confidential & proprietary - page 0 20 south quaker lane, suite 230 alexandria, virginia 22314...
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Confidential & Proprietary - Page 120 South Quaker Lane, Suite 230 • Alexandria, Virginia 22314 • Phone 703 823 9530 • Fax 703 823 9538 • www.customercaremc.com
Selling Quality to the CFO: Creating Patient Experience 3.0 to Dazzle the CFO
.
John Goodman, Vice Chairman
Customer Care Measurement & Consulting
VHQA
November 6, 2015
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Challenge
• Patients are sicker• Care is more complex• Demands continue to escalate
Therefore…….• Need to change mindset & think and act creatively• Focus proactively on Culture, Communication, &
Commitment • Incentive – HCAHPS, revenue and right thing to
do
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Agenda
• Evolution of Customer Experience
• Examples of being proactive and preventive
• Applying technology
• Getting the resources from the CFO
• Prerequisites
• Evaluation of your readiness for CE.3.0
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Driving the Customer Experience
• Staff isn’t to blame
• People need flexibility and
explanations
• Sensibly create remarkable delight
• Technology is the key to VOC and CE
• It’s 10-20 X more profitable to deliver
great service
• VOC is more than surveys and
complaints
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Context For Proactivity: Customer Experience
Proprietary © 2013 CCMC
5
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Firefighting Mode
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Size of Satisfaction and Revenue Opportunity• Formal complaints
• Grumbles
• Silent
• Potential
Proprietary © 2012 TARP Worldwide
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2015 National Rage Study: What Complainants Wanted & What They Got
1
Remedy % Wanted % Got To be treated with dignity 93% 32%
Offending company put itself in my shoes 83% 19%
An assurance that my problem would not be repeated 81% 15%
My product repaired/service fixed 80% 25%
An explanation of why the problem occurred 80% 18%
To be talked to in everyday language; not scripted response 79% 29%
A thank you for my business 76% 27%
An apology 75% 28%
Just to express my anger/tell my side of the story 58% 35%
My money back 57% 18%
A free product or service in the future 44% 8% Financial compensation for my lost time, inconvenience or injury
42% 5%
Revenge 24% 2%
Other 14% 2%
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Definition and Approaches
• Definition of Proactive– Control situation by causing action rather than waiting to respond to an event
• Approaches to proactivity− Know what will happen – operational data – FedEx
− Predict what may happen – Harley battery will die in cold
• Benefits− One third as expensive
− Prevents problems that would not surface but do 20% damage
− Eliminates employee frustration
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Examples Based on Knowing What Will Happen
• Prevent uncertainty – confirmation of appointment
• Warn about unpleasant surprises or process status – late payment charge or Domino’s
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Real Psychic Pizza
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Quicken Loan Tracker
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Examples Based on Knowing What Will Happen
• Prevent uncertainty – confirmation of appointment
• Warn about unpleasant surprises or process status – late payment charge or Domino’s
• Proactive education on troubling facets of transaction – SoCal Ed & auto repair labor rate
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Proactive Education
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Examples Based on What Might Happen
• Prevent problems by helping customer avoiding actions – 50% of forms submitted have errors − Banner of top three mistakes on online form and
− Send tip sheets sent to clueless corporate customers
• Educate on customer responsibilities – FedEx how to damage a shipment
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Customer Education
Here is what we do to smash
your package!
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Customer Responsibilities
Here are your responsibilitiesas customer for
preventing damage to your
shipment!
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1. Website – your first line of defense – top 5 issues, new visitor portal, FAQs, funny videos
2. CRM− Proactive notification across whole patient journey
− Analysis of satisfaction by type of issue
3. Wireless/Mobile – Internet of things – monitor product use – proactive education
4. Gamification – recognition for support, create incentives for patient education
5. Video best method of education
Technologies to Enhance the CE
18
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Quantify The Patient Experience
Mollified2
30%
IQuestion/Problem
Experience
II ContactBehavio
r
IIIContact Handling
PatientsComplainers
5-50%
No problem
experience60%
Problemexperience
40%
Experience suggests three strategies:
Prevention, Solicitation of Complaints, and Response
IVMarketImpact
% Definitely/Probably
Recommend/repurchasefrom same organization
Dissatisfied3
20%
Satisfied1
50%
90%
90%
20%
60%
60%
Non-Complainers
95-50%
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=
=
=
=
x xx
=
250
600
800
6,000
7,650Total Patients At Risk
20,000Customers
withProblems
20%Dissatisfied
80% NotRepurchasing
40% NotRepurchasing
50%Satisfied
10% NotRepurchasing
75% Do Not
Complain
25%Complain
30%Mollified
40% NotRepurchasing%
Create The Economic ImperativeDemonstrating financial impact with the CFO and the General Counsel
At $2,000 per patient, $15,300,000 at risk
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=
=
=
=
x xx
=
188
450
600
4,500
5,738Total Patients At Risk
15,000Customers
withProblems
20%Dissatisfied
80% NotRepurchasing
40% NotRepurchasing
50%Satisfied
10% NotRepurchasing
75% Do Not
Complain
25%Complain
30%Mollified
40% NotRepurchasing%
Create The Economic Imperative
Reduce Problems by 25% via Proactive Education
At $2,000 per patient, $11,476,000 at risk adding $3.8 MM to top line.
At 25% gross margin, $500,000 spent on patient education give ROI of 91%
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Risk Scenario: Opportunities
Exacerbating Factors
Exacerbating Factors
Not Escalated
Not Escalated
Expected Claim/
Lawsuit
Expected Claim/
Lawsuit
Injury, But No Claim/
Lawsuit
Injury, But No Claim/
Lawsuit
Surprise Claim/
Lawsuit
Surprise Claim/
Lawsuit
EscalatedEscalated
ReportedReported
Patient Encounters
Patient Encounters Problem
Occurs
Problem Occurs
Not Reported
Not Reported
Negative WOM Consumers/
PCP
Negative WOM Consumers/
PCP
Well Handled
Well Handled
Poorly Handling
Poorly Handling
Contributing Factors
Contributing Factors
SettlementSettlement
SettlementSettlement
No Settlement
No Settlement
10 – 40%
10,000
40
20 – 50%
50 – 80% 20
75
17
12
60
X
30,000
$1.8 Million
Warned of Potential Problem
Warned of Potential Problem 29
X
600,000
$17.4 Million
80– 95%
5 – 20%
800
2,000120
1,200
8,000
5
15
1,080
Proprietary © 2012 TARP Worldwide
Critical ResearchOpportunity
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Problems Raise Sensitivity to Price, Hindering High Margins
10%
22%
46%
74%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
No problems 1 problem 2 to 5 problems 6 problems ormore
% D
i ss
ati s
fied
wit
h p
r ice
or
f ees
Percent of customers dissatisfied with fees rises with number of problems.
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Word of Mouth Impacts
• Patients and families – especially given social media impacts
• Referring physicians
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Great Service Is A Word of Mouth Management Mechanism
10%delighted
80%satisfied
Telltwo
Tell
one
=
=
2,000
8,000
4,000
10,000customer
s
10%dissatisfie
d
Tell six
= -6,000
10,000 Referrals X 1 Action30 Referrals
= 333 New Customers
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Create an Integrated Voice of the Patient
• Customer surveys
• Contact & Social Media – provides root cause data
• Internal operations process, quality data
• Employee input – second source of root cause
• Together, these elements are used to quantify the cost of inaction on customer experience issues
+ = Total view of the customer
experience
Internal process and quality data
and employee input
+Customer
contact and interaction data
Surveys of customer
satisfaction and loyalty
Take The Role Of Chief Customer Officer
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Effective Voice of the Customer Process
1. Well-defined ownership of process and
issues
2. Unified data collection
across whole lifecycle
3. Integration of multiple
data sources
4. Visible, granular,
actionable reporting
5. Clear revenue and profit
implications
6. Formal processes for
translating data into actions and
targets
7. Formal systems for
tracking impact
8. Process supported by
company-wide incentives
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Prerequisites
• Linkage of CRM with all major data bases
• Granular recording of preventable patient problems
• Value of average customer
• Role of Word of Mouth in institution choice
• Marketing and sales willing to warn customers in advance
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Working With The CIO
• Use journey map as basis
• Unified goals for CE
• Analysis of website failures, e.g. search
• Blur the lines for personnel− Joint presentations
− Joint happy hours
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Starting Tomorrow
• Negotiate an average value of inpatient and outpatient • Ask five whys for top five issues• Understand your non-complaint rate (85-95%)• Incorporate operational data with your complaint and survey
data to create a unified picture of CE – add employee input• Create an economic imperative for each department based
on how many patients have encountered this issue• Pick your battles• Deliver Psychic Pizza and prevention
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Ten Myths About Service
1. Always exceed customer expectations
2. Answering the phone really fast is the key to success
3. People always prefer talking to people
4. The customer is always right
5. Complaints are down, things are getting better
6. Employees are the cause of most dissatisfaction
7. Price and cost cutting is the key to success
8. We’re better than the average in our industry – that’s great!
9. We’re at 90% satisfaction – let’s declare victory!
10. We measure Net Promoter and Customer Effort - we’re done!
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Summary• Warn and educate customers to reduce surprises• Understand the full range of root causes of problems • Use technology to prevent workload by proactively
educating, connecting, and delivering psychic pizza • Quantify the revenue/WOM impact of status quo to get
CFO support
• Outlined in detail in Customer Experience 3.0 published by AMACOM
• For additional articles on your industry: [email protected] or 703-823-9540
Follow me on Twitter – Jgoodman888