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Bill Klaproth (Host): This is a special podcast produced on site at SHSMD Connections 2024 Annual Conference in Denver as we talk with keynote speakers and session leaders direct from the show floor. I'm Bill Klaproth. And with me is Ryan Hatt, he is the Director of Customer Success at NRC Health; and we have Tom Kirby, Senior Director of Strategic Marketing and Intelligence at UPMC, as we talk about using the power of strong healthcare brands to minimize disruption from competitors. Ryan and Tom, welcome.

Tom Kirby: Thanks for having us.

Ryan Hatt: Yeah, thanks so much. Excited to be here.

Host: Yeah, great to talk with both of you. Thank you for your time today. We appreciate it. Ryan, let me start with you. So, what are the most significant trends in healthcare consumerism that UPMC is focusing on to stay ahead of the industry disruptors? They're coming. They're around us. How do you stay ahead of this?

Ryan Hatt: That's right. Some trends that we're seeing in the market right now is that there's still a lot of confusion when it comes to that healthcare journey. Forty-seven percent of consumers still say that they are confused. That's the most prevalent emotion they feel when it comes to the healthcare journey. So, we're seeing more and more consumers that are actually delaying care. Like 44% of consumers who delay care are just willing to manage on their own rather than enter the healthcare journey. So, we have those patients that are willing to look it up online, talk to family and friends, try and figure it out on their own, before giving up that control and entering into the healthcare space.

Host: What is the main thing they're confused about?

Ryan Hatt: Just the journey itself. Can I go to a specialist before going to a primary care doctor? How much is this going to cost me? Am I going to someone that's in network? And just knowing what the full picture is going to look like.

Host: So Ryan, when all these questions stack up and add up, that's where we have confusion then, is that right?

Ryan Hatt: That's right.

Tom Kirby: Going back to the original question, you know, what are some of those most significant trends right now? I'd say one of the biggest trends that we're trying to get ahead of is the entrance of Gen Z into healthcare right now, one of the most confused audiences, demographics, that's out there because this is all very new to them.

Host: So, this is really confusing to them, the younger generation?

Tom Kirby: Correct. You know, who are perhaps for the first time on their own having to deal with healthcare. And the confusion-- not to overuse the word-- that comes with that: not just where do I go, what are my options, what am I going to have to pay, how do I pay for that again, what do I need this insurance card for?

Host: All the stuff that Ryan was talking about.

Tom Kirby: Exactly.

Host: That's interesting. So, is there an opportunity then for these disruptors like Amazon and Dollar General to enter the marketplace where a Gen Z'er might go, "I'm just going to go to Amazon. This seems less confusing for me"? Is that correct?

Tom Kirby: Yeah, for sure. There's definitely a big opportunity for them to come in, and I would say the type of care they're going to be offering are going to be much more of the primary care, maybe doing the labs, a lot of those wellness check type of services, you know, that could be provided. I often refer to service lines like that as commoditized. Those types of lines of care that are growing more and more driven by convenience and cost, which are what Dollar General and Amazon's, even the Walgreens of the world can build upon. And on top of that, there's a familiarity with those brands, you know, especially just building off the Gen Z piece. I've been there before. I know how to navigate my Amazon app and I know the offerings that they have or I know where my Dollar General is and I've seen these ads, et cetera, to come into. They're a lot on these days to get this type of care. They do not have a routine built with traditional brick and mortar healthcare right now. So, that's another benefit that those disruptors have is a familiarity to them.

Host: Absolutely.

Ryan Hatt: And cost and convenience and ease of access are bigger drivers for Gen Z than they are the older populations. So when they have those options of those disruptors that come into the market, that's going to attract them more right now. The number one driver is actually cost. They want the lowest cost option right now, and oftentimes that may be an Amazon or a Dollar General.

Host: I have kids in that age range. And you're exactly right. Cost and convenience is so important to them. So Tom, talk about UPMC then. How has UPMC adapted its brand positioning to respond to competitors like Amazon and Dollar General entering the healthcare space?

Tom Kirby: In terms of our master brand and our uber brand position, that's going to stay the course and that's going to continue to be about our quality outcomes, our clinical excellence, those benefits and attributes that we built the brand on for all these many years. I like to think in terms of not necessarily changing the positioning, but changing some of the execution on which we get that positioning across. So again, we'll stick with the Gen Z example. Are we delivering our message to them at the right time, via the right channels, with the right message that they want to hear?

So yes, we want to drive clinical excellence. We want to drive the best outcomes, the best technology. All of those things that we feel we own as our brand. But are we making sure to talk to them in a way that comes back to what's going to make them take action? Well, it still might be the convenience piece, or it still might be the cost piece, or understanding building a routine of some sort to come to one of our facilities. The quality never goes away, but I think that layer that's driving them to action, we have to make sure that we're optimizing as best as we can based on what their needs are.

Host: Right. So, making sure that they are aware of your brand next to these other brands and that you're really the expert in this area.

Tom Kirby: Absolutely. Making sure that, at the end of the day, especially in times like these where budgets are being cut potentially to focus much more on the conversion-driving tactics to drive appointments right now, tomorrow, how fast can we get them in, we can't forget about the top of that funnel sort of feeding that pipeline and, again, that's with Gen Z. And at the very least what we can do to your point is make sure they're thinking about us top of mind. That's what we want to do.

Host: That recognition as well. So Ryan, can you share some of the key insights or data from your research that show how brand positioning affects patient satisfaction and recognition?

Ryan Hatt: Yeah. What we're finding is that brand positioning is so crucial and important in the market right now. One of the questions that we ask within our consumer research of just general population consumers is to name a top of mind hospital. What's that first hospital that comes to mind? And 92% of consumers nationally can name a hospital top of mind, but then we ask how strongly they feel about using that hospital. Twenty-two percent of those who name that hospital are very loyal, and they'll be loyal to that hospital until the end, saying, "I will not use any other hospital." Over 54% though say, "I would consider someone else." And it's because of those disrupting factors like convenience, scheduling, cost, and so forth, that's causing them to say, "Eh, maybe this isn't the best option, I'm willing to look around and find some different things out there."

Tom Kirby: We have someone ask in our session about how do you use your data to convince your execs to maintain that support of the brand. And one of those pieces of data that we've used before to Ryan's point is we can show very clearly with our consumer data via the help of NRC, we can very clearly show that if a consumer has a favorable opinion of UPMC, not just aware of them, but has a favorable opinion, they are two to three times more likely to prefer us for care, and twice as likely to use us for that care. So even just in those simple terms, the brand is that first step. Not just understanding us, not just being aware of us, but starting to prefer us, and think positively of us, that will convert in the long run.

Host: Yeah. That's really interesting how you're putting this puzzle together. So then, how does UPMC balance the need for convenience and ease? We were talking about convenience and cost with maintaining high quality care in a competitive marketplace. You were just touching on that a little bit, Tom. Can you speak about that, Ryan?

Ryan Hatt: Convenience and access are going to be big drivers in that selection process for any consumer that's out there. And so, what we have found is that when you take those factors out of the equation for consumers, you say, "Outside of location to home, outside of scheduling access and so forth, would you rather go to a retail clinic or would you rather go to a clinic associated with a local hospital or health system?" Most consumers across the board, generationally as well, are willing to go or want to go to their local hospital or health system that is theirs. So then, I think that last piece of the puzzle that health systems need to solve is how can we show that our brand is easy to access and that we are a low-cost provider out there and that we can compete with those different disruptors that are in the market.

Host: And how do you do that, Tom? Can you share an example of what you're doing to address what Ryan was just talking about?

Tom Kirby: Sure. I think it's in a number of different ways on how we execute our brand campaigns. What I talked about in our session earlier were really three things. I'm not saying these are the only three things. But a couple good examples are, number one, making sure that we are working as marketers that we are working very, very closely with our operations and clinical leadership to make sure that we are market by market, even ZIP code by ZIP code, making sure that we're only marketing and driving those appointments at locations with service lines where we know we've got good appointment times, we know we've got good access, to make sure that we're always driving towards a positive experience.

Number two, we're using our data to really build microtargets. You know, gone are the days of just doing a television ad or print ad or outdoor campaign that gets the same couple words out to everyone in the same ways. Based on different demographics and psychographics, based on what messages, what benefits we know that different audiences prefer, need, expect from their care, we can then tailor our message to deliver that to those different audiences.

And then, the last one, as mentioned with the Gen Z piece, we have recently worked with our digital and content teams who built a fantastic, I would say, content hub called New Here towards Gen Z. So, as they are dealing with the confusion that Ryan talked about where to go, how do I need to start thinking about this, all these questions I have as a new entrant into this healthcare industry, making sure that we're there, we are appearing when they're searching different items, when they are looking for care, making sure that our message is popping up, even if they're not using us right now to start to build that top of mind awareness and think UPMC first for any of their care. Again, might not convert in the short term, they might still be going to a disruptor, but how do we start to build that loyalty now with them?

Host: Yeah. That's really an interesting idea. And I could see where you could really use that to build that brand perception that you're trying to build. So, three things you mentioned, working closely with operations, building microtargets seems really important instead of the shotgun marketing with the billboard on the expressway,. And then that content hub is really an interesting idea. So, that really helps position yourself against the industry disruptors, if you will, the Amazons and the Dollar Generals of the brand then.

Tom Kirby: Absolutely. And you think about a competition like Amazon. I feel pretty good about the amount of consumer data that we have and how we use that, but it probably pales in comparison with the amount of information that Amazon knows about their own customers right now. So, we got to make sure that, to the best of our abilities, we're fighting that fire with fire.

Host: Absolutely. Well, this has been a great discussion. Thank you both for stopping by today, Ryan and Tom. Before we wrap up, I'd love to get final thoughts from each of you. This has really been interesting as we talk about the power of strong healthcare brands, trying to minimize the disruption from competitors. Ryan, let's start with you. Final thoughts.

Ryan Hatt: Yeah, I think it's just so important to understand and know your market. Know what's really driving the behavior from consumers in your market. What are they wanting? What are their needs? And be able to address those needs. But also, what is their perception of your brand? And how do you stack up against other brands within the market. That helps you to identify where your areas of opportunity exist, and maybe, you know, where your shortfalls are as well, that you need to close the gap there a little bit, having a good understanding of your consumers and market.

Host: So, that seems like a really smart place to start, is start there, right? Know those things for sure. And Tom, final thoughts from you.

Tom Kirby: It's a really interesting time, I think, in healthcare right now for traditional healthcare providers because the competition has never been greater. As we talked about, we've got all these, you know, let's say retail disruptors that are showing up at a time where the industry itself is tightening its belt over the last couple of years post pandemic. So, it's really provided, I think as a marketer, very interesting challenges to help overcome and stay competitive. And I would say to that end, data, data, data. As much data as you can have, that is useful to you inside your organization, make sure you're using that, taking advantage to understand your consumers as best as possible, understand your patients as best as possible and their attitudes, behaviors, and expectations to make sure that we're staying ahead as much as we can to deliver, like I said, that right message to the right place at the right time.

Host: Well, this is just smart for the bottom line too, trying to get those, we've been talking about Gen Z, but really anybody, building that strong brand perception so they choose you. It's smart bottom-line decision as well, going up against these disruptors and other competitors in the market as well, the things you're doing. So, Ryan, Tom, thank you so much for your time today. We appreciate it.

Tom Kirby: Thanks for having us.

Ryan Hatt: Thanks having us.

Host: You bet. And once again, that is Ryan Hatt and Tom Kirby, and we hope you enjoyed SHSMD Connections 2024. For those of you who are unable to attend, please access the presentation recordings at shsmd.com. You can experience the session with Ryan and Tom.

And if you found this podcast helpful, please share it on your social channels, and please subscribe so you get every episode chock-full of goodness, people. And to access the full podcast library, please visit shsmd.org/podcasts. Thanks for listening.