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Show Me The Money – Monetizing CRM

If we’ve heard it once, we’ve heard it 100 times — “my CEO is pushing back and asking for quantifiable evidence that CRM is going to pay off in dollars and cents.”

It’s a valid request and one we poise ourselves to answer with every CRM database that we launch.  While this question may seem simple, there are actually a multitude of ways that you can show your C-suite the money. Value isn’t only limited to direct profits. CRM is a strategic investment with many layers of contributing value.

Traditional Return on Investment (ROI)
Still the workhorse metric in CRM land, ROI is going to give you that 1:1 payoff from your marketing campaign to downstream payments. Just always remember to set aside a control so you can answer the “they would have come anyway” question.

Value isn’t only limited to direct profits. CRM is a strategic investment with many layers of contributing value.

Strategic Priority Support
Seek out opportunities to help your organization achieve its most important objectives. One client helped support the Patient Portal Growth priority to the point that marketing has become responsible for over 30% of the portal sign ups. Revisit your organizational strategic priorities to see where you can make an impact.

Indirect System ROI
While traditional ROI will give you the single campaign level return, looking at it from an indirect system view will yield an ROI more inclusive of your associated CRM operating expenses. The calculation can include varying levels of depth, but for this example, consider the following:

  • Select a representative sampling of campaigns, based on messaging, audience segmentation and costs.
  • Measure within a snapshot of time. Take note, and include in your findings, that results are indicative of that limited timeframe and that marketing impact was limited to X number of campaigns during that timeframe.
  • Combine and dedupe to a global mail and control. Run utilization analysis. Include system utilization to account for the halo effect from initiatives.
  • Incorporate amortized and prorated CRM acquisition and operating costs effectively shifting these costs from the liability side of the ledger to the asset column.

Operational Savings
If your organization has specific Key Performance Indicators (KPIs) tied to operational goals, think outside the box and develop initiatives that will deliver on those goals. One such example would be a goal tied to converting “live” or call center scheduled appointments to online scheduled appointments. Launch a relevant program that supports that goal and ultimately deliver quantifiable results from the Marketing Department that contribute to an operational goal.

New Patient Acquisition by Service Line
Does your campaign require immediate ROI to be considered successful? Determine the lifetime value of a variety of new patients (e.g. primary care, joint replacement, bariatric surgery, urgent care, etc.), then consider how much your system invests to attract new patients through other marketing and non-marketing pathways?

It’s a rare industry that doesn’t “lose” money on new customers; breakeven can be 3-5 years away. As a result, healthcare execs need to understand the dynamics of their new patient base. What are the investment (acquisition) costs through the most common pathways of access? Where is the breakeven for each? This view helps not only with comparisons of marketing to non-marketing pathways, but also when an immediate ROI doesn’t seem to tell the whole story.

While you might not find all of these examples applicable to your situation, hopefully a few are and perhaps they can springboard some additional ideas. It’s no secret that delivering value beyond traditional ROI marketing will continue to elevate marketing’s role at the leadership table. So, if you’re up for it, carve time out of your already overloaded calendar to consider some “out of the box” value metrics you can deliver from your CRM system. Who knows, you might see some light at the end of the tunnel or get a better seat at the table!

To learn more about CRM and delivering “ROI value” system wide, visit our CRM page or contact us at 800-928-0712.

Tamara Cauton

Tamara is a Strategic Account Manager and brings to the table over 20 years of healthcare marketing experience. Her desire to “turn the cube”, coupled with her attention to detail and attitude consistently exceed client needs and expectations. She has developed, executed and analyzed community wellness and population health campaigns, brand audits, service line marketing campaigns, CRM strategies and New Mover Programs. Prior to joining the LionShare Marketing team, Tamara led account management services at another healthcare marketing firm and also spent time in account service at traditional advertising agencies.

Tamara earned her Bachelor of Science degree from the William Allen White School of Journalism at the University of Kansas.

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