Blueprint for Growth 2020

Product, Pricing, and Sales Strategies for a Retail Market for Health Care

Learn how to design, price, and sell your products to employers and consumers.

Rising health care costs, the proliferation of high-deductible health plans, and greater levels of transparency and choice are pushing consumers and employers to become more active health care purchasers.

Explore 10 tactics top providers are using to develop a customer-focused growth strategy and compete in the emerging retail market.

The customer-focus mandate

When provider organizations want to grow their business, they typically look to physicians and payers. While both parties will remain important stakeholders in the health care purchasing process, employers and consumers are taking on a much more active role.

To appeal to these new purchasers, systems must understand the "products" they shop for—namely emergent care services, non-urgent procedures, and enhanced management—and how they shop for them. The most successful organizations then translate this insight into product design, pricing, and sales strategies.

Consumer-oriented product design

Providers have traditionally oriented their services around physician preferences and training models. Learn how to approach product design from the purchaser perspective and package services in a way that incorporates consumer-facing demands for convenience, access, and superior clinical outcomes and service quality.

Competitive pricing strategy

Increasingly, employers and payers are experimenting with steerage tactics that financially reward patients for selecting lower-cost options, and many consumers are using price transparency tools when choosing providers. But rather than global price cuts, systems should offer selective discounts targeted at price-elastic services and price-sensitive patients.

Retail sales tactics

Providers must sell directly to purchasers by emphasizing customer-facing advantages like affordability, convenience, access, and service. Successful organizations develop strategies to both appeal to first-time buyers and cross-sell to existing customers, driving patient loyalty by deepening customer relationships.

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