Has the current economic crisis paralyzed your organization? You might be in the mode of hunkering down, hoping that you can weather this storm and regain momentum when you come out the other side, but what state will your hospital be in when you get there? By allowing this crisis to dictate your organization’s actions, you risk missing the boat on new opportunities. However, through strategic planning and creative marketing, you can build a growth-oriented organization during a time when your competitors are scaling back.
Organizational growth in a slowing economy sounds great, but you’re probably asking yourself the million dollar question: "How?" The answer: by getting the most strategic bang for your buck when you’re operating in a climate of limited budgets and FTE (full-time employee) freezes. You need to ask yourself if you are completely satisfied with your strategic marketing agency and decide if it’s time to find a new one. Even if the idea of evaluating this relationship seems daunting, you must not put it off—if you do, you are missing a surefire way to maximize your opportunities while competitors are vulnerable.
Getting Started
Choosing a new agency is no trivial task; it will take knowledge, expertise and an open mind. It can take anywhere from two to four months to search for, evaluate and select a new agency, and you may want to consider hiring a consultant. Granted, you know your organization and what it needs better than anyone else; however, a consultant can greatly reduce your time commitment, and also offer outside perspective. If you decide to hire a consultant, the most critical trait you want from one is expertise in the healthcare industry.
Whether or not you choose a consultant, there are six key steps that should comprise your new agency search process:
- Needs assessment
- Candidate research
- Sending out a Request for Information (RFI)
- Creating the Request for Proposal (RFP)
- Agency presentations and evaluations
- Agency visits and final decision
1. Needs Assessment
Before you even think of which agencies you want included in this review, you should get your internal house in order. Closely define your organization’s needs and goals. Also establish what you require from your agency. Are you looking for a traditional, tactical agency or a strategic full-service one? The latter is more likely to give you access to a breadth of services and allow your team to collaborate on strategic planning, brand development, patient-focused marketing, physician-focused marketing, and online solutions. By conducting a needs assessment, you will set the direction for the next five steps.
2. Candidate Research
Once you know what you need, you can start gathering a list of appropriate agencies. Compile your list through online search or by using resources such as Advertising Age, the American Marketing Association, AAAA or Ad Clubs that list agency members. Consult with organizations or healthcare research firms with whom you already have relationships. They might have some good recommendations.
Determining the size of this primary list is up to your discretion. To help narrow down your completed list, develop a range of requirements that best fit your organizational needs.
Identify agencies that understand the intricacies of the healthcare industry such as physician referrals, operations, reimbursement, charity care, out-migration, capacity and fundraising issues. They may need to understand the difference between marketing “open” and “closed” health systems, as well as a full understanding of AMA, HIPPA, PhARMA guidelines and pharmaceutical regulations. Ensure they have an understanding of the STARK law, as well as Safe Harbor and Anti-Kickback provisions.
Strategic requirements may include defining business models and setting business goals for your organizational leadership, setting marketing goals, and defining strategic positioning and creative strategy. Execution requirements may include interactive, media, public relations, promotions, and sponsorship capabilities. Ensure the agencies understand your business goals, patient flow, reimbursement and payer mix, and referral base. Make sure they represent positive ROI. One unneeded concern you might have is the location of the agency. There are benefits to having a nearby location but in this interactive age, it is not completely necessary. So while you can consider it an additional benefit, your primary focus should be on how this agency can meet your business needs.
3. Sending out a RFI
After you have refined your agency list, take a more in–depth look at each agency by sending out a Request for Information (RFI). Many organizations conduct a RFI to sift through a large number of agencies to ensure those in the next step have the essential requirements for your organization. This saves you time—and the agencies’ time—from reviewing bids which would not be considered anyway. Moreover, in this round you are screening out agencies who may work for your competition. If your list happens to be much smaller than anticipated, you can skip this step and move onto the Request for Proposal. If you do choose to skip this step’ just be sure that the agencies you’ve identified have the necessary capabilities and resources to meet your needs.
Your RFI should specify the reason you need an agency, whether it be for a new service being launched, the desire to generate awareness or drive referrals, or a new hospital location being announced. The more details you provide, the more details you can expect back. The RFI should convey your idea of a perfect agency. Include an agency questionnaire that will reveal infrastructure, capabilities, relevant experience, longevity and stability, expertise in healthcare including a list of current and past healthcare organizations within your geographical footprint, income, founding date, and ownership. The questionnaire, if done correctly, should represent a substantial biography of the agency.
Include a clearly defined deadline with a minimum of two weeks to complete and deliver the RFI replies. You should have a cross-functional team ready to review and narrow down the options. The review process should take two to three weeks depending on the volume of responses. You and your team should narrow down the options to about five to eight agencies.
4. Creating the RFP
Up until this point, you have based your decisions on strictly analytical information that adheres to your requirements. Now that each of these five to eight agencies have what it takes on paper, you will need to test their abilities. A Request for Proposal (RFP) is the next step. It will test their knowledge, strategic thinking and creative problem solving. Organizations are often tempted to request spec creative to “test” creativity, but consider this fact: 95 percent of spec creative never gets to market. This is usually the case because it’s created in a vacuum without the background and research necessary to produce effective creative. Instead, request relevant case studies and creative samples, which should give you a clear picture of their creative talents. Remember, you are seeking a strategic partner, not simply a campaign solution.
Before sending out your RFPs however‚ have these agencies sign a non-disclosure for any information they may learn about your organization during the RFP process.
The RFP should request the following:
- Introduction – Should include company information, deadline and instructions for responding.
- Terms and conditions – Work with your legal department for this section, and remember to state that no fees will be charged for the completion of these materials.
- Business goals and scope of work – Provide a clear picture regarding your current business needs and challenges, along with the full scope of work that your organization seeks, from strategic planning and research, to tactical execution and analysis.
- Objectives – What is the ROI you are expecting from the endeavor? If you expect increased awareness, say so. This is so critical, because your objectives should drive their recommendations.
- Constraints on budget, schedule and design – Again, the more information you can provide upfront, the more prepared these responses will be. Be very detailed and clear about this opportunity. If you have a limited budget, state that here.
- Evaluation criteria and selection process – Don’t be afraid to let them know how they will be judged. It’s a waste of time for both you and them if they are guessing.
- Request similar work – Ask for similar work done and how successful it was after completion. This should also include references for each project, so you have the option of speaking with the client directly, regarding their satisfaction with their work.
- Request account team bios and/or resumes – Most companies request bios, but resumes are recommended. This allows you to see retention rates, relevant experience, depth of knowledge and so on. Remember, when entering a contract with an agency it can be anywhere from three to five years, and you’ll want to have the same people working on your account that you “bought” in the beginning.
- Give them a problem to solve – Rather than requesting spec creative, give them a business or marketing challenge they need to solve. This will give you the opportunity to see their creativity and strategic thinking in action.
5. Agency Presentations and Evaluations
Put together a semi-final and final team for evaluating the agencies. The semi-final group should include your expanded marketing, public relations, interactive and community outreach teams. This team should evaluate each agency’s strategic and creative thinking, consistent track record and their proven ability to achieve clients’ return on objectives. After this round there should be three final agencies. Then it is time to meet and greet—the agency must now come to your office and present the proposal. At this point you will need to include the higher-ups.
Key people to include:
- CEO – You want to build buy-in and a good working relationship with this agency from the top down. This agency is going to have to present work to the CEO on an ongoing basis. Make sure there is a rapport between the agency team and your C-suite, starting with your CEO.
- CFO - You will need your Chief Financial Officer brought in on the project for obvious reasons and it is best to do this early so they too have a voice in the decisions made. The CFO may want to ask questions about ROI tracking, billing and reconciliation.
- CIO - The Chief Interactive Officer or equivalent to this at your office can offer his or her point of view on the various Web strategies the agencies recommend.
- CMO or clinical service line leadership – Much of the work you will be creating with this agency will be service line driven. Ensure the clinical team has trust in and respect for the agency team.
- Marketing Team - Your entire marketing and communications team, including public relations needs to be on the same page and must be included in the decision process.
- Head of Human Resource – It is possible that a large venture with an agency may include having employee ambassadors through internal communications, including recruitment advertising, and so on. If so, HR leadership should be present.
- Head of the Foundation – If the venture will include Foundation development, publications, annual appeals, event invitation, online giving, etc., include Foundation leadership.
When scheduling the agency presentations, allow enough time for the agency to do a 90-minute presentation, plus extra time afterwards for your team to discuss and rate each one. Request a more “formal presentation” of their RFP, then, allot time for a more casual Q&A. You want to see them think on their feet so keep some challenging questions on hand for this use. You also want to get a feel for their personality, the culture of the team and how they would “mesh” with your team.
6. Agency Visits and Final Decision
It’s beneficial to have discussions directly after the meetings, while they’re fresh in the mind. However, do not make any final decisions yet. Having a second meeting at the agency’s office also may be beneficial. It allows you to see the environment and culture in which the agencies work.
The meeting at the agency office should be very casual, where you can meet the team that would actually be working on your account. Get a good feeling for the account lead and creative director with whom you need to have a strong rapport and work closely.
Lastly, if you have the time, you may wish to give the selected agency a service line project which requires a campaign strategy, not merely a single execution, so you can test their thinking, style, healthcare experience and operational excellence. Here, you can see if they have a passion for healthcare, and bring thought leadership to the table.
The Right Partnership
Ultimately, choosing an agency is not an exact science. How they handle themselves and who exactly will be doing your work are the most important criteria. While this process may feel long and overwhelming, it is worth the effort. It will result in a partnership aimed at improving your business. Once you find the right fit for your organization, start leveraging the partnership right away. Take advantage of their fresh perspective and energy to help focus your organization. Find strategic ways to grow your market share before opportunities diminish. A good relationship with the right agency can lead to strategic opportunities that will allow your organization to thrive during these uncertain times.
For more information about the agency selection process, please contact Tom Sullivan, CEO of Princeton Partners Health, at 609-452-8500 or
tsullivan@princetonpartners.com or log onto
www.princetonpartnershealth.com.
