Question

2. Loyal customers offer multiple benefits to a healthcare organization. What are some of these benefits? How can loyalty be measured from a marketing approach? Find one example of a loyalty program in the healthcare industry, and comment on it. Is there in the program content any room for improvements?

Answer 1

answer-

The benefits of having loyal customers are-

1- They buy more and are often willing to pay more for healthcare services. This creates a steadier cash flow for your business.

2-They refer others to your organization's services, saving you the marketing and advertising costs of acquiring customers.

3- They are more forgiving when you make mistakes–even serious ones–especially if you have a system in place that empowers employees to correct errors on the spot. Then loyal customers become even more loyal .

4- Loyal customers understand your processes and can offer suggestions for improvement. Their feedback can help with R&D as well as process enhancement efforts.

5- An increase in customer retention can boost your bottom-line profit by 25% to 100%, depending on your fixed costs.

Loyalty can be measures-

1-Customer Lifetime Value

Customer Lifetime Value (CLV) is a simple calculation but one that suprisingly few businesses are able to calculate.

It's calculated as:

(average transaction value X the average number of times a customer transacts before lapsing) - your cost per acquisition (CPA)

Sales per customer

A little more rudimentary than CLV but nonetheless a useful metric.

2-Sales per customer is calculated as:

Revenue / Number of customers

Trends in sales per customer can help you understand the value of customer segments and removes the effect of changes in the absolute number of customers.

3-Active Customer Volume

Another seemingly basis but important measure of customer loyalty.

Knowing the number of active customers (and 'active' could be defined as transacting or engaging with your content) and how this trends will give you an indication of engagement.

4-Visit Frequency

A key measure of customer behaviour and a proxy for Share Of Wallet.

Measure how frequently your customers visit you and you will have an effective measure of customer loyalty.

Yes, they could also be visiting your competitors but visit frequency is a powerful measure that will hlp you to triangulate customer loyalty.

5-Spend per Transaction

Sometimes referred to as Weight of Purchase, this measure indicates the depth of investment that a customer is making in your business.

While important measures such as visit frequency and active customer volumes are trending positively, changes in spend per transaction could suggest subtly but fundamental changes in customer behaviour.

Spend per Transaction could change as a result of pricing changes but also as a result of customers starting to split purchases, potentially also spending at competitors.

6-Retention Rate

A critcial measure of customer loyalty.

Calculated as the number of customers active in the latest period who were active in the prior period, Retention Rate (also referred to as Churn, Attrition or Lapsed Rate) is one of the best measures of customer loyalty.

The Botsford Hospital in Farmington Hills, Michigan launched its VIP program in 2010: card-carrying members can access “free valet parking, a concierge to help connect them with a physician or specialist, access to a physician within 24 hours, and a 10% discount at the gift shop and on nonprescription drugs at the outpatient pharmacy.” Additionally, the Primary Health Network offers patients points every time they see their doctors, which they can then redeem for things like branded merchandise (up to a $50 value per calendar year).

they can improve this by making this expand to family members of the patient like food discount for 2 or 3 family members of the patient. discount on drugs etc.