Navigating the Roadmap to Trustability

make
an
Navigating the Roadmap impact!
to Trustability

March 28, 2012

#prghealthcare
COPYRIGHT © 2012. ALL RIGHTS PROTECTED AND RESERVED. 1

Today’s Speakers

Marc Ruggiano Dietrich Chen, Ph.D. Elizabeth Glagowski
Partner, Director, Executive Editor, Strategy
Peppers & Rogers Group Peppers & Rogers Group Peppers & Rogers Group


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Agenda

Trust in Healthcare Research Summary

Building a Trust Platform

Trust Roadmap Case Example


Trust in
Healthcare
Research Summary


Consumer Perception of Today’s Health Insurers


Consumers Describe the Ideal Health Insurer


Customers’ Trust in the Health Insurance Sector

38%
43%
Trust

19%

Distrusters Neutral Trusters


Customers’ Trust for Individual Health Insurers

100%

80%
Respondents

60%

40%

20%

0%

Health Insurer

Distrusters Neutral Trusters


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 I'm Makes enrolling in Works well with my Is typically first to
keeping the accurately high level of traveling away from the plan easy and primary doctor's market with new
promises it makes business and home straightforward office services
technology
innovation that
directly benefits me

Distrusters Trusters

Scale: 0 = strongly disagree, 10 = strongly agree
Source: Peppers & Rogers Group research

COPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED

Communications from the Health Insurer

10
9
8
7
6
Rating

5
4
3
2
1
0
Communicates Proactively alerts Provides easy to Uses simple Communicates Sends me
clearly with me me to potential read statements language and with me on a communications
problems and and explanation of words I can easily timely basis that reflect my
issues that may benefits understand unique needs and
affect my interests
coverage




Trust and Communication Frequency and Channel

100%

80%
Trusters & Distrusters

60%

Truster
40% Distruster

20%

0%
Too little Just right Too much All of the Some of None of
time the time the time

Volume of communication Amount of time health insurer
from health insurer uses preferred channel of
communication



Communications with the Health Insurer

10
9
8
7
6
Rating

5
4
3
2
1
0
Representatives I can typically Representatives I am able to My issues, At the conclusion I am asked for Representatives
of my health solve any do an excellent reach a problems and of a contact, I feedback on my of my health
insurer listen problem I am job of representative of concerns are am warmly and health insurer's insurer apologize
carefully to my having by understanding my health insurer typically resolved genuinely representatives immediately
issues and contacting my complex issues in a reasonable in one contact thanked for each time I make when a mistake
concerns health insurer amount of time being a customer contact has been made




Trust Impacts Loyalty

10

9

8

7

6
Loyalty*
5

4

3

2

1

0

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.”



Trust Impacts Advocacy

10

9

8

7
Advocacy* 6

5

4

3

2

1

0

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.”



Trust Impacts Health Outcomes

10

9

8

7

6
Rating

5

4

3

2

1

0
Follow Doctor's Instructions Follow Health Insurer's Healthier Because of Health
Instructions Insurer



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



Building a
Trust Platform


6 Building Blocks of Trust

Goodwill Doing the right thing

Trust

Competence Doing things right



Anticipate customers’ needs,
understand the context in which they
Empathy
present, and work to deliver
beneficial solutions
Proactively and reactively
communicate openly with customers
Goodwill Transparency
about information, policies, decisions,
and outcomes
Take ownership and action at the
individual and organizational level
Accountability
when customers encounter negative
experiences
Trust
Deliver accessible, convenient,
Customer
consistent, and credible experiences
Experience to customers regardless of all else

Train, enable, and authorize
Competence Empowerment employees to take actions that earn
customers’ trust

Recognize and reward trust-building
actions and customer-centric
Recognition
behaviors of high-performing
employees



Empathy
and outcomes
Accountability
experiences
Trust
Customer

customers’ trust

Recognition
employees


Empathy

Empathy

Goodwill Do we understand our customers’ health-
related goals and objectives, and know what
motivates their health-related decisions?
?
Have we clearly defined the role we intend to
play and set customers’ expectations
appropriately?
?
Trust

Are insights about our customers’ needs
accessible to customer-facing employees? ?
Do we know which customers’ are best served
Competence by each of our different products and/or
services?
?
Do we match our customer-service staff to
customers based on personality traits, unique
perspectives, and/or necessary expertise?
?


Transparency

Transparency
and outcomes

Goodwill
Do we have an efficient method of 2-way
communication with each of our customers? ?
Do we make explanatory information
available to our customer-facing employees,
and via self-service channels?
?
Trust
Do customers’ receive explanatory information
in plain language and written at an
appropriate level?
?

Competence Do we proactively communicate with our
customers? ?
Do customers’ who believe they are not
getting the “truth” have an acceptable
alternative for appeal?
?


Accountability

Accountability
experiences

Goodwill Do we know what we have “promised” to our
customers, at both the company and
employee level?
?
Do we accept responsibility when we
communicate the wrong information, make the
wrong decision, or can’t be reached easily?
?
Trust
Do we track “broken” promises at the
individual customer level, and report on them
within the company?
?
Does the company and its employees have a
Competence process for resolving issues of ownership and
action?
?

Does the company or an employee act on
100% of negative customer experiences? ?


Customer Experience

Customer

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
Competence we 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? ?


Empowerment

Empowerment employees to take actions that earn
customers’ trust

Goodwill Does the company have well-defined trust
principles, and are all employees trained on
them?
?
Do customer-facing employees have the tools
they need to understand and act on individual
customer issues?
?
Trust

Are proper policies and permissions in place so
that employees have adequate guidance on
when and how to apply trust principles?
?

Competence Are the necessary controls in place to ensure
adequate oversight of trust-related programs? ?
Does a “culture of trust” exist within all levels,
functions, and locations of the company and
its business partners?
?


Recognition

Recognition
employees

Goodwill Are actions which build trust and enhance
customer-centricity tracked at the employee
level?
?

Do employee recognition programs include
trust-related components? ?
Trust

Does the performance management program
address trust-related performance metrics? ?
Do employees receive tangible rewards and
Competence clear recognition for trust-related performance
excellence?
?

Are trust leaders among the employee base
viewed as highly valuable assets? ?



Empathy
and outcomes
Accountability
experiences
Trust
Customer

customers’ trust

Recognition
employees


Poll question

Which of the 6 building blocks provides the most
immediate opportunity to build trust within your
organization?


Trust Roadmap
Case Example


Building a Platform for Trustability

1 2 3

Trust Trust Platform Trust Roadmap
Assessment Development

• Conduct workshops and • Identify Trust gaps along • Prioritize initiatives
executive interviews to Moments of Truths • Prepare implementation
align trustability within the
• Develop Trust-building plans and capture
corporate strategy
initiatives that target Trust sequencing of initiatives on
• Conduct member survey to framework components a roadmap
assess trust baseline and
• Evaluate initiatives along, • Identify execution team,
benchmark against the
e.g., key dependencies, and
industry
– Trust impact constraints
• Gain additional trust insights – Ease of implementation • Provide on-going support
from employee surveys and – Financial and/or options
interviews satisfaction metrics
• Develop Trust guiding • Conduct workshops to
principles that are used to share and validate findings
guide the actions of
employees

Trust Guiding Principles were developed with our client

Trust Guiding Principles
Empathy

1
We transparently communicate
Goodwill Transparency what is the best for our customers

Accountability

We provide our customers with the 2
Trust
expected customer experience for
Customer all products and services
Experience

Competence Empowerment
We empower our employees to earn 3
our customers’ trust and recognize
their trust-building behaviors
Recognition


Voice of Employee questions were developed based on
the Trust Framework

Do you think our company is transparent in the way we
1
communicate with our customers? Why do you think so?
Goodwill
Do you think our organization assumes accountability
2
when customers go through negative experiences?

Trust

Do you think our company currently provides good and
3
consistent customer experience at all channels?
Competence

4 Do you think our company empowers frontline
employees to resolve complaints?


Several Trust-building initiatives were identified based on
the gap assessment
Trust Gaps Discovered Initiative to Close the Trust Gaps

Lack of awareness about comparative product and price
advantages
1
Build awareness and educate
Lack of awareness about innovation-leading products members about competitive product
and price advantages

Lack of awareness about comparative customer service
quality

Lack of empathic communication after members have 2
negative member experiences Develop empathic communication
when members go through negative
experiences
Lack of empathic communication after members have
unresolved complaints
3
Provide clearer explanation of bills and
other educational material as part of
Members often do not understand the explanation of bill the onbaording process


Trust initiatives were prioritized along 3 dimensions

L M H

H

M
Feasibility (+)
Trust (+) L
H
H
M
M
L L M H L
Impact (+)

Trust (-)


To drive immediate results, the feasibility dimension was
given the largest weight

L M H

H

M
Feasibility (+)
Trust (+) L
H 1.3 1.2 1.1
H
M 2.3 2.2 2.1
M
L 3.3
L 3.2
M 3.1
H L
Impact (+)

Trust (-)


Trust-building initiatives were then sequenced in 3 phases

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

27 Initiatives Phase 2 Initiatives 3 Initiatives


14 Initiatives Phase 3 Initiatives


End of Trust Project


How to get started

Conduct internal working session to discuss trustability
with leadership team

Conduct trust survey to assess trust baseline and
benchmark against Peppers & Rogers Group trust research

Gain additional trust insights from employee surveys
and interviews

Develop trust guiding principles that are used to guide
the actions of employees

Review language used in member communication
(e.g., EOB) and revise if necessary for simplicity


Poll question

Where does trust sit on your organization’s priority list?


PRG Healthcare Practice Activity

1. Trustability Assessment and Working Sessions
• Conduct your own trust assessment and benchmark it against
Peppers & Rogers Group research
• Schedule your own on-site working session for your colleagues
• Contact Tom Schmalzl at tschmalzl@peppersandrogersgroup.com

2. Join us for upcoming webinars in the “Trust” series:
• “The Social Media Agenda for Healthcare” – April 25
• “Case Study: Making the Consumer-centric Transformation” – May 17
• Register at http://www.peppersandrogersgroup.com/healthcare

3. Come visit us at World Healthcare Congress – Booth #111
• April 16 – 18 in Washington, DC

4. Follow us on Twitter @PeppersRogers


Q&A Session

Marc Ruggiano Dietrich Chen, Ph.D. Elizabeth Glagowski
Partner, Director, Executive Editor, Strategy
Peppers & Rogers Group Peppers & Rogers Group Peppers & Rogers Group


Marc Ruggiano Dietrich Chen, Ph.D.
Partner Director
mruggiano@peppersandrogersgroup.com dchen@peppersandrogersgroup.com
+1.203.989.2189 (office) +1.203.989.2200 (office)


Navigating the Roadmap to Trustability

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