Does a hospital really need a branding strategy?
If you had asked that exact question 15-25 years ago most hospital administrators would have said: “No.” That was arguably because patients were going to their nearest hospital not necessarily choosing a specific location. Years ago, being a physician meant you were most likely one of a select few providers in a small city or town where everyone knew who you were. Patients who needed your services would simply go to “the hospital”.
In contrast, the modern day healthcare marketplace is much more competitive. Hospitals must do all they can to stand out. Strategically, one of the most difficult tasks for hospitals is finding ways to differentiate and better position themselves compared to the competition. Some factors that make this so difficult include regulatory restrictions, emphasis on ROI, and the increasing number of mergers and acquisitions. Over the last several years we have seen hospitals invest millions of dollars in the form of advertising, expansion of services, construction and enhancement of facilities, and adoption of the latest technologies to improve efficiencies and appeal to patients.1
So, what benefits can hospitals gain from investing resources into brand positioning?
Consider some of the impacts branding can have:
- Provides direction for future product development
- Serves as the foundation for marketing communications
- Helps to distinguish a hospital from the competition
- Assists in relationship building between physicians, administrators, and patients
- Builds trust
- Attracts high end clinical talent
So, with that being said, what are hospitals, health systems, and healthcare companies doing to build a strong brand and develop a clear and distinct position in the market?
The rest of this post will explore four things that healthcare companies can do (and are doing) to maximize their respective brand positions.
1. Review the Brand
One of the first items on the proverbial to-do list for companies working to improve their brand is to do an internal audit of their current brand and how it is perceived. Healthcare companies are studying consumer attitudes towards their brands and what is most important to them in terms of how healthcare is delivered.2
It’s imperative for hospitals to understand what drives decisions and purchases. Once administrators have this data they can work to determine their current strengths and weaknesses and whether the perceptions of consumers match reality. Some say that all companies, regardless of industry, should think of their brand as a promise, and this seems even more poignant in healthcare. The brand should set patients’ expectations for what their experience with the hospital will be like.
2. Understand the Market
Competition throughout the healthcare market is increasing as hospitals work tirelessly to understand and satisfy the needs and wants of patients. Due to this, the patient-doctor relationship is evolving rapidly and patients are more comfortable with walking away. This trend will only continue as the younger and healthier generation matures. Therefore, hospitals are working to define market segments and better comprehend what appeals to each one in terms of access, services, technologies, financial support, etc.
In order to maximize the brand, hospitals must understand that the various stakeholders, whether they are patients, clinicians, or suppliers, perceive value and branding differently. By better understanding the market, companies can target the unmet needs of various market segments and emphasize those items in their marketing communications. Knowing what drives various stakeholders can allow companies to create KPIs, compare themselves to competitors, and find ways to maintain the upper hand.
3. Develop Unique Customer Experiences
In a day and age when hospitals are focusing on the patient experience, branding needs to be thought of in a similar way. Branding shouldn’t emphasize the hospital but how it relates to the patients it cares for. For example, hospital management may be excited about the future possibilities that may become available via research and development, but it should emphasize what is available for patients now. Hospitals should create a strategic alignment between the promise the brand is making and the patient experience. The actions of all staff should make good on what the brand promises. For example, if a hospital’s brand is “valuing patients and their families” yet clinical staff fail to follow-up on lab results or don’t reply to emails then patients will be dissatisfied because the hospital has failed to meet the expectations created by what the brand had promised.
The promise of the brand should be communicated throughout the internal network and to the hospital’s external stakeholders. Aligning the brand with the patient experience, and sending a consistent message to patients at each touchpoint, is important because consistency produces the perception of reliability, which enhances trust, confidence, and satisfaction with the overall patient experience.
4. Bring the Brand to Life
When it comes to brand positioning, hospitals should also focus on making the brand come to life externally. Hospitals often do this via a marketing campaign. Hospitals should also be willing to send management and clinicians to conferences and other events that allow them to communicate the brand directly. At these events, organizations often provide some free promotional items (e.g. pens, water bottles, note pads, etc.). Ideally, these free items should be conversation starters, encouraging attendees to talk about what the hospital is offering.
Conclusion
Healthcare brand positioning isn’t about having a cleverer slogan or catch phrase but it’s about healthcare companies communicating and demonstrating their value to potential customers. Branding can be the difference between being swept up by the competition and being able to stand on your own with a clear and distinct brand that offers a satisfying patient experience. Luckily, there are many opportunities for healthcare companies to differentiate themselves in order to create a strong and unique brand.
Kevin Anderson is a graduating medical student at Duke University School of Medicine and will be starting at LEK Consulting later this year. He’s most passionate about healthcare redesign, patient engagement, and the life sciences. His free moments are spent traveling and enjoying sporting events with his wife and daughter.
Image: Pexels
References:
- Team, Idgroup. “How to Justify Investment in Healthcare Branding for Improved ROI.” Idgroup Musings, May 2018, blog.idgroupbranding.com/investment-healthcare-branding-roi.
- Knowles, Hanna. “Six Things That Make Great Healthcare Branding Strategies Successful.” Medium, Medium, 10 Jan. 2018, medium.com/madison-ave-collective/six-things-that-make-great-healthcare-branding-strategies-successful-e2518cb0fa52.
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