Category Archives: Persuasion

What The Smash Broadway Hit Hamilton Teaches Healthcare About Marketing

Describing the Broadway play Hamilton as a smash hit is a huge understatement. Nonstop media coverage, standing room only, tickets being scalped for thousands of dollars — demand vastly outstrips supply.

Hamilton

If you happened to see the Tony Awards the other night, you saw Hamilton front and center, sweeping the night with 11 awards. Even the President and First Lady did a pitch about Hamilton during the awards show, with Obama touting, “a civics lesson kids can’t get enough of!”

Hamilton is a great example of how popular entertainment can get people engaged and excited about what otherwise may seem uninteresting. How popular entertainment call sell powerful ideas.

Hamilton is selling a great history lesson about the founding of America. As Obama put it, “in this telling, rap is the language of revolution.  Hip-hop is the backbeat.” Who would have thought it??

Well, why not?! And why not apply that same open-minded thinking to selling healthcare, insurance, medical devices, and health IT?

Bottom line, your products and services exist to restore and promote health – that’s really important. Some promise small improvements, others revolutionary changes. Challenge your marketing minds to think outside-the-box (even if Legal makes you reign things in later!) and create a Hamilton level of buzz and demand about the improvements your offerings make.

Whether your campaign is powered by rap or rock, whether it uses humor or tragedy, whether it looks backwards or far into the future, you can stand out. You can get people excited about a technology or product that may otherwise seem uninteresting. Harness your creativity and imagination to deeply engage your customers and patients. Use research to make sure it works.

As Barbra Streisand put it when introducing the final Tony Award for the best musical: “Celebrate the beauty that artistry can bring into the world.”

Help your customers and the world see the beauty and artistry in  the value your company provides.

Med Tech Product Managers: Persuading Your Management To Support Your Innovation

innovationJames is an experienced product manager at a large device company. He has a winning new population health idea supported by a strong business case.

James knows his new initiative will pivot the company well for the future of value-based reimbursement. He also knows that maintaining the status quo will be a death knell as the fee-for-service paradigm gradually disappears.

James has solid ROI projections and trend analytics to back it all up. He also knows his idea fits and delivers on the CEO’s stated vision for the company’s future.  He has pitched the idea up the management chain internally on several occasions.

The problem is James is not getting the support he needs from upper management. He gets heads nodding but no action. No commitment. Overall lukewarm reception.

Why? Because even though what James is proposing is sensible, timely, backed by facts, and aligned with the corporate vision,  it requires going in a direction that is unfamiliar to the company. It is perceived as an unknown. It is therefore seen as risky business.

What should James do? It doesn’t make sense to simply repeat the same arguments and expect a different result. He already made the best case he could. But he knows the window for competitive advantage is slipping away.

James needs other voices to give his bosses enough confidence to say yes and invest in what they know is a good idea and necessary for the company’s long-term viability, despite their concerns. These other voices need to be strong enough to overcome fear of change, fear of moving into an unfamiliar space.

James doesn’t need a large quantity of voices. Survey numbers won’t make his case more persuasive. The status quo thinking he needs to overcome is not rational. He needs to strategically manage relationships with his internal customers. Persuasion at an emotional level if required.

Specifically, James needs smart, influential people that genuinely share his thinking and who his bosses will listen to with open minds. That means select key opinion leaders and perhaps several important customers who will voice their agreement with three things: 1) The underlying premise about healthcare’s inevitable shift toward population health management and value-based reimbursement. 2) The recommendation to take proactive action now in order to be positioned to serve healthcare customers in the impending new business reality without losing viability in the current fee-for-service environment. 3) The reality that not taking action is the riskier choice.

The insights and recommendations need to be delivered carefully and strategically to be heard and take hold. Even if these influential voices are only echoing what James already said, when management hears it from them, it has a different impact.   It shifts the perception of risk away from stepping into new territory, and toward missing the boat by not moving forward with Jame’s idea.

There’s a lot of science and research behind how and why this works from studies of persuasion and decision-making. But bottom line, and like-it-or-not, James needs to marshall additional resources to persuade his upper management to move forward and with sufficient investment. The end result is management’s initial fears of change are allayed, they feel reasonably confident that they are moving forward in the right direction, and most likely, they say yes!

Earning Trust from Hospital Customers: 5 Tips

If people like you, they’ll listen to you, but if they trust you, they’ll do business with you.       – Zig Ziglar

We regularly talk with a lot of doctors, healthcare executives, and key opinion leaders in our work, as we help med tech clients identify meaningful unmet needs, determine the desirability of new products, and create persuasive messaging.

One thing that comes out again and again is the importance of trust. As famed salesman Zig Ziglar pointed out, trust leads to sales. We’ve heard many clinicians say they don’t buy from a company, they buy from a rep.  Sometimes they don’t even know what brand of device they use. But they do know they bought it from Tracy, the sales rep they know and trust. And they know that next time they need devices they’ll contact Tracy, wherever she is.

Do your customers trust you and your company? Have you given them reason to?  What would you need to know to win and maintain their trust?

Here are five tips for earning the trust of prospects and customers:

  1. Grow a relationship, not just a transaction. Show up when you’re NOT asking them to buy.  We constantly hear that companies disappear and seem to no longer care, once the sale is made.
  2. Take it further and tell prospective customers they shouldn’t buy from you yet.  Tell them only when you have earned their trust, will you talk with them about purchasing.
  3. Provide them with value – white papers, referrals, relevant tips – without asking for anything back. Customize what you provide to their needs, desires, and situation.
  4. Be honest about what they should and should not buy from your company. You’ll earn credibility points when you suggest they buy certain things from competitors.
  5. Ask what specific things you can do to win their trust. Then tell them which you will do, and do those things. Remind them along the way that your aim is to earn their total trust.

Once you have earned their trust, you can grow the relationship further and your customer can be your ambassador within their hospital system and a great referral source. Then you’re not just a vendor, you’re a valued partner. And that’s the place you want to live in the hearts and minds of those you serve.

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Resources:

Earning Real Customer Loyalty: The Challenge for Med Tech Companies

The Promise & Challenge of Customer Intimacy for Med Tech Companies

Med Device Companies To Hospitals: Do NOT Buy Everything From Us!

Population Health: The “Make or Break” Behavior Change Promise

A key promise of the population health phenomenon, so important to payors, providers, and suppliers is this: We need the public to get healthier. That requires participation. If payors pay, people will take advantage of free preventive services to get healthy.

Here’s how the Kaiser Family Foundation put it in their recent Health Reform overview (see bold): A key provision of the Affordable Care Act (ACA) is the requirement that private insurance plans cover recommended preventive services without any patient cost-sharing. Research has shown that evidence-based preventive services can save lives and improve health by identifying illnesses earlier, managing them more effectively, and treating them before they develop into more complicated, debilitating conditions, and that some services are also cost-effective. However, costs do prevent some individuals from obtaining preventive services. The coverage requirement aims to remove cost barriers.

The reality is that while cost is a barrier for some people, it’s not the only barrier. It may not even be the main barrier. Now you might be thinking, if preventive services have been proven to improve health and save lives, why would people NOT make use of them, especially when they’re free? What other barriers might there be?

In my two decades of experience working with CDC, CMS, FDA, and many public health efforts, behavior change is the holy grail. And maybe the hardest to achieve. The main barrier I believe is not money, but motivation. People will find all kinds of reasons (beyond costs) to NOT sign up for free preventive services, including: 1) I’m not sick, 2) I don’t need whatever those services are, 3) I’ll do it later.

Prevention has alway been a tough sell. The fundamental benefit promised is that something bad (illness) will not happen down the road. Many people don’t see that as compelling or personal relevant in a life with so many demands in the here and now.

The solution requires: 1) increasing immediate personal relevance, 2) making it simple to do. As my friend and colleague Peter Mitchell, head of Salter Mitchell’s MarketingForChange practice, says, make it fun, easy, and popular. Building on that, I like the FEFE acronym- Fun, Easy, Fast, Effective.

Research trends in the science of persuasion, behavioral economics and decision-making, social psychology, and marketing science, provide convergent evidence that motivating health behavior change and utilization of preventive services is no simple task, and requires far more than data, information, and logic.

Bottom line, population health players need to employ multiple approaches to motivate behavior change, and to not assume that a logical (and free) offer will do the job.

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FYI, here are a few more resources on motivating health behavior change:

Motivating Health Behavior Change: Three Dangerous Assumptions to Avoid

Getting People to Do What You Want: Two Paths to Persuasion

Ability-Motivation-Opportunity: Marketing’s Winning Trifecta

Behavior Change: It’s NOT Just the Person!

 

Great Technology, Or Are You Drinking Your Own Koolaid?

kool-aidSandy, a senior marketing manager at a med device company recently confided: “We’re so convinced our new technology platform is the greatest thing since sliced bread. It’s like we’re drinking our own Koolaid!” She was greatly concerned that her team had lost perspective and any sense of objectivity. They had become so enamored of their platform that they were no longer thinking of what customers might want or value. Were they building something that no one would want, use or buy?

I’ve heard this same concern from savvy marketing and product managers at health insurance companies, health IT companies, and health innovation labs. It’s what happens when people, however well-meaning, spend years developing a product, program, or idea,  and become so immersed in what they’re building, that they lose sight of its appeal and value to customers. They’re so close to the product or service that they can’t even see the question. They’re drunk, on their own Koolaid.

If this sounds like your team or company… well, from one perspective, it’s not your fault. It’s human nature to believe deeply in what you make or market. Why wouldn’t you? It can actually be unifying and inspiring to drink your own Koolaid!

On the other hand, drinking your own Koolaid can be deceiving. You start believing your own “propaganda” without healthy questioning. The resultant deception can blind you to disparities between how you want things to be and how things are, to differences between your company’s desires and the market reality.

Bottom line, it is your team’s responsibility to raise your heads and verify your assumptions, check out how customers think and feel about the benefits your product promises, and assess its usability. Inevitably, your solution has morphed over time, and what it is now may or may not meet market needs. In short, you need to be sure you’re still solving a meaningful problem and developing a unique solution customers will use and pay for.

Can you stop drinking your own Koolaid? It takes courage because you have a lot of sunk costs – and not just money, but effort and professional reputation as well. But as any investor knows, sunk costs alone do not justify spending more time and money. That’s called a money pit. It takes strength too, because once you have momentum in a certain direction, it’s tough to put on the brakes, or even pivot. But again, going further in the wrong direction helps no one.

So, set egos aside, ask the tough questions, get customer feedback, and make smart decisions. And quit drinking your own Koolaid!

Better Med Tech Marketing Campaigns: The “Donald Trump” Lesson

MTMUnlike the most controversial presidential hopeful Donald Trump, med tech marketing campaigns often shy away from saying what they really mean. Call it political correctness, fear of failure, legal restrictions, or CYA. But regardless of what is driving the ambiguity, the result is watered down messages and poorer results. Say what you believe as explicitly as you can – at least in your brainstorming and creative strategy development. Then (also unlike Donald!) tame it in your message execution if you have to.

In the 1990 movie Crazy People, Dudley Moore was an advertising exec turned mental patient who got his fellow patients to create wildly successful campaigns. Their gift was honesty – unvarnished, blunt, explicit honesty. For example, their Jaguar car campaign targeting men showed a scantily clad woman next to a shiny new Jag with the line “Buy a Jaguar. Get Laid.” Now most of us may not be able to get away with that degree of explicitness in our ads, but we can in our creative thinking.

I recently saw a billboard for a mortgage firm that boldly proclaimed “your loan sucks.” Which is more typically the unspoken claim. As always with bold messaging, you need to weigh the attention-getting effect against the turn-off effect.  Check out our “Think/Feel/Do” messaging framework here, for more guidance.

So, in extremely plain language, answer this: What is it that are you not saying, but you want customers to think? Then do your customer messaging research to see just how explicit you can be, while improving your reputation and increasing sales.

Med Tech Marketing: From TMI to JEI

“Wait until you hear about our amazing new technology!” the CEO exclaimed to a group of potential hospital executives. With great enthusiasm he spewed out more jargon-laden technical details than anyone cared to hear. Deep inside, the CEO sadly wondered why his audience is less than totally entranced.TMI

This unfortunately happens a lot. Really smart people make this mistake. Why? They let their passion blind them. They get carried away with their own stuff, lose sight of the customer perspective, and give way too much information (TMI). And they somehow convince themselves that their audience needs to know all about the technology in order to appreciate it.

Maybe it’s the CEO of a biotech start-up who spent years developing her ideas and designing prototypes. She really truly believes her technology is super-amazing. And maybe it is. Or perhaps it’s the product manager enamored of all the specs and product requirements his engineers are diligently working on to bring their next gen device to life. Or it may be the marketing person who is expected to give customers ALL the data her team thinks is important.

Note that the issue is NOT whether your technology or device or software really is amazing. It doesn’t matter. What does matter is that your customers care about your product. That requires you to give them just enough information (JEI) so they know what it is they are caring about and why. Remember JEI: Just Enough Information.

One challenge in shifting from TMI to JEI is what Noble Prize-winning economist Daniel Kahneman calls the “illusion of validity.” That is, when people hold onto their judgment even in the face of contradictory evidence.

How does this play out? Let’s say you’re pitching your product and go overboard with TMI. You know customers and investors are tuning out. You’ll come up with all kinds of reasons why that happened. But they won’t include TMI. You’ll manage to “protect” your belief that others need to know all about the technology.

It’s not logical. Somewhere inside you, you know better. But it’s a tough to surrender that yearning to tell the world all about the technology you care so deeply about and know so well.

The good news is you can redirect that passion into more productive marketing that meets your customers where they are at. And you don’t have to let go of your tech patter forever. There is a time and place for the technical details, the facts and figures, the product specs, and the empirical evidence. But it’s not first. And it’s not all at once.

First is enabling customers to make an emotional connection – not with your technology, but with the problem you’re solving. To do that, tell people what inspired you or your company to build the new technology. Talk about what problem you saw and why it was not acceptable. Only after people connect with the unacceptability of the problem, will they appreciate the need for a solution, and then eventually for your solution.

In short, to avoid TMI and embrace JEI, start by being human.

Motivating Health Behavior Change: Three Dangerous Assumptions To Avoid

Behavior change is becoming more and more important to device manufacturers, health IT companies, pharma, and life science firms, as they expand their offerings into disease prevention. Whether aiming to get people to eat healthier, exercise more, participate in screenings, take meds as prescribed, monitor insulin levels, or conduct self-exams, successfully motivating behavior change isn’t easy.

The good news is that health behavior change has been a major focus in public health for decades, and there are a lot of lessons that health care businesses can apply.

One key lesson is recognizing and correcting the fundamental assumptions that derail most efforts to motivate health behavior change. Here are three of the most pervasive and insidious assumptions.

  1. Assuming people don’t know better: Many companies wrongly assume that the barrier to behavior change is lack of awareness. Therefore the thinking goes, if we just give people logical reasons for why people should change their behaviors, they will see the light and mend their ways. Typically these logical reasons center on reducing risks of morbidity and mortality (does that sound exciting or what!?). The reality is that more often than not, people are already well aware that certain behaviors are bad for them. Ask any smoker or obese person; they recognize their habits are harmful, and they know they should quit smoking or cut calories. Lack of awareness is usually not the problem. Therefore, behavior change campaigns aimed at increasing awareness will always fall short.
  1. Assuming people behave as they believe: Consider your own life. Do your actions consistently reflect your beliefs about what is and is not healthy? Or is there a disconnect? I gave a guest lecture today to a great group of grad students studying public health communication. To make the point that people’s behaviors don’t always match their beliefs – what psychologists call cognitive dissonance – I asked how many regularly sleep 8 hours a night, eat nutritiously, and exercise vigorously. Only a handful of the students raised their hands. While they all believe they should get good sleep, eat well, and work out, very few behave that way. (And these are young people making health promotion/disease prevention their profession. They really know this stuff!). Human nature is such that we don’t always do what we know we should do. We unfortunately have the ability to sustain high levels of belief-behavior inconsistency. Campaigns that are predicated on the idea that people’s health behaviors will align with their beliefs about health usually fail.
  1. Assuming big negatives trump little positives: It seems so obvious. If you sell CPAP devices, you may think: How can people possibly not use their CPAP machine?  They could stop breathing and die in the middle of the night! Similarly, if you work for an insurance company or hospital, you may think: How can people at high risk of heart disease possibly not choose low fat, low salt foods? They could die of a heart attack! Same with medication adherence. Same with breast self-exams. Clearly, stopping breathing or having a heart attack are big negatives. But they are only possibilities. The comfort of sleeping without a face mask and loud machine is a definite. A small positive but a definite one. Likewise, the definite pleasure of a rich dessert can eclipse the possibility of a heart attack. Never underestimate the allure of immediate pleasures.

All these mistaken assumptions are rooted in what I call “us” centered thinking. The solution is to adopt “them” centered thinking. Put your customers in the middle, not yourself. That’s the first step toward successfully motivating health behavior.

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More resources on health behavior change here:

Getting People to Do What You Want: Two Paths to Persuasion

Be Like Vegas!… and 6 Other Tips to Increase Wellness Program Participation

 

Why Selling New Technology into Hospitals is Hard: Overcoming the Status Quo Bias

You’re pitching your company’s new device or software solution to a hospital. You believe your product is clearly superior to the outdated technology the hospital is currently using. You know they have the money to switch. Standard economic theory would predict that the hospital decision-makers would rationally choose your product since it would provide them with greater utility. But the hospital decides to stick with what they have. What’s up??

There are a lot of barriers companies face selling into hospitals. One of the most pervasive and misunderstood, is the tendency for customers to make non-rational decisions to stay with the products they have. By non-rational, I mean the decision is based on an emotional preference, not an objective judgement that the current technology is as good as or better then the new one. Psychologists call this emotional preference the status quo bias. It’s a big deal.

Research in behavioral economics shows the status quo bias significantly affects important life decisions like health care plan choices, selection of retirement programs, stock market investments, recommended medical treatments, and all kinds of purchase decisions. It’s one of several biases scientists have identified to explain what appears to be irrational decision-making.

Think about it in your own life. The food you eat, the places you go, the clothes you wear, the things you buy… how often have you stayed with the familiar rather than trying an alternative?

While there are many explanations for the status quo bias, here are three of the big ones:

  1. Uncertainty: Good or bad, clinicians or IT directors know what to expect from the technology they use now. Switching to your product means taking a risk; they don’t know if it will perform as promised. As the old saying goes, “better the devil you know than the devil you don’t.” Scientists call this loss aversion.
  2.  Transition costs: It’s not just a matter of buying your product, it’s also all the  costs – time and money – involved in switching from what they’re using now. Training staff, updating clinical protocols, adapting workflows- all these things go away when a hospital maintains the status quo.
  3. Minimizing regret: People feel worse about problems that come from changing to a new product (action) than problems that come from sticking with what they have (inaction). To avoid regret,  hospital decision-makers choose inaction and keep the technology they have.

How can you overcome status quo bias so that customers buy your superior technology?

  1. Connect emotionally: Acknowledge and empathize with the tendency people have to stay with what they know. Give relevant examples of when that has worked for hospitals and when it has backfired and led to significant negative outcomes.
  2. Recalibrate their status quo: Change the reference point from the status quo being doing nothing to the status quo being doing something. Make the case that most hospitals are switching to new technologies- that’s the norm. The question is which to choose, and when.
  3. Reduce their risk. Demonstrate that staying with what they have is the risker option because it guarantees negative outcomes (be specific, e.g. more IT downtime, unnecessarily complicated workflows, less time with patients, incompatibility with EMRs or other devices, etc.).
  4. Reframe transition costs: Recognize objections related to transition costs. Acknowledge those that are true, then dismiss the remainder with evidence of savings that will result from switching.

Try it and let me know what happens. When you can overcome the status quo bias in these ways – and you can! – customer trust and sales can increase dramatically.

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The classic from the founders of Behavioral Decision Theory: Kahneman, D., & Tversky, A. (1982). The psychology of preference. Scientific American, 246, 160-173.

 

 

 

Why Should Hospitals Buy Your Device (10 Words Or Less)??

Med device and other life science companies often engage us to help them improve their marketing and make more money. One simple and revealing “litmus test” question we ask at the get-go is this:

Why should customers choose your product? (10 words or less!)

Often company execs, product managers, and marcom folks struggle to provide a clear, compelling, and jargon-free answer. Why? They naturally get caught up in their products and in doing what needs to get done. As a result, they lose sight of the “why” from a customer point of view.

The antidote is putting the customer first in all you do, and building that into how you operate day-in and day-out. It’s not easy, and takes long-term commitment, even when money is tight.

One step in a customer-first direction is challenging your team to create a set of answers to why customer should choose you. Keep them short, 10 words or less. Then test them with customers. Compare them to what competitors say and could say. Keep iterating until the answer is both persuasive logically and emotionally with customers.

Do this for every product and service you offer. Build it into your R&D process at the earliest stages. You’re on your way to a set of cohesive, distinctive and effective value propositions that can make all the difference in your marketing success.

Start now with your top of mind answer: Why should customers choose your product?