Digital Marketing and Healthcare Consumerism

As a follow-up to my recent article on price transparency in healthcare, I want to delve into the fascinating world of digital marketing and healthcare consumerism. I recall vividly when Bob Dole starred in a Viagra commercial over 20 years ago. At the time, it seemed quite odd for pharmaceutical companies to run ads directly targeting consumers for prescription medications. I’ve always been somewhat concerned about the fast-talking warnings at the end of drug commercials, often wondering if I should be jotting down notes.

The evolution of digital marketing has been nothing short of transformative. A few years ago, I was appalled to see advertisements for items I had merely discussed or searched for online. It's almost as if Alexa was secretly listening to my conversations, ready to decide what items to advertise to me next. This phenomenon is now big business in healthcare, ushering us into the age of healthcare consumerism.

Healthcare Consumerism: A New Era

Healthcare consumers have never been more empowered than they are today. The COVID-19 pandemic forced healthcare providers to adapt quickly to continue delivering patient care, including by pivoting to digital care. Seemingly overnight, telehealth went from an industry sidenote to the primary means of seeing noncritical patients. Healthcare consumers also saw global retailers, grocery store chains, and other disruptors demonstrate how convenient it can be to order health products online for delivery or curbside pickup.

Consumers increasingly expect transparent, predictable, and mobile-friendly experiences, but most healthcare organizations have failed to keep up. Although healthcare providers have more options for how to spend limited marketing budgets, many have chosen to stick with familiar traditional and digital marketing channels—such as billboards and ads on television, radio, and in magazines—and with a one-size-fits-all digital presence.

Understanding Healthcare Consumerism

Healthcare consumerism is a movement that encourages patients to actively participate in their healthcare decisions. It involves providing patients with the information and tools needed to make informed choices, akin to the way consumers shop for other goods and services. This concept is reshaping the delivery of healthcare, making it more patient-centric and transparent.

A 2021 McKinsey survey of more than 3,000 US healthcare consumers found that satisfied patients are 28 percent less likely to switch providers. Healthcare systems now have the same aspirations as companies in any industry: to engender long-term relationships with their consumers. Consumer goods, retail, and e-commerce leaders set the original bar and continue to push it higher today.

Protected Health Information and HIPAA

Protected Health Information (PHI) is any information about health status, provision of healthcare, or payment for healthcare that can be linked to an individual. The Health Insurance Portability and Accountability Act (HIPAA) is a federal law designed to protect sensitive patient information from being disclosed without the patient's consent or knowledge. HIPAA compliance is crucial for healthcare providers to ensure patient privacy and trust.

The Role of Digital Marketing in Healthcare

Digital marketing strategies in healthcare have significantly transformed how services are promoted and consumed. According to the article "The Adaptation of Health Care Marketing to the Digital Era" by G. Radu and colleagues, digital media plays a critical role in targeting potential patients and influencing their decisions. A study on 126 patients of a dental clinic in Bucharest demonstrated that 78.57% of new patients were influenced by online promotions, particularly through social media and search engine advertisements.

Advantages of Digital Marketing in Healthcare

1. Targeting Capability: Digital media allows precise targeting based on demographics, interests, and behavior, making it invaluable for healthcare marketers.
2. Cost-Effectiveness: Digital methods like email and social media are cheaper and offer better returns on investment compared to traditional marketing.
3. Accessibility and Convenience: The internet breaks down geographical barriers, enabling healthcare providers to advertise their services globally at any time.

Challenges of Digital Marketing

Despite its advantages, digital marketing presents several challenges. These include the initial investment in creating and promoting a website, the need for continuous updates, and the intense competition from other healthcare providers. Moreover, ethical considerations related to patient privacy and data security are paramount.

The New Age of Artificial Intelligence in Healthcare Marketing

Artificial Intelligence (AI) is expanding the ability and capacity for hospitals and insurers to target individual patients with advertisements. AI algorithms analyze vast amounts of data to identify patterns and predict patient needs. This allows healthcare providers to deliver personalized marketing messages tailored to individual preferences and medical histories.

Changing the Delivery of Healthcare

The integration of digital marketing and AI is transforming healthcare delivery. It enables providers to engage with patients proactively, offering personalized care recommendations and reminders. This not only improves patient outcomes but also enhances patient satisfaction and loyalty.

Three Priorities for Progress

Healthcare providers ready to rethink their marketing approach to grow and maintain continuity of care—or work to gain back what’s been lost in recent years—have their work cut out for them. Here are three priorities for progress:

1. Align the C-Suite: The chief marketing officer (CMO) requires active involvement from the leaders of other functions, including the chief technology officer (CTO) or chief digital officer (CDO), chief information officer (CIO), and chief financial officer (CFO). Only when the C-suite is aligned on the importance of marketing to drive growth and continuity of care will the CMO have the support required to effect change beyond their immediate influence.
2. Build Capabilities Methodically: Most healthcare providers have critical capability gaps that hinder mounting an end-to-end, personalized consumer journey. Use cases that improve patient scheduling or better patient communication management should rise to the top of the priority list. Reliable collaboration between the marketing and technology teams is paramount to achieving seamless healthcare consumer journeys.
3. Measure What Works: Implementing changes focused on improving the consumer experience, including through marketing efforts, can significantly impact revenue and costs. Healthcare providers that adopted agile marketing to drive high-velocity testing across digital and traditional marketing channels saw their revenue increase by up to 20 percent over five years, while costs to serve decreased by up to 30 percent.

The world of digital marketing and healthcare consumerism is evolving rapidly. As healthcare providers, we must embrace these changes while ensuring compliance with HIPAA regulations to protect patient privacy. By leveraging digital marketing and AI, we can provide more personalized and efficient care, ultimately leading to better health outcomes and a more engaged patient population.

As I reflect on the journey from Bob Dole’s Viagra commercials to today’s sophisticated digital marketing strategies, I am both amazed and optimistic about the future of healthcare. Just remember, next time you see a fast-talking drug commercial, it might just be the tip of the iceberg in the vast ocean of healthcare consumerism. And if Alexa happens to suggest a new health product, well, perhaps it's just part of the grand design of modern healthcare marketing.

References

• Elrod JK, Fortenberry JL Jr. Advertising in health and medicine: using mass media to communicate with patients. BMC Health Serv Res. 2020 Sep 15;20(Suppl 1):818 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7491105/pdf/12913_2020_Article_5599.pdf
• Elrod JK, Fortenberry JL Jr. Target marketing in the health services industry: the value of journeying off the beaten path. BMC Health Serv Res. 2018 Dec 14;18(Suppl 3):923 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6293495/pdf/12913_2018_Article_3678.pdf
• Pasaribu SB, Novitasari D, Goestjahjanti FS, Hendratono T. The impact and challenges of digital marketing in the health care industry during the digital era and the COVID-19 pandemic. Front Public Health. 2022 Jul 28;10:969523 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9366108/pdf/fpubh-10-969523.pdf
• Purcarea VL. The impact of marketing strategies in healthcare systems. J Med Life. 2019 Apr-Jun;12(2):93-96 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6685306/pdf/JMedLife-12-093.pdf
• Radu G, Solomon M, Gheorghe CM, Hostiuc M, Bulescu IA, Purcarea VL. The adaptation of health care marketing to the digital era. J Med Life. 2017 Jan-Mar;10(1):44-46 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5304370/pdf/JMedLife-10-44.pdf