Overhaul Your Internet Business Plan To Promote a Web-enabled Culture

CHICAGO - While there is ample recognition that healthcare Web sites are often no more than electronic billboards, healthcare marketers are paralyzed by limited resources to
take their organizations' sites to the next more interactive level. To reap the greatest benefits from Web sites, healthcare organizations have to change their perceptions of what
the Internet can achieve and deliver.

Figuring out this riddle was a major focus of the Fifth National Customer Based Marketing Strategies conference in Chicago earlier this month.

The narrow view of the Internet as a technology or marketing opportunity should be replaced by an expanded regard for the medium's ability to cut costs, improve service and
expedite transactions throughout the organization, says John Eudes, principal of greystone.net, a healthcare Internet strategies firm in Atlanta. If your Internet business plan
doesn't take this into account it's time to approach your leadership with the need to develop a plan with revamped strategies that promote a Web-enabled corporate culture. The
planning process should reflect a multi-departmental consensus around your Internet vision using input from stakeholders like the CEO, board of trustees, physicians, patient
educators, finance, information systems and marketing. Allow three to six months for the planning phase and revisit your plan every 18 to 24 months, suggests Eudes. In addition to
promoting a Web-enabled culture, your plan should also include:

  • a model to measure the effectiveness of vendor products and services; and
  • ROI evaluation criteria on cost-cutting efforts, patient satisfaction opportunities and new revenue opportunities.

Clicks and Bricks

Although you may feel that your organization is behind the eight ball in maximizing its Web presence, the good news is that established bricks and mortar organizations might
have a leg up in capturing the online healthcare consumer market compared to pure Internet sites. Consider the worsening financial plights of Dr. Koop.com and Healtheon/WebMD. Dr.
Koop.com has fallen sharply from its financial plateau losing $56 million last year. Its stock price plummeted to $2.36 last week from $36 shortly after its IPO. And
Healtheon/WebMD has lost $49.3 million on revenues of $33.2 million, according to its Q4 1999 report and its stock is down 56%.

While it's still too early to identify the Internet business model that will work best for healthcare organizations, having an established offline identity delivers a distinct
advantage for customer relationship building efforts, says Jonathon Missner, SVP of Phillips Health Interactive (PHI). PHI is the consumer wellness arm of Phillips International,
a publishing company in Potomac, Md., and publisher of HPRMN. PHI is leveraging its offline wellness newsletters, products and services online with branded physician Web sites
like DrDavidWilliams.com and DrWhitaker.com that rely heavily on permission-based email marketing initiatives.

Opt-in email programs have strong application for healthcare sites because they offer an efficient way to develop or enhance a customer relationship, says Missner. On average
these programs cost 5 cents to 35 cents per email message and deliver a click-through rate range of 5% to 15%, according to Forrester Research. In addition, a Forrester survey of
online marketing managers found that email was an effective complementary communications vehicle for PR, television and outdoor efforts.

But keep in mind that permission-based marketing programs require extensive front- and back-end operational support and compelling value propositions. Consumers won't readily
share their email addresses with Web sites if the requests are self-serving, overly promotional and lacking credibility. However, consumers will grant email permission to
healthcare Web sites that position themselves as resources capable of providing targeted and timely information. Earn email trust and permission by asking visitors:

  • about the healthcare subjects they're interested in and if they would like to receive email updates on those topics;
  • if they would like to receive an e-newsletter customized to their healthcare interests; and
  • if they would be interested in learning about health events and programs in their market.

While email marketing may seem like an overwhelming and resource-intensive undertaking, making it a Web priority is worth the time and energy when you consider that 40% of
Americans use email and there are 333 million email accounts in the United States, according to The Industry Standard.

(greystone.net, John Eudes, 770/220-0229; Phillips Health Interactive, Jonathon Missner, 301/340-7788, ext. 1205)

Internet Marketing Myths

How do you drive traffic to your site? This question often eludes marketers. Given the lack of credible information and the abundance of misinformation on this topic, it's easy
to feel completely clueless. Earlier this month, Joyce Flory, editor of Internet Health Strategies, tackled this question at the Customer Based Marketing Strategies conference in
Chicago by providing a list of common Internet marketing myths and practical tips for promoting your site. Here's a snapshot of her advice.

Myth #1: Submitting your site to a top, well-known search engine will generate significant recognition.

Reality: Although you don't have to submit your site to all of the major search
engines, it's important to have a presence among the best ones like http://www.searchenginewatch.com,
http://www.hotsheet.com, http://www.go.com, http://www.yahoo.com
and http://www.anzwers.com.

Myth #2: Once you've submitted your site to search engines, most of your promotional work is done.

Reality: You need to also submit your site to online guides, lists and directories
- some of which focus on specific healthcare topics. Consider http://www.alcanseek.com, http://www.canlinks.com,
http://www.infohighway.com, http://www.galaxy.com,
http://www.snap.com and http://www.netguide.com.

Myth #3: Awards are a waste of time. No one pays attention to them.

Reality: Awards can be a credible, third-party opportunity to boost awareness
of the strengths and benefits of your site. Check out http://www.coolsiteoftheday.com, http://www.yahoo.com/picks
and http://www.100hot.com.

(Internet Health Strategies, Joyce Flory, 312/944-3654, email: [email protected])

Web Site Evolution

Before rolling up your sleeves to determine the best opportunities for expanding your Web site, identify where your organization is in its online development. Greystone.net
recommends making online progress in phases, outlined below, using the goals of a system-wide Internet business plan.

Phase I: (Budget: $100,000) Characterized by static information and images.

Phase II: (Budget: $300,000) Uses features that deliver interaction and relationship-building opportunities, like online forms, email subscriptions and searchable databases.

Phase III: (Budget: $1 million) Uses integration and transaction functions, including inpatient/outpatient registration, e-commerce and database-driven site management tools.