How B2B Companies Can Up Their Customer Experience Game

As originally posted on KelloggInsight by The Millennium Alliance Thought Leader, Nicholas Caffentzis.

Delivering a distinctive customer experience starts with a focus on customer needs and wants, as well as an anticipation of problems customers may not even know they have. That focus is difficult enough with individual customers, each with their own desires or problems.

But this calculus is even tougher when the customer isn’t an individual, but another business. What happens when your customer-experience focus has to account for a complex ecosystem with multiple stakeholders who often have competing concerns?

“While B2B business leaders say customer experience is a top priority, most organizations lack the feedback tools, metrics, and processes to deliver a differentiated experience,” says Nick Caffentzis, a former chief marketing officer of GE Healthcare Digital, a business unit of GE that sells software and services to hospitals.

For businesses that provide software or new technologies that have yet to be proven in the market, the task of trying to convince buyers to get on board gets even more complex.

Based on his decades in marketing and product management, Caffentzis, a senior fellow and adjunct professor in Kellogg’s Markets and Customers initiative, offers four keys to help B2B tech companies improve customer experiences and outcomes.

Start with Your Customers’ Most Critical Issues

Product development in B2B raises the perennial chicken-or-egg question: should you develop a product that you think solves a problem and then find an industry application for it, or should you identify your customers’ most critical issues and develop products to help them solve those issues?

Caffentzis recently surveyed marketing and product leaders from twenty businesses in the medical-technology industry about their new product launches.

These B2B companies, which sell devices, software, services, and consulting to hospital systems and healthcare providers, found that when they developed a tool and then sought an application for it with their customers, those customers were less likely to adopt that technology—and were slower to adopt it if they did.

Complicating this is the fact that buying groups in most organizations have expanded beyond the product or service users to include financial and operational decision makers. In some cases, new stakeholders who have never been involved in the purchase process are being asked to weigh in, often with competing priorities about the buying decision.

What Caffentzis and his colleagues found is that B2B companies are generally most successful when they gain an understanding of a specific customers’ most pressing issues and needs from the outset, determine that the problem is important enough that the customer will commit to a solution, and from there design solutions that will gain consensus across the customer’s buying group.

For example, a software company that sells to the oncology market worked with its customer to identify their most critical issue. Initially, the customer thought they needed to improve the efficiency of the dosimetrist who ensures the proper radiation dosage, which would save them about $40,000 per year. As the software company’s team probed further into the customer’s process, they identified a bigger problem— that the company was not able to to re-plan patients’ treatments—which was costing the them more than $300,000 per year.

“It’s listening for what they say and don’t say their problem is,” Caffentzis says. “Pay attention to why your customers say they haven’t been able to solve a particular problem. Have your team watch people across their organization work to really understand their workflow and what they are trying to get done.”

“Pay attention to why your customers say they haven’t been able to solve a particular problem.”

This process should include gathering input from all the key stakeholders in your customer’s organization. It also includes sharing this information throughout your own organization.

Make Customer Outcomes Your Focus

Designing for a customer’s needs is a first step in making B2B products that satisfy customers. But ultimately you need to convince a client—with all of its various stakeholders—that the solution they implement is effective. This will be critical for your company as you look to build broader awareness in the marketplace, generate new leads to grow your business, and arm your sales team with a differentiated value proposition.

The key is to ensure that you and your customers can quantify specifically how your product is delivering value for them. This may seem simple, but in the survey Caffentzis conducted, very few companies indicated that they incorporate customer-success metrics as part of their product-development and commercial-launch processes. Instead, most simply measure whether they are hitting their own sales forecasts or margin targets.

“We were really surprised at how many companies overlooked this step,” Caffentzis says. “You really have to understand your clients’ processes and how things improve for them, as opposed to taking an attitude of, ‘I sold you a widget. It’s up to you to see how that widget works for you.’”

Caffentzis recommends involving the client when deciding which metrics should determine success—a process that should ideally begin before your new product is even up and running.

“You’ve got to take the time to create a baseline—if it doesn’t exist—and collect and organize the data on what’s going on now,” he says. “Then you have to work to get agreement with the client on what data to collect to establish the key metrics going forward. One benefit of these discussions is that it helps align all the key stakeholders around the problem being solved and how they will be satisfied.”

Caffentzis cautions that this process can be especially involved and time-consuming—it can take six months or more—for more complex customer organizations. However, once it is completed, the data help in creating compelling content to support awareness, pipeline generation, and sales enablement to drive new business.

For example, as part of its commercial process, Salesforce measures and shares with its clients how effectively those clients are using its platform. These analytics are built into the Salesforce platform, so that Salesforce representatives have them at their fingertips even before customers ask. Armed with these data, Salesforce can make proactive recommendations to help its clients use the system more effectively.

“Salesforce can literally go into its own platform and see both what its customers are doing and how Salesforce is doing,” Caffentzis says. “They have built the telemetry where they can see how often the salespeople from a company have logged into the system over a given time.”

Prioritizing measurability also serves clients who are looking to pay for new technologies as an ongoing service rather than as an upfront capital expenditure. Billing for a technology by use—or as it generates results—helps those clients align costs with outcomes and minimize risk. But rolling those technologies out as services requires accurate analytics so that both companies can assess the risks.

Focus on People, Processes, and Technology

So you have delivered the product to your client and have even agreed on how its performance will be evaluated. It is not time to celebrate yet. These days, B2B customers are looking for vendors to take a more proactive role in driving both adoption and implementation.

“One common way B2B companies fall short in delivering a great experience is by failing to help sort through the unanticipated changes that accompany the new solution,” Caffentzis says.

Caffentzis highlights as an example a health system that bought a GE Healthcare digital X-Ray system.

“One of their executives told me that the technology was working great and they could image patients faster than they did before,” says Caffentzis. “But they weren’t able to take advantage of that increased speed because of their processes.”

So GE Healthcare worked closely with them to identify necessary changes in their scheduling process, reorganize the department’s workflow, and provide training on the new equipment and new processes.

Don’t Forget to Look in the Mirror

But for B2B tech companies, helping clients get the most out of new technology requires significant resources on their end, too—both in infrastructure and in training. So as they develop a process for helping their clients, they shouldn’t forget to do the same for their own organization.

Caffentzis’s survey found that B2B companies are underinvesting in the tools and processes needed to capture customer usage information. They are also failing to establish processes to consistently gather customer feedback.

Once systems are in place to gather and store data, companies need to enable multiple users to readily access those data, all while providing their own teams with the analytic skills to interpret the data to help improve the customer experience.

Caffentzis explains that Salesforce, for example, has been able to deliver strong customer experiences because it built the infrastructure to gather and access the right data to help its customers, and, through training and hiring, developed the analytic capacity to put those data to use for its customers and Salesforce itself.

“B2B companies need to invest in systems to gather and store data and then analyze it to provide actionable insights for their customers. This is the final step in helping customers achieve successful outcomes and delivering a differentiated customer experience.”

Catching up with Bob Evans on #MillenniumLive

Our latest episode of #MillenniumLive features Bob Evans, Founder and Principal of Evans Strategic Communications, creator of Cloud Wars, and Former Chief Communications Officer at Oracle. In addition to delivering a wonderful Keynote at our Digital Enterprise Transformation Assembly in November, Bob also took the time to sit down and chat with us about the greater impact of digital transformation on business, differentiating between disrupter and disrupted companies, and other insights on technology and leadership.

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About Bob Evans:

Bob Evans is one of the world’s leading analysts of the technology industry and the global phenomenon of digital transformation. In 2012, he was recruited by Oracle founder Larry Ellison to be the company’s first chief communications officer, and he left there after 5 years to launch the two businesses he runs today: Evans Strategic Communications LLC and Cloud Wars Media LLC. He’s given keynote talks about business innovation, digital transformation and customer-centric business on every continent on Earth (well, not Antarctica), and his daily analyses of the enterprise-technology market can be found on his media-company website at CloudWars.co.

Digital Enterprise CIO Transformationdigital enterprise CIO and financial services assembly millennium alliance

As more and more businesses look to digital technology and strategies to transform their business, CIOs know that data and information technology have never been more important. Understanding the convergence of mobile, social, and cloud is the first critical step for organizations looking to create opportunities and stay ahead of the competition.

The Millennium Alliance is thrilled to present our Digital Enterprise CIO Transformation, put together by the industry, for the industry. Join us in Miami, FL. for a series of executive education roundtables, keynote presentations, collaborative think tanks, educational workshops, and networking sessions will offer industry-specific topics and trends to ensure your company maintains its competitive advantage.

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Advisory Board Member Rhonda Vetere on Excelling in Leadership

Our Advisory Board member Rhonda Vetere was recently featured in Gigabit Magazine, where she discussed her leadership success. Read the article below:

Rhonda Vetere: Excelling in Leadership

Rhonda Vetere, EVP, Chief Information Officer at Herbalife Nutrition, explains her unique and widely praised approach to IT, business and leadership.

No stranger to success in her distinguished and varied career, 2019 represented another year of achievements, milestones and success for Rhonda Vetere and she is already gaining momentum in 2020 using 2019 as a springboard.

The Fairfax, Virginia-born businesswoman has garnered a plethora of honours for her inspiring leadership: among the awards are National Diversity Council’s Top 50 Most Powerful Women in Technology 2019 and 2020, recipient of Randstad’s Human Forward Award 2019 and a shortlisted entry for the Top Woman of the Year for the Women in IT Awards – Silicon Valley.

Possessing a full-spectrum of talents, Vetere is also an accomplished athlete (completing over 70 races, including six IRONMAN 70.3 mile triathlons, over a dozen marathons and eight half-marathons) and author (her second book – Grit & Grind – was released in March 2019).

A résumé for success

Following her graduation from George Mason University with a BA in Communications and Business, Vetere has built a résumé of which many would be envious, working with JP Morgan, Lehman Brothers, Barclays, Hewlett-Packard and Esteé Lauder.

Despite the diverse range of industries, there’s always been a constant in her career: technology. A seasoned C-suite tech executive, Vetere is passionate about the digital transformation journey in all of its forms.

In a previous article, Gigabit magazine spoke with Vetere to learn about her dynamic approach to management and digital leadership. “Do your research. Know your customer and what you are looking to achieve. Communicate openly,” she advocated.

“I believe true innovation comes through strategy, learning, technology, and quality. For any company in any industry, I ask the same questions: How do you make the technology work? What makes the business work? Running IT as a business, I try to consider the key factors of measurement, true transparency, and trust.”

“My unbending mantra? Metrics are king—you can’t manage an environment if you don’t know your numbers,” she said.

Referencing her numerous achievements as a businesswoman, Vetere was flattered by the recognition but recognised that adequate female representation in the tech sector still needed attention and encouragement (women account for less than 20% of tech roles).

“The tech industry can promote greater female representation by showcasing that technology is fun and cool,” she stated. “I often speak to girls and women and share my story that I didn’t come from a technology background. I fell into technology because a manager earlier in my career saw some attributes in me and wanted to give me the opportunity.”

Combining multiple talents into one role

Talented enough to hold many top-tier corporate roles in charge of developing enterprise IT, Vetere’s latest challenge is as Chief Information Officer of Herbalife Nutrition.

A global company, whose stated aim is nothing less than changing people’s lives through superior nutritional products, Herbalife employs over 8,000 people across 90 countries. Not just a provider of scientifically-backed products, the company also utilises 1:1 coaching and fosters an inspiring community to help customers accomplish their potential.

Seemingly a perfect fit for Vetere, who has the opportunity to combine her twin passions of technology and sport in one role, Herbalife currently sponsors over 190 world-class sports figures, including Cristiano Ronaldo, as well as several Olympic teams.

More information on Vetere’s vision for Herbalife’s digital transformation will be explored in a forthcoming article with Gigabit Magazine.

#MillenniumLive with our Advisory Board Member, Sean Ammirati!

This week on #MillenniumLive…

We had the pleasure to chat with our Advisory Board member, Sean Ammirati, Adjunct Professor of Entrepreneurship at Carnegie Mellon University and Co-Founder & Director of The Carnegie Mellon Corporate Startup Lab. Sean is one of our leading Digital Enterprise Technology experts, and he talked all things entrepreneurship, how he predicts ROI for machine learning will take a giant step forward this year, and how his passion for helping others begin startups is at the core of what he’s doing at Carnegie Mellon, “everyone needs a voice for making the world what it should be.”

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About Sean Ammirati

Sean Ammirati joined Birchmere Ventures as a Partner in 2012. Birchmere focuses on seed-stage SaaS and marketplace startup investments. The firm is headquartered in Pittsburgh with a second office in San Francisco.

Prior to joining Birchmere, Sean spent 12 years founding, building and selling businesses in the software and media industries. He was Chief Operating Officer of ReadWriteWeb acquired by the private-equity rollup SAY Media to strengthen its technology channel. Prior to that, Sean was the co-founder and CEO of mSpoke, which was LinkedIn’s first acquisition. His first startup was Peak Strategy, which was acquired by Morgan Stanley.

Sean is an Adjunct Professor of Entrepreneurship at Carnegie Mellon University’s Tepper School of Business and Heinz College. He is also the Co-Founder and Director of the Carnegie Mellon Corporate Startup Lab. With the Corporate Startup Lab, Sean has conducted research and developed tools to help companies better adapt and integrate entrepreneurial best practices into their own innovation processes. The frameworks and tools have helped innovators become more successful entrepreneurs and helped leaders better encourage entrepreneurship and manage their innovation portfolios. The two CSL Co-Founders (Sean and Matt Crespi) also developed and teach a unique project course on corporate entrepreneurship, in which diverse teams of graduate students partner with large companies to test and develop real startup ideas brought by the corporations.

He recently completed his first book The Science of Growth, which was released by St Martin’s Press in April 2016 and was subsequently translated and published in Korean and Mandarin.

The Carnegie Mellon Corporate Startup Lab is an interdisciplinary group focused on researching and promoting the mission of transformative innovation within corporations. We believe startups can exist and thrive anywhere, including in large corporations. Fundamentally, a startup within a company is the same as one inside a garage: a group of entrepreneurs trying to make the world a better place using new ideas and inventions.

#MillenniumLive talks Business Transformation with Sutherland!

This week on #MillenniumLive, we talk Business Transformation with Sutherland’s Design Partner, Avery Earwood. Sutherland takes businesses’ complex processes and breaks them apart into their component pieces, then they put them together better, faster, stronger & cheaper than they ever were before. In today’s innovation economy, they stand out from their competitors with a high-touch, human-centric solution with a heavy focus on the customer experience.

Avery touches on the emerging importance of automation in business, especially in the more redundant and repetitive processes that take away time from the pressing knowledge-work that leaders thrive in. He also expands on the symbiotic relationship between both the patient and workforce experience given consumers increasing expectations and desire for convenience.

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About Sutherland

Sutherland is a process transformation company focused on helping companies rethink the way business gets done. Whether transforming your financial processes, applying analytics to customer care, or leveraging experience design to build a customer journey map, they’re experts in reengineering process.

Sutherland designs exceptional customer experiences for the digital age, by deconstructing your business processes, rethinking, rebuilding, and delivering them back smarter, more efficient and more effective than before.

They’re the people behind the screens, the clicks, the voice commands and all the points in-between where customers connect with your business. At Sutherland, people and process come together.

To learn more, visit them at www.sutherlandglobal.com.

Malwarebytes’ 2020 State of Malware Report

It was the last year of the 2010s, and cybercriminals let the world know they meant business.

From an increase in enterprise-focused threats to diversification of sophisticated hacking, evasion, and stealth techniques to aggressive adware aimed at Androids, the 2019 threat landscape was shaped by a cybercrime industry that was all grown up.

While Malwarebytes observed a relative plateau in the overall volume of threat detections in 2019, our telemetry showed a clear trend toward industrialization. Global Windows malware detections on business endpoints increased by 13 percent, and a bifurcation of attack techniques split threat categories neatly between those targeting consumers and those affecting organizations’ networks. The Trojan-turned-botnets Emotet and TrickBot made a return in 2019 to terrorize organizations alongside new ransomware families, such as Ryuk, Sodinokibi, and Phobos. In addition, a flood of hack tools and registry key disablers made a splashy debut in our top detections, a reflection of the greater sophistication used by today’s business-focused attackers. Meanwhile, the 2019 mobile threat landscape fared no better.

While Malwarebytes launched a massive drive to combat stalkerware—apps that enable users to monitor their partners’ every digital move—which led to an increase in our detections, other nefarious threats lingered on the horizon, with increases in their detections not being helped along by our own research efforts. We observed a rise in pre-installed malware and adware on the devices of our Android customers, with the goal to either steal data or steal attention.

In fact, adware reigned supreme for consumers and businesses on Windows, Mac, and Android devices, pulling ever more aggressive techniques for serving up advertisements, hijacking browsers, redirecting web traffic, and proving stubbornly difficult to uninstall. And for the first time ever, Macs outpaced Windows PCs in number of threats detected per endpoint. Even exploits, malvertising, and web skimmers had a banner year. Outside of cryptominers and leftover WannaCry infections, it seemed there were few cybercrime tactics being outright abandoned or on the decline. With an increase in impact and reach, then, came an increase in public awareness and scrutiny. And in no area was this more apparent than data privacy. On the heels of the Global Data Privacy Regulation (GDPR) in Europe and several public social media failures, a tsunami of data privacy legislation, proposals, fines, controversies, and public policies came forward in 2019.

After a decade marked by seemingly hundreds of high-profile data breaches, the fallout from all that personally identifiable information (PII) floating around on the dark web finally arrived.

Go here for free access to the full report!

Concerns Over Artificial Intelligence Regulation Discussed at the World Economic Forum

With any new technological development, questions about its impacts, both positive and negative, arise over time. Artificial intelligence is no exception, and talks of government regulation on the technology is already an extremely relevant topic of discussion. In particular, it was a hot topic at the recent World Economic Forum. Artificial Intelligence is still in its early stages of existence, but tech leaders and government officials agree that regulation is essential, and it is best not to wait until severe negative impacts reveal themselves. Instead, conversations on the topic will turn to action, sooner rather than later, in order to prevent the negative effects of the AI from wreaking havoc on industry.

The World Economic Forum annual meeting took place in January in Davos, Switzerland, and Artificial Intelligence was a hot discussion topic, according to CIO Dive. Microsoft President Brad Smith was one of the more vocal leaders at the forum, calling on governments to take immediate steps to regulate the technology. He warns against waiting for the technology to fully develop and argues instead to set ethical standards before we begin to see the inevitable negative consequences. However, he opposes a complete ban on the technology, stating that the benefits outweigh the consequences. “I’m really reluctant to say ‘let’s stop people from using technology in a way that will reunite families when it can help them do it,'” Smith says. Some argue that AI should only be regulated within government agencies. Others say that the actual functions of AI should not be regulated, but rather the practical applications of the functions. In other words, we should not instate rules and regulations that will hinder scientific advancement, only the ways in which the technology can be used. 

Google CEO Sundar Pichai added to the conversation, agreeing that regulation is necessary, although he did not specify the type or extent of the regulation. He notes the importance of “international alignment” in determining how the technology will be regulated. The EU, for example, tends to take a more aggressive approach to regulations, while other government bodies are more laid back in their approach. According to Pichai, finding common ground in standards and regulations will be a key challenge. 

Ginni Rommetty, CEO of IBM, led a panel at the World Economic Forum aimed at preventing bias in AI. In preparation for the panel, IBM issued policy proposals that seek a compromise between the loose guidelines that industry leaders would prefer and the strict laws and regulations governments would likely produce. In her panel, alongside White House aide, Chris Liddell, OECD Secretary-General Jose Angel Gurria and Siemens AG CEO Joe Kaeser, Rommetty urges companies to work closely with governments to establish standards that will prevent discrimination and bias in technology that uses facial recognition, historical data, or any other element that may carry a bias. IBM also recommends that companies appoint an “AI ethics official” to assess and communicate the impact of certain AI systems on the individuals affected. IBM has also been working with the Trump administration since last summer to solidify guidelines on federal agencies’ use of AI technology. 

The discussions of AI and all of its complications at the World Economic Forum is just the beginning. Just as the invention of broadcast television led to regulations and censorship after initial opposition to government involvement, the development of AI technology will result in a consensus among government bodies, tech companies, and consumers to protect all parties involved. The cooperation of tech leaders in the discussion of these issues and policy proposals is a step in the right direction, but also an indicator that prompt action must be taken, as these leaders would normally oppose such regulation if its need weren’t so urgent. As conversations continue, it will become more clear what the future of AI looks like, what it can and cannot be used for, and how it will affect consumers.

IPSoft Has Streamlined AI with The World’s First Marketplace for Digital Employees

IPSoft is paving the way for the future of AI with the World’s First Marketplace for Digital Employees. With this innovative software, Marketplace visitors can research, interview and hire a pre-trained Digital Employee just as they would a human candidate. Amelia, IPSoft’s Digital Employee, will answer users’ questions regarding her abilities and knowledge, much like a candidate would in a face-to-face interview, so that companies can assess the value she would bring to their organization.

IPSoft’s digital employees come with pre-built processes that result in reduced training and faster time-to-value. After onboarding is complete, Amelia will work with users to self-configure and integrate into a company’s cloud-based servers/virtual machines and systems. The whole process can take only hours or a few days rather than weeks, months or years, and can help your business lower costs, increase efficiency and drive revenue.

Click here to visit the marketplace and get a 30-day free trial!

Digital Enterprise CIO Transformation

The Millennium Alliance is thrilled that you’re interested in Digital Enterprise CIO Transformation West Assembly.

As more and more businesses look to digital technology and strategies to transform their business, CIOs know that data and information technology have never been more important. Understanding the convergence of mobile, social, and cloud is the first critical step for organizations looking to create opportunities and stay ahead of the competition.

Join us in Las Vegas for a series of executive education roundtables, keynote presentations, collaborative think tanks, educational workshops, and networking sessions that will offer industry-specific topics and trends to ensure your company maintains its competitive advantage.

Are you interested in becoming a sponsor for this event? Click here today to learn more >>

Are you interested in attending this event? Inquire here today to find out if you qualify for Millennium Membership >>

Microsoft’s Valerie Beaulieu on #MillenniumLive

It’s our 60th episode of #MillenniumLive, and we have a very special guest! Valerie Beaulieu, Chief Marketing Officer of Microsoft US, joined us for the 10th Edition of our Transformational CMO Assembly this past November in Denver to discuss challenges marketers face today and the three pillars of marketing: culture, capability, and technology. Check out the episode to learn more about Valerie’s background, her current role at Microsoft, and how Microsoft is transforming marketing.

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Video interview available here

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About Valerie Beaulieu:

As the Chief Marketing Officer for Microsoft US subsidiary, Valerie Beaulieu is responsible for Microsoft reputation, demand generation, customer acquisition & lifetime value for Microsoft commercial business in the United States. She leads a multi-disciplinary team of over 200 people, spanning across account-based marketing, Industry marketing, role-based marketing as well as customer experience including events, social listening & digital engagement, “Martech” management, marketing operations & analytics. Her focus is on building a culture of customer-centricity while shaping customer engagement to enable future growth and create fans for life!

Transformational CMO

The digital revolution has forever changed the balance of power between individual consumers and brands. This need to think “customer first” has made the marketing function more vital than ever before.

C-Level executives around the world are anticipating that digital technology will continue to drive business. We’ve put together a series of executive education roundtables, keynote presentations, collaborative think tanks, educational workshops, and networking sessions with our industry experts and advisory board.

Are you interested in becoming a sponsor for this event? Click here today to learn more >>

Are you a CMO interested in attending this event? Inquire here today to find out if you qualify for Millennium Membership >>

TeleHealth: A Look into the Not-So-Distant Future with Patrick Carroll of Hims & Hers

The future of healthcare is looking a lot like retail, and as we touched on in last week’s article, eCommerce is the most pivotal revenue stream for retailers today. 2020 marks the era of innovation, and digital transformation is causing a trickle-down effect in all industries. In this week’s deep dive, we examine how the healthcare industry navigates the interminable conquest for a tech-first approach favored by today’s consumers. 

The How’s and Why’s of retail’s dramatic shift into the tech space can serve as a red herring for today’s leaders in healthcare. In recent years, legacy retailers have grown antiquated, with sales slugging and customer loyalty at an all-time low (90 percent of the top consumer brands have lost market share in recent years). Today’s startups-turned-leaders like Warby Parker, Casper, Allbirds & Glossier don’t have the budget, capacity, or development that come close to their rivals, but that hasn’t infringed on their success. Lawrence Ingrassia tells The New York Times, “By targeting a corporate giant’s weakness — high prices or inconvenience or a stodgy image — a clever startup with the right strategy, the right message and the right product value could create a new national brand virtually overnight.” Through a personalized, customer-first and tech-centric business model, consumers have begun to put their trust in a new wave of startups.

Jeffrey Raider’s anecdote speaks volumes of this. He tells The New York Times, “People were calling us all the time, saying, ‘Hey, can I get one of those little plastic covers that go over the blade?’” These cheap, plastic covers served as a way to protect the blade during the shipment process, and customers typically lost or threw out the cover, only to realize later that it would serve as a great way to protect the blade during travel. That led to Harry’s selling a replacement Travel Blade Cover for $1.

Harry’s showed their audience that they were listening to even the smallest requests, as trivial as they might appear. In doing so, they profoundly differentiated themselves from their rival and long-time leader in the space, Gillete. 

A consumer-first, personal connection is a necessity to survive in today’s tech-driven, innovation economy.

Arguably, there’s even more opportunity to be had in telehealth, as we’re merely in the early phases of this digital transformation. Companies like Hims & Hers, Doctor on Demand, 23andMe & Capsule are the pioneers of this patient-first telehealth model. By offering a level of convenience and accessibility that, quite frankly, has never been synonymous with patient experience, they maintain a superior level of engagement with their consumers. Hims & Hers found that only 1 in 10 men felt comfortable talking about their looks and health with their doctor because as it turns out, talking about trouble in bed is a conversation most people don’t want to have face-to-face with a stranger. Hims & Hers allows consumers to ultimately save face, and get the prescriptions they need at the press of a button. Users build profiles, which outline their symptoms and past medical history. Then, they’re connected with a physician to walk-through their options, and if all goes right, the meds are shipped for free and arrive at the doorstep in a matter of days. In less than 3 years since their initial launch, they’ve expanded their prescription capabilities to all 50 states with physician consultations occurring in real-time. Patrick Carroll, Chief Medical Officer at Hims & Hers and Millennium Alliance Advisory Board member, sat down with us to further discuss the methodology of their success.

EF:

How do you expect Hims & Her’s recent expansion into all 50-states to transform the company in the new year?

PC:

Since day one, Hims & Hers has been focused on delivering safe, effective and efficient digital health services to people across the United States. In just two years, we’re proud to have powered more than one million digital healthcare visits. Expanding to all 50 states goes hand in hand with our mission to increase access to care for more people across the country, particularly those in rural populations and underserved communities. That can have a tangible impact for the millions living in medical deserts – regions of America where access to healthcare is limited or non-existent. We’re excited to be able to provide all people, regardless of geography, with a convenient option for high-quality healthcare.

EF:

With the increase of competition in the telehealth industry, how has Hims & Hers maintained their competitive edge – or in other words, what’s the secret sauce? 

PC: 

We founded Hims & Hers because for millions of people it’s just too hard to be healthy and well. Many Americans have to wait weeks for an appointment, spend money to find childcare or take time off work to visit an office only open between 9-5. They’re stuck navigating a system that’s confusing, complex and opaque. That’s why we are building a first-class healthcare system that puts people first, meeting or exceeding all the levels of quality of a traditional provider in the categories we serve. On average, Hims & Hers patients hear back from a doctor within one hour and, if a physician determines they’re eligible, can get their treatment delivered to their doorstep for one affordable price without surprise fees or hidden charges. But we also believe that there’s a role for every type of physician interaction in a patient’s healthcare ecosystem – whether that’s by secure asynchronous messaging, phone or video consultation or an in-person visit. That’s why we are also prioritizing work with traditional providers like Ochsner Health System with whom we announced our partnership at the end of last year. There’s enormous potential for us to work with health systems like Ochsner to ensure patients have access to a broad spectrum of high-quality care.

EF:

What do you think leaders in healthcare need to do differently? 

PC:

Healthcare leaders need to recognize and address a rapidly changing landscape which is consumer-focused. In this environment, care access and price transparency are paramount. The traditional health delivery model is unsustainable due to costs and provider shortage. Innovative care models including but not limited to digital care and as well as expanding the care delivery team to include pharmacists, advanced practitioners and ancillary caregivers is essential. Traditional health systems need to get out of the towers and into the ambulatory space where the majority of future care will be delivered.

And we couldn’t agree more. The landscape has changed, and consumers are now offered a multiplicity of options. Long are the days when patients were cornered into accepting months-long waits for appointments, or outrageously priced medications.

According to McKinsey, healthcare providers are in the midst of a convergence with retail, given the following significant shifts occurring in recent years:

  • Distributed settings of care
  • Locations that answer consumers’ growing demand for convenience
  • Lower cost, less capital-intensive care delivery systems
  • Solutions that optimize scale within local markets

In their short amount of time in the market, Hims & Hers has consistently had their finger on the pulse of these trends. Their proven success has paved the way for a number of niche companies to emerge onto the market, and mental health offers an enormous opportunity for the future of telehealth. 

According to the National Alliance on Mental Health, 60% of U.S. counties in 2018 didn’t have a single practicing psychiatrist, and more than half of adults with a mental illness went untreated. The statistics are staggering, and there’s a proven market (with a critical need) that’s forced to comply with a healthcare system far too outdated and understaffed to address the problems at large.

The San Francisco telehealth startup, Cerebral, launched just this year and is already sought-out to fill this void, and ultimately, they hope to shatter the stigma behind “seeking help” that oftentimes prevents patients from receiving treatment in the first place.  

As reported by Bloomberg, for a $92 monthly subscription, users get an initial video visit with a doctor, medication sent to them in the mail, and monthly video visits and messaging with a care manager. The check-ins provide the patient with support and help the doctor and care manager track the patient’s progress and adjust their dosage if necessary, which is common for many psychiatric drugs. 

Much like Warby Parker & Glossier transformed the retail industry in years past, Hims & Hers and Cerebral are positioned to revolutionize the way patients seek treatment. Telehealth is following a retail-inspired structure, providing a patient-first experience enhanced by technology. With the urge for personalization, convenience, and competitive pricing being top priorities for today’s consumers, it’s all the more crucial that healthcare leaders of today ditch their traditional systems – because now, consumers have the power of choice.