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How to Create Strong Signature Stories

The best stories grab attention and don’t let go, with interesting characters and intriguing details.

What makes an effective signature story – is it one that attracts attention, connects, communicates, is remembered and changes behavior in some way? There is no checklist of story attributes: each great story has its own content and style that come together to impact the listener. However, the definition of a signature story, an intriguing, involving narrative with a strategic message, provides some guiding questions.

Is the Signature Story Intriguing?

Does it grab your attention? Is it thought-provoking, novel, informative, inspiring, exceptionally relevant, humorous and/or awe-creating? If it does not score highly on one or more of these dimensions, it will not gain attention and is thus not a good candidate for a signature story.

“Each great story has its own content and style that come together to impact the listener.”

Consider the story that begins,  “It was a drab and rainy day in mid-May 1931 when the 28-year-old Neil McElroy, the advertising manager of P&G’s Camay soap, sat down at his Royal typewriter and wrote perhaps the most significant memo in modern marketing history.”  Doesn’t that perk up your ears? Why the memo? Why was it important? Who is this guy? What happened to him?  You are instantly drawn in.

Is the Signature Story Authentic?

Do the settings, characters and challenges feel real? Or is the story likely to be perceived as phony, contrived or a transparent selling effort? Is there substance behind the story and its message?

A Skype signature story features Sarah from Indiana and Paige from New Zealand, each born without half of a left arm. Their mothers wanted them to get to know each other, but how do you have a relationship when so far apart? The solution is to use Skype to connect daily so the girls could share their experiences and create a deep friendship. Skype later brought the two girls to New York, where they had an emotional meeting. The authenticity of Sarah and Paige and their story helped to build an emotional response.

Is the Signature Story Involving?

Does it draw people in? Does it make you care? Does a story stimulate a cognitive response, such as a belief change, or an emotional response, such as feelings of warmth or awe? Will it cause the viewer to act—maybe by passing along the story to others? A weak, shallow signature story is likely to result in a passive audience.

Knorr was trying to determine flavor preferences and asked people to have a foodie date with someone they had not previously met, but who had a similar flavor personality as measured by a flavor profiler. The proviso was that they had to feed their partners – no eating on their own. A video of seven participating couples offered fun, humor and many tender moments, and helped generate 100 million views. The audience was drawn into the awkward meeting, the test and the resulting relationships, ultimately creating a signature story for the brand.


FINAL THOUGHTS

In addition to being intriguing, authentic and involving, most strong signature stories are indeed stories instead of facts, have a strategic message, and link back to the brand. Beyond that, they pop on one or more key story elements such as empathetic characters, emotion, tension, surprise, or a challenge to be overcome and are presented with flair and professionalism.

For more details, be sure to check out my book Creating Signature Stories.

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Activating Brand Relevance

It requires centering brands on a strategic purpose to create shared value and engaging brand experiences.

Summary

For over 100 years, brands have been built a certain way. But the modern world demands something new. Prophet has played a pivotal role in shaping brand strategy – it’s our heritage and our future. We set out to answer the question, “What does it take to build a relentlessly relevant brand?”

Here’s our answer. Relentlessly relevant brands engage, surprise and connect. They push themselves to earn and re-earn customers’ loyalty—and they continually redefine what’s possible.

Relevant brands:

  1. Center brands on a strategic purpose to create shared value
  2. Engage customers through living brand experiences
  3. Power from the inside through culture, capabilities and engagement

Learn about building a relentlessly relevant brand and see where your company ranks by analyzing our latest Prophet Brand Relevance Index™.

Approach

Building a relentlessly relevant brand starts with three essential commitments:

  1. Brands must find a strategic purpose that creates shared value. It’s the only way to inspire people – employees and customers alike.
  2. Companies need to engage customers through living brand experiences. Brands are no longer one-dimensional. They are living, purpose-driven systems that deliver humanized experiences, leveraging empathy and technology.
  3. Brands need to be powered from the inside out through culture, capabilities, and employee engagement. After all, at the center of building brand relevance are the heads, hearts and hands responsible for shaping and delivering it – employees.

Learn about building a relentlessly relevant brand and see where your company ranks by analyzing our latest Prophet Brand Relevance IndexTM.


Brand Equity – Brand Value_1_A

REPORT

The Healthcare Shift: The Transformation to Customer-Centricity

Patients want to be treated as participants in their health. They need to be empowered, engaged and enabled.

The Transformation to Consumer Centricity

Today’s healthcare world belongs to the ‘e-consumer’. The ‘e-consumer’ is the result of increased access to information, enhanced consumer experiences in other industries and uncontrollable rises in healthcare costs.

‘E-consumers’ need to be treated as powerful participants in their own health in partnership with healthcare organizations. They need to be empowered, engaged, equipped and enabled. For the e-consumer, moments of health are just as important as moments of sickness.

To create empowered, engaged, equipped and enabled consumers, healthcare organizations must develop products, services and experiences that align with consumer needs. The only way to do this is to become consumer-centric. Consumer centricity in healthcare requires that every team, service line and department exist to serve the consumer in a remarkable way, at every stage of the healthcare journey.

To understand what the healthcare industry is currently doing and can to do to reshape itself, Prophet conducted in-depth interviews with over 60 organizations around the globe, including large hospital systems, payers and pharmaceutical, medical device and digital health companies in the U.S., Asia and Europe.

During our conversations, Prophet set out to understand what these organizations are currently doing to be consumer-centric, where they would like to be in the future and the challenges they face in getting to their ideal state. From these interviews, Prophet identified five key shifts that organizations can make now to become more consumer-centric tomorrow. The shifts are universal to transformation, spanning the entire healthcare ecosystem and geographies around the world.

Our research revealed that not enough organizations have begun to make these shifts, and those who have started, haven’t made significant progress. In fact, less than 15 percent have made full progression on any of these necessary changes, revealing a massive opportunity for improvement.

Our most recent research has uncovered how payers, providers and pharma can accelerate their transformation to become more consumer-centric. Download the category research:


Payers

Providers

Pharma

Download Making the Shift to Consumer Centricity in Healthcare – Part 1

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Download Making the Shift to Consumer Centricity in Healthcare – Part 2

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PODCAST

BEANCAST 488: BAGALLSY

7 min

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A Higher Brand Purpose Unleashes Signature Stories

Few brand stories have the power of Lifebuoy’s “Help a Child Reach 5.”

Signature stories help organizations with a higher purpose (a purpose beyond just increasing sales and profits) in two ways. First, signature stories communicate the higher purpose and its programs to employees and customers, an increasingly important and difficult job. Second, the stories serve to provide needed visibility, energy and brand enhancement to organizations that have trouble breaking through when talking about their offering.

Most organizations have realized that they need a higher purpose-built into or alongside their business purpose. Employees, especially millennials, need a reason to come to work besides increasing sales and profits and getting a paycheck. They want to respect and admire their firm and want their jobs to provide meaning in their lives. A higher purpose can address these needs—and bolster productivity—by offering an energizing common goal.

Customers, too, want to have a relationship with brands and organizations they respect because of shared values and meaningful programs that address social or environmental challenges. When the shared beliefs are strong, these customers impact the marketplace with their loyalty and support.

“When the shared beliefs are strong, these customers impact the marketplace with their loyalty and support.”

The challenge is not only to create a higher purpose with supporting programs but to communicate it to employees and customers. A signature story can do that better than a factual description because it connects emotionally which strengthens the message and relationship.

A second challenge is to elevate the visibility, energy and perceptions for the brand, a difficult and sometimes impossible task when the offering is not newsworthy, and very few are. It was always hard to make a branded soap, bank, or airline interesting.  In a time of media clutter and audience control of content, it becomes even more challenging. A higher purpose and associated programs can provide stories that can break through, can touch with emotion, can create high levels of visibility and energy, and can even inspire employees and customers. It is hard to create impactful stores in the absence of a higher purpose.

How Lifebuoy’s Higher Purpose Made an Impact

Consider Lifebuoy, a leading soap brand in much of the world, with a higher purpose of reducing childhood fatalities from water-borne illnesses by changing handwashing habits. Their “Help a Child Reach 5” program was rolled out with dozens of events and promotions. Schoolchildren in class, for example, received child-friendly materials including comics, songs, games and rewards, to help them sustain effective handwashing habits. The phrase “Did you wash your hands with Lifebuoy today?” was placed on over 2.5 million pieces of roti, a flatbread, during a Hindu holiday.

Videos were made of three villages that were early participants of the program. In one video, we are introduced to Utari, a woman who spends time near a tree. She waters it, dances next to it, shoos water buffalo away from it, places a ribbon around it and stays with it into the night when others are otherwise engaged. Why? In the middle of the video, her husband reminds her that tomorrow is a big day—her son will turn 5. Then we learn that it is a village custom to mark a tree when a child is born and to track that marking as the child grows up. After five years, many mothers have lost their child and have only the tree left. Utari is one of the lucky ones, and her celebration of the tree is a way to reflect that gratitude.

The three videos received over 44 million views and helped Lifebuoy toward its goal of changing the handwashing habits of a billion people by 2020, potentially preventing 600,000 child deaths a year. But the video also elevated the Lifebuoy brand by engendering respect, liking and a sense of shared values. The videos were powerful in part because they had an authentic central character, some curiosity-raising tension, and the backbone of an inspirational and effective program to tackle a global problem. Engaged listeners were directly connected to Lifebuoy.


FINAL THOUGHTS

The Lifebuoy Help a Child Reach 5 stories served both to communicate the higher purpose to employees and customers but added much-needed visibility, energy, and brand enhancement to a product that could easily be viewed as a commodity.

For more, see my latest book “Creating Signature Stories”.

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Barclays Regains Trust Using Signature Stories

Using stories with real-life heroes, these memorable narratives helped the bank win back skeptics.

Stories work better than facts. A set of facts are often ignored or treated as self-serving with claims that are not credible. Consider the remarkable impact of some signature stories at Barclays, which had become the least trusted brand in the least trusted industry and need to repair their image.

Barclays – How a Brand Regains Trust

Barclays is a role model for how to use stories in a brand crisis to regain trust and change the conversation. The Barclays brand, which had suffered from the 2008 financial meltdown, was later damaged by accusations that Barclays and other banks had manipulated key interest rates. The trust level for Barclays in Britain in 2012 was well below that of its competitors. It is not a stretch to conclude that Barclays was the least trusted brand in the least trusted sector in the UK. Barclays in response announced a new brand purpose: “Helping people achieve their ambitions—in the right way” and organized efforts to get their 140,000 employees on board.

Employee-Inspired Higher Purpose Programs

The newly empowered and inspired Barclays employees created and led dozens of higher-purpose programs on their own. One, the Digital Eagles, is an internal group that grew to over 17,000 employees. Its mission is to teach the public about surviving and even thriving in the digital world. Stories about how Digital Eagles projects affected real people helped shine a light on the higher-purpose initiatives at Barclays.

One story featured Steve Rich, a sports development officer, who had lost his ability to play football (soccer to Americans) because of a car accident. But he could participate in “walking football”—usually played with a team of six on a small field with no running—which enabled him to again experience the joy of the sport. Wanting to help others do the same, he decided to raise awareness of walking football and turn it into a nationwide game in Britain. With the help of Digital Eagles, Rich created a website that connected over 400 teams across the country–and connected individuals with teams. It also helped Rich get in touch with some former football mates. He is partly responsible for the growing interest the sport has generated as reflected in the emergence of a national tournament. His accomplishments and personal regeneration is inspiring indeed.

“The new campaign drove six times as much change in trust and five times as much change in consideration as the product-focused campaign that preceded it.”

Employees were inspired and energized by the programs driven by the new brand’s purpose. And customers and prospective customers changed their perceptions of Barclays. From the start of the campaign to tell signature stories about the Digital Eagles and other programs in the summer of 2014 until early 2016, trust was up 33 percent, consideration was up 130 percent, the emotional connection was up 35 percent (versus 5 percent for the category average) and “reassurance that your finances are secure” was up 46 percent. The new campaign drove six times as much change in trust and five times as much change in consideration as the product-focused campaign that preceded it. By 2015, Barclays received 5,000 positive mentions in the press.

How Do Signature Stories Persuade?

Stories get heard and change minds. More particularly, stories like those used by Barclays, persuade because they:

1. Attract attention.

When a speaker says, “Let me start with a story,” your attention shifts and focuses. But when a speaker talks in the abstract, communicating only facts without a story, your attention wanders. It just does. Customers and employees are seldom interested in your facts. Stories fare best when they are engaging from the outset, have detail that allows you to visualize and empathize, and have a fresh and intriguing storyline.

 2. Inhibit counter-arguing.

The power of the story can distract the recipient and can reduce the tendency to confront or counter the facts shared. Since the messaging isn’t contradicted or refuted, it’s more likely to be processed and accepted. As a result, storytelling is especially effective when attempting change or when softening negative positions—the task that Barclays faced.

3. Involve an authentic, credible and likeable storyteller – one who doesn’t relay dry facts.

By simply telling a story, a brand spokesperson can deliver a point without being perceived as phony, contrived or a commercial selling vehicle.

4. Allow people to deduce logic themselves.

We know from research and common sense that self-discovery is much more powerful than having people talk at you. The Barclays stories suggest to the audience about the values and priorities of the organization. The audience needs to make the leap to perceptions of trust on their own. There wasn’t anyone explicitly telling customers to trust Barclays.

5. Are remembered.

Stories are remembered more than facts because the story recipient is more attentive and involved than the same person receiving a recitation of facts. In addition, the story arc provides a way to organize information and becomes, in essence, one thing to remember rather than a set of facts.

6. Are shared.

Gaining the attention of one audience also offers the possibility of reaching others—via social media. This can multiply the exposed population—and send some stories into viral territory. Passing along a signature story also enhances its ability to gain and keep attention. You are likely to spend time with a story if someone you respect and consider unbiased is delivering and/or endorsing it. That source is often putting his or her reputation on the line, so you will probably approach the story with a positive attitude.


FINAL THOUGHTS

The difference between fact and stories to persuade is not just meaningful – it is enormous. And it has been demonstrated by hundreds, maybe thousands, of studies many of which are scientific experiments. It is one of the most established truths in psychology.

For more information, look to my newest book “Creating Signature Stories

BOOK

Creating Signature Stories

DAVID AAKER

Summary

Stories are a hot topic in marketing because they gain attention, persuade and are easily remembered. That is particularly true in the digital world where content is king and stories draw people in.

The concept of a signature story – an intriguing, authentic, involving narrative – applies the power of stories to strategic messaging.

Communicating the organization’s brand vision, values and strategy is a way to create a connection with customers and inspire and guide employees; something that is nearly impossible to do with a set of facts. Learning to create and leverage signature stories has truly become a “must-have” management competence.

“Creating Signature Stories: Strategic Messaging That Persuades, Energizes and Inspires” is available at AmazonBarnes & Noble, Books-A-Million, IndieBound, or wherever books are sold.

Highlights

  • Defines a new concept, signature stories, that helps organizations introduce storytelling into strategic messaging both internally and externally.
  • Explains the power of storytelling to energize, gain visibility, persuade and inspire.
  • Explains how to find or create signature stories, evaluate their potential and leverage them over time.
  • Leverages a variety of case studies to illustrate concepts and provide examples.

Reviews

Linda Boff
VP & CMO at GE

A great story for storytellers everywhere. David Aaker’s in-depth look at what makes a great story plus his powerful examples are a shining example for brands, marketers and all of us who recognize the power of signature stories to inspire, motivate, sell and drive our companies forward.”

Cheryl Burgess
CEO, Blue Focus Market

“The father of modern branding, David Aaker argues persuasively that in our hyper-growing but fragmented digital, social and content worlds, effective brand storytelling cuts through the noise, and skepticism to connect with the hearts and minds of today’s employees, consumers and customers.”

Peter Guber
Chairman and CEO of Mandalay Entertainment, author of “Tell to Win”

“Aaker, the branding guru, demonstrates how to find or create signature stories that are intriguing, authentic and engaging, and how to manage them to energize your brand to persuade and inspire to action employees and customers.”

Media

About the Author

David Aaker is the author of over one hundred articles and 18 books on marketing, business strategy, and branding that have sold over one million copies. A recognized authority on branding, he has developed concepts and methods on brand building that are used by organizations around the world.

Connect

Want to interview Dave or feature him on your next podcast? Please connect with us or David Aaker directly.

Explore how David Aaker and Prophet can help your business create signature stories that resonate with your customers and employees.

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Brand Stories vs. Signature Stories: What’s the Difference?

Facts don’t move people, but feelings do. The best brand stories inspire, enchant and motivate consumers.

We spend a lot of time talking about what makes a story, but what is not a story? For over two years I became intrigued by the power of storytelling applied to strategic messaging. The difficulty of defining what is not a story becomes a serious conceptual problem. I had many patient discussions (well, not always patient!) with my daughter Jennifer, a Stanford GSB professor, who has done extensive research and teaching on storytelling.

What Is and Is Not a Brand Signature Story?

We found a conceptual breakthrough: a set of facts is NOT a signature story. That idea broke the dam and allowed our work and my book, “Creating Signature Stories,” to proceed. A signature story as we defined it is a “Once about a time” narrative that portrays actual or fictitious events or experiences with a beginning, middle, and end (not always portrayed in that order) that provides an organizing framework for its components and implications. The signature story often has explicit or implied emotional content and detailed sensory information as well.

A signature story as I define it here is not a description of facts. It may incorporate or communicate facts but does so in the context of the narrative. The facts might be integrated into the narrative and must be deduced by the audience. Facts could appear after the narrative to add elaboration and credibility. Or the narrative could be used to add depth and meaning to facts already presented. But facts by themselves are not a story.

To illustrate the problem, think of executives that eagerly tell you their brand story. What they usually mean by that is to address questions like:

  • What does the brand stand for?
  • Who are its customer targets?
  • What is its value proposition for each segment?
  • What is the point of difference?
  • What organizational values or core programs or policies provide substance and clarity to the brand?

Brand Facts Do Not Communicate a Brand’s Signature Story

Answers to such questions almost always involve lists of facts. These fact lists should be perused, as they provide a solid underpinning for a brand vision and business strategy that will drive success. They should be crystal clear and communicated. But communicating a list of facts, efficient though it may seem, is difficult and sometimes impossible as people are simply not interested. In fact, such a fact set is often perceived as boring rather than intriguing, as conveying puffery instead of authenticity, and is too similar to comparable lists from other organizations to be engaging. Even if an audience’s attention is obtained, they will perceive the communication to be biased and self-serving. 

“Fact lists should be perused, as they provide a solid underpinning for a brand vision and business strategy that will drive success.”

Brand Signature Stories Make Strong Statements

Suppose a firm with quality issues asserted to employees and customers about their “new quality” priority. It would be likely greeted with disinterest and skepticism. Compare with the power of the following true story that is now a signature story: Zhang Ruimin was promoted in 1984 to lead a then-struggling Chinese refrigerator manufacturer that would later be renamed Haier.

After a customer brought in a faulty refrigerator, Zhang and the customer went through his inventory of 400 refrigerators –only to find that nearly 20 percent were defective. A defining moment. Zhang promptly had the 76 bad refrigerators lined up on the factory floor and asked employees to destroy them all with sledgehammers. A dramatic decision that led to a change in the firm’s culture and reputation. It also became a platform from which Haier become a leading appliance maker in the global marketplace. The story was and is a big part of Haier’s success and one of the original sledgehammers is enshrined at the home office.


FINAL THOUGHTS

The astute executive should strive to develop a sound brand story, a set of facts that describes how the brand differentiates, resonates with customers, and inspires employees. But then recognize that to communicate and gain buy-in to those facts, turn to a set of signature stories—intriguing, authentic, involving narratives with a strategic message. A signature story perhaps about a founder, employee, or customer that illustrates and provides credibility to the brand story and makes it clearer, interesting, believable and persuasive in part because it gains attention and diverts people from counter-arguing.

For more details, check out my book “Creating Signature Stories”.

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The Story of the Book: Creating Signature Stories

Stories, not facts, grab customers’ attention. Strong heroes and intriguing details support your brand.

My new book Creating Signature Stores emerged because of an idea spawned by three powerful forces:

  • The critical need to communicate strategic messages
  • The growing difficulty of doing so
  • The new realization that stories are powerful communicators

The Idea: Applying the Power of Storytelling to Strategic Messaging

Strategic messaging has never been more important, both internally and externally. Internally, employees are searching for and often insisting on meaning in their professional lives. (The why? question.) Providing an answer involves communicating the values, culture, customer value proposition and strategy of the firm. Externally, there is a growing segment of customers that are willing and sometimes eager to have a relationship with brands that they admire and share their values. Strategic messaging can create or support such relationships.

Why Is Communicating Strategic Messages So Hard?

It is largely because customers and employees are often not that interested in your message so they tune it out. Even when the message gets processed, it is often viewed as lacking authenticity and credibility. In addition, there is the challenge of media clutter and the realities of the social world with an empowered audience. As a result, it is hard to break through.

Why Stories Are More Impactful Than Facts

In the context of this challenging communication task, the knowledge that stories are amazingly more impactful than facts becomes very relevant.  Hundreds if not thousands of studies have confirmed that assertion. Stories provide a way to break through all the distractions, disinterest and content overload and make an audience take notice, stay engaged, change perceptions, be inspired, and remember. People perk up when they hear someone say, “Let me tell you a story.”  If you have facts to communicate, your best strategy is telling it via a story that allows the ultimate message to emerge.

Example: Nordstrom’s Authenticity

Consider the classic Nordstrom story, which brings to life the firm’s policy of employee empowerment and prioritizing customers. A customer in the mid-1970s walked into it Fairbanks, Alaska clothing store and asked to “return” two worn snow tires.

An awkward moment! Nordstrom, of course, did not sell tires (although the store site was once a tire store). But, the salesperson that had only been on the job for a few weeks had no doubt about what to do. He promptly took back the tires and refunded what the customer said he had paid. This story is told to this day because it is simply so intriguing and authentic.

How to Create Intriguing, Authentic & Strategic Messages

The idea is to apply the power of stories to strategic messaging through “signature stories.” Create intriguing, authentic and involving narratives that include a strategic message. A signature story is not simply a set of facts but can motivate facts that support the message. It differs from tactical messaging in that it involves communicating the brand vision, organizational values and culture, a business strategy, or a value proposition with a long-term perspective.

“If you have facts to communicate, your best strategy is telling it via a story that allows the ultimate message to emerge.”


FINAL THOUGHTS

The challenge is to identify or create signature stories, plan how to use them internally or externally, present them in an effective and appropriate way, and find ways to keep them fresh and alive. This is not easy. In part, it requires an organization with story-savvy people, culture, and processes.

For more details, be sure to check out the book Creating Signature Stores.

VIDEO

Prophet’s Year in Review 2017

Happy New Year indeed: We crunch the numbers of promotions, publications and a new office–Hello, Shanghai!

2 min

Summary

Prophet continuously grows bigger and better year after year as we serve the world’s most recognizable brands. In 2017, we celebrated big things – from promotions to bouncing babies to trips around the world – with our dedicated team of Propheteers. Check out our journey through 2017 in this annual year in review video.


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The Best of Aaker on Brands – 2017 Blog Recap

Three topics were covered most: Better storytelling, the power of purpose and achieving uncommon growth.

The most impactful blogs I’ve written in 2017 fall within three categories that are reflective of my research and writing interests. The first category, brand stories, is driven by my new book, “Creating Signature Stories” which is available now for pre-order. The other categories are about having a higher purpose and business growth strategies. Let’s walk through some of my blogs and explore each topic.

Creating Signature Stories

Higher Purpose

Growth Strategies


FINAL THOUGHTS

Stay tuned in 2018 for more about my upcoming book, Creating Signature Stories. And of course, if you’d like to read more of my shared thoughts and insights, subscribe to my blog Aaker on BrandsHappy New Year!

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Why Healthcare Orgs and Digital Startups Should Partner

Established healthcare brands can draw energy and agility through tech-focused collaborations.

As regulations continue to evolve toward value-based care and patients become more empowered to make healthcare choices, it’s more important than ever for healthcare companies to create compelling and satisfying experiences. In 2017, the industry saw an increase in digital healthcare startups dedicated to delivering consumer-centric healthcare experiences. This new crop of companies is disrupting the larger healthcare providers, payers, and pharmaceutical companies who are struggling to keep up. However, rather than seeing these startups as a threat, legacy healthcare companies can create valuable partnerships to help them deliver more consumer-centric experiences.

Key Steps to Partnering with Digital Healthcare Startups

Creating strong, mutually-beneficial partnerships with healthcare startups does not happen overnight. The best partnerships are formed with clear business goals for both parties in mind. To get started, Prophet has identified a few key steps to creating strategic partnerships:

Assess Internal Gaps

Assessing where internal gaps are will help find where partnerships are going to drive the most impact. Establish a clear vision for how partnering will improve consumer experiences and ladder up to broader business goals. We’ve found these gaps are commonly around data, interface, community, content or platforms. Assess current initiatives with a critical eye and define where the company can buy services, build the experience in-house, or develop a partnership. 

Map a Landscape

Mapping a landscape will narrow the field based on business priorities. There are hundreds of healthcare startups, so creating a specific set of criteria to focus the search will prevent companies from pursuing a partner only to find out later that it is not the right fit. This prioritization also helps companies understand the landscape of potential competitors.

Define a Clear Value Proposition

Establishing a clear value proposition will help jumpstart partnership conversations. Defining a common value proposition is often where healthcare partnerships go awry. Healthcare startups can benefit from the institutional knowledge and scale that large healthcare players have. Legacy companies also need to think through what benefits they can receive from the partner and come to the table with proposed synergies to generate excitement. These mutually beneficial partnerships can also drive innovation and result in a culture shift in larger organizations.

Don’t Just Fund, Co-Create

Big healthcare companies can avoid the risks of becoming just another investor by starting the partnership with collaboration sessions. Bring ideas to the table, but understand those ideas can only be improved upon through iteration. Set up teams and workshops to continue the collaboration and drive new solutions that deliver on the shared value proposition.

“Rather than seeing these startups as a threat, legacy healthcare companies can create valuable partnerships to help them deliver more consumer-centric experiences.”


FINAL THOUGHTS

Developing a strategic partnership can help large healthcare companies jumpstart their journey to customer-centricity. When forming a partnership, many larger healthcare companies hit roadblocks created by existing cultural norms – whether that’s overcoming a “do it alone” mentality, accepting more transparent processes, or tolerating the uncertainty of test-and-learn.

However, companies that succeed in building strong partnerships often see benefits beyond an improved customer experience – they gain exposure to new cultural norms and more agile ways of working. These effects can spread across an organization and help large companies drive a wider transformation to customer-centricity.

Want to learn more about consumer-centricity in healthcare? Read Prophet’s recent report, “Making the Shift: Healthcare’s Transformation to Consumer-Centricity.”

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