NRC Health · NASDAQ:NRC
NRC Health — Investor Presentation (November 2017)
35 slides from NRC Health's investor presentation, Nov 2, 2017
Slide 1: 5 Reasons loyalty lacks in healthcare
5 Reasons loyalty lacks in healthcare NRC Health | Market Insights
Slide 2: Your presenters
Your presenters Brian Wynne Vice President and General Manager NRC Health John Palmer Strategic Analyst NRC Health
Slide 3: Session roadmap
Session roadmap 1. What is loyalty and why should we care? 2. 5 primary reasons loyalty lacks in healthcare 3. How to measure and improve loyalty at your organization
Slide 4: Loyalty is the latest buzzword
Loyalty is the latest buzzword. difficult to measure. impossible to predict. not applicable to healthcare. Consumer Loyalty is a behavioral tendency where consumers favor one brand's products over its competitors.
Slide 5: Loyalty is essential to improving the health of those you serve
Loyalty is essential to improving the health of those you serve and ensuring future revenue growth.
Slide 6: Healthcare consumers are frustrated
Confusion 48% 75% remains the of all healthcare of frequent (3x/yr) #1 emotion consumers are healthcare users associated with frustrated are frustrated healthcare
Slide 7: Would you consider yourself a loyal customer of a local hospital?
Q: Would you consider yourself a loyal customer of a local hospital or health system?
Slide 8: Patients not willing to recommend
PATIENTS “NOT WILLING TO RECOMMEND” 33% 2008
Slide 9: Patients not willing to recommend
PATIENTS “NOT WILLING TO RECOMMEND” 33% 28% 2008 2016 $1B+
Slide 10: Why should we care?
Why should we care? The average lifetime value of a healthcare consumer is enormous and continues growing. Lack of loyalty represents an opportunity for millions in additional revenue gain…or loss. Average lifetime value Consumers with a consistent Converting loyalty of an individual relationship wi
Slide 11: The real reason loyalty lacks in healthcare
The real reason loyalty lacks in healthcare This article appeared in Becker’s Hospital Review, June 2017 - https://nrchealth.com/resource/real-reason-loyalty-lacks-healthcare/ More choices creates more confusion Demand for a personalized experience Customer confusion = Lost opportunities
Slide 12: Millennials will be driving the loyalty movement
Millennials will be driving the loyalty movement • 70% of the workforce will Gen Z at a glance: be Millennials by the year • 25% of US population 2025 • Twice as likely to • Earn their loyalty early book/buy on mobile (maternity) and keep them for life • Twice as likely to be diagnosed with • Don’t
Slide 13: Reasons loyalty lacks in healthcare
Reasons loyalty lacks in healthcare
Slide 14: Reason 1: Lack of convenience and accessibility
Reason 1 Lack of convenience and accessibility to traditional providers Problem: Convenience (access) → Healthcare access hasn’t caught up to other Industries → Consumers are busy and demand more than ever → Armed with the choice, they will choose convenience Visualize → What brand do you use the mo
Slide 15: Industry leaders have reimagined access
Industry leaders have Industry leaders reimagined access have reimagined themselves
Slide 16: Reason 2: Organizational confusion on customers
Reason 2 Organizational confusion on who customers are, what they want, and how they want it delivered Problem: Lack of actionable consumer intelligence → Segmentation remains a myth for most → Some that are attempting to understand their customers are doing so at a simple demographic or awareness l
Slide 17: Reason 3: Consumer confusion around the industry
Reason 3 Consumer confusion around the entire industry Problem: Consumer confusion → Healthcare is not easy to access → Consumers don’t understand when and where they need to seek healthcare → Consumers don’t understand their choices → Consumers don’t understand their costs → Consumers don’t underst
Slide 18: They see simplification as a competitive advantage
They see simplification as a competitive advantage
Slide 19: Reason 4: Consumers visualize wellness, not sickness
Reason 4 Consumers visualize personal wellness, not sickness Problem: Misalignment with consumer goals → Healthcare is still a “treat the sick” industry instead of a “partner in health and wellness” industry → Traditional healthcare resistance to change leaves the door wide open for non-traditional
Slide 20: Reason 5: Consumers accept innovation or disruptors
Reason 5 Consumers readily accept innovation or disruptors 63% Problem: Disruptors/alternatives in care → There isn’t a current Amazon or Uber in healthcare → Disruptors in the past are competitors of today (Urgent Care) → 48% of consumers would get an MRI at Walmart Visualize → Consider how quickly
Slide 21: New entrants are refusing to accept the status quo
New entrants are refusing to accept the status quo PRIMARY CARE AT-HOME CASH-ONLY URGENT CARE VISITS HOSPITAL AI-DRIVEN 2ND OPINION TELEMEDICINE PERSONALIZATION SPECIALISTS LOW COST MRI
Slide 22: Measuring loyalty
Measuring loyalty
Slide 23: Measuring loyalty through NPS
Measuring loyalty through NPS Net promoter score is used in and out of industry as a way of measuring loyalty with 1 simple question: “How likely are you to recommend <<brand/product>> to a friend, family member, or colleague?”
Slide 24: How do we know what to measure?
How do we know what to measure? • 87% of consumers say reputation is very important or Brand important when selecting a facility • 61% of consumers say online ratings and reviews are very Engagement important or important in selecting a facility • 88% of consumers say a facility covered by their ins
Slide 25: A single metric for healthcare loyalty
A single metric for healthcare loyalty SIMPLE Use a single, trackable metric to inform marketing strategy, report on marketing ROI, and gain leadership buy-in for marketing campaigns. HOLISTIC Hone in on the most important aspects of consumer loyalty by assessing your strengths and weaknesses across
Slide 26: A deeper look…
A deeper look… Can consumers easily navigate access into your Access system? It all starts with awareness. (CES) “To what extent do you agree or disagree with the “When you think of hospitals in your area, which one following statement: (Brand) makes it easy for me to Awareness comes to mind first?”
Slide 27: Loyalty Index in action
Loyalty Index in action ( ACCESS (CES) | 60.3 ( NEED | if MoTIvATION 75.5 A : Oren, } 68.5 ; ; : mre ENGAGEMENT a % J EXPERIENCE >? oO 24.8 f Loyalty ) 80.0 J INDEX BRAND SCORE 2 $ NPS ) 76.8 57.4 5 15.8 Market Average: Brand Loyalty In.. Brand Score Engagement S.. Need Sc.. Access S.. MotivationSc.
Slide 28: Measure Loyalty Index against competitors
Measure Loyalty Index against competitors
Slide 29: Understand competition in relation to national percentiles
Understand competition in relation to national percentiles 1 Competitor 1 Competitor 2 Competitor 3 November 2, 2017 29
Slide 30: Measure your own facilities
Measure your own facilities 1 ABC Hospital DEF Hospital GHI Hospital JKL Hospital MNO Hospital PQR Hospital November 2, 2017 30
Slide 31: Trend individual metrics using online tool - Brand
Trend individual metrics using online tool - BRAND
Slide 32: Understanding Brand
Understanding Brand Image section in online reporting portal
Slide 33: Where is Brand building?
Where is Brand building? Ticker Report in online reporting portal
Slide 34: The Loyalty Roadmap
The Loyalty Roadmap Measure Identify Implement Improve → What do → Where do → Make simple → Track your consumers you have an changes that progress want? opportunity have a large → Create loyal → How do they to improve? impact consumers want it?
Slide 35: Thank you for joining us!
Thank you for joining us! Please email questions to: bwynne@nrchealth.com jpalmer@nrchealth.com