Tag Archives: One Medical

Why Amazon Paid $3.9 Billion to Get into the Healthcare Business

Why Amazon Paid $3.9 Billion to Get into the Healthcare Business

GUEST POST from Shep Hyken

Amazon is known for its amazing customer experience, despite most customers never talking to an Amazon employee. How does this digital experience — with no human interaction—drive so much loyalty? The short answer is confidence. There is very little that goes wrong with an Amazon experience, and if by chance it does, its system takes care of almost all problems—again, without human interaction. That said, if a customer does need to talk to a human, which is very seldom, the customer support team is there.

But what happens if you combine technology with a high-touch business, like a doctor’s office? You get One Medical, which Amazon bought in 2023 for $3.9 billion. One Medical’s founder, Dr. Tom Lee, is a Harvard-trained primary care physician who then went on to Stanford to get an MBA. Before opening his first clinic, he asked himself, “Why do we do these in healthcare like we’ve always done them? Why does every waiting room look like some sterile IKEA? Why do I wait in a reception area and then wait again in the exam room?” It was questions like these that caused Lee to tinker with and disrupt the traditional medical visit model.

Starting with one clinic, Lee created a different experience. He built an app and charged patients an $89/year subscription that gave them access to doctors. He focused on simple things like getting an appointment without making a call. Those little things were the start of what turned out to be a stellar experience that allowed him to expand, ultimately catching the eye of Amazon.

When the Amazon deal was completed, HealthCare Dive reported that Amazon now had a network of more than 220 medical offices in 27 U.S. markets with more than 836,000 members plus 9,000 enterprise clients. Neil Lindsay, SVP of Amazon Health Services said, “We’re on a mission to make it dramatically easier for people to find, choose, afford and engage with the services, products and professionals they need to get and stay healthy, and coming together with One Medical is a big step on that journey.” That’s what Amazon does. They make it easy for customers.

Joseph Michelli, bestselling business author of numerous books that tell the stories of iconic brands like The Ritz-Carlton, Starbucks, Mercedes and others, recently released a new book, All Business Is Personal: One Medical’s Human-Centered, Technology-Powered Approach to Customer Engagement, that tells the One Medical story. I had a chance to interview him on Amazing Business Radio, and here are the highlights that will give you some insight into why Amazon became interested in acquiring this amazing company.

Question Everything

Just ask, “Why?” It doesn’t matter what type of business you are in, there are reasons for everything. Often the reason a company or person does something is because “We’ve always done it this way.” So, question everything. Maybe you’ll still do it the way you’ve always done it, but at least you will have tried to find a better way.

Create a Stellar Customer (Patient) Experience

As Lee created a Customer Experience (CX) that drove impressive ratings, he looked at the friction most patients experienced. He started with an obvious pain point, the waiting room, which is, as the name implies, a room for people to wait. Some patients in traditional medical practices are forced to wait for unreasonable amounts of time. But not at One Medical. In addition to being easy to get a same-day or next-day appointment, Michelli shared that 95% of patients are seen within three minutes of their scheduled times. As already mentioned, Lee questioned every aspect of the patient’s experience, and he found many ways to make it better.

Blend Technology with the Human Touch

Technology, like apps and AI, makes life more convenient for customers by allowing things like easy online scheduling or getting immediate answers from AI chatbots. Often, technology can feel cold and impersonal, especially in healthcare. The best use of technology is to make things faster and simpler, but smart businesses, like One Medical, know to offer human backup when a customer/patient needs it. Finding the right balance between tech and the human touch keeps your business from being a commodity—just “another faceless service.”

Convenience Is King

People love doing business with companies that create convenient experiences. For One Medical, this means offering same-day appointments, speedy callbacks or handling many issues online versus the phone, so the patient doesn’t have to wait on hold or wait for a callback. Research shows that 73% of customers will pay more for a convenient experience. The easier you make someone’s experience, the more likely they will come back as well as tell others about you.

Make It Personal, Not Just Personalized

It’s great to remember a customer’s name or recall past purchases. That’s personalization. To take it a step further, make it personal. Make the customer feel that you care about them. That means when the customer (or patient) talks to an employee, they feel cared for, listened to and valued. Personal connections build trust and confidence, which leads to repeat business and potential loyalty.

The Effort Is Worth It

These five reasons (and a few more) are what gave Amazon 3.9 billion reasons (as in dollars) to acquire One Medical. Even if you were to practice these reasons flawlessly, you may never catch Amazon’s attention, but you will catch your customers’ (and potential customers’) attention. And that will make the effort worthwhile.

Image Credits: Pixabay

This article originally appeared on Forbes.com

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Innovate Like Sherlock Holmes

GUEST POST from Stephen Shapiro

I am a fan of mysteries. I think they can train the brain to be a better innovator.

I’m currently re-reading the complete works of Sherlock Holmes. In A Study in Scarlet, Holmes provides some great perspectives that everyone should consider.

After Holmes made some amazing deductions about Watson’s current state of affairs, Watson was shocked. When Holmes explained his thought process, Watson expressed disbelief.

Watson: When I hear you give your reasons, the thing always appears to me to be so ridiculously simple that I could easily do it myself, though at each successive instance of your reasoning I am baffled until you explain your process. And yet I believe that my eyes are as good as yours.

Holmes: Quite so. You see, but you do not observe. The distinction is clear. For example, you have frequently seen the steps which lead up from the hall to this room.

Watson: Frequently.

Holmes: How often?

Watson: Well, some hundreds of times.

Holmes: Then how many are there?

Watson: How many? I don’t know.

Holmes: Quite so! You have not observed. And yet you have seen. That is just my point. Now, I know that there are seventeen steps because I have both seen and observed.

As innovators, we need to do a better job of observing, not just seeing. We need to study what is really going on in the market, with our customers.

Unfortunately too often we just see without insight.

This will lead to a predicament that is described later in the story. Holmes is presented with a challenge, and Watson immediately wants to deduce the solution.

Watson: This is indeed a mystery. What do you imagine that it means?

Holmes: I have no data yet. It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts.

This is brilliant! It describes a common mistake of innovators. We often get too attached to our ideas, and, therefore, ignore evidence that goes against our beliefs. This is why so many innovations fail.

Too often we twist the facts to suit our theories.

The reason is that as human beings we are subject to confirmation bias; the brain’s processing mechanism by which it finds evidence to support its belief structure. Whatever you believe, you will find evidence to support it, and you will subconsciously ignore anything that refutes it. That’s why we can have such powerful beliefs in spite of evidence to the contrary.

We get too attached to our ideas, and therefore, we introduce innovations that are destined to fall flat.

Or as Scott Cook from Intuit so eloquently said, “For every one of our failures, we had spreadsheets that looked awesome.”

During your innovation efforts, think like Sherlock Holmes. Be sure to truly observe what is going on in the world around you. Use this to gather the necessary data. And, critically, avoid twisting your facts to support your beliefs.

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No Doesn’t Mean No

GUEST POST from Stephen Shapiro

The other day I posted an article about innovation on LinkedIn. I was surprised to find a comment from someone I worked with at Accenture over 15 years ago. To paraphrase, he said…

No offense, but I remember at a meeting in London trying to demonstrate to you how (a specific software platform) could be a technology model for a social network site I designed for (a company) in 2000. I remember you absolutely annihilated me after for wasting your time. I was only a 23 year old hard working Irishman to London at the time with a head full of vision and innovation but zero resources and contacts except you as my manager. I’ve been very suspicious of any talk of innovation since.

My first reaction was, “Wow, I barely remember that conversation. I can’t believe that someone is still so upset so many years later.”

Although his comment was less about a comment on the content and more about a personal gripe with me, I realized that hidden in it were two important points related to innovation.

1) Everyone is subject to confirmation bias. If I did shoot down his idea, it might have been because I was blind to its potential. It might have been an amazing idea and I couldn’t see it. Our past experiences will always taint our view of what is possible in the future. And of course, I am not immune to this phenomenon.

2) Not all ideas are good ideas. People get attached to their ideas and beliefs and then blame everyone else when they don’t get implemented. The commenter too is subject to confirmation bias. If organizations implemented every idea they received, they would all be out of business. From my experience, only a small fraction of ideas are actually worthwhile.

Scott Cook from Intuit sums it up beautifully, “For every one of our failures, we had spreadsheets that looked awesome.” Everyone can justify their position.

Some believe their idea is the next million dollar concept and that everyone should love it and invest in it. But we know that 70% of innovations fail. And in other cases we shoot down an idea because we don’t think it is good. And sometimes this can lead to a different form a failure, as Kodak learned with the digital camera.

The key lesson is to be rigorous with your thinking. Never assume your ideas are good. And at the same time don’t immediately kill an idea that has potential. Experiment. Prove (or disprove) concepts in the real world. And if you are convinced your idea is awesome and you get a “no,” keep trying until you get a yes. Sometimes a “no” really means “not now.”

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All Ideas Can't Be Good Ideas

GUEST POST from Stephen Shapiro

The other day I was at Mohegan Sun, which is a casino about an hour and a half outside of Boston. And while I’m there I love to speak with the gamblers because each of them believe they have a system. They believe they have a method to ensure that they win. And they’re all convinced they’ve won more money than they’ve lost.

Well, of course, this is not true. Casinos are not in the habit of giving money out to people. The house always wins. We know this to be true.

Why do people believe that they win more than they lose? It’s something called confirmation bias, and confirmation bias is the brain’s processing mechanism by which it finds evidence to support its belief structure. Whatever you believe, you will find evidence to support that, and you will subconsciously ignore anything that refutes your belief structure. That’s why we can have such powerful beliefs in spite of evidence to the contrary.

It’s very important for innovators to understand this concept, because every person is convinced they have a billion dollar idea. They’ve got the next big idea that’s going to change the world and make them rich. But what happens is their confirmation bias only allows them to see the evidence that supports their belief that they have a great idea. Their brain doesn’t allow them to see all the evidence that proves it’s actually a bad idea.

There’s a reason why 70 to 90 percent of new innovations fail. It’s not because these aren’t well intentioned, motivated, or excited people. But they’re people who, like all people, have confirmation bias. As a result they will subconsciously ignore the evidence that proves that what they think is a great idea, is in fact not such a good idea.

As innovators, as entrepreneurs, as individuals it’s important to recognize this. Now how do we counterbalance this?

It’s difficult for us to find evidence that refutes a strongly held belief. So what we need to do is, when we’re working on something, partner with a devil’s advocate. Find someone who’ll be the contrary point, somebody whose sole purpose is to find evidence that proves your idea is a bad idea.

Now it may be hard to hear what that person has to say. You will want to reject what they have to say. But if you can open up your mind and be willing to hear the contrary points of view, you may be able to refine your product, service, or idea, and come up with something that’s better. Or you may learn it’s just such a bad idea and you shouldn’t invest the time and money in this one. Find a different one.

This is really important for all organizations (big or small) and individuals.

We know that every gambler doesn’t win more than they lose. And we know that every idea is not a great idea.

The question is:

“What are you going to do to make sure that you invest your time, money, and energy in the things that have the highest likelihood of paying off?”

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