As you start the New Year, it may be time to reexamine your marketing strategies and which segments of your market receive the most attention. With all the buzz about Customer Relationship Management (CRM) the last several years, perhaps you have overlooked a critical approach and market segment by focusing on converting non-patients to patients.

It's time to move beyond CRM and say hello to its closely related cousin, PRM. Patient Relationship Management (PRM)^TM is designed specifically for your existing patients and recognizes that they are not only more likely to respond to marketing campaigns, but also account for more business. In fact, patients who visited your organization in the past two years will account for approximately 76 percent of your patients and provide approximately 69 percent of your revenue in 2004.

In addition to better marketing response and revenue from existing patients, PRM acknowledges the barriers to acquiring new patients or "stealing" them from other organizations. It is 20 times more difficult and expensive to convert a competitor's patient than to cross-sell your existing patients new or different services.

Other barriers to converting non-patients to patients include inability to create demand for services unlike in other industries such as retail and banking; physician referral patterns and privileges; insurance restrictions, existing relationships; and location.

PRM is a database driven strategy designed to understand individual patient needs and values, and then act on that knowledge to create unique interaction and satisfaction strategies for each patient. It uses sophisticated analysis and market segmentation to enhance patient loyalty and encounters with the health care provider.

Here's how two health systems used PRM to achieve superior results with patients compared with non-patients. Both used digital imaging technology to customize their printed pieces to the individual based on life stage, health status, gender and health provider. The first organization, a multi-hospital system, used PRM to send black and white screening and immunization reminders. Using a control group to compare responses of those who received the mailing with those who did not, it achieved a control adjusted incremental profit per individual of $8.58 per patient and $ .52 per individual for non-patients.

Another organization's primary care physicians sent a four-color mailing to its patients. Again a control group was used to compare responses of those who received the mailing with those who did not. The control adjusted incremental profit was $57.30 per patient.

PRM is designed to help you become more strategic, patient-focused, efficient, personal, and results-oriented. To learn more about PRM, read the related articles in this issue of CRM HealthLines on planning with your PRM system, and a predictive segmentation model specifically designed for patients. And, check out our latest white paper, "PRM--Making Better Patient Connections," in the Press Room at www.cpm.com, or contact us at 1-800-332-2631, ext. 221 or marketing@cpm.com.