Welcome

Today’s presentation is brought to you by BlueSpire Strategic Marketing.

Featured Presenters, Speakers

Kimberly Morgan, Senior Strategist

Greg Lifhits, Digital Strategies Manager

Jen Joly, Senior Director / Marketing, Communications and Brand Management

Agenda INSIGHTS

• BlueSpire survey • Other relevant research, thought leadership

EXAMPLES

RECOMMENDATIONS

INSIGHTS: What’s going on in the world of

budgeting and strategic planning?

BlueSpire Survey Conducted April-May 2014

Chicken or the Egg?

Strategy drives budget

Budget drives strategy

Neither, both are addressed in unison

Who is involved in strategic planning?

of respondents have not seen the corporate strategic plan at their organization.

15% said their marketing strategy/plan does not align with their organization’s strategic plan.

7%

Time to Budget Approval

Less than one month 1-2 months

3-6 months

6+ months Start Fiscal Without Budget

Approval

Always Sometimes Never

of marketers said key products/services are considered in determining marketing budget allocation.

85% of marketers said new product/service launches are considered in determining marketing budget allocation.

80%

Traditional marketing still takes the biggest slice of the pie, averaging 34% of respondent budgets.

Brand awareness Digital marketing Technology (support/drive marketing strategies, business growth)

16% 13% 13%

Outsourcing

Conduct internally A mix of both Contract Externally Neither

Frequency of Strategic Planning

Annually Biannually Every 3 years Other

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Lack of time to focus on building marketing's vision and the budget to align to

that vision

Lack of dollars to execute marketing's vision

Having to adjust my strategy to fit a specified

budget

Biggest Frustration

Other Insights

“Perfect Storm” in Healthcare

Market Factors “Reform” from all corners Transformational shift of incentive structures Massive operational change Advent of consumerism and choice Explosion of available data

Health System Imperatives Physician alignment Population health management IT/Operational efficiency Revenue cycle enhancements Transition to value-based approach vs. volume

Disruptive Change Delivery System Reform

“Perfect Storm” in Financial

Market Factors CFPB, NCUA/FDIC regulations Competitive environment

Continued M&A activity Creation of super regionals Non-traditional FIs

Margin pressure Data breaches Technology explosion

Institution Imperatives Income diversification IT/Operational efficiency

Core and MCIF platforms Loan origination

Focus on e-delivery, mobile, future of payments Utilization of digital marketing Holistic customer view

Disruptive Change Delivery System Reform

Shifting Media Budgets

13%

39%

48%

Changes in Traditional Media Budgets

Increasing

Decreasing

Remaining about the same 84%

39% 14%

Changes in Digital Marketing Budgets

Increasing

Decreasing

Remaining about the same

Sources: • Society for Healthcare Strategy and Market Development (SHSMD) By the Numbers Study, 2010 • Topline Strategy Group - Independent study of 80 US health Systems, 2013

Comparing the first quarter of 2013 with the same period this year, among FIs with $500 million to $1 billion in assets, marketing spend in traditional media dropped about five percentage points to 48%.

Spending for online and mobile increased 7%.

Source: http://www.cujournal.com/news/the-online-ad-shift-be-careful-where-you-spend-1022539-1.html

“The U.S. financial services industry will be the second-biggest spender

on paid digital media among all industries in 2014.”

Key Trends In Formats and Tactics: • Digital Video • Social Media • Sponsored Content • Measurement and Attribution

https://www.emarketer.com/public_media/docs/Digital_Ad_Spending_Benchmarks_by_Industry-The_Complete_eMarketer_Series-05092014-FINAL.pdf

“On a percentage basis, the [pharmaceutical/healthcare]

industry spends less on mobile than any other …

But … spending is poised to increase as the industry develops

a solid set of best practices.”

https://www.emarketer.com/public_media/docs/Digital_Ad_Spending_Benchmarks_by_Industry-The_Complete_eMarketer_Series-05092014-FINAL.pdf

“You‘ve got to start with the customer experience and work back toward the technology … ”

- Steve Jobs

EXAMPLES: What does great budgeting and

strategic planning look like?

How NOT to budget:

Last year’s budget + 2%

1% of revenue

What the competition is spending

How NOT to plan:

Start with last year’s budget

Do what the other guys do

Don’t look at the overall strategic plan for the organization

“… without analytics, big data is just noise.”

- IBM.com

Convergence of Marketing and IT

“…despite all of this technology at work, the most critical element in our evolving service mix is world class creative capabilities….”

”Our role is to serve as a systems integrator for our clients…to help brands tell their stories via marketing technologies and Application Programming Interfaces (API’s)…”

Which Executive? Source: JEGI Sector Insights, Enterprise Marketing Management , June 2013

The Move to Big Data

0% 20% 40% 60% 80% 100%

Banking and FIs

Global Have not begun big data activities Planning big data activities Pilot and implementation of big data activities

IBM Institute for Business Value and the University of Oxford

Adoption Curve Varies by Size

29

Sources: • Gartner, 2012 Top Industry Predicts 2012: Industries Face intensified Consumerization and Technology Disruption • HBR.com, May 2013 http://blogs.hbr.org/2013/05/a-futurist-looks-at-the-future/ • Topline Strategy Group - Independent study of 80 US health Systems, 2013

0%

10%

20%

30%

40%

50%

60%

70%

$25M to $100M $100M to $500M $500M to $1B Over $1B

Share of Health Systems Who Have Deployed a Hospital Grade CRM System by Size of the Hospital System

How do you move beyond budgeting and strategic planning based on “old school” methodology?

Use Your Data.

33 touchpoints needed to reach one sale!

Type of Touchpoint Matters

Source Days to Deposit Touch Points

Other 562 42

Referral 241 28

Online 338 35

Marketing Efforts (Direct Mail, Events) 600 29

Media (TV, Newspaper, and Outdoor) 2,189 54

Pipeline Time Lapse

Media I saw your ad on TV.

Traditional Marketing Efforts I got an invitation in the mail to

your event.

Online Marketing I looked online for a

retirement community.

Referrals My friend lives there.

… to point of sale

6 years

1.5 years

12 months

4 months

The Lead Base

0

200

400

600

800

1000

1200

1400

FY 15 FY 16 FY 17

"Mature" Leads Over Time

Lost Lead Type Total

Lost Lead Unknown Reason 1,364

Lost Lead No Interest 1,286

Lost Lead Dissatisfied 3

Lost Lead Competitor 249

Total 2,902

Reality vs. Perception

Sales Staff Performance Matters

0

500

1000

1500

2000

2500

3000

3500

4000

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CyberKnife Case Study Outcomes

40% growth in qualified patients 23% growth in revenue 17 new referral sources outside of system

Campaign details Total budget for campaign $182,000 Revenue from patient conversion of campaign = 7 times the campaign budget 2/3 of new patients were self referrals

Results are a combined tracking of both the consumer and physician

campaigns that occurred over the same time span.

In a recent study …

71 percent of FIs reported that information and analytics are creating a competitive advantage.

• IBM 2010 New Intelligent Enterprise Global Executive Study and Research Collaboration • http://www.americanbanker.com/issues/178_135/how-zions-bank-is-conquering-big-data-for-marketing-campaigns-1060603-1.html

Zions Bank Use Cases: • Commercial business card

• Mobile remote deposit capture • Cross-selling

• “Lifestyle score model” • Customer attrition

RECOMMENDATIONS: How should you proceed?

Marketing Considerations Focus on building brand awareness and loyalty by making products/services the proof points of your strategy

Implement internal strategies to streamline resources and ensure consistency of brand Utilize a data driven approach to drive strategies, budgets—all centered on agreed upon measurements of success

Make the C-suite Your Best Friend

Align with organization’s strategic plan

Utilize a data/evidence-based approach

Implement success measures

Define financial assessments

Track, measure and report!

Closing Thought … Make it sing visually.

Healthcare Data for Healthy CRM & PRM Wednesday, September 10 1 p.m. CST / 2 p.m. EST / 11 a.m. PST

Q3 TrendLab Webinars

Analytics and Big Data and ROI … Oh My! Data Trends for Financial Institutions

Tuesday, September 16 1 p.m. CST / 2 p.m. EST / 11 a.m. PST

Thank You!