Transcript St. Luke`s Episcopal Health System

Improving St. Luke’s Episcopal Health System’s Market
Share Through Increased Marketing and Advertising
09.27.07
Accomplishments in 2007 – St. Luke’s Episcopal Health System
Corporate Communications & Marketing and the Web Center have met David Fine’s vision for the
System: To be the healthcare provider of choice in the Greater Houston area.
Marketing & Corporate Communications
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Sponsorship of Theatre Under the Stars & Komen Race for the Cure®
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Partnership with YMCA for reduced membership for employees
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Integration of all corporate communication functions including advertising, public relations
and internal communications
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Organization of board retreat
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Coordinated employee celebrations and events
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Successfully promoted “New Beginnings” initiative to all System employees
Web Center
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Monthly publication of eNewsletter to more than 40,000 subscribers
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Deployment of new online patient registration and bill pay system
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Creation of online Breast Health Portal
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Daily update of photos on home page of The Source
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Accomplishments in 2007 – St. Luke’s Episcopal Hospital
Corporate Communications & Marketing has met Dr. David Pate’s excellence, engagement and
efficiency goals outlined in the five year plan for St. Luke’s.
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Published over 18,000 brochures for various specialties
Sent eight news releases covering stem cell research, St. Luke’s Medical Clinic and more
Coordinated employee celebrations and events
Promoted key internal initiatives
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LEAN
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Capture your Care
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“Ask me if I’ve washed my hands”
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Joint Commission preparation
Planned and promoted 25th anniversary of Heart Transplant Program at THI
Created and executed communication plans
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U.S.News & World Report rankings
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2007 Distinguished Hospital Award for Clinical Excellence by Health Grades
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Neuroscience Center of Excellence Designation
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Stroke Center Disease-Specific Certification
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Accomplishments in 2007 – St. Luke’s Episcopal Hospital
The Web Center has met Dr. David Pate’s excellence, engagement and efficiency goals outlined in
the five year plan for St. Luke’s.
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Deployment of online Performance Dashboard for SLEH
Launch of new microsite for NeuroScience Center
Creation of new online Outpatient Diagnostic Scheduling Request
Addition of new web section for St. Luke’s Medical Clinic
Daily updates of Joint Commission “Tips of the Day”
Shooting and editing of “Above & Beyond” videos
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Accomplishments in 2007 – Suburban Expansion
Marketing & Corporate Communications and the Web Center have followed the System’s guiding
principles: Integrity, Valuing People, Excellence, Goal Orientation and Stewardship.
Marketing & Corporate Communications
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Successfully publicized Debbie Sukin’s Modern Healthcare award as an “Up and Comer in
Healthcare”
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Staffed and promoted
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Groundbreaking for new Patient Care Tower II
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Groundbreaking and tree topping ceremonies for Sugar Land Hospital
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Shooting and editing video about suburban expansion for Sept. 2007 Board Meeting
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Write, edit and publish From the Ground Up newsletter
Web Center
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Deployment of online Performance Dashboard for WCMC
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Enhancement of WCMC section of The Source
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Addition of online payment system for parenting and birthing classes
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Established early web presence for the Sugar Land Hospital
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Initiatives & new projects planned for 2008
We can improve St. Luke’s Episcopal Health System’s market share through increased
marketing and advertising in 2008.
Marketing & Corporate Communications
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Market research
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Development of brand campaign
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Enhanced advertising including new media outlets (radio, TV, sponsorships, Wall Street
Journal, NY Times, billboards, direct mail)
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U.S.News & World Report Campaign
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Redevelop and rebrand internal publications
Web Center
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New system web site
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New vehicles for web advertising
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Relaunch of The Source
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Initiatives & new projects planned for 2008
We can improve St. Luke’s Episcopal Hospital market share through increased marketing
and advertising in 2008.
Marketing & Corporate Communications
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Break ground for new patient care facility in medical center
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Launch St. Luke’s Medical Clinic in the Galleria
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Promote patient stories to demonstrate level of care and technology
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Enhanced advertising including new media outlets (radio, TV, sponsorships, Wall Street
Journal, NY Times, billboards, direct mail)
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U.S.News & World Report Campaign
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Redevelop and rebrand internal publications
Web Center
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New hospital web site
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New vehicles for web advertising
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Initiatives & new projects planned for 2008
We can promote and introduce St. Luke’s Suburban Expansions through increased
marketing and advertising in 2008.
Marketing & Corporate Communications
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Ground breaking for new patient care center in Sugar Land
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Ground breaking for Clear Lake
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Launch two new Minor Emergency Care centers in Woodlands
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Promote Sugar Land Opening
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Launch new Medical Clinic in Galleria
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Announcement of new Katy hospital
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Enhanced advertising including new media outlets (radio, TV, sponsorships, Wall Street
Journal, NY Times, billboards, direct mail)
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Redevelop and rebrand internal publications
Web Center
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New web sites – Woodlands, Sugar Land, Clear Lake
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New vehicles for web advertising
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St. Luke’s Episcopal Health System is being outspent by competitors
2006 – 2007 media spending*
Methodist
Memorial Hermann
M. D. Anderson
St. Luke's
$8,484,042
$9,954,935
$3,792,611
$2,036,021
2006-2007 Share of voice
•Includes TV, radio, print, outdoor & sponsorships for 2006 and annualized for 2007
St. Luke's
8%
St. Luke’s Episcopal Health System is being
outspent by all competitors in Houston.
Memorial Hermann is outspending St.
Luke’s by a margin of 5 to 1.
At these levels, St. Luke’s messages cannot
penetrate the market and reach the
necessary audience. Other healthcare
providers are using more channels to
reach the consumer more frequently.
M. D. Anderson
16%
Methodist
35%
Memorial Hermann
41%
Source: TNS Media Advertising & local station reps
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At its current budget levels, St. Luke’s can only skim the surface
At its current level of spending, St. Luke’s Episcopal Health System is not adequately reaching
consumers in any media. The current budget allows St Luke’s to cover only a few media at
base levels. With additional funding, St. Luke’s will be able to compete and seize greater
market share.
2006-2007 Spending by medium*
$6,000,000
$5,000,000
$4,000,000
Methodist
Memorial Hermann
$3,000,000
M. D. Anderson
St. Luke's
$2,000,000
$1,000,000
To
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TV
$0
•Includes TV, radio, print, outdoor & sponsorships for 2006 and annualized for 2007
Source: TNS Media Advertising & local station reps
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Examples of competitor advertising
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Advertising impacts consumers’ perceptions and awareness
According to NRC Healthcare Market Guide, respondents were asked “Which hospital system
in Houston do you prefer for heart care?” Evaluating the three year trend from 20042006 indicates that St. Luke’s preference is declining while competitors are gaining.
From 2004-2006, advertising for St. Luke’s has been flat, while Memorial Hermann and
Methodist have continued to increase their budgets. Advertising is clearly impacting
consumer’s perceptions.
“Which hospital system in Houston do you prefer for heart care?”
Year
2004
2005
2006
St. Luke’s
48.1%
36.7%
33.1%
Memorial Hermann
16.3%
20.6%
21.4%
Methodist
12.6%
14.8%
14.5%
Source: NRC Healthcare Market Guide, 2006
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Increased funding is necessary to increase market share
2008 Budget
Market research
Content management software
Website development
Advertising & marketing
$125,000
$100,000
$170,000
$3,461,425
If St. Luke’s increases its budget there are opportunities for St. Luke’s to break through in
several channels including TV and radio.
2007 vs. 2008 Spending
$6,000,000
$6,000,000
$5,000,000
$5,000,000
$4,000,000
$4,000,000
Methodist
Methodist
Memorial Hermann
$3,000,000
Memorial Hermann
$3,000,000
M. D. Anderson
M. D. Anderson
To
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or
sh
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Sp
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To
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or
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$0
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$0
r
$1,000,000
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$1,000,000
TV
St. Luke's
$2,000,000
Ra
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o
$2,000,000
TV
St. Luke's
Source: TNS Media Advertising & local station reps
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Development of a successful campaign requires market research
Through market research St. Luke’s Episcopal Health System can:
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Evaluate and track St. Luke’s Episcopal Health System and the perceptions of its
competitors and customers.
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Analyze key audiences in order to strategize effective messages and efficient methods to
reach the consumer.
– Demographics: Characteristics of people that include age, income, education,
occupation, household size, home ownership and home value.
– Psychographics: People's lifestyles and behaviors, including their interests and
values.
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Study behavior, trends and consumption habits of target market.
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Assess local and national healthcare and consumer trends.
The end result will be a new identification of the target audience, understanding of media
habits, addition of new media channels (from the New York Times to cable networks),
insights about consumers and their lifestyles and new messaging strategies to engage the
audience.
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From research findings and insights, a brand campaign can be
developed
An integrated branding campaign will impact the entire health system.
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TV, radio, print, and interactive advertising: Research findings will drive the strategy for
all creative executions from print ads to brochures.
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System website: The current website began as an information resource but has morphed
to satisfy growing service lines and internal St. Luke’s constituents. With market research,
St. Luke’s can develop patient-centered websites with easy access to appointments, preregistration and increased interactivity with the users.
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Intranet and internal publications: Utilize findings from internal audiences to develop and
brand messages seamlessly with employees and physicians.
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Brand guide: A brand guide will be developed to communicate the brand strategy and
provide guidance on usage of the brand components and regulate all marketing
executions.
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A brand campaign is essential for St. Luke’s Episcopal Health System
Branding will increase St. Luke’s reputation.
St. Luke’s and Methodist are tied for best overall quality and image in 2006-2007.
Advertising directly impacts perception and awareness. If St. Luke’s cannot spend the
dollars to communicate messages about the brand, Methodist may overtake the number
one position in Houston.
A strong brand allows us to attach an idea to St. Luke’s Episcopal Health System.
By attaching an idea with St. Luke’s we create meaning and engage the consumer while
differentiating from the competition. By defining the idea that connects with the consumer,
St. Luke’s will be able to speak more effectively and efficiently with our best prospects and
impact brand recognition, because the message will be strategically crafted to have a
natural affinity with the target.
Source: NRC Healthcare Market Guide, 2006
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A brand campaign is essential for St. Luke’s Episcopal Health System
Branding will increase St. Luke’s preference over its competitors.
In 2006, consumers preferred competitors for most service line categories. With increased
advertising, St. Luke’s will be able to impact quality, reputation and preference, as these
are perceived measures that can be influenced with advertising. If St. Luke’s cannot
competitively spend dollars to advertise, there will be a greater gap between St. Luke’s and
the competition.
Consumer preference in hospital categories:
Service line
St. Luke’s
Bariatric
10.8%
Orthopaedic
11.8%
Neurology
16.6%
In-hospital stay
12.9%
Memorial Hermann
29.7%
26.6%
28.4%
29.5%
Methodist
14.8%
12.2%
16.7%
16.2%
Source: NRC Healthcare Market Guide, 2006
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St. Luke’s can identify key metrics to evaluate the success of the
branding campaign
Market research is critical to create and evaluate the success of the branding campaign.
Benchmarks that will be analyzed pre- campaign and reassessed post- campaign to
evaluate the success of the branding initiatives are:
Reputation: Trust and favorable opinion of the Health System as a whole, as well as
specialty-specific reputation in key service lines (CV and neurology, for example).
Awareness: Top-of-mind and overall awareness and recognition of St. Luke’s Episcopal
Health System.
Brand Equity: Differentiation from its competitors and awareness of messages and
themes unique to St. Luke’s.
Brand Preference: Loyalty and preference towards St. Luke’s versus its competitors
overall as a Health System, as well as specialty specific preference for service lines.
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A variety of tools can be used to measure ROI
NRC Healthcare Market Guide: SLEH currently subscribes to this service, which
conducts an annual survey of Houston healthcare. The survey is done online between April
and June. The 2007 results are available fourth quarter and will serve as a benchmark for
a wide range of measures. Future guides will be used to evaluate progress.
Marshall Marketing: This firm conducts a survey of health care every November for
KPRC-TV. It can provide awareness and reputation benchmarks. Future guides will be
used to evaluate progress.
Pre- and post- testing: Market research being developed to plan the 2008 campaign can
provide customized benchmarks, especially for detailed examination of reputation, brand
equity, and preference. Follow-up surveys can be conducted to check progress.
Web analytics: Assessment of a variety of data including web traffic, web-based
transactions, user-submitted information and related sources to help create an analysis of
the visitor experience.
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With increased spending, results will follow
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In 2005, St. Luke’s committed $400,000 for TV advertising, following the advertising,
research indicated that consumers preference of St. Luke’s as the best overall healthcare
in Houston increased 32.7%.
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St. Luke’s currently dominates in the 65+ market but struggles with the 35-54 year-old
audience. Competitors target them heavily with advertising and sponsorships. St. Luke’s
must do the same for long-term growth of the health system.
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Increased trust, recognition and favorable opinion by patients, local and national audience,
physicians, and award/recognition commissions (i.e., U.S.News & World Report) are all
affected proportionally to amount of dollars spent on advertising and marketing.
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An increase in spending may result in an increase of patient admissions, physician referral
requests, and requests for information.
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More dollars allocated towards the web center can yield additional visitors to sleh.com and
increased interaction with the site.
Source: NRC Healthcare Market Guide, 2006
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2007 vs. 2008 Marketing & Corporate Communications budget
Marketing & Corporate Communications
Personnel
FTEs
2007 Budget
$706,254
9.5
2008 Budget
$1,336,438
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Variance
$630,184
3.5
Actual FTEs in 2007 was 6.5. New FTEs replenish loss, adjust to new organizational chart, support new brand & market
research initiatives & enhanced marketing & advertising campaigns.
Depreciation
$12,950
$13,405
$455
Building Operations
$52,661
$54,598
$1,937
Marketing/PR
Service Line Marketing
Management/Consulting
Misc
Printing
Advertising (purchased)
News Media
Other Outside Services
Publications
Total
$0
$226,430
$48,000
$17,808
$10,000
$1,221,970
$211,000
$9,000
$244,500
$2,760,573
$225,000
$100,000
$325,000
$36,877
$10,000
$2,534,548
$35,000
$70,000
$250,000
$4,990,866
$225,000
-$126,430
$277,000
$19,069
$0
$1,312,578
-$176,000
$61,000
$5,500
$2,230,293
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2008 Marketing Corporate Communications itemized rationale
2007
Budget
2008
Budget
Rationale
Marketing/PR
$0
$225,000
No budget in 2007, TUTS was allocated in “Advertising purchased”
cost center. 2008 all sponsorships (TUTS & others) moved here.
Needed to increase brand awareness & equity to remain competitive.
Service Line
$226,430
$100,000
2007 included consulting, radio, news media. 2008 reallocating for
direct mail in support of messages.
Mgmt/Consulting
$48,000
$325,000
2007 included freelancers & consulting firm paid from News Media
center. 2008 will be market research $125K and Public Strategies Inc.
$200K required to properly conduct & analyze market research to
create effective brand campaign.
Misc.
$17,808
$36,877
2007 budget low, YTD actual $18,817, annualized $32,257. Includes
dietary, office & indigenous supplies, computer & software, postage/
freight, books/subcrpts, records storage, parking, security, slmt
related expenses & hosp related travel.
Printing
$10,000
$10,000
No changes.
Advertising
Purchased
$1,221,970
$2,534,548
100% increase for brand awareness & equity, adding new media &
frequency of TV, radio, and cable to more effectively reach target
market.
News Media &
VMS
$211,000
$35,000
2007 included TV, video & consulting. 2008 re-defining to include PR
Newswire & VMS.
Other outside
services
$9,000
$70,000
2007 low budget. 2008 re-defined to include freelancers. YTD
$18,065, annualized $30,969.
Publications
$244,500
$250,000
Small increase, must retain to support brand initiatives.
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2007 vs. 2008 Web Center budget
Web Center
Personnel
Depreciation
Building Operations
Other
2007 Budget
$674,489
$7,638
$67,692
$341,675
2008 Budget
$756,120
$7,638
$68,647
$601,400
Variance
$81,631
$0
$955
$259,725
Total
$1,091,494
$1,433,805
$342,311
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Web Center itemized rationale
2007
Budget
2008
Budget
Rationale
Marketing & Public
Relations
$220,000
$226,600
Increased online marketing, specifically on WebMed.com and Google
Adwords.
Management &
Consulting
Services
$15,000
$170,000
Consulting fees for research and design of new web sites for SLEH
and SLEHS entities (Woodlands, Sugar Land & Clear Lake).
Computer Supplies
$1,500
$1,500
No changes
Software
$5,000
$100,000
New content management software for development of new system
web sites.
Fees & Licenses
$93,000
$95,790
Increased to account for higher prices of various fees and software
licenses.
Other Outside
Services
$5,000
$5,150
Increased to account for higher prices for services such as temporary
help.
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Organizational chart – head count
VP
Office Coordinator
Sophie Stenis
Dir, Brand Strat & CC
Susan Wilkinson
Graphic Designer
Marcella Cabrera
Sr. Photographer
Gus Salinas
Sr Marketing Manager
Web Manager
Chris Ferris
Director, PR & Media
Asst Marketing Manager
Manager Media Relations
Melinda Muse
Manager Internal comm
Sr. Marketing Specialist
Jessica Michan
Web Mktg Manager
Intranet Coordinator
Tech Integration Analyst
Hugo Galicia
Tech Integration Analyst
Jim Knepper
Tech Integration Analyst
Gary Scullin
Creative Writer
Brenna Rackham
Sr Coord Marketing Comm
Sheryl Taylor
Indicates vacant positions
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Summary
Given high levels of competitor advertising and marketing spending, St. Luke’s Episcopal
Health System will need to increase advertising and marketing spending to be compete
effectively in 2008. The 2008 initiatives will impact the entire Health System.
St. Luke’s Episcopal Health System: Convey the spirit of David Fine’s vision for the
Health System including the ten pillars.
St. Luke’s Episcopal Hospital: Support and complement Dr. Pate’s excellence, efficiency
and engagement goals.
St. Luke’s Suburban Expansion: Promote St. Luke’s reputation and quality care to
consumers in their own backyard.
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