dr avnesh ratnanesan - energesse - customer experience in health insurance
TRANSCRIPT
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Dr Avnesh Ratnanesan (Avi)CEO, Energesse
‘Future Solutions in Customer Experience & Retention’
A Research White Paper for the PHI industry
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Executive Summary
Background & Methodology
‘Systems Thinking’ in Customer Retention
Analysis of Industry Challenges and Responses
6 Major Solutions to Improve CX
Conclusions for PHI organisations
Background Conducted in collaboration with 10 private health insurers, aimed to deliverbetter customer experience and retention
Lapse rates and switching peaked for many insurers in the 2014-‐15 year, Gen Ydemonstrating greater propensity
Collectively, customer switch affects approx. $2bil worth of annual transactionalvalue* (940,000 members changed policies in 2013-‐14 year)
Global trends -‐ CX will grow in importance as a key differentiator (overtakingprice and product)
Gap between what insurers believe is being delivered, and what customer needand want from their insurer
*PHIAC, Operations of PHI Annual Report 2013-‐14
Methodology
Analysing Customer Retention using ‘Systems Theory’
PHI industry is a complex with multiple interrelating challenges – over 45,000 policies, 30+organisations
‘Systems Theory’ maps a set of practices/ root causes that are multifactorial, linked and havebecome dysfunctional over time– understandWHYproblems recur
Organisations see problems e.g. customer retention as linear and implement linear solutions,rather than addressingcyclical root causes.
Solutions are ineffective or minimally effective to a degree, but if root causes are not addressedretention problemswill persist
Internal and external causes need to be solved as a cohesive strategy, rather than ‘band aids’
PHI Customer Experience Touch-‐points
Websites, Social Media, Online Communities,
portals
Call Centres Branches Mobile Events
The Customer ‘Trilemma’ at Acquisition
“I can’t afford it”
“I’m afraid not to have it”
“I don’t really know what I’m buying” (and sometimes neither does the agent I’m buying from)
Triggers ‘Grudge purchase’ and causes ‘Buyers Remorse’
“Probability of a customer lapsing is double in the first 6 months” Rhod McKensey, Group Executive, Australian Residents Health Insurance
Industry Forces Affecting CX
1. Customer confusion,affordability and lack of perceived value
2. Sub-‐optimal Systems, Processes and DataManagement
3. Health System Dynamics
4. Regulatory Changes and CompetitiveForces
“Health Insurance policies are now as complicated as mobile phone plans”
Brad Joyce, CEO Teacher’s Health Fund and Chairman, Members Own Health Funds
Complex Systems Theory in PHI
Objectives
How do we resolve the Vicious Cycle in Customer Retention?
“The secret of change is to focus all of your energy, not on fighting the old, but on building the new”
– Socrates
(character from a book ‘Way of the Peaceful Warrior’ by Dan Millman)
Objectives
1. Define Vision, Strategy & Objectives
Unified vision of CX across all touch-‐points
Bold and courageous leadership to meet rapidly rising expectations – 5 yearfuture view
Refine strategy with feedback loops from front line staff and senior managersconnectingwith customers directly e.g. ‘Customer Days’
1-‐2 ‘Big Bets’
2. Align Leadership and Culture with Change Management
“Culture eats strategy for breakfast”– Peter Drucker.
HR and Comms teamneeds to drive and incentivise positive behaviours
Align KPI’s and incentiveswith actions, reward or recognise immediatelywhere possible
Measurewhat you can manage
Tone and spirit of high performing teams cannot be replicated –hard and soft KPI’s
“Customer Experience is not hard, it is change that’s hard”
Harriet Wakelam, Head of Customer Experience, Medibank
3. Implement Systems & Capabilities for CX
Understand drivers at a granular, emotional and personal level
Restructure to improve responsiveness e.g. customer segment business units? Changeoccurring at a faster rate e.g. Lean Six Sigma (20 years) vs NPS (5 years)
Integrate data capabilities into customer experience architecture
Predictive capabilities to understand ‘frustrations’, pain points before churn
“It’s about having the right people with the right culture or mindset. Combine that with the appropriate investment in technology that gives them the tools to do the job. But tools without attitude, and attitude without tools just doesn’t cut it”
Michael Bassingthwaigthe, AM, CEO Peoplecare Health Insurance
*Sample analysis with PanSensic Emotional Lens
8/07/2015 10:36 amPansensic
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4. Translate Perceptions into Priorities-‐ Emotion Analysis
4. Translate Perceptions into Priorities
5. Apply CX to portfolio, products & channels
*Sample analysis with PanSensicMental Gears Lens
6. Extend CX across Health Ecosystem
Map the ‘fault lines’ in the Customer Health Journey and address most relevant painpoints
Medibank’s CareSuite, HCF and Healthways and NIB’s Whitecoat initiatives
‘Hospital to home’ and Telehealth options
In hospitals, assess Patient Experience (PX) along with Safety and Quality Measures
Conclusions -‐ The ONE CHANGE…
If there was only ONE CHANGE you could make (that drives all otherchanges) ……
…….revise products, strategies, campaigns and projects around thoseinsights
Start with truly understanding your customers’ perceptions (thoughts) and emotions (feelings) with data
i.e. WHY they behave the way they do
The ONE CHANGE to drive all CX changes
AREA OF NEED & FOCUS
Value(Outcomes, $$$)
Organisation’scycle
Improved Customer Experience + Referrals + Revenue
1-‐10% 70-‐80% 1-‐10% 1-‐10%
Collect or Purchase Data and Research
Implement Solutions, Projects & Campaigns
Analyse data for Meaningful Insights
Translate Insights to Strategies and
Solutions
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To receive a free copy now…
SMS 0438 614 233 (First, last name & e-‐mail)
www.energesse.com/customer-‐experience