Kevin C. (Casey) NolanManaging Director, Navigant Consulting, Inc.
For many years, retailers sought to serve the mass market, figuring that was where the greatest opportunities, sales, and revenues were. Their stores were fairly similar, if not almost identical, regardless of whether they were in Tallahassee or Tacoma. Just think back to the Sears, Montgomery Ward, J.C. Penny, or McDonald’s stores you frequented 20 years or so ago. In the years since, retailers have become more sophisticated at customer analysis and they have learned there is no mass market. Retailers know that segmentation and targeting are the keys to profitable growth. Retailers are working hard to customize their stores and offerings to meet the needs of the unique customer base in whatever area the store is located in. A recent article in the Wall Street Journal described how the giant of all retailers—Wal-Mart—is adapting its stores and moving away from the “cookie cutter” / highly standardized model it has employed.
In contrast to the emphasis on targeting and segmentation employed by retailers, most healthcare organizations still design and deliver their services using a “one-size-fits-all” approach. And while there is real value in standardizing the protocols and pathways of care, healthcare providers need to strive to avoid “homogenizing” the human element of delivering healthcare. There is a concept that many retailers have adopted that at first blush seems oxymoronic, but is actually a way to personalize interactions with individual customers—and increase customer loyalty. This concept is called “mass customization” and was profiled in an article in a Fortune magazine in December 2004. Companies as varied as Brooks Brothers, Lands’ End, Nike, Mars Candy and USPS have employed the mass customization concept to boost customer connections—and profitability.
I believe the application of this concept, in conjunction with a concerted movement toward evidenced based medicine, would significantly enhance the quality of care, the patient experience, and the financial performance of healthcare in the United States. As the old retail saying goes, “the riches are in the niches.”
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