marketing expenditures.
  • In 2009, consumers spent 34% of their media time online.

To look back at these numbers, it is truly amazing how things have changed.  And the next decade will bring other remarkable changes.  All of this has certainly changed the nature of marketing.  These numbers can’t be ignored.  The consumer is very different today than he/she was just 10 years ago.  Our marketing strategies, patient service models and communication methods must change to reflect this very different marketplace.

The consumer has more control.  The consumer is more active in the marketing process.  The consumer is more demanding.  Expectations are higher.  And the liabilities from not being responsive to the consumer are much greater.

Today is indeed a different world and a different marketplace than it was 10 years ago.  We look back at the last decade and realize how dramatically things have changed. And that’s why healthcare marketers must be different and must do things differently.

All the changes create great and exciting opportunities.  There is a lot to learn, a lot to explore and a lot to do.   Out task is harder in many ways, but the opportunities are greater too. What a decade it’s been!  And just as we consider the changes of the 2000s, the next ten years will be yet another decade of change and challenge and excitement.

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Healthcare Marketing: Is Saving Money Actually Costing You?

January 12, 2010

Cost should not be the primary factor in making decisions about resources to employ for your brand.  Quality, ability and experience are much more important.

We are in a recession. There are pressures on budgets. The edict from the C-Suites is to cut costs and save money. The pressure is to get more with less. That has forced many marketers to look for bargains. The criteria for making decisions has become cost. And the result could be a weaker brand and loss of brand equity.

Too often decisions are being made based on cost. Bid services out to get the best price. Decide to go with lesser talent because it’s cheaper. Take shortcuts. Go with lower quality. All of these are shortsighted.  They consider only the short-term.

Great advertising requires great talent.  Great creative minds create great brands. Creativity, talent and experience are the keys to successful work.  And those qualities do not come cheaply. Sure you can buy talent for less. Sure you can save money, but is it going to take your brand where it needs to go?  Will it maintain the brand perception and brand quality at necessary levels?

Creativity is not a commodity.  It is not something to be bought based on price.  All creativity is not equal and cannot be judged on cost alone. 

As a marketer, your brand is your most precious possession. It deserves the best.  It deserves outstanding creative, top-level talent and quality experience.  If you purchase inferior talent as a way to save money but it weakens and tarnishes the brand, what is the real cost?

In these tough times many are putting their brand in peril by basing decisions on price without regard to how it will affect the brand.  It can certainly save you money but it could also cause you to weaken or worse – lose your brand position.


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Healthcare Marketing: Slow to Adopt New Tech Make us Irresponsible?

January 12, 2010

The best technological innovations of this decade in marketing and media involve the internet and social media.  But they have not been fully embraced by healthcare marketers.

Adage recently published its “Book of Tens” which is a group of lists citing the best things of the decade. In the category of Best Tech Innovations in Media and Marketing, the majority of the items are some aspect of new media.  Included in the list of the top ten are broadband penetration, search marketing, social media, iPhone, Twitter, Flash and open APIs.   That’s 7 out of the ten!

Obviously, technology is changing the way marketing is done.  It is changing the marketing landscape.  It is requiring new strategies, new methods, and new tactics. It requires a new perspective.  It engages consumers in ways never before imagined 

But the fact is we healthcare marketers are hesitant or slow adopting these new technologies. There are many reasons for this.  Some legitimate and some not so legitimate.  Healthcare marketing is rarely if ever on the cutting age.  And due to the nature of healthcare, it probably shouldn’t be out front.  But it shouldn’t be pulling up the rear either.

The die is cast. Technology will not be reversed. Social engagement as a function of marketing will not change. Healthcare marketers must embrace new technologies and use them to promote and enhance their brand.  Are we being responsive and even responsible marketers if we fail to utilize the best new technologies of the decade?  In the least, healthcare marketers need to begin to explore and learn and experiment how these new technologies can be used effectively.

Who knows what technologies will appear in the new decade?  As we enter a new one, lets make sure we take advantage of the best technologies of the last decade.

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Healthcare Marketing: The Future Demands Marketing Become More Personal

January 12, 2010

 The future demands that marketing become more personal with a stronger emphasis on customer relations.

For years marketing has been about pushing, promoting products and services and brands. It’s been about marketers controlling the conversation and the media to communicate its desired message.  But that has changed.  Changed dramatically.  As we enter a new decade, the emphasis of marketing is entirely different. 

Now marketing is about being personal.  It’s more one-on-one marketing.   And it’s about managing customer relationships.  Consumers now have a much greater role in controlling the marketplace.  Consumers determine what messages they receive, when they receive them and how they receive them.  It’s no longer about flooding the airwaves with the message marketers want the consumers to hear and see.  It’s now more about relationships and interaction.  It’s about making connections, nurturing and growing those relationships to build long-term loyalty.

Fundamentally, marketing is about building brands and establishing brand value.  In the not too distant past, branding took a back seat to promotion and price.  That was shortsighted and diminished some brands to nothing more than the latest promotion and price comparison.  Fortunately, we have learned our lessons and now know that branding, brand perception and brand relationships are extremely important. 

This is certainly true with healthcare and hospital marketing.  In the past, healthcare marketers could just advertise or promote a new product or service and expect the local constituents to be loyal.  But like most other industries, in healthcare there is increased competition, new pressures to grow market share while consumers want more control and expect a higher level of attention and customer service.

Healthcare marketers can no longer take customers for granted.   Strong customer relations, customer-focused relationships, and meaningful interactions are now vitally important.  To build a healthy brand, marketers must have keen consumer insights, effectively interact with consumers and be consistently accountable.  The new decade presents new challenges, a new way of doing marketing.  But with those challenges come great opportunities.  There will be great rewards to those who understand the new marketplace and who reshape their brand to meaningfully and personally interact with consumers in new and expanding venues.  

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Hospital Marketers Should Learn From Retailers: Holidays are Social (Media)

January 11, 2010

Over half of national retail advertisers embraced social media as part of their media mix for the 2009 holidays.

Just two years ago, only 4% of national retail advertisers utilized social media in their marketing strategies.  But in 2009 more than half  embraced social media.   According to a survey by BDO Seidman, of those retailers using social media, 76% are focusing on Facebook, 50% on Twitter, 14% on MySpace and 14% on YouTube.

Natalie Zmuda and Kunur Patel wrote in the December 7th issue of Advertising Age that Facebook was the second most visited site in the US on Black Friday.  And on that day “4.3% of Facebook users and 2.3% Twitter users visited the website of a top 500 retailer immediately after perusing the social-network site.”

Some of the retailers Zmuda and Patel cited as successfully using social network sites were Best Buy, ebay, JC Penney, Toy ‘R ‘Us and Wal-Mart.  These retailers used a combination of giveaways, support for traditional advertising, customer service, charitable donations and promotion of online specials.  Amazon, Abercrombie and Fitch, Kohl’s, Old Navy and Target were listed as retailers who did not do such a great job utilizing social media.  Their various sins were lack of coordination with traditional media, lack of holiday specials, unanswered consumer complaints and unchecked pages.

This gives a microcosm of how extensive social media is used both successfully and poorly by retailers.  Lessons are abundant for healthcare marketers:

 

  • Social media is a viable option and should be included in a hospital’s marketing strategy.   As can be seen by the dramatic growth in the use of social media, retailers are way ahead in recognizing the value and importance of social networking.
  • When done right, social media can be very effective.  It can create and enhance relationships with consumers.  It can create an ongoing conversation with consumers. 
  • When done poorly, social media can damage a brand.  When a brand isn’t active and engaged and doesn’t respond to consumer comments it sends a message that it’s not consumer-focused.

Social media is growing.  Brands are recognizing the value and benefits of engaging in social media.  Hospital marketers can learn valuable lessons.  Retailers have taught us that indeed the holidays are very social.   

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