A conversation with Diane Stover, Vice President of Marketing and Innovation Strategy, Memorial Hospital System.

Describe the Retail you oversee

Our retail enhancement effort comes under our innovation everywhere initiative, which started about 6 years ago and looked at our traditional offerings within retail. We wanted to figure out how to differentiate and increase their performance. We mixed a number of different methodologies and applied them to our retail offering to come up with what we have today.

First was the reinvention of our home care retail outlets. We have five home care stores in the community. We worked with IDEO, and applied Deep Observation research to the home care experience and created 'The Memorial Home Care Gallery', which opened in October of 2005. This store is a very new model and innovative in the industry. We focused on meeting customer needs by adding more convenience oriented options and new products to make the experience more than what people might expect.

Next, we wanted to build on our over 25 years urgent care experience by pursuing retail clinics and retail medicine in the community. We pushed our model and our heath system was selected to be the first group to put a retail clinic in a Walmart in the United States. We have opened eight of them in the past 4 years. Some have transitioned from Walmart locations to grocery store locations. Each model is different and based on the maturity of the market and location. Based on our extensive research, and first hand experience with the retail market, we created the Convenience Care Strategies Group where we consult with other hospital groups on the creation and development of retail clinics.

The Chocolate Cafe at memorial Hospital Featuring Chocolate Therapy

When we decided to focus on the retail opportunities within the hospital campus, we brought Simply Retail and Touchpoint into the mix. We looked at our old coffee shop model and, although it was cute and simple with volunteers running it, it wasn’t achieving the revenue it could, or provide the experience our patients and visitors expect. So we partnered with South Bend Chocolate Company and created The Chocolate Cafe at Memorial Hospital featuring "Chocolate Therapy". The space contains a deli with a coffee, candy and chocolate shop.

After nine months of operation our revenue had tripled. Now we are partnering with Simply Retail to help other hospitals launch a chocolate cafe. The model certainly has a coffee shop option, but is also a relaxing space in a busy hospital environment.

Construction of our new main entrance led to the need to relocate the 15 year-old hospital gift shop. We had Simply Retail help us develop a new and improved gift shop concept. We developed a new theme for the instore experience in partnership with our Hospital Auxiliary volunteers, who generously manage and staff the shop. The Cottage Place Gift Shop is the theme and is a combination of casual and sophisticated. It feels like a vacation spot gift shop sprinkled with elegance. So far, after the first two months of operation, we have increased revenue by 38%. All gift shop volunteers participated in an Exceptional Experience training workshop, which was a combination of guidelines from Simply Retail experts, and material from Joe Pine and Jim Gilmore, authors of The Experience Economy. Completion of the training allows each volunteer to become a 'Chief Moment Officer'. They are ready and responsible for creating wonderful moments for customer/patients.

What was the motivating factor for the senior team to invest in developing a retail system strategy?

Part of it came out of innovation being developed as a core competency for Memorial. If we had the tools and resources, and did it right, we would create new ways to grow. Not just financial growth, but quality, safety, and service. The seed was planted about 10 years ago. Anyone can innovate in this organization and finding new opportunities for retail was a part of the innovation focus. We are committed to an ongoing assessment of retail opportunities to make life easier for patients, employees, and visitors, all while generating new revenue.

How does the staff reach out to the clinical team to share the healthcare products? Share with us some RetailCare steps you have taken.

Our manager is working on building that. Integrating retail into our practice is a big learning curve for our clinical staff. Our manager is now attending clinic floor huddles occasionally to talk about product features, and he’s working on a checklist of comfort and convenience products for patients in certain specialties. He works closely with our Wound Care and Podiatry departments. Podiatry used to sell a few products, but they have since turned things over to us to sell. We are improving our image a bit because our store manager understands customer service. He has also implemented more cross training among our store staff.

Greatest challenge?

One of the challenges, as you focus on the planning with volunteers and front line staff, is making sure everyone is maintaining momentum after the plans are implemented. With day-to-day operations, it is easy for people (volunteers and staff) to go back into old habits and not stick to the retail science guidelines we provided.

Greatest opportunity/success?

Amazingly, it was watching the faces of volunteers (almost all over the age of 62 into their 80s) when they become passionate about how they can directly build more revenue to support the important work at the hospital. What they do really matters and what they each do makes a big impact. The gift shop revenues directly support projects and expenses in the hospital.

Any advice for other hospitals?

They have to get CEO enthusiasm built from the start. You have to cross many silos and everyone needs to be a part of the goal and end point. Everyone has to be invested in looking at new models and new tools. You can’t approach this like you would 30 years ago. If you look at it that way you are going to miss many opportunities. We spent a lot of time talking to volunteers as to the 'what' and 'why' of this project. Taking that time with them really contributed to the success of the store. It is an important step you can’t ignore.

What is the next step for your retail system?

We have many retail opportunities we're pursuing...vending, looking at moving Chocolate Medical Ventures along, how can we tweek and advance the home care store from just 5 years ago. We are continuing to add new services at our retail clinics that better meet the needs for consumers. We are always testing new product lines in the gift shop along with special events and promotions. We are also planning to enhance our online presence with Specworks out of Baltimore, Maryland. They will run the online store for us.

How are you marketing retail both internally and externally?

Employee marketing is done through our mass email system and our weekly newsletter. We publish a magazine twice a year for our staff and the entire community, where we advertise our retail centers. We have added new rotating signs in high traffic areas to catch people's attention. We will be launching elevator advertising campus wide in the near future. Our home care products and services will open a new hospital satellite store this year. In addition, we have two sales people calling on physicians, nursing homes and physician offices. We also do direct to consumer advertising throughout the year.