When knowing the customer isn’t enough

Key Thought:

What can we learn from the retail industry that will apply to a hospital setting? Does it even make sense? Is it that important?

Below is a summary of an article on retail analytics and some of it, I think, is instructive for a hospital trying to move from basic services to a five-star hotel service level (or at least try to :-P)

Summaries:

1. “Know the customer” is a retailing mantra. Retailers evaluate ‘consumers from multiple sources to understand who the best customers are, then combine that information with what and how they like to buy’.

2. ‘Unfortunately, just knowing the customer isn’t enough in today’s retail world.’

3. ‘Retailers need to anticipate and shape future demand to come as close as possible to satisfying each customer’s unique needs. Achieving this at such a detailed level requires automated processes enabled to solutions with the latest in predictive analytics and optimization capabilities.’

4. ‘The ultimate goal is more than having the right product in stock at the right price; it’s about tailoring the entire shopping experience to create an emotional bond with the customer. In effect, this means turning today’s multichannel retail enterprise – in a consumer’s eyes – from “the store” to “my store.”’

5. ‘Did you know? Your favorite retailers use analytics to know not just what to put on the shelves, but also where to put it.’

My comments:

While this article is discussing decision process automation (DPA), a lot of what was said can be translated, some indirectly I admit, to healthcare.

1. In a hospital, we don’t just open a new clinic, and hope patients would show up. Or we just gathered materials from the doctor, and hopefully that is what patients wanted. Do we need to spend more time understanding our patients? It’s a fact that hospital are organized for the efficiency of the process, and not the patient. When was the last time we ask ourselves, how can we make it simpler for the patient?

2. After the mantra, ‘know your customers’, it seems that it is not enough. As competition heats up, yes, even in healthcare, discerning patients looks for more. How much do patients value transparency, honesty, fair prices, competence, and environmental consciousness in a hospital? How much before patients will make a different choice in selecting a different hospital?

3. Automation will be required to analyze the endless permutation of needs, but building that capability organization-wide will not be easy. The concept itself is not well understood by decision makers. Getting care-givers to come on-board will be the key to succeeding.

4. Yes, we are in the experience economy. Same goes for healthcare.

5. It will get even more specific as tools become affordable.

When are we ready for the change? Can we afford to wait longer?

Reference: When knowing the customer isn’t enough: decision process automation is the key to delivering jus the right offer to each retail consumer by Alexi Samevitz, SASCOM magazine pg 7-8, First Quarter 2009.