Measuring the Value of Trust for Health Insurers
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Measuring the Value of Trust for Health Insurers

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Hear Peppers & Rogers Group's Healthcare Practice present proprietary research findings that quantify trust as a critical capability for future success, and offer a plan to help move healthcare ...

Hear Peppers & Rogers Group's Healthcare Practice present proprietary research findings that quantify trust as a critical capability for future success, and offer a plan to help move healthcare insurers to a new place of trust.

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Measuring the Value of Trust for Health Insurers Measuring the Value of Trust for Health Insurers Presentation Transcript

  • make an Measuring the Value of Trust for impact! Health Insurers March 1, 2012 #prghealthcareCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Today’s Speakers Marc Ruggiano Tom Lacki, Ph.D. Elizabeth Glagowski Partner, Director of Research Executive Editor, Strategy Peppers & Rogers Group Peppers & Rogers Group Peppers & Rogers GroupCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Event Logistics Please turn off your pop-up blocker • You will not be able to participate in today’s survey Download a PDF of today’s slides • Click the green PDF icon Have a question for the presenters? • Click the red Q&A icon Helpful tools • Click the gold question mark for help with technical issues • Enlarge slides when needed • Twitter Hash tag: #prghealthcareCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Agenda What Health Insurers Are Facing Today Why Trust Matters Creating a Trusted EnvironmentCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • What Health Insurers Are Facing TodayCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • US Healthcare Spending Leads OECD Total Health Expenditure, Per Capita (PPP adjusted dollars) Source: OECD Health Data (database) from Kaiser Family Foundation via http://facts.kff.org/ accessed on February 25, 2012.COPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • While Life Expectancy Lags Considerably Life Expectancy at Birth, Total (Number of Years) 90 80 70 60 50 40 Source: OECD FactBook 2010; via www.oecd-ilibrary.org/ accessed on February 25, 2012.COPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • and Consumers Rate the Experience Poorly Customer Experience Index (CxI) by Industry Source: Forrester Research, The Customer Experience 2012COPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Consumer Perception of Today’s Health Insurers Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • The result is an environment of distrust … 50% 43% 40% 38% Respondents 30% 19% 20% 10% 0% Distrusters Neutral Trusters Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • … which puts all insurers at risk of consumer defection The Affordable Care Act will offer options to the distrusting and disengaged “How likely are you to switch “You indicated that you are unlikely to switch health insurance providers health insurers. Which of the following is closest next year?” to the reason you are not likely to switch?” Source: Forrester ResearchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Consumers Describe the Ideal Health Insurer Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Why Trust MattersCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Looking Through the Trust LensCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Levels of Customers’ Trust “My health insurer can be trusted” 0 1 2 3 4 5 6 7 8 9 10 Distrusters Neutrals Trusters Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Customers’ Trust in the Health Insurance Sector 38% 43% Trust 19% Distrusters Neutral Trusters Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Trust Impacts the Perception of a Health Insurer Clear/Confusing Transparent/Secretive 3 Easy/Difficult Organized/Disorganized Caring/Uncaring 2 Accessible/Inaccessible 1 Generous/Stingy 0 Up-to-date/Outdated Fair/Unfair -1 Superior/Inferior -2 Compassionate/Uncompassionate -3 Kind/Unkind Flexible/Inflexible Reliable/Unreliable Helpful/Unhelpful Informative/Uninformative Believable/Unbelieveable Friendly/Unfriendly Effective/Ineffective Cooperative/Combative Warm-hearted/Cold-hearted Fast/Slow Distrusters Trusters Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Poll questionCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Customers’ Trust in Health InsurersCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Customers’ Trust for Individual Health Insurers 100% 80% Respondents 60% 40% 20% 0% Anthem BCBS United Aetna Humana CIGNA Kaiser Healthcare Permanente Health Insurer Distrusters Neutral Trusters Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Share-of-Trust Trust Capacity = Σ General Belief that Most People Can be (a) Trusted, and are (b) Fair and (c) Helpful 3 Trust in Health Insurer Share-of-Trust = Trust CapacityCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Share-of-Trust by Health Insurer Anthem Blue Cross Blue Shield Kaiser Permanente Health Insurer Aetna CIGNA United Healthcare Humana 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 Share-of-Trust Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Taking Action to Improve Customer TrustCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • The Basics 10 9 8 7 6 Rating 5 4 3 2 1 0 Does a great job of Processes claims Demonstrates a Covers me when Im Makes enrolling in the Works well with my Is typically first to keeping the promises it accurately high level of business traveling away from plan easy and primary doctors office market with new makes and home straightforward services technology innovation that directly benefits me Distrusters Trusters Scale: 0 = strongly disagree, 10 = strongly agree Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Communications from the Health Insurer 10 9 8 7 6 Rating 5 4 3 2 1 0 Communicates clearly Proactively alerts me Provides easy to read Uses simple language Communicates with Sends me with me to potential problems statements and and words I can easily me on a timely basis communications that and issues that may explanation of benefits understand reflect my unique affect my coverage needs and interests Distrusters Trusters Scale: 0 = strongly disagree, 10 = strongly agree Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Trust and Communication Frequency and Channel 100% 80% Respondents 60% Truster 40% Distruster 20% 0% Too little Just right Too much All of the Some of the None of the time time time Volume of communication Amount of time health insurer from health insurer uses preferred channel of communication Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Communications with the Health Insurer 10 9 8 7 6 Rating 5 4 3 2 1 0 Representatives of I can typically solve Representatives do I am able to reach a My issues, problems At the conclusion of I am asked for Representatives of my health insurer any problem I am an excellent job of representative of my and concerns are a contact, I am feedback on my my health insurer listen carefully to my having by contacting understanding health insurer in a typically resolved in warmly and health insurers apologize issues and concerns my health insurer complex issues reasonable amount one contact genuinely thanked representatives each immediately when a of time for being a customer time I make contact mistake has been made Distrusters Trusters Scale: 0 = strongly disagree, 10 = strongly agree Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Goodwill 10 9 8 7 6 Rating 5 4 3 2 1 0 Focuses on doing the right thing Demonstrates Has earned my respect Has a strong reputation for Places my interests above its own for its customers truthfulness and a high level of honesty and openness with its believability customers Distrusters Trusters Scale: 0 = strongly disagree, 10 = strongly agree Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Reaping the Rewards of Improved TrustCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Poll questionCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Trust Impacts Commitment 10 9 8 Commitment* 7 6 5 4 3 2 1 0 Distrusters Trusters Example Items I feel a strong attachment to my health insurer. I am fully committed to my health insurer. It is worth my effort to work closely with my health insurer. My relationship with my health insurer is very important to me. * Factor weighted mean of responses to 4 questionnaire items assessing “commitment.” Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Trust Impacts Loyalty 10 9 8 7 Loyalty* 6 5 4 3 2 1 0 Distrusters Trusters Example Items Because my health insurer has created a strong, delightful customer experience for me, I have no need to look for better alternatives.. I anticipate that I will remain a customer of my health insurer for a long time. I feel a strong sense of loyalty to my health insurer. * Factor weighted mean of responses to 5 questionnaire items assessing “loyalty.” Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Trust Impacts Advocacy 10 9 8 7 Advocacy* 6 5 4 3 2 1 0 Distrusters Trusters Example Items How likely would you be to recommend your current health insurer to a friend or colleague? If asked by your health insurer to serve as an ambassador to your community on their behalf, how likely would you be to participate? * Factor weighted mean of responses to 2 questionnaire items assessing “advocacy.” Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Sensitivity of Outcomes to Trust Anthem BCBS United Healthcare Health Insurer Aetna Humana CIGNA Kaiser Permanente 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 Change in Outcome per Unit of Trust Commitment Loyalty Advocacy Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Trust and Employment 10 9 8 7 6 Rating 5 4 Distrusters 3 Trusters 2 1 0 I would recommend to my employer that we keep the If my employer switched to a different health insurer, I same health insurer next year would try to find another job allows me to stay with my current health insurer Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Trust Impacts Health Outcomes 10 9 8 7 6 Rating 5 4 3 2 1 0 Follow Doctors Instructions Follow Health Insurers Instructions Healthier Because of Health Insurer Distrusters Trusters Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Customers Value Trustworthiness How much more per month, if any, would you be willing to pay in premiums for a health insurer with high levels of trustability? 50% 40% Respondents 30% 20% 10% 0% $0 $1-$25 $26-$50 $51-$100 $101-$150 $151-$250 $251 or more Source: Peppers & Rogers Group researchCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Why Trust Matters In summary, …COPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Creating a Trusted EnvironmentCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • 6 Building Blocks of Trust Anticipate customers’ needs, understand the Empathy context in which they present, and work to deliver beneficial solutions Proactively and reactively communicate Goodwill Transparency openly with customers about information, policies, decisions, and outcomes Take ownership and action at the individual Accountability and organizational level when customers encounter negative experiences Trust Deliver accessible, convenient, consistent, Customer and credible experiences to customers Experience regardless of all else Train, enable, and authorize employees to Competence Empowerment take actions that earn customers’ trust Recognize and reward trust-building actions Recognition and customer-centric behaviors of high- performing employeesCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Customer Experience as a Trust Driver Deliver accessible, convenient, consistent, Customer and credible experiences to customers Experience regardless of all else Goodwill Can our customers reach us through their desired channels and complete their intended actions? ? Are our customers served by trained, relevant, empowered, understanding employees? ? Trust Do our customers receive the same messages and have access to the same capabilities across channels? ? Do we ensure that we deliver on commitments we Competence make to our customers (e.g. trackable confirmation numbers, scheduled follow-up actions, etc.)? ? Do we measure our customer experience performance and its impact on trustability? ?COPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Building a Platform for Trustability 2011 2012 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Phase 1 Initiatives 1.1 High 1.2 Med. 1.3 Low Impact Impact Impact 7 Initiatives Phase 2 Initiatives 5 Initiatives 2.1 High 2.2 Med. 2.3 Low Impact Impact Impact Phase 3 Initiatives 12 Initiatives 3.1 High 3.2 Med. 3.3 Low Impact Impact ImpactCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Q&A Session Marc Ruggiano Tom Lacki, Ph.D. Elizabeth Glagowski Partner, Director of Research Executive Editor, Strategy Peppers & Rogers Group Peppers & Rogers Group Peppers & Rogers GroupCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • We’re Just Getting Started… 1. You will receive: “Creating a Healthy Level of Trust,” a special preview from Customer Strategist, the executive journal from Peppers & Rogers Group 2. Join us for upcoming webinars in the “Trust” series: • “The Roadmap to Trustability” – March 28 • “The Social Media Agenda for Healthcare” – April 25 • “Case Study: Making the Consumer-centric Transformation” – May 17 3. Come visit our booth at World Healthcare Congress • April 16 – 18 in Washington, DC 4. Trustability Working Sessions • Schedule your own on-site working session for your colleagues 5. Follow us on Twitter @PeppersRogersCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • Q&A Session Marc Ruggiano Tom Lacki, Ph.D. Elizabeth Glagowski Partner, Director of Research Executive Editor, Strategy Peppers & Rogers Group Peppers & Rogers Group Peppers & Rogers GroupCOPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED
  • For more information please contact: Marc Ruggiano Tom Lacki, Ph.D. Partner Director of Research mruggiano@peppersandrogersgroup.com tlacki@peppersandrogersgroup.com +1.203.989.2189 (office) +1.203.989.2199 (office)COPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED