1. Howard Shiffman, Senior Associate OPEN MINDS April 29, 2014

2. 1. You have a very large unrestricted endowment 2. You have guaranteed sources of future funding for what you do 3. You have no competition for your current sources of revenue 4. You are in a market with little change in either financing or service delivery 2 If this is your organization, you should sit in on a different session... OPEN MINDS © 2014. All rights reserved.

3. “Traditional marketing — including advertising, public relations, branding and corporate communications — is dead. Many people in traditional marketing roles and organizations may not realize they're operating within a dead paradigm. But they are. The evidence is clear.” —Bill Lee, Harvard Business Review, August 2012 3 OPEN MINDS © 2014. All rights reserved.

4. I. Trends Driving The End Of Traditional Marketing II. The New Role Of Consumers Demands A New Approach To Marketing III. New Tactics For Successful Marketing In Today’s Environment IV. Forward Thinking Marketing Strategies V. How To Adapt Your Organization’s Marketing Plan For The Future 4 OPEN MINDS © 2014. All rights reserved.

5. 5 I. Trends Driving The End Of Traditional Marketing OPEN MINDS © 2014. All rights reserved.

6. 6

7. The Information Age…DATA Technology to build relationships “Bait and Hook” no longer works Evolved buyer habits.. Being Informed/Involved Limited dollars New Service Delivery ….Transparency 7 OPEN MINDS © 2014. All rights reserved.

8. Marketing meant advertising (and branding) Advertising needed to appeal to the masses Advertising relied on interrupting people to get them to pay attention to your message Advertising was one-way communication Advertising was exclusively about selling products 8 OPEN MINDS © 2014. All rights reserved.

9. Businesses have traditionally been in the role of producing products or services that help a customer get the job done. In return the customer pays money. 9 What the firm does Delivers products and services Value to customer Gets the job done Value to firm Provides money This is now an old fashioned way of doing things… OPEN MINDS © 2014. All rights reserved.

10. Reference programs Communities & Social media Events Advisory Boards User Groups Knowledge Centers Measureable business value delivered Increased social capital Expanded peer network Increased professional status and reputation Opportunities to partner, comarket and design Opportunities to deliver thought leadership Referrals References Influencers Word of Mouth Improved Strategy Increased knowledge base What the firm does Delivers products and services Value to customer Gets the job done Value to firm Provides money 10

11. II. The New Role Of Consumers Demands A New Approach For Marketing 11 OPEN MINDS © 2014. All rights reserved.

12. Consumers have a new and more complex role ◦ Medicare -- and Medicare Advantage ◦ Medicaid – and Medicaid managed care and Medicaid premium support ◦ Traditional insurance have rising coinsurance, copayments, and deductibles ◦ Increasing use of consumer-directed health plans “Safety net” taking on a whole new meaning in states with Medicaid expansion “Penalties” for lack of consumer participation in health management OPEN MINDS © 2013. All rights reserved. 12 OPEN MINDS © 2014. All rights reserved.12

13. $307.7 billion or 11.4% of the total health care budget Mental health – In 2005 consumers footed $13.56 billion, or 12%, of $113 billion total market spending Addiction treatment – In 2005, consumers paid for $5 billion, or 22.7%, of $22 billion total market spending Mental health hospitalization – In 2011, the average cost per-person spending paid out-of-pocket was $766 Addiction-related hospitalization – In 2011, the average cost per-person spending paid out-of-pocket was $889 OPEN MINDS © 2013. All rights reserved. 13 OPEN MINDS © 2014. All rights reserved.13

14. Competition based on price is happening The internet has created more venues for fee transparency OPEN MINDS © 2013. All rights reserved. 14 OPEN MINDS © 2014. All rights reserved.14

15. Many initiatives to measure and report on “performance” OPEN MINDS © 2013. All rights reserved. 15 OPEN MINDS © 2014. All rights reserved.15

16. 16 New Tactics For Successful Marketing In Today’s Environment OPEN MINDS © 2014. All rights reserved.

17. Marketing is more than PR PR is for more than just a mainstream media audience You are what you publish People want participation and not propaganda Marketing is about delivering content at the precise moment your audience needs it The internet has now made public relations PUBLIC Your content now has be customer-centric—write for your audience(s)—not you! People all over the world can see your message 17 OPEN MINDS © 2014. All rights reserved.

18. 18 Message differentiation based on target audience Consumers Payers Providers OPEN MINDS © 2014. All rights reserved.

19. Deliver what you promise Promptly fix things when they go wrong Know your customer’s problems Create peer networks among your customers Provide your customers additional opportunities…either with you or with others Always remember…you have leverage 19 OPEN MINDS © 2014. All rights reserved.

20. Advocates Influencers Contributors 20 In other words… OPEN MINDS © 2014. All rights reserved.

21. Provide positive information about you to their colleagues, networks, and industry audiences. Example: Consumer, consumer’s family member or caregiver 21 How Customers Act On Your Behalf ReferralsReferencesTestimonialsSpeakingVideosInterviewsBlog PostsSocial Networking SitesTweets OPEN MINDS © 2014. All rights reserved.

22. Experts with a neutral or objective view and share their expert opinions Examples: Associations, payers, government entities, authors, researchers, universities 22 How Customers Act On Your Behalf ArticlesBlog PostsSpeakingBooksInterviewsWebinarsAttending events Creating industry publications Testing and commenting on new products or offers OPEN MINDS © 2014. All rights reserved.

23. Provide insights or knowledge in a variety of ways—often for free—that helps you. (Not always individuals, but other companies who share data about you) Example: More involved patients, board members, partner organizations, local community collaborators 23 How Customers Act On Your Behalf Input or feedback to improve your offers Input to develop new services Innovate your products on their own Creating apps Provide data or info that adds new value to existing offerings Provide services and support to other customers Improve your strategy and focus Help you gain a position of thought leadership in your industry Provide contacts and access to new sources of valuable information OPEN MINDS © 2014. All rights reserved.

24. ◦ Referring other customers to you, taking calls, and accepting site visits from your sales prospects to help close deals ◦ Participating in your customer advisory boards to keep your R&D efforts grounded ◦ Having key-customer executives participate in higher- level forums and communities to help keep your strategy focused on top customer issues  Local legislative advocates  Local government entities, i.e., policy planning, school boards  Community leadership  Advocacy groups Existing customers can be your best resource for new ones! 24 OPEN MINDS © 2014. All rights reserved.

25. 25 III. How To Adapt Your Organization’s Marketing Plan For The Future OPEN MINDS © 2014. All rights reserved.

26. Plan to accomplish organizational mission and objectives through specific tactics responding to a changing environment while making best use of available resources Best practice strategic planning is framed in terms of the overall organization’s sustainability and is market- focused Your strategic plan is the basis for your marketing plan 26 OPEN MINDS © 2014. All rights reserved.

27. 27 1. Develop vision of future competitive advantage and market positioning 2. Scenario-based strategic plan incorporating alternate future positioning options 3. Detailed plans – marketing, financial, operational, technology, capital, HR, etc. – to implement strategy and future vision 4. Key performance metrics and metrics-based management to track strategy implementation (and allow mid-course adjustments) 5. Optimization of current operations to keep current programs as competitive (and profitable) as possible as long as possible 6. New service model development to support future vision7. Collaborations as needed to facilitate new market vision The Strategy Development & Implementation Cycle OPEN MINDS © 2014. All rights reserved.

28. 1. All the business activities involved in directing the flow of services from the provider to the customer – the business function responsible for organizational revenues 2. Understanding the needs of customers and developing a service that meets those needs at an acceptable cost 3. Act of promoting, selling, and distributing a product or service 28 The more competitive a market is, the more important marketing competency is to an organization’s success... OPEN MINDS © 2014. All rights reserved.

29. Customers – Payers, Consumers, & Influencers Producers of Services 29 Marketing is the function that assures that customers select a particular producer OPEN MINDS © 2014. All rights reserved.

30. 30 OPEN MINDS © 2014. All rights reserved.

31. 1. Overall organizational vision and mission – which shapes market positioning 2. Markets to pursue 3. Service lines to offer 4. Revenue and return required for each service line 31 OPEN MINDS © 2014. All rights reserved.

32. Organizational strategy to guide revenue generating activities Defines tactics (and customer interface) between the organization, its services, and its customers Must align to and build off of the strategies and tactics in the strategic plan 32 OPEN MINDS © 2014. All rights reserved.

33. Product (what to offer) Price (rates and rate structure) Place (sales distribution method) Promotion (communication for customer positioning) Press and public (communication to press and publics) Political (political advocacy and lobbying) 33 OPEN MINDS © 2014. All rights reserved.

34. The purpose of segmentation is to determine the differences among buyers in order to develop specifically targeted marketing initiatives that meets customer interests and needs. ◦ Example by consumer – Women, mature adult, child, suburban, etc. ◦ Example by service need – Co-occurring, depression management, TBI, health home, etc. 34 New Consumers Child Protective Services Health and Human Service Agencies Foster Care Agencies Juvenile Justice Potential & Present Residential Payer Sources for a specific service line OPEN MINDS © 2014. All rights reserved.

35. Revenue and other marketing objectives Phase 1: Marketing objectives from organizational strategy Service line descriptions and metrics Analysis of market and customers Competitive analysis Phase 2: Market analysis Marketing strategies to engage customers and generate revenue Phase 3: Marketing strategy development Developing marketing tactics for each strategy Marketing budget Phase 4: Marketing tactical planning Implementation planning Marketing plan timeline Phase 5: Marketing plan implementation 35 OPEN MINDS © 2014. All rights reserved.

36. Revenue for current service -- Net revenues in service X will be $X million in this fiscal year New contract acquisition – Win five new competitive contracts via proposal process New service line development -- Service Y will be developed and have two customers by the end of this year New service line feasibility analysis -- Market research conducted on new service concept Z and decision made whether to develop service within the first 6 months of the year Revenue diversification -- Decrease % of total revenue from Medicaid from 93% to 88% by increased new service sales of X services OPEN MINDS © 2014. All rights reserved.36

37. Objective #1: Increase the financial stability of the residential treatment program by establishing an average daily census of 250 and average daily rate of $225 in next fiscal year Objective #2: Selectively expand profitable community- based programs to match market needs and changing demands and increase community-based revenue by 100% - from $16M to $32 M in next fiscal year Objective #3: Increase and diversify revenue streams overall by expanding Medicaid billing to 25% of total revenue decreasing Federal/state grant revenue to less than 50% in next fiscal year Objective #4: Create better outcomes in the foster care program by reducing the number of disrupted foster home placements by 20% from last fiscal year in 2014. OPEN MINDS © 2014. All rights reserved.37

38. 1. Service line definitions and metrics – what services do you offer and how do they ‘stack up’ against the competition 2. Analysis of market and customers – what are the available sources of funding and what customers control that funding? What do those customers want? 3. Competitive analysis – who is competing with you for customers and their funding? OPEN MINDS © 2014. All rights reserved.38

39. OPEN MINDS © 2014. All rights reserved. 39 Achieve Marketing Objectives = Revenue More Customers New Services Diversification Profitability Achieve Marketing Objectives = Revenue More Customers New Services Diversification Profitability Market Environment Regulation Customer Preference Competitors Market Environment Regulation Customer Preference Competitors Marketing strategies – the plan to achieve objectives in the face of environment

40. Objective #1: Increase the financial stability of the residential treatment program by establishing an average daily census of 250 and average daily rate of $225 in next fiscal year. The Marketing Strategies: 1. Establish the XXXX School as a “center of excellence” for the treatment of children and youth with special needs across all payer types 2. Garner an increasing share of referrals from educational consultants 3. Increase the number of managed care contracts 4. Win residential treatment contracts with the surrounding states and the counties in those states 5. Improve the conversion rate of inquiries to admissions OPEN MINDS © 2014. All rights reserved.40

41. Objective #2: Selectively expand profitable community-based programs to match market needs and changing demands and increase community- based revenue by 100% - from $16M to $32 M in next fiscal year. The Marketing Strategies: 1. Aggressive marketing of current community- based services (50% of increase) 2. Development of new community-based services (40% of increase) 3. Acquisition (10% of increase) OPEN MINDS © 2014. All rights reserved.41

42. Objective #3: Increase and diversify revenue streams overall by expand Medicaid billing to 25% of total revenue, decreasing Federal/state grant revenue to less than 50% in next fiscal year. The Marketing Strategies: 1. Develop more contracts with Medicaid managed care plans for current services 2. Conduct market research and feasibility analysis of offering a case rate-based program to Medicaid managed care plans 3. Increase consumer marketing to Medicaid populations eligible for current services OPEN MINDS © 2014. All rights reserved.42

43. Objective #4: Create better outcomes in the foster care program by reducing the number of disrupted foster home placements by 20% from last fiscal year in 2014. The Marketing Strategies: 1. Create a foster care crisis team available to foster parents and market this program to payers 2. Offer managed care a pilot project that is financially supported by a pay for performance bonus for successful outcomes in foster care OPEN MINDS © 2014. All rights reserved.43

44. 44 IV. Forward Thinking Marketing Strategies OPEN MINDS © 2014. All rights reserved.

45. Marketing Tools ReferralsNewsletters Reports, case studies Social MediaWebsite Customer communities Corporate Magazine Word of mouthSpeakingAnalyst reportsIndustry eventsLife eventsPrivate eventsBroadcast media Webinars Teleconferences 45 OPEN MINDS © 2014. All rights reserved.

46. 1. Thought Leadership2. Website Content3. Social Media Blogging Video and Podcasting 46 OPEN MINDS © 2014. All rights reserved.

47. ‘ Thought Leadership is establishing a relationship with and delivering something of value to your stakeholders and customers that aligns with your brand/company value. In the process you go well beyond merely selling a product or service and establish your brand /company as the expert in that field and differentiate yourself from your competitors.’ —Craig Badings Thought leadership should be an entry point to a relationship. Thought leadership should intrigue, challenge, and inspire even people already familiar with a company. It should help start a relationship where none exists, and it should enhance existing relationships. 47 OPEN MINDS © 2014. All rights reserved.

48. White Papers, Case Studies, and Articles eBooks Blogs eNewsletters Webinars Research and Survey Reports Audio and Video 48 OPEN MINDS © 2014. All rights reserved.

49. Do NOT write about your company and its products or services Ask what problems can you solve Understand your audience Write for your audience—storytelling rules! Create titles that grab attention Promote your efforts Let the media know your point of view Track your results 49 OPEN MINDS © 2014. All rights reserved.

50. You become a key Influencer Your expertise builds your brand You become “the” authority in the public eye You change the conversation about your industry and your solutions You don’t have to spend lots of dollars to get it out there 50 OPEN MINDS © 2014. All rights reserved.

51. Awareness and education phase Solution phase Selection phase Website gravity Thought leadership Peer Information Access to peer communities Thought leadership Competitor differentiation Customer videos Customer ROI case studies Community affirmation Reference calls, site visits  Target early adopters and influencers  Thought leadership must address buyers’ business issues  Emphasize emotional factors  Help your buyer make the business case 51 OPEN MINDS © 2014. All rights reserved.51

52. Does your website have a purpose? Is your content tailored to meet your purpose? Are your service options clearly defined? Have you organized your site for intended audiences? Have you established a pathway for visitors to contact you? Is your website visually attractive? 52 OPEN MINDS © 2014. All rights reserved.

53. Content is key Understand your clients’ needs and then address them Create peer interaction, not just client interaction Share information often 53 OPEN MINDS © 2014. All rights reserved.

54. Social media is the use of web-based and mobile technologies to turn communication into interactive dialogue. Social media is "a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, which allows the creation and exchange of user-generated content." 54 OPEN MINDS © 2014. All rights reserved.

55. Facebook LinkedIn Twitter YouTube 55 OPEN MINDS © 2014. All rights reserved.

56. Face Book : In January 2013, the countries with the most Facebook users were: United States with 168.8 million members Brazil with 64.6 million members India with 62.6 million members Indonesia with 51.4 million members Mexico with 40.2 million members All total 309 million members or about 38.6 percent of Facebook's 1 billion worldwide members. OPEN MINDS © 2014. All rights reserved. 56

57. OPEN MINDS © 2014. All rights reserved. 57 As of January 2013, LinkedIn reports more than 200 million acquired users in more than 200 countries and territories LinkedIn has 21.4 million monthly unique U.S. visitors and 47.6 million globally In June 2011, LinkedIn had 33.9 million unique visitors, up 63 percent from a year earlier and surpassing MySpace

58. Twitter is an online social networking service and micro-blogging service that enables its users to send and read text-based messages of up to 140 characters, known as "tweets” Gained worldwide popularity, with over 500 million registered users as of 2012, generating over 340 million tweets daily Twitter has become one of the ten most visited websites on the Internet OPEN MINDS © 2014. All rights reserved. 58

59. YouTube was founded in 2005 In 2006, YouTube was purchased by Google for $1.65 billion in stock In 2007, YouTube went global In March 2013, YouTube had 1 billion viewers per month OPEN MINDS © 2014. All rights reserved.59

60. Generation Y Age 18-32 Generation X Age 33-48 Baby Boomers Age 49-67 Matures 68+ 90% Facebook 55% Linkedin 55 % Twitter 97 % YouTube 77% Facebook 59% Linkedin 92% YouTube 71% Facebook 46% Linkedin 81% YouTube 59% Facebook 58% YouTube OPEN MINDS © 2014. All rights reserved.60

61. 1. Target a specific audience 2. Be a thought leader 3. Be authentic and transparent 4. Create LOTS of links 5. Encourage people to contact you 6. Participate in the discussion 7. Make it easy to find you 8. Encourage people to BOOKMARK 9. Try new things! 61 OPEN MINDS © 2014. All rights reserved.

62. Blogs are usually maintained by an individual with regular entries of commentary, descriptions of events, or other material such as graphics or video. Most blogs can be interactive, allowing visitors to leave comments and even message each other via widgets on the blogs and it is this interactivity that distinguishes them from other static websites. As of February 2011, there were over 156 million public blogs in existence. 62 OPEN MINDS © 2014. All rights reserved.

63. Requires minimal investment to establish. Requires commitment to provide updates and new information to stay relevant. Requires strategic approach to information shared as everyone can see your information and point of view. Requires intentional content—what purpose will the blog serve? Requires constant moderation if visitors can comment. 63 OPEN MINDS © 2014. All rights reserved.

64. You-Tube is still the most popular, but more and more are showing up! Doesn’t have to be expensive Don’t make it long Show what you’ve done Show what is possible Focus on solutions and ideas Feature your customers to showcase your impact 64 OPEN MINDS © 2014. All rights reserved.

65. V. Discussion 65 OPEN MINDS © 2014. All rights reserved.

66. Do you have a Marketing Strategy in your organization? What is your organization doing to become a thought leader with: ◦ consumers ◦ payers ◦ Donors What technologies are you using in your marketing program? How are you using social media? 66 OPEN MINDS © 2014. All rights reserved.

67. 67 2014 Planning & Innovation Institute June 3-5, 2014 - New Orleans, Louisiana 2014 California Planning & Performance Management Institute August 20-21, 2014 - San Diego, California 2014 Executive Leadership Retreat September 9-12, 2014 - Gettysburg, Pennsylvania 2014 Technology & Informatics Institute November 5-6, 2014 - Washington, D.C.

68. www.openminds.com openminds@openminds.com 717-334-1329 | 877-350-6463 163 York Street, Gettysburg, Pennsylvania 17325 The market intelligence to navigate. The management expertise to succeed.