Patient Loyalty: What it Takes to Earn Their Loyalty
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The document discusses strategies for earning patient loyalty in healthcare. It defines loyalty and distinguishes it from satisfaction. Loyalty is built on satisfaction over multiple interactions that generate value. Earning recommendations is more important for healthcare providers than other industries due to influence on choices, but healthcare lags in customer service and loyalty. The 7 best practices outlined for building patient loyalty include quantifying loyalty economics, segmenting customers, improving digital experiences, cementing value relationships, and enabling referrals.
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Patient Loyalty: What it Takes to Earn Their Loyalty
- 1. Patient Loyalty: What it Takes to Earn Their Loyalty © 2016 Customer Insight Group, Inc.www.customerinsightgroup.com 1
- 2. Sallie Burnett Strategist. Leader. Innovator. • President of Customer Insight Group a leading strategic marketing firm that helps companies engage, retain and grow profitable customers relationships. We help companies assess and improve customer strategy to achieve measurable business objectives. • Former Associate Professor of Digital Marketing at Daniels College of Business © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1
- 3. AGENDA • Defining Loyalty • Current Loyalty Marketing Landscape • Healthcare Marketplace and Patient Loyalty • 7 Best Practices for Building Patient Loyalty © 2016 Customer Insight Group, Inc. www.customerinsightgroup.com 3
- 4. DEFINING LOYALTY Loyalty: © 2016 Customer Insight Group, Inc. www.customerinsightgroup.com 4 “Loyalty is a positive belief, generated over the course of multiple interactions, in the value that a company and its products and/or services provide, which leads to continued interactions and purchases over time.” Oracle
- 5. DO NOT CONFUSE SATISFACTION WITH LOYALTY SATISFACTION • Opinion measure of a company’s performance and how the customers feels their needs were met in past interactions and/or by purchases. LOYALTY • Measure of a customer’s willingness to purchase again and sing the company’s praises to friends and family. © 2016 Customer Insight Group, Inc. www.customerinsightgroup.com 5
- 6. LOYALTY IS BUILT ON SATISFACTION © 2016 Customer Insight Group, Inc. www.customerinsightgroup.com 6 • Satisfaction NO • Loyalty YES • Satisfaction NO • Loyalty NO • Satisfaction YES • Loyalty YES • Satisfaction YES • Loyalty NO Willing to switch to another company. Leverage loyalty program and insight to nurture customer loyalty. Focus on retention and cross-selling to meet more of their needs. Currently staying with the company due to external barriers. Detractors are unhappy customers and account for a lot of negative word- of-mouth. PRIMEGROWTH DETRACTORS LIMITED
- 7. BENEFITS OF LOYALTY MARKETING • Improve knowledge of your customer’s • Leverage customer insight to increase sales of undersold and/or highly profitable products and services • Respond to market disruptions, keep the patients you have and earn new ones • Maximize ROI through targeted promotions and redesigning products/services around high value customer’s needs • Increase customer referrals and recommendations © 2016 Customer Insight Group, Inc. www.customerinsightgroup.com 7
- 8. EVOLUTION OF LOYALTY MARKETING © 2016 Customer Insight Group, Inc. www.customerinsightgroup.com 8 • Development has been directly related to advances in IT an POS • Future developments are supported by IT, specifically in the areas of: – Social media – POS – Web 2.0 (iAPPS — web content management solutions) – Mobile – Proximity (RFID technologies) – Ubiquitous computing (Smartphones and wearable) S&H Green Stamps Airlines Hotels Rental Cars Credit Cards Retail & Grocery Coalition s Merchant Rewards Experiential Rewards Gamification Ubiquitous Computing 1896 Today
- 9. EARNING PATIENT LOYALTY IS MORE IMPORTANT THAN EVER • 44% of consumers chose their healthcare provider based on personal recommendations, and these recommendations have more influence than in any other industry. Only hotels and lodging comes close at 39%. • Research has confirmed a strong correlation between superior patient experience and higher hospital margins.1 • US companies that deliver a superior experience have outperformed the S&P 500 index by a factor of nearly. 2 • Switching is hard—but it’s getting easier with digital health. 40% of healthcare consumers say that switching is a hassle. As these digital health and virtual health experiences and capabilities become more prevalent, it will become easier for patients to switch providers and hospitals.3 1. (Source: 2014 Temkin Experience Ratings; Accenture analysis) 2. (Source: Patient Engagement: Happy Patients, Healthy Margins, Accenture, October, 2015) 3. (Source: Global Consumer Pulse Research, Accenture, January, 2015) © 2016 Customer Insight Group, Inc. www.customerinsightgroup.com 9
- 10. RECOMMENDATIONS MATTER — BUT HEALTHCARE INDUSTRY LAGS OTHER INDUSTRIES © 2016 Customer Insight Group, Inc. www.customerinsightgroup.com 10 27% 27% 23% 21% 15% 14% 9% 6% Hotel & Lodging Banking Retail Consumer Electronics Wireless P&C Insurance Health Provider Life Insurance Healthcare providers have lower Net Promoter Scores than many other industries. Net Promoter Score (NPS) is a measurement of organizations’ customer loyalty and has been highly correlated with financial success for leading companies. It is based on the premise that consumers’ willingness to recommend an organization indicates future consumer behaviors that drive revenue growth and value for the organization. Global Consumer Pulse Research, Accenture, January, 2015
- 11. HEALTHCARE PATIENT LOYALTY IS IN JEOPARDY © 2016 Customer Insight Group, Inc. www.customerinsightgroup.com 11 30% 11% 9% 9% 9% 7% 7% 7% 5% 4% 3% 3% Retailers Cable/Satellite TV Banks Internet Service Wireless/Cell Healthcare… Home Telephone Hotels Others Airlines Life Insurance Utility Companies Customers are as likely to switch healthcare providers as hotels if service is poor. Global Consumer Pulse Research, Accenture, January, 2015
- 12. CORRELATION BETWEEN CUSTOMER SERVICE AND PATIENT LOYALTY CAN’T BE IGNORED © 2016 Customer Insight Group, Inc. www.customerinsightgroup.com 12 61% the ability to get an appointment quickly when needed. 52% the ability to get an appointment at a convenient location. 51% great customer service. 47% the ability to understand cost & to pay a bill using a preferred method. Percent of patients that would switch providers for… Source: 2014 Consumer Health Study
- 13. PATIENTS WILL PAY FOR SERVICES THEY VALUE © 2016 Customer Insight Group, Inc. www.customerinsightgroup.com 13 50% would pay more for weekend and/or after hour appointments. 20% would pay more for notifications when preventative or follow-up care is needed. 50% would pay more for more personal time with their doctor and/or specialist. 20% would pay more for the ability to see a doctor virtually. Source: 2014 Consumer Health Study
- 14. 7 BEST PRACTCIES FOR BUILDING PATIENT LOYALTY 1. Garner support for a focus on customer loyalty. Remember that this is a cultural change that might not bring immediate returns. 2. Quantify the current and potential economics of loyalty in your patient care value chain. 3. Segment your current and potential customer base to identify those targets with the highest loyalty and profit potential 4. Keep abreast of technology changes and determine customer priorities for digital and virtual health capabilities to improve your customer’s digital health experience 5. Identify loyalty leverage points to cement stronger relationships with higher shared value, for both you and your customers, than competitors can offer 6. Realign your internal systems to highlight and reinforce actions that solidify the potential of loyalty. 7. Provide channels for patients’ friends and families, referring providers, staff and allied professionals to endorse, refer and recommend. © 2016 Customer Insight Group, Inc. www.customerinsightgroup.com 14
- 15. RESOURCES Loyalty Blog http://www.customerinsightgroup.com/loyaltyblog Infographics http://www.customerinsightgroup.com/infographs SallieBurnett on Twitter http://twitter.com/sallieburnett LinkedIn Group http://linkd.in/LinkedInDiscussion
Editor's Notes
- Global study link: https://www.accenture.com/us-en/insight-digital-improve-customer-experience
- This was in the white paper by Accenture, “Think your patients are loyal? Think again.” Net Promoter Score (NPS) is a commonly used measurement of organizations’ consumer loyalty and has been highly correlated with financial success for leading companies. It is based on the premise that consumers’ willingness to recommend an organization indicates future consumer behaviors that drive revenue growth and value for the organization. To determine NPS, organizations subtract the percentage of detractors (consumers who are most likely to speak negatively when asked if they would recommend) from the percentage of promoters (consumers who are most likely to make positive referrals). Based on their rating, customers are then classified in 3 categories: detractors, passives and promoters. DETRACTORS ‘Detractors’ gave a score lower or equal to 6. They are not particularly thrilled by the product or the service. They, with all likelihood, won’t purchase again from the company, could potentially damage the company’s reputation through negative word of mouth. PASSIVES ‘Passives’ gave a score of 7 or 8. They are somewhat satisfied but could easily switch to a competitor’s offering if given the opportunity. They probably wouldn’t spread any negative word-of-mouth, but are not enthusiastic enough about your products or services to actually promote them. PROMOTERS ‘Promoters’ answered 9 or 10. They love the company’s products and services. They are the repeat buyers, are the enthusiastic evangelist who recommends the company products and services to other potential buyers.
- https://www.accenture.com/t20160322T034105__w__/us-en/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Strategy_7/Accenture-Strategy-Patient-Engagement-Consumer-Loyalty.pdf#zoom=50
- http://www.hhnmag.com/articles/7432-why-patient-loyalty-matters-in-health-care http://www.fiercehealthcare.com/hospitals/3-ways-advocate-health-care-as-promoted-patient-loyalty http://www.gallup.com/poll/5203/what-does-patient-loyalty-look-like.aspx REATE A COMPETITIVE ADVANTAGE THROUGH BUILDING A LOYALTY STRATEGY