The health insurance customer experience - Understanding the impact of simplicity

The health insurance customer experience: Understanding �the impact of simplicity February 20, 2014

2

Introductions Maria Boos �Group Director �of Simplification

Ed Lanigan �Vice President, Business Development, Simplification�

3

Let’s talk Simplicity pays�Priorities for insurers�Achieving simplicity�

4

5

GBSI 2013�

consumers 10,000+

countries 7 in

6 2009 2010 2011 2012 2013 through

Aug 2nd

-50%

0%

50%

100%

150%

200%

Since 2009, the Simplicity Portfolio has beaten the average global stock index by

+167% �Simplicity

Portfolio

+83% S&P +72% Dow +69% DAX

+45% FTSE

100%

Percentage of �growth of �index/portfolio

Siegel+Gale—�Global Brand �Simplicity Index 2013

7

75% of consumers are more likely to recommend a brand because it provides simpler experiences

Simplicity increases loyalty

8

Customers will pay more

Banks/Retail Shipping/Mail General insurance Utilities Media Telecom/Cable

Social media Travel/Hotels Telecom/Cell phone Internet retail Travel/Booking Travel/Air Travel/Train Travel/Car rental

Appliances Automotive Retail/Health and beauty Internet search Health insurance Retail/General Restaurants

Retail/Grocery Electronics Retail/Fashion Fitness

5.4% �and more 4.8–5.3% �

more 4.5–4.7% �more

up to�4.4% �more

For simpler experiences, people would pay:

9

Customers will pay more

Banks/Retail Shipping/Mail General insurance Utilities Media Telecom/Cable

Social media Travel/Hotels Telecom/Cell phone Internet retail Travel/Booking Travel/Air Travel/Train Travel/Car rental

Appliances Automotive Retail/Health and beauty Internet search Health insurance Retail/General Restaurants

Retail/Grocery Electronics Retail/Fashion Fitness

5.4% �and more 4.8–5.3% �

more 4.5–4.7% �more

up to�4.4% �more

For simpler experiences, people would pay:

10

Industry rankings

1. Internet search

Global Industry �Simplicity Score

950 736 734 723 719 711 663 657 625 602 595 574 565

2. Electronics

3. Restaurants

4. Internet retail

6. Retail/Grocery

5. Appliances

13. Telecom/� Cell phone

7. Media

8. Retail/General

9. Travel/Hotels

10. Retail/Fashion

11. Travel/Booking

12. Travel/Air

14. Shipping/Mail 15. Retail/Health � and beauty 16. Social media

17. Automotive

19. Banks/Retail

18. Fitness

20. Travel/Train

21. Telecom/Cable

22. Utilities

23. Travel/Car rental

24. Health insurance

23. General insurance

565 564 530 529 524 517 501 484 473 445 329 258

Global Industry �Simplicity Score

11

Industry rankings

1. Internet search

Global Industry �Simplicity Score

950 736 734 723 719 711 663 657 625 602 595 574 565

2. Electronics

3. Restaurants

4. Internet retail

6. Retail/Grocery

5. Appliances

13. Telecom/� Cell phone

7. Media

8. Retail/General

9. Travel/Hotels

10. Retail/Fashion

11. Travel/Booking

12. Travel/Air

14. Shipping/Mail 15. Retail/Health � and beauty 16. Social media

17. Automotive

19. Banks/Retail

18. Fitness

20. Travel/Train

21. Telecom/Cable

22. Utilities

23. Travel/Car rental

24. Health insurance

23. General insurance

565 564 530 529 524 517 501 484 473 445 329 258

Global Industry �Simplicity Score

Health insurance �has the most to gain in �the US

13

Let’s talk Simplicity pays�Priorities for insurers�Achieving simplicity�

14

Why simplicity matters The brand that members know is the one they interact with every day

Online �interfaces

Call �center

Policies & �statements

Mobile �self-service

Correspondence

Forms & �applications

Programs

But how do we know which customer interactions �matter most?

The Health Insurance Experience�A PinPoint™ Consumer Research Study

PinPoint Consumer Research�

consumers 1,000

insurers 5

brand experiences

13

18

Contribution to the NPS Pre-/Open enrollment and enrollment have the greatest impact on the NPS

Pre-/Open enrollment

Enrollment

Claims processing

24.4% 19.4%

14.5%

3.6% 5.0% 5.6%

7.7% 5.8%

9.6% Finding a doctor on website/web portal

Explanation of benefits (EOB)

ID cards

Customer service call center

Coverage documentation

Welcome packet

0.5% 0.5%

1.6% 1.9% Wellness and disease management services

Pre-authorization

Online claims management tool

Medical cost estimator

19

Let’s talk Simplicity pays�Priorities for insurers�Achieving simplicity�

20

HAPIfork: helps you lose weight by �notifying you if you’re eating too fast

21

Nike+ FuelBand: a personal coach tracks and inspires progress

22

Lifestraw: simplicity in problem-solving saves lives

But what about those everyday touchpoints?

24

Walgreens Balance Rewards: makes it easy to earn and redeem rewards for taking healthy steps

25

Innovative prescription packaging increases compliance and reduces errors

EmblemHealth: simplified member portal clarifies plan data for pre-enrollment review

26

27

28

Quest: simplified patient reporting makes data actionable… Before After

29

…in any channel the patient prefers

30

Financial services companies are ahead of the curve in reinforcing value propositions…

31

…facilitating goal setting and tracking…

…welcoming customers onboard…

32

33

…and simplifying terms

34

But a proliferation of communications and tools overwhelms the health insurance member

The solution:�The Simplification Blueprint

What, when and how should you communicate with members to �drive engagement and satisfaction?�

37

The Simplification Blueprint Define    member  and  business  needs  

Map    the  current    member  experience      

Envision    the  op2mized  experience  that  will  meet  member  and  business  needs  more  effec2vely      

Iden0fy  and  priori0ze    specific  work  plans  to  implement  the  op2mized  experience  

Test  and  refine    prototypes  of  the  highest-­‐priority  touchpoints  and  plan  for  long-­‐term  implementa2on    

38

Mileage Plus

38 38

39

The situation Although United’s Mileage Plus loyalty program was intended to enhance customer relationships and drive customer engagement, the reality was a fragmented customer experience �with uninspired and disengaged members.

Website

Email

IVR and �call center

Membership application

Direct mail

Airport CSR Airport kiosk

Statement

40

Getting to the root of low engagement Member research revealed three distinct segments within the member base—yet none felt well-served by the loyalty program.

41

The solution Our audit of all member touchpoints revealed an airline-centric mentality as the root of the problem. We outlined an engagement strategy to transform every communication or interaction into a member-centric experience. No matter what the specific functional purpose of any touchpoint, it’s an opportunity United should seize to “show, encourage, help and recognize” the member.

Communications pillars

Member need fulfilled

42

Defining a new contact strategy

Before

After

We began by outlining a new contact strategy that increases the number of touchpoints and integrates messaging across them to reinforce the member relationship across the entire life cycle.

43

Delivering the right information at the right time

Elite benefits and more�

�

Benefits by status level

My Upgrades landing page

My Upgrades tab

My Upgrades detail pages

Terms and conditions

Summary Detail

Each touchpoint consistently reinforces key messaging, but the level of detail modulates based on the primary purpose and delivery channel of the communication.

44

Speaking with a unique brand voice Voice guidelines ensure that all member communications reflect a common tone and support the brand attributes.

45

Removing airline jargon More detailed writing guidelines specify how to replace numerous “insider” terms with simple program architecture that employs descriptive language.

46

Reaching members when and how they prefer The most frequent point of interaction is Mileageplus.com. Our redesign is simple, appealing and built around the tasks users most frequently want to do.

47

Carrying the themes and content through email…

48

…and onto the mobile experience

Thank �you.��

Today’s Presenters��Maria Boos – mboos@siegelgale.com�Ed Lanigan – elanigan@siegelgale.com� Related Links

Global Brand Simplicity Index http://simplicity.siegelgale.com/ For questions or more information on Siegel+Gale and our Simplification practice please email info@siegelgale.com