Marketing Transformation

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1 Marketing Transformation Jon Ciampi How a healthcare company transformed decision-making across 140 sites Daniel Burstein VP, Marketing, Business Development Director & Corporate Development CRC Health Editorial Content MECLABS

2 Session Speaker Jon Ciampi VP, Marketing, Business Development & Corporate Development CRC Health Jon oversees all marketing and business development efforts for CRC Health, a $450M revenue company. He manages the strategic accounts team and contracting team focused on 200 insurance contracts accounting for $200M of CRC s revenue, including large accounts like Aetna, Cigna, and Magellan. He also oversees all growth initiatives from cradle to grave, including two acquisitions. Jon started his career at Wells Fargo and Oracle, and he holds two patents in analyzing and rating electronic documents. 2

3 About CRC Health A subsidiary of Bain Capital, CRC Health Group is the largest and most comprehensive network of specialized behavioral care services in the nation. 3

4 The Challenge If we spend more money, will we get more revenue?

5 An Aha Moment from testing Transforming the marketing message by using three phases of value proposition testing Transforming the marketing department s culture Transforming the entire business

6 Experiment #1: Background Experiment ID: Sierra Tucson Testing Phase: Value Category (Phase 1) Research Notes: Background: An addiction and mental health rehabilitation facility. Objective: Increase the total number of leads captured. Primary Research Question: Which value category will obtain the most form submissions? Test Design: Multi-factor split test 6

7 Control Control Average short-form page template with a rotating banner. Call to action is on the right hand side and above the fold.

8 Experiment #1: Treatment Treatment - Top

9 Treatment Treatment Middle

10 Treatment Treatment Bottom

11 Experiment #1: Side-by-side Control Treatment The treatment is nearly 2x the length of the control and the call-to-action is at the bottom of the page. 11

12 Experiment #1: Results 220% Increase in Total Conversion The treatment page increased the rate of conversion by 220% Design Conversion Rate Control 0.78% Treatment 2.48% Relative Difference 220% What you need to understand: By utilizing a single-column, longcopy approach, the treatment better guides the prospect s thought process and generates 220% more leads online.

13 Experiment #1: Results 220% Increase in Total Conversion The treatment page increased the rate of conversion by 220% Aha Moment: Trust was Design Conversion Rate more important to Control 0.78% Treatment 2.48% Relative Difference 220% customers than luxury What you need to understand: By utilizing a single-column, longcopy approach, the treatment better guides the prospect s thought process and generates 220% more leads online.

14 Experiment #2: Background Experiment ID: Turn-About Ranch Testing Phage: Value Category (Phase 1) Research Notes: Background: Working cattle ranch for troubled teens Objective: Increase the total number of leads captured. Primary Research Question: Which value category will obtain the most form submissions? Test Design: Multi-factor split test 14

15 Experiment #2: Control Control Rotating banner with hero shots Glamourized imagery of Dr. Phil Show episode Leading with Unique Setting

16 Treatment Leads with trustbased messaging: Recommended by doctors and therapists, 24 years in business Real people ( A Message from our Director, Testimonial 3 rd -party credibility indicators

17 Experiment #2: Results 29.8% Increase in Total Conversion The treatment page increased the rate of conversion by 29.8% Design Conversion Rate Control 6.92% Treatment 8.98% Relative Difference 29.8% What you need to understand: By utilizing trust-based messaging, the treatment better ties into the prospect s thought process and generates 29.8% more leads online.

18 Experiment #3: Background Experiment ID: Sierra Tucson Testing Phase: Value Proposition (Phase 2) Research Notes: Background: An addiction and mental health rehabilitation facility. Objective: Increase the clickthrough rate. Primary Research Question: Which PPC ad will obtain the most clickthroughs? Test Design: A/B split test 18

19 Experiment #3: Controls Company Logic We have the most doctors, therefore we have the best care Branded Sierra Tucson Care Center Considered a Top Recovery Clinic Get a Free Assessment. Call Now! Non-branded AZ Alcohol Detox Facility Exclusive, Luxury Rehab Facility. 1 Clinical Staff Per 3 Patients.

20 Experiment #3: Treatments Customer Logic I am afraid to send my husband away to someone who will not care for him like I will Branded Sierra Tucson Care Center Considered a Top Depression Clinic Traditional & Alternative Therapies Non-branded Arizona Drug Rehab Considered a Top Addiction Clinic Traditional & Alternative Therapies

21 Experiment #3: Results 14,000 % Increase in CTR for Branded Ads Branded PPC ads Conversion Rate Control 0.31% Treatment 44.2% Relative Difference 14,000% 3,300 % Increase in CTR for Non-branded Ads Non-branded PPC ads Conversion Rate Control 0.13% Treatment 4.41% Relative Difference 3,300% What you need to understand: By focusing on value proposition, achieved a 14,000% increase on branded ad clickthrough rates, and a 3,300% increase in non-branded CTR.

22 Testing Phase: Behavioral Psychology (Phase 3) Highest Performing Branded Ads (>1000 Impressions Lowest Performing Branded Ads (>1000 Impressions Ad CTR Ad CTR Bayside Marin - Recovery 21.84% Bayside Marin Clinic 0.97% Not Your Ordinary Health Program. Rehab Shouldn't Stop Your Career. Health Recovery Center. Call Now. For Top Executives Seeking Comfort. Bayside Marin Center 6.98% Bayside Marin Clinic 1.09% We Provide Private, VIP Recovery. Rehab Shouldn't Stop Your Career. Your Own Room, Beautiful Facility. Your Own Room, Beautiful Facility. Bayside Marin Center 6.18% Bayside Marin Clinic 1.11% Rehab Shouldn't Stop Your Career. Alternative Health Recovery Center. For Top Executives Seeking Comfort. Very Private & Exclusive. Call Now. Bayside Marin Center 4.97% Bayside Marin - Official 1.14% Everything You Need to Recover. Exclusive Treatment Recovery Center Private Room, Chef, Healthy Living. Private Chef, Pool, Gym Call Now. Bayside Marin Center 4.32% Bayside Marin Treatment 1.23% Alternative Health Recovery Center. Everything You Need to Recover. Very Private & Exclusive. Call Now. Private Room, Chef, Healthy Living.

23 Effects of Psychological Mapping on Paid Advertising The word clinic vs. center has strong connotation and creates a 3X difference in CTR. The difference is understanding the psychology of the words. Clinic conveys Quick Cheap Informal Less-educated personnel Center conveys Expertise Research Formal Educated personnel The target audience is highly empathetic, social, caring, worried thus wanting a more formal, highly educated service with high interaction.

24 Effects of Behavioral Psychology on Value Prop 24 Customer Loved-One Profile Comm. Style - Mirror - Accepting - Fairness - Same compassion - Be Gentle - Tell Stories - Team up with them Personality - Selflessness - Investing in Others - Loves fairness - Hates Criticism - Agreeable - Needs lots of lead up to change Words to Use: We, Us You are doing the right thing They are going to be so much better We are going to help this person together Azure Acres is the most affordable and nurturing treatment center in Northern California. Our knowledgeable and understanding staff members 98% of whom are in recovery themselves provide an unparalleled level of support to you in recovery. The expertise we have gained over 50 years serving individuals in need, allows us to provide highly effective drug and alcohol treatment services. Our intimate setting in the Sonoma hills provides a warm and welcoming atmosphere, where staff and alumni come together to guide you through every step of your recovery.

25 Successes Placed Pressure on Other Areas of the Funnel Poor Reviews on Social Sites were undermining our value proposition 1-Star Rating on Yelp

26 Social Media Became Big Impact 3.5-Star Rating on Yelp We were forced to double our reputation management team and resources to implement effective campaigns: - Rating Monitoring - Proactive Updates - Suppression Management

27 Marketing Optimization Causing Funnel Issues for Phone System & Admissions Admits only related to inquiries created during time period Auto attendant shunts transfer volume away from service advisors Calls abandoned in queue dramatically lower CTC PPC Results 6/17-6/23 6/24-6/30 7/1-7/7 Answered Calls Abandoned in Queue Auto-transfer Total Calls Inquiries Admits % Abandoned 17.9% 5.6% 3.6% Adm/Inq 16.8% 17.8% 13.1% Calls per Inq PPC Spend 14,994 16,387 16,481 Cost per Admit ,268 Too early to tell as additional time needed for patients to matriculate In queue abandonment rates have improved dramatically. Effectiveness of PPC changes potentially promising but still too early to tell. Will need additional time for performance to stabilize before drawing additional conclusions.

28 Transforming the way the phone is answered Examples from call script Many callers are already sold on the program, in which case moving them to the next stage of the funnel quickly may be appropriate or reflecting back their concerns and allowing them to state why they chose to contact Sierra (avoid losing trust but no need to sell at this point). TRUST is biggest issue at this stage. If client was referred, trust is more likely than if they found us online. Will treatment be effective? (Use value prop here: we have been in business over 30 years) Letting people know that we are here and still care regardless if they are ready or not is important and what sets CRC apart from other programs and organizations.

29 Foundation Training was required to educate and enhance employee skills & performance We have developed a training program to help everyone understand the models we incorporated and to ensure consistent performance improvements across the organization. 5 phases of training covering Decision Making, Presentation & Communication, Quantitative Methods, TQM, and Marketing Frameworks Focused on core skills not taught in formal education Foundation Training Marketing Methodologies TQM Quantitative Methods Presentation & Comm. Value Prop Definition Motivation Demand Modeling Behavior Psychology KJ method Ishikawa/7-Step Language of Reporting MITs Ttest & R2 Testing Models Economics (IRR & NPV) Chart Choice Tufte Falacies of Argument Crisis Communication Applicable to any situation, any job, and any company Decision Making Minto Munger Problem Definition

30 Results: Value Prop Optimization Value Proposition testing results show 3x-4x increase in demand for services. Value Proposition Testing Begins

31 What you can learn from this transformational story You can use testing to reliably based your decisions on evidence in the marketplace Don t stop at the basic learning of a test, look deeper into what it s really telling you about customers Don t focus on technology, focus on the customer

32 Thank You Jon Ciampi VP, Marketing, Business Development & Corporate Development CRC Health Daniel Burstein Director of Editorial Content

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