Forrester Research

Healthcare Marketing: Boomers Spending Big on Technology

Baby Boomers are into technology, spending more money on technology than any other age group.

Technology and social media are ways to reach the younger generations.  Right?  Not so fast. Baby boomers might be the real target.  The latest figures from the Bureau of Labor Statistics indicate that baby boomers have fully embraced technology.  They are the biggest spenders on technology according to Forrester Research’s annual benchmark tech study.

Think about the boomers you know.  The typical boomer has a desktop computer at work, a laptop at home, are on facebook, have a smartphone, have multiple accounts on the internet, DVRs their favorite television shows and is wishing for an iPad. If they don’t already have one.

“It’s actually a myth that baby boomers aren’t into technology.  They represent 24% of the population, but they consume 40% (in total dollars spent) of it”, stated Patricia McDonough, senior VP-analysis at Nielsen and reported by Beth Snyder Bulik in Ad Age.

Baby boomers are not early adapters but they certainly pile on.   Ten years ago only 25% of boomers went online daily.  Today 70% go surfing everyday.   And examine these stats about baby boomers:

  • 47% use social media
  • One in five use social media every day
  • A full 66% use their cell phone for texting
  • 91% use email
  • 88% use search engines
  • 78% use the internet to research health information
  • 74% get news from the internet

Baby boomers are aging and have become huge users of health services and that will grow tremendously as they age. To healthcare marketers they are a huge and critical target audience and if we think they can only be reached by traditional media we are making a critical mistake. Technology and social media have been embraced by boomers and have become a very common and pervasive part of their lives.  Technology, new media and social networking are effective ways to reach, communicate and even build relationships with those 45-64 ears old.

Boomers are the greatest spending generation.  And they spend their money and their time on technology.  It would be a huge disconnect for healthcare marketers to assume otherwise.

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Hospital Marketing: The Future of our Brand is Determined by Random Contacts with the Patient

The brands that top the charts in customer experience are also winning the loyalty battle.

Forrester Research recently released its list of top brands for customer service.  Surveying over 4600 U.S. consumers about their customer experiences, Barnes and Noble topped the list.  Others making the top five were Marriott Hotels, Hampton Inn, Amazon and Holiday Inn Express.  At the bottom of the list were Charter Communications, United Healthcare and Citigroup. (A complete list can be seen here).

It’s always interesting to see how consumers rate businesses in regard to their customer service experiences.  And to examine what businesses do to improve their customer service.  It’s also interesting to see the correlation between customer service and other brand attributes.

One thing we know is there is a strong correlation between customer experience and brand loyalty.  Those companies that deliver superior customer service also build strong brand loyalty.  The brand image and perception are largely determined at the point it interacts with the customer.  Brand loyalty is determined at the point of customer contact.

As hospital marketers, this is invaluable information. We often put our emphasis on technology, convenience, services and a host of other things.  But how much emphasis are we putting on that point of customer contact?  What is happening when our brand interacts with the patient and the patient’s family?  Brand loyalty is being determined at those random points of contact.  The future of our brand is determined during these interactions.

This is undoubtedly the most difficult thing to control.  There are so many within our organization that have contact with the patient and each one of them can make or break the experience.  It’s very difficult to control all of these contacts.  But it is imperative that we create a culture, an environment, where there is consistent attention and a strong emphasis on positive customer service. Yes technology, convenience, services and a host of other things are important, but in a consumer-directed economy, customer service is at the top.  The customer experience will determine how our brand is viewed and if there is any brand loyalty.

Barnes and Noble and the other companies at the top of the list make great effort to create a customer-friendly atmosphere and attempt to deliver the highest level of customer service.  They make it their corporate culture.  The future of our own brand largely depends on how well we create that culture within our organizations.


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Healthcare Marketing: Social Media Moving from Experimental to Serious

 

Social media is moving from experimental stage to serious commitment for most professional marketers.

For many serious marketers, social media has thus far been mostly experimental.  They have considered, explored, tested and sampled various social media options.  But researchers at Forrester Research  have concluded that now marketers are beginning to get serious about social media.   2010 “is the year social marketing gets serious” stated Forrester Analyst Augie Ray in a recent article by Laurie Sullivan in Online Media Daily. 

Social media is maturing and is being taken more seriously by marketers.  The growth of social media sites and the increasing use of such sites by consumers makes it very difficult to ignore.  Significant audiences exist there and marketers are challenged to find ways to engage consumers on those sites.  Social media is beginning to play a more significant role in marketing strategies and budget allocations are increasing for social media options. 

Although the tide is moving toward more emphasis on social media, healthcare marketers are not embracing social networks at the same level as other industries.  According to the 2010 Social Media Marketing Benchmark Report from MarketingSherpa, healthcare lags considerably behind other industries in anticipated budget commitments to social media.   Only 43% of healthcare marketers anticipate increased budget allocations for social media in 2010 as compared to 79% in retail.

The trend is obvious.  Social media is no longer just a fad.  It is the place many marketers are engaging consumers and building brand awareness and loyalty.  While many healthcare marketers are not yet fully embracing social networking, it provides a great opportunity and potential competitive advantage for those who catch the wave and commit to finding effective ways to use the media.  It can be a place where healthcare marketers can dominant the competition and gain a significant advantage.

It is time to get serious about social media!


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