Help your CEO help you
We’re hearing a lot these days about the importance of marketing and brand building in tough economic times. How some of the best brands (such as Microsoft) and best products (such as the iPod) were born during past recessions. How the smartest of companies double down in bad economic times by increasing advertising, grabbing market share or pursuing new channels, all while their competitors hunker down and wait things out.
All of which, of course, is true. But convincing your CEO and other leaders to actually pursue these strategies is a whole other ball game, especially for hospitals and health systems. In many markets, such as the Twin Cities, providers are being crushed financially. A dramatic drop in utilization, bad patient debt, devastating investment losses and high bond rates are combining to squeeze these organizations like never before. Many are facing dramatic cost-cutting, including lay-offs that go deeper than administration and support staff into the clinical areas, affecting nurses, techs and more. Simply arguing that smart companies use these crises as an opportunity to build share and loyalty isn’t enough.
Here are some quick thoughts to consider as you fight to stave off marketing staff cuts and budget gutting:
1) remember, your CEO is dealing with a world of hurt, and on her list of priorities, marketing is typically not going to be high in difficult financial times. Does she keep 10 nurses in the ICU, or run the advertising campaign promoting the latest quality awards? Be respectful of the tough position your leader faces, and be reasonable in your requests. A CEO has to balance requests from all of the departments, each of which has valid arguments, but not all of which can survive in tact. Demonstrate how your recommendations are what’s best for the organization, not just for you and your team. For example, don’t ask for the world budget-wise, and suggest your own cuts. Show your CEO how you can help her make the tough decisions.
2) identify the strategies in your marketing plan that drive business in the short-term, and that provide measurable results. A perfect example is creating a series of joint pain seminars, which help drive orthopedic consults and joint replacement surgeries. With the right systems and measurements, you can show ROI for these types of initiatives, which demonstrates how marketing is adding to the bottom line.
3) while focusing on revenue wins now, dig deeper and get creative in exploring low-cost ways to maintain your brand during these tough times. For example, prepare for opportunities to invest in service innovation down the road by brainstorming ideas and conducting low-level research now.
4) make sure all leaders and organizational influencers receive updates on what your department is doing. Many folks in the C-suite or physician’s lounge have no idea how much your department achieves, let alone why it’s important. Like many things in this business, perception is reality, and if the perception is you’re not doing anything of value, then the reality is you’re fighting a battle that’s hard to win. Consider establishing a significant presence on your intranet, or set up a separate web site, which shows marketing plans, goals, objectives, progress, key dates, results and more.
What other strategies have you employed to ensure marketing is valued in these tough times? What’s working? What isn’t? Would be great to hear from others out there as hospitals learn to manage through tough times.
Good suggestions. I’d add a focus on the service lines that drive margin for the health system. Driving traffic to those service lines will help the overall organization. But I agree that those tactics must be measurable in order to monitor and adjust to drive ROI. An investment in SEO and SEM might have a greater return than direct mail but metrics will tell you if this is true in your market, for your target audience.
Thanks for being the voice of considered thought and reason during a time of focus on short-term decision making.
I think that many hospitals also need to rethink their charitable giving programs. Golf tournaments and fashion shows don’t deliver the right message now. Large donor gifts just may not be possible. Instead, small donor events (I like walks, runs, swims) with low overhead and face-to-face contact that build new relationships may serve two purposes: raise money as well as raising awareness for local provider expertise and services.
That’s a great point, Tom, and one missed in the list of financial hardships for hospitals: a drop in charitable giving. One aspect of hospital marketing I find interesting is how the Foundation often acts separately from the marketing department. Same goes with physician relations/outreach/”sales. Makes coordinating efforts, consistent messaging, etc. a real bear. ” Do you see a lot of that in your travels?