1 White Paper Demand-Driven Customer Experience Management: Solutions for US Healthcare Payers EXECUTIVE SUMMARY Consumer expectations are changing in every industry and healthcare is not immune to these challenges. Consumers can now reach a company using many different channels, some of them online channels, in person, or via the phone. They are currently able to communicate at any time from mobile devices and have an expectation that service will be provided 24/7. They increasingly want to decide how and when to engage with their healthcare environment, thus increasing the complexity of customer experience management. This call for better services and engagement puts significant pressure on healthcare companies (e.g., healthcare insurance payers) to become more demand-driven in order to satisfy the needs of consumers. Healthcare executives understand the importance of having a variety of channels available that customers can use to communicate with their payers; however, recent data analysis shows there is a fundamental disconnect between what channels are provided and what channels customers prefer to use. This white paper will explore some of the changes in the market today as well as provide information on how vital it is for companies to adopt new online and digital solutions to ensure that they retain existing customers while increasing profits.
2 Are US Healthcare Companies Meeting Consumer Expectations? The US health insurance market is suffering major transformations mainly driven by the 2010 Patient Protection and Affordable Care Act (PPACA). With this reform, the health insurance sector is expected to rapidly expand with more patients having access to the health system in the United States. The key question is: Are companies in the sector ready to address all customer expectations? Health insurance payers are already adopting a multiple channel approach in order to interact with their customers, offering on average a total of four different customer service channels. But this multitude of channels does not mean that they have a successful multichannel strategy in place. Teleperformance Customer Experience Lab (CX Lab) research shows that members mention online and digital solutions such as click-to-chat, , and social media as preferred channels to interact with health insurance payers. Although click-to-chat appears among the top three most preferred channels by customers, only 40% of payers have implemented this online solution. Roughly 60% of the companies have face-to-face as a customer service channel, despite the fact that less than 0.9% of customers actually mentioned this as their preferred form of contact, as classified under Others (including white mail, face-to-face, and others; see figure 1). This is a disconnect that affects the customer experience. The customer support channels that customers actually want to use are not always supported, yet the channels almost nobody wants to use are almost always offered. Times have changed. Serving customers is no longer about only answering them face-to-face during office hours, and customers are usually too busy for that anyway. The industry needs to start meeting the service expectations of customers more directly in order to improve customer experience. Will the Average Hold Times of Today Be Good Enough in the Future? Over the last decade, payers have endeavored to answer the ever-growing demands of members for better and faster service, resulting in improved hold times and handle times. But will the average service times of today be acceptable in the future? The CX Lab recently conducted interviews with top health insurance payers in the US and results show that in the voice channel customers had an average hold time of 54 seconds, with 50% of calls transferred to a second agent. The average handle time was 6 minutes 48 seconds. Figure 1: Channels Offered/Preferred Analysis (Teleperformance CX Lab Health Insurance Customer Interaction Benchmark Report, 2013) 2
3 Having such a high percentage of calls transferred can cause a disjointed experience for customers and could therefore be an area for improvement. Hold and handle times can be shortened if payers can better anticipate the needs of members ahead of time so calls can be routed to the correct agent. Another channel measured in the benchmark analysis was click-to-chat, which had an average handle time of 2 minutes 54 seconds. These interactions are substantially shorter than voice calls. The research also showcased that none of the click-to-chat interactions were transferred to another agent, thus indicating high levels of ownership. For less-complex issues, the click-to-chat channel is a cost-effective alternative to voice, offering easier interaction and quicker responses that benefit customer acquisition. As noted earlier, if payers can anticipate which member calls address simpler issues, these can be routed correctly for more efficient service. In the channel, the report found that payers were highly reactive, with an 80% response rate and automated replies received 67% of the time. Although these results are impressive, if members demand faster response times in this channel in the future, there is room for improvement. Social Media Preferences Social media is already a very popular means of communication utilized by US health insurance payers. Many companies now have at least one social media platform. However, payers are not positioning themselves to address customer inquiries in the social media space. The lack of a strategic approach in order to transform social media into a customer service platform can be observed in numbers: to other platforms. While the average response time for regular questions sent on Twitter is 6.5 hours, companies took on average 13.5 hours to address the same issues on Facebook. Customers have therefore learned that in many cases a tweet will be answered quicker than other channels, and a tweet can be sent and forgotten it doesn t require the customer to wait for an agent to answer the phone or spend time on hold while an agent researches the detail of the complaint. Consumers Now Demand a More Social Service More and more customers are turning to social media channels to discuss problems rather than to praise brands. As observed in new sentiment analysis, 53% of the analyzed customer posts had a negative context. Just 12% of comments noted on social media sites were by customers praising their insurance company (see figure 2). If payers implement an effective strategy for social media, where interactions with members are more successful, percentages of positive posts will likely rise. Early adopters of this approach will benefit in higher levels of customer satisfaction. Figure 2: Sentiment Analysis (Teleperformance CX Lab Health Insurance Customer Interaction Benchmark Report, 2013) Only 0.3% of the customers stated to have social media as their preferred customer service channel. 53% of the total number of customer posts within the social media space has a negative connotation, showcasing that the platform is strongly used by users to complain. Although the preference for social media seems low, research shows that Twitter and Facebook are now the most common social media customer service channels within the health insurance sector in the US. Given this information, it stands to reason that preference for this channel will continue to grow in the future. Overall, Twitter is the preferred channel utilized by people to interact with payers (43%). This preference is explained by the efficient and rapid average response time customers receive in this platform in comparison Best practices suggest that the adequate average response time to consumers on social media is two hours. This is very different to the expectation of a voice call, where the customer expects to be immediately placed with an agent who can help resolve an issue. However, 50% of the posts on 3
4 Facebook and 40% on Twitter were redirected to other channels such as and phone at the request of the insurer. Naturally, private insurance details cannot be discussed on an open forum such as Twitter, but even an ongoing conversation with a customer can appear unusual in a transparent social media network. Instead, most insurers choose to make contact using the same channel as the initial message but will divert to a private channel if the query cannot be immediately resolved. Are Demographics Changing? To gain insight into which channels could be popular with members in the future, a look at preferences by generation is advantageous. As illustrated in figure 3, the phone is by far the preferred contact channel, with and clickto-chat following in all cases in all age groups. Additionally, some interesting differences in channel preference can be observed with social media and the use of mobile apps. First, the adoption of social media as a preferred channel is far more evident in Gen Y (10%) when compared to the Baby Boomers (3%), and similarly the desire by Gen Y to use a mobile app (9%) compares to just 1% in the Baby Boomer generation. No Gen Y customers expressed a desire to use regular mail or face-to-face meetings as a preferred contact channel, yet the Baby Boomer generation still has some people who prefer these communication channels. In the future, when even younger generations mature and become insurance policy holders, we can anticipate that preferences for click-to-chat, social media, and mobile app channels will continue to strengthen. The Benefits of Adding Online and Digital Solutions for a Strategic Advantage There is little doubt that customer experience management will continue to be demand-driven by members. To gain a strategic advantage, health insurance payers should offer a suite of service channels that appeal to multiple generations. In the current healthcare environment, this should include online and digital solutions such as click-to-chat, social media, and mobile apps. This can result in improved levels of customer experience, customer retention and acquisition, and profit increases, to name a few. As online and digital channels for service continue to evolve, it will be imperative for companies to gather solid intelligence via research data and analytics for a clear understanding of what companies are doing. Teleperformance s CX Lab brings together skills across disciplines including industry research, analytics, social media, Internet interactions, and mobile. This information is then translated into actions that improve the customer experience. Working together as a team, we can discover solutions that are key for your company to succeed in the healthcare landscape of today as well as tomorrow. Figure 3: Channels used in the last twelve months by generation (CX Lab Health Insurance Customer Interaction Benchmark Report, 2013) 4
5 About Teleperformance Teleperformance, the worldwide leader in multichannel customer experience management, serves companies around the world with customer acquisition, customer care, technical support, and debt collection programs. The company s innovative solutions for customer data analysis, social media management, hosted contact center, and back office integration improve the customer s experience. The group operates more than 110,000 computerized workstations with close to 149,000 employees across 230 contact centers in 62 countries and serving more than 150 markets. It manages programs in more than 63 languages and dialects on behalf of major international companies operating in a wide variety of industries. About Teleperformance Customer Experience Lab Teleperformance Customer Experience Lab is an innovative center for the research of specific issues related to changing customer behaviors with a focus on major drivers of satisfaction across geographies, channels, and sectors. For more information, please visit Contact us today for more information Millrock Drive Holladay, UT Teleperformance.com Transforming Passion into Excellence Please visit our website Please visit our blog /blog.teleperformance.com Follow us on Twitter twitter.com/teleperformance Watch us on YouTube youtube.com/teleperformance Like us on Facebook facebook.com/teleperformanceglobal
dimension data s 2013/14 global contact centre benchmarking summary report 2013/14 Copyright notice Dimension Data 2009 2013 Copyright and rights in databases subsist in this work. Any unauthorised copying,
Pathways to Delivering Public Services for the Future A comparative study of digital government performance across 10 countries January 2014 January 2014 2 Foreword Whilst navigating the continuing economic
White paper The future of Service Desks - vision Service Desks require strategic consideration and innovation to raise user productivity and to support business goals. Fujitsu has the experience and feedback
Social Media in Recruiting Using New Channels To Source Talent Benchmark Research White Paper Aligning Business and IT To Improve Performance Ventana Research 2603 Camino Ramon, Suite 200 San Ramon, CA
Best Practices to Generate More Sales Leads and Improve Lead Quality Using Toll-free Vanity Numbers Published March 2013 Table of Contents The Channels of Lead Generation Are Expanding Are They Also Weakening?...
Human Capital Management Trends 2013 It s a Brave New World January 2013 Mollie Lombardi and Madeline Laurano Page 2 Executive Summary Human capital management is a key business initiative. Without insight
TRANSFORMATION 2014 2016 Mind Source Technology Vision 2014-2016 1 Download it > read it love it share it Our Approach Mind Source triennial Business and Technology Transformation document provides a perspective
White paper Customer Relationship.. Management.. Improving customer interactions with this powerful technology Executive Summary As we move further into an era when the manipulation and assessment of data
MITSloan MANAGEMENT DIGITAL TRANSFORMATION: A ROADMAP FOR BILLION-DOLLAR ORGANIZATIONS FINDINGS FROM PHASE 1 OF THE DIGITAL TRANSFORMATION STUDY CONDUCTED BY THE MIT CENTER FOR DIGITAL BUSINESS AND CAPGEMINI
TDWI research First Quarter 2014 BEST PRACTICES REPORT Predictive Analytics for Business Advantage By Fern Halper Co-sponsored by: tdwi.org TDWI research BEST PRACTICES REPORT First Quarter 2014 Predictive
Today s State of Work: The Productivity Drain We asked nearly 1,000 managers at companies in the US and UK with at least 500 employees whether today s work processes are efficient or whether they sap their
TURNING SOCIAL FEEDS Into BUSINESS LEADS THE IMPACT OF SOCIAL MARKETING ON TODAY S AUTOMOTIVE ECOSYSTEM STRATEGIC REPORT FEBRUARY 2014 CONTENTS 3 10 33 33 Turning Social Feeds Into Business Leads Leadership
Introduction.... 1 Emerging Trends and Technologies... 3 The Changing Landscape... 4 The Impact of New Technologies... 8 Cloud... 9 Mobile... 10 Social Media... 13 Big Data... 16 Technology Challenges...
RESEARCH RESEARCH POINT OF VIEW August 2011 Putting the Voice of the Customer to Work: A Better Process for Customer- Driven Action Planning and Implementation By D. Randall Brandt, Ph.D., Vice President,
A publication of s Financial Services Institute (FSI) Building a Customer-Centric Business Model for Retail Banks Contents Section Page 1. Point of view 2 2. Current situation 10 3. Competitive intelligence
A REPORT BY HARVARD BUSINESS REVIEW ANALYTIC SERVICES Lessons from the Leading Edge of Customer Experience Management Sponsored by Lessons from the Leading Edge of Customer Experience Management CUSTOMER
Growth Services Selling Power: Better Sales Leads and Conversion Rates in a 360-Degree World Better Sales Leads and Conversion Rates in a 360-Degree World THE LEADERSHIP CHALLENGE: A WEALTH OF DATA Today,
Argyle Conversations by Argyle Executive Forum SM Darren Rodgers, Health Care Service Corporation, and Kecia Serwin, SAS, discussed legislation and trends in the healthcare space and their impact on the
2015 global contact centre benchmarking report summary report 2015 Copyright notice Dimension Data 2009 2015 Copyright and rights in databases subsist in this work. Any unauthorised copying, reproduction
Getting the most from social: An integrated marketing approach Foreword Matt Glasner General Manager, Experian Marketing Services How does social media fit in as part of a true multichannel marketing strategy?
Increasing confidence through effective security July 2013 There is much research to show that the adoption of cloud-based services is now widespread. It is also widely reported that the foremost concern
FLYING ABOVE INDUSTRY STANDARD? BENCHMARK REPORT H1 2013 CONTENTS WELCOME TO THE H1 2013 BENCHMARK REPORT! This benchmark report (Half 1 2013) covers email activity from January - June 2013 and a wealth
Industry Strategy Guide North America Region Customer Service Strategies for the Insurance Industry Customer Service Strategies for the Insurance Industry Table of Contents 3 Introduction 4 The Key Challenges
WEB AND MOBILE SITE PERFORMANCE PRIMER FOR BUSINESS MANAGERS Response time. Web site availability. Mobile application performance. Upon hearing these terms you might assume they re the sole responsibility
1 Whitepaper: Is the Time Right to Move Your Contact Center to the Cloud? Growing numbers of businesses are moving their contact center operations to the cloud. What do they know that you don t? This whitepaper
Annual B2B Marketing Data Benchmark Report 2015 HUNDREDS OF COMPANIES THOUSANDS OF FILES HUNDREDS OF MILLIONS OF RECORDS Growth of B2B Records Analyzed through Workbench 2013 7M RECORDS ANALYZED 2014 61M