Category Archives: value proposition

Siemens Healthineers: New Name, New Promise

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When I was a teenager back in 1986, Disney brilliantly dubbed its design and development arm “Imagineering.” With the unique blend of imagination and engineering denoted by the name, the group developed Disney’s theme parks, resorts, and other entertainment venues. Perhaps more than any other entertainment company, Disney has consistently provided imaginative engineering that creates one-of-a-kind experiences for guests. They have delivered on the promise of Imagineering.

Fast forward 30 years, Siemens just this month rolled out its new brand name “Siemens Healthineers” for their healthcare business. They explained it this way: “The new brand underlines Siemens Healthcare’s pioneering spirit and its engineering expertise in the healthcare industry.”

Of course, the greatest power of a brand name is in the promise it makes. Here’s the promise that CEO Bernd Montag made in relation to the new name: “Going forward as Siemens Healthineers, we will leverage this expertise to provide a wider range of customized clinical solutions that support our customers business holistically. We are confident in our capability to become their inspiring partner on our customers’ journey to success.”

Other industry leaders have made similar moves. In 2014, Philips pivoted their focus to become a HealthTech company. The strategy combined their professional healthcare business and consumer business (and still trying to spin off the lighting business) so that “health professionals and consumers will engage on their health journey in a more continuous manner, instead of waiting for acute episodes where disease may hit the patient.” Several years prior, GE launched Healthymagination as their “commitment to invest in innovations that bring better health to more people.”

I think the challenge for Siemens Healthineers will be to focus not on engineering health products but on actually engineering better health, and in a way that is meaningfully different than their competitors.

It’s a subtle but significant difference. Engineering health products is about what they make. Engineering better health is about why. And it is the “why” that can fulfill Montag’s promise to become an “inspiring partner on our customers’ journey to success.”

So it is for all companies: The inspiration is always in your “why.” Which in medtech, ultimately comes down to reducing suffering, improving wellbeing, and saving lives.

Getting Clearer on Patient Engagement: What You Said

In a recent post on patient engagement, I made the point that as a field, we really need to clearly define what patient engagement is and isn’t. After all, how can we improve it, if we’re not clear what “it” is?

Accordingly, I proposed a definition for patient engagement along with a rationale, and invited you to comment and add your definition. Many of you did, providing interesting ideas and much food for thought. Thank you all.

We aggregated what you said (only slightly edited for grammar) and are sharing it here to further the conversation. Let me know what stands out for you, and any new ideas or definitions that come to you.

Joeri GredigWe see patient engagement as the most valuable driver at maximal low costs to achieve faster recovery. Technology developed with focus on patient perceived value will boost caregivers effectiveness.

Leslie Rees: Hard to define with different attitudes of both patient and clinician and often determined by circumstance funding and time.

Marian BondPatient engagement is very different from listening to a patient worry about their health or takes action to improve their condition. Patient engagement is about giving your time to actually hear what is being said and acting as a conduit for that patient to grow in knowledge and spirit. Engagement is the illusion of time for that patient – making them feel like they are the only one in the universe and making them feel fully heard. Care and comfort is a lost art in medicine. It is something that a lot of facilities are trying to teach, but best taught by example.

William Hannon: You can never replace Empathy. Doctors, Nurses, Device Designers, Architects all need to embrace a sense of EMPATHY with the patient. It is a sad state of affairs when a whole new profession UX ‘User Experience appears out of nowhere.

Rafael Goeting: Engagement happens when we give our patients a greater sense of control over treatment, care, and outcome. This type of engagement is not limited to just the patient but also includes their loved ones.

Mahendra Bhandari MD,MBA: Patient engagement is a perpetual support to a patient, outside the period of ‘in person’ contact with the healthcare provider. Wireless medicine and technology is poised to play a major role. This engagement has to continue beyond the treatment of illness to wellness.

Dawn Stewart: In my opinion patient engagement comes in different forms and at different levels. This can consist of a patient taking interest in their condition, seeking out information around treatment and management, understanding their medications…rather than just letting the healthcare professionals treat them. It’s about taking some kind of active role in the disease, condition and therapy.

Sk Ray: I think patient engagement is the tool to share the information which are beneficial for any individual who is suffering due to illness or who is health conscious.

Thomas Calloway MBA: Great topic, Mr. Engelberg. I have always considered “patient engagement” the attitudinal decision that stimulates a commitment to modify deleterious health behavior. If you like, when patient and doctor decide to work together.

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Note that to some of you, patient engagement is about patient attitudes toward their health. For others, it’s about tools, or interaction between providers and patients. A couple of you highlight empathy as the critical ingredient. And several focus on behaviors or actions patients take to improve their health or healthcare.

I’ll keep working on refining the definition of patient engagement so we can move to an industry standard. I welcome your ongoing feedback and input.

Once defined, the next question becomes… how do we measure patient engagement? The fun continues!

Happiness as Competitive Advantage? A Challenge for Health Companies

company_happinessYou may be familiar with the Kingdom of Bhutan’s Gross National Happiness (GNH) index. This small Himalayan nation is the only country in the world that measures and aims for national happiness as its most important objective. The intent is to build an economy and culture based on spiritual values more than on material wealth. It prioritizes GNH over GDP. Bhutan’s commitment inspired the United Nations to pass a resolution that placed “happiness” on the global development agenda.

What does this have to do with you and the success of your company that’s in the business of health?? Potentially, a lot. As you read what follows, consider the notion of balancing both profitability and happiness as guiding values and major indicators of success.

Bhutan’s young King Khesar put it this way in his coronation address: Yet we must always remember that as our country, in these changing times finds immense new challenges and opportunities, whatever work we do, whatever goals we have – and no matter how these may change in this changing world – ultimately without peace, security and happiness we have nothing. That is the essence of the philosophy of Gross National Happiness. Our most important goal is the peace and happiness of our people and the security and sovereignty of the nation.

Most companies in the health industry base major business decisions on financial metrics like ROI to shareholders, quarterly numbers, and EBIDTA. Which makes sense. You need to be successfully financially and deliver a return to investors to be a going concern.

Money matters, no matter how dedicated your company is to improving health and saving lives. “No margin, no mission,” as the late Sister Irene Kraus, former CEO of the $3 billion Daughters of Charity National Health System, is credited as saying.

And, and… maybe happiness can matter just as much as money, and measurably contribute to your company’s financial success.  Especially since you’re in the business of health. Many start with employee happiness and well-being. Kaiser, Genentech, Mayo Clinic are a few of the health companies that have a reputation for really investing in the well-being –  and thereby the happiness – of their employees.  And there’s much further to go.

Let’s do a thought experiment: What would if happiness of your employees was a measure of your organization’s well-being? What about delivering  happiness to your customers?  Can you imagine happiness as part of your brand promise? Part of your unchanging core values? A key differentiator in highly competitive market? A metric you proudly talk about to shareholders and investors?

Be happy??

Bottom(s) Up! How a Benefits Ladder Can Help You Get Your Marketing Right

Medtech companies, health insurers, and healthcare systems talk a lot about data. My belief is no healthcare executives, providers, or consumers really care about “data.” What they do care about is making good decisions that will measurably improve healthcare and health outcomes, and make or save money. And they see data as a means to those ends, a tool for making those things happen.

So how do you meaningfully connect data with decisions and decisions with outcomes? How do you work in the interim outcomes like improved workflow and increased productivity? How do you know which features and benefits to emphasize and which not to emphasize or even mention? How do you determine what elements to consider including in your value proposition?

One powerful technique we use to identify and prioritize benefits is laddering. We use it in deep dives with clients, and in testing or validating hypotheses during customer research.

Here’s how it works:

At the bottom of the ladder is the essential feature. At the top is the highest level benefit or result.

But first, let’s clarify the difference between features and benefits: Features=description. Benefits=satisfaction. Data is a feature. Good decisions, better workflow, improved quality of care – those are benefits. Those are results that provide satisfaction.

And there are different kinds of benefits (some overlapping): There are core benefits, functional benefits, aesthetic benefits, self-expressive benefits, emotional benefits, and more.

Benefits are what customers care about. But sometimes inside the company, executives, product managers, and marketing managers care more about features. That’s a problem that laddering can help ameliorate.

Here’s what a simple benefits ladder might look like for streaming analytics within health IT, to appeal to healthcare providers.

TOP

  • Improved Outcomes
  • Safer Patients
  • Enhanced Reputation
  • Better Care
  • Faster Decisions
  • Prediction
  • Analytics
  • Data

BOTTOM

Note that the core fundamental feature – data – is on the bottom. Just above that is the next level feature – analytics. Next we move up into benefits, starting with the functional benefit of prediction, which then leads to faster decisions. This set of four captures very concretely what the product is and does. And if we were to unpack these four further, we would get into workflow, efficiency, and productivity.

However as a set, the bottom four rungs on the ladder do not convey aspirations or emotions. And they do not express higher order benefits or results. For that, we need to go higher up the ladder.

A result of faster and therefore better decisions is better care. Which leads to multiple higher order benefits – like enhanced reputation, healthier patients, and better outcomes. And again, unpack these further and you’ll find patient satisfaction, HEDIS scores, etc. Some of these benefits may be produced concurrently, but for simplicity the ladder shows them in linear fashion.

When we go through this process in internal deep dives, we’ll invite clients to attach a heart to the one benefit they believe is the most compelling emotional hook for the product. For providers and streaming analytics… is it faster decisions, enhanced reputation, better outcomes? Is it improved workflow or its outgrowth, saving time?

The ladder they create and the emotional hook they select are well-educated hypotheses. We rely on the voice of the customer for validation or correction.

Bottom line, laddering is a great way to think through what your product or service delivers that matters to customers so you can improve your marketing. Do one for each of your main target audiences. When you do, you’ll notice the bottom rungs of the ladder are the same, it’s typically the higher order benefits that change.

Whether you’re bringing a new product or service to market or need to get better uptake with what you’re already selling, try laddering. It will enable you to transform your thinking, empathize with your customer point of view, inform your value proposition, and set yourself up for marketing success.

What’s your ladder??

Brains, Brawn, or Beauty: What’s Your Value Prop?

brain-brawn-beautyIn today’s hyper-competitive healthcare marketplace, getting your value prop right is critical to position your product to win. To open your thinking about the myriad of value prop possibilities, consider the triad popularized in popular entertainment: Brains, brawn, and beauty.

Yup, brains, brawn, and beauty. Like it or not, there’s lots that we in healthcare marketing can learn from what sells in popular entertainment.

For example, the long-running competitive reality TV show Survivor groups its castaways into tribes, like this:

The members of the “Brains” tribe use their intellect to get by in life; while the members of the “Beauty” tribe use their looks and social skills, and the members of the “Brawn” tribe use their brute strength. When put all three traits together, they actually make up the Survivor motto: Outwit (“Brains”), Outplay (“Beauty”), Outlast (“Brawn”).

Now apply the “brains, brawn, beauty” trope to see if it usefully expands your thinking about value proposition possibilities. Of course, do the customer and competitive research to both generate ideas to explore and verify what works.

As a starting point, recognize that most med tech value props emphasize “brains” in terms of smarter technology of some sort. Instead, consider winning at “brawn.” That would center your value prop on the idea of being the workhorse device or the most powerful technology, not necessarily the one that deals with the most complex situations.

Alternatively, you might win at “beauty” by having the most aesthetically pleasing and user-friendly product. This requires being able to score “cool” points and might mean you don’t provide advanced functionalities.

That said, in both cases, you still need to demonstrate parity in “brains” – or at least sufficient table stakes, to be considered a serious contender. However, it may lead to a value prop that stands out based on a meaningful and distinctive strength, and that doesn’t get lost with a “me too” claim with no emotional resonance.

Bottom line, think outside the box about what makes your offering unique and valuable. Will you win with brains, brawn, or beauty??

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.

Is Your Med Tech Value Proposition Good?

Your value proposition tells “customers” – whether end users, investors, or partners – why they should choose what you offer. Unfortunately, most aren’t very good.

A few years ago, an online research group studied value propositions and offered a $100,000 prize for the best one. 86% of entrants scored poorly.

For med tech companies, it’s so easy to get caught up in the features and the technology and lose sight of the value the product offers. Remember the basic rule: Features=Description. Benefits=Satisfaction.  And satisfaction requires value.

The big picture solution is thinking about value from a customer perspective, and  integrating that thinking into how you operate day-in and day-out. It’s not always easy, but it always pays off.

A good value proposition describes the tangible results (value) customers will get in exchange for their time, money, or involvement. It’s the promise you deliver on.

GOOD: Tangible results, clear benefits, solves specific problems, simple, honest.

BAD: Mostly about you, feature-laden, not measurable, unrealistic, complicated.

At a fundamental level, a good value proposition also answers the simple and tough questions, like: Why should I buy this? Why from you? What’s in  it for me?

Google Adwords changed the nature of internet advertising with their value proposition: “Reach people actively looking for information about your products and services online.” As the leader in low prices and huge selection, Walmart promises “Save money. Live better.”

You’re in the business of saving lives. There’s gotta a powerful value proposition in what you offer.

Think about what matters to your “customers” – whether internal or external: Increase revenues from target hospitals by 15% every year, get your new product to market in half the time, reduce customer churn by 30% within three months, expand sales with at least one-third of your install base, cut nuisance alarms in the general ward by 60%, save $100 per hospital room per day by improving workflow efficiency for clinicians, increase satisfaction ratings for your online educational programs by 25%, and so forth.

Now, choose a product or service you offer.  What’s a value proposition that meets the “good” criteria above, and avoids the bad?

Don’t be hard on yourself or your team if you don’t have one or come up with a strong one. Most companies find it difficult, since they’re so close to their products. Many make significant investments with expert specialists in order to get it right. However you get to it, the ROI from a good value prop is significant. The losses created by a bad one can be devastating.

To walk the talk, here’s our value prop for value props:  We’ll make your value proposition so compelling, that it will measurably increase your business within 90 days of implementation. Guaranteed.

I’d love to see your value propositions- good or bad. Let’s learn and improve together.

________

More resources here:

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

How to Avoid the Dreaded “Firehose of Features” in New Product Marketing

How to Unseat the Market Leader: Hit the Right Emotional Chord with Customers

Here’s a tough situation med tech and health IT companies face in healthcare: The maker of a particular technology has more than 75% market share; they are the undisputed market leader.  unseat_pull_the_rug_from_underWhen their device or software was introduced 5 years ago, it was groundbreaking. Now, it’s the standard. But you have something better.

How do you effectively disrupt the market leader’s longstanding domination and win significant market share? The answer lies in the hearts and minds of the clinicians using the technology. You need to carefully and precisely determine which emotional chord will open customers’ minds in order for them to consider moving from the market leader’s technology (the “status quo”) to your new and presumably better innovation.

To reveal the right emotional chord, you must ask the right questions: Are they happy with the status quo? Do they perceive any problems? Can they envision a better state?  These kinds of questions will reveal the “set point,” i.e. where customers are before they know about your better device, service, or software.

In simple terms, there are four main set points based on the idea that customers are either satisfied or dissatisfied with the status quo technology, and they are or are not aware of a possible solution (or better state) a new technology might deliver. Once you know the set point, you need to identify the corresponding emotional chord, so that your messages will connect with customers and resonate at an emotional level. That resonance leads customers to feel understood, which will then open their minds to consider alternatives to the longstanding status quo.

Example: Let’s say customers are satisfied with the market leader’s status quo technology. They aren’t aware of any problems, so they certainly wouldn’t expect new solutions. Your job then is to identify the meaningful problem that: a) your customers will care about once they know about it, and b) your improved technology will solve. (And if no meaningful problem exists, then there’s really no need for your improvement, right? But that’s a different story!).

Once you determine the meaningful problem, be sure to verify customers do care about it enough to take action. Now you need to find the corresponding emotional chord. It could be frustration, as in “why didn’t I know about this problem for all these years!” Or it might be concern, as in “I hope this problem didn’t hurt our patient satisfaction scores!” Or embarrassment at not knowing about the problem. Or relief at knowing about it now. Or hope for a solution to the problem.

There are numerous possible emotional chords, and sometimes the difference between them is very nuanced, like frustration vs. concern in the example above. It’s really important to know with confidence precisely which emotional chord to tap into. Your message to tap into frustration will be quite different than messaging for concern or embarrassment or relief.

If you miss the mark on the emotional chord, then your customers will feel you just don’t get them. You will have missed your chance to open their minds to letting to of the market leader’s technology and to consider your innovation as a viable alternative. On the other hand, when you tap the right emotional chord, you may hear as we have, “Finally, someone understands what I deal with everyday!”  That deep connection is the magic that can unseat the dominant market leader and win you significant market share.

__________________

More resources:

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

The Emotional Hook: How to Win Your Customers’ Hearts

Developing Your New Market Entry Strategy: The 3Cs Framework

Imagine you’re a large medical technology company carrying a wide range of healthcare products. You see huge opportunity in a new market. How do you decide what innovation to lead with, what products to offer, and what your market entry strategy should be?three_c_V2

Here’s a framework that can help you narrow the universe of possibilities. We call it the 3 Cs, which stands for Company, Customer, and Competition. All three are critical factors that converge to reveal the sweet spot for market entry.

Company: This is often the starting point for med tech companies. They see a lucrative market, want a piece of it, and figure they have something good that will sell there. The driver is the company’s desire for growth and their belief in the solutions they offer. The “company” factor narrows the universe by identifying three things: 1) Core competencies and existing assets that can be leveraged for entry into a new market, 2) New competencies the company wants to develop, and 3) New care areas they want to expand into.

Customer: This is about identifying and understanding unmet needs and meaningful problems customers care about, as well as needs and problems they may not be aware of yet. The driver is what customers desire and will pay for. Determining these things requires being really tuned in to your customers. The “customer” factors narrow the universe by revealing 1) what customers want and need and will buy, 2) what their hidden desires and aspirations are and  what better state they envision, and 3) what customers don’t want, don’t value, and won’t pay for.

Competition: The competition factor focuses on identifying what customer needs are and are not adequately met by competitors, and what solutions you have that are already provided by others in the market you want to enter. The driver is finding an open niche of sufficient size for your innovation to take hold. Generally, companies will stay away from markets where there is domination by one or two competitors – unless they are willing to make a huge investment to unseat market leaders. The “competition” factors narrows the universe by specifying 1) where there is space for innovation, 2) what solutions exist and which are still needed, and 3) where there is good growth potential.

The danger is that the company’s hunger to enter a new market can lead to rash decisions and action without a guiding strategy. To mitigate that risk, give serious consideration to customer desire and to the competitive space. That way you avoid being driven by company solutions and wishes, rather than customer problems and desires.

What’s your experience developing new market entry strategy? What were your decision drivers? What lessons did you learn?

More resources:

How to Grow Your Business with Customer-Centric Innovation

How to Get to Breakthrough Innovation: Desirability First!

New Product Innovation: How to Determine the Winners

 

Med Devices, Butterflies, and Increasing Sales: The Little Things

I was leading a workshop recently for a client bringing a new critical care device to market. As one step in the process, we were doing wide-open brainstorming to generate a large quantity of ideas on what the value proposition might be that we would later synthesize and vet with customers. We were specifically looking for meaningful differentiation.butterflies

One savvy marketing person bravely expressed that as a former clinician, she knew that little things, as silly as it might sound, can make the difference between winning the hearts of critical care nurses and getting the sale – or not. The example she gave was butterflies. As in enabling butterflies to appear on the monitor display (out of the way of patient data of course). Then she suggested other simple ways of allowing personalization.

These “humanizing” gestures cost almost nothing to med device  manufacturers, and can mean a great deal to the customer.  They convey that you understand the realities of the emotional toll it takes to provide critical care day after day. And they make you in a simple and profound way a valued partner – not just a vendor of commodities – which is where you want to be.

Obviously, butterflies and other personalization aesthetics are not going to be the core value proposition for any med device. But these kinds of things can enrich your value proposition, differentiate on an emotional level, and enable a deeper more meaningful connection with your customers.

So… what’s your butterfly?