I just received a new bill from AT&T – and get this – it was a personalized video of my charges. Yes, that is correct, a video. It was my actual bill, with my actual charges explained. And it was cool. I watched it three times and then recorded it and made a video to share. Here is the short video I made of my experience:
An Old Dog with Some Cool New Tricks
To be sure, I am not a raving fan of AT&T but I respect their product offering, and they seem to be getting much better at customer service. In truth, their coverage where I live at the beach in Florida is terrible. But, for the most part, they are pretty spectacular anywhere else I travel for work. I pay around $130 to $150 every month for their services. I know and trust and rely on their product. But, historically speaking I have had two issues with their product – at least from the arena of understanding my bill charges and getting someone one the phone to help me get answers. I can sympathize as they have a lot of customers to deal with daily. However, I am still the customer, and I pay them close to $1500 per year. I have the right to expect better. Such is life.
I have upgraded my phone and service several times in the life of my relationship with AT&T. Invariably, I am always confused at the one-off charges I see on the bill and in many cases, I have had the need to call and clarify what they were. I dread this scenario because I know it will be several trips through their telephone prompt system, then saying the same thing to at least three reps that have a somewhat less than mastery of English. One month ago, I upgraded my iPhone to the new 5 (my relationship with Apple is a story in itself, and someday I may let you know about it).
So imagine my surprise when I received an email from AT&T with a link asking me to watch a video about my new bill. The call to action was clear and the broadcast email was well done, so I obliged. It took me to a page at the AT&T site where I saw a video that explained my most recent bill, in clear detail – even the one off charge. It was very well done, and it was tailored just for me. I can still get access to the regular online or printed bill as well – but I feel no need to now.
How did they do it? I am not so naïve to think AT&T chose to invest resources in the AV department to create a video just for me – so I have to assume this was done by some smart new vendor that can tie into their systems and use list data to create custom videos. Whatever the reason, the result was that I understood the bill, and I did not feel a need to call AT&T – this saving them the transaction cost. I have to assume the economics are for the mass/custom video versus the support line. Furthermore, they saved me aggravation and got me talking in a positive light about AT&T. Nice work.
One other thing, because this is new technology and a new experience (I am sure they tested it quite a bit), AT&T was smart enough to ask me some survey questions at the end to see what I thought about it. Thus, validating their efforts. Again, nice work.
If My Phone Provider Can Do It, Why Can’t My Healthcare?
As I said, I spend approximately $130 with my phone provider each month. By contrast, I spend $400 with my health insurance provider. As bad as my old phone bill was, by contrast, it is like a new Harry Potter novel (FYI I love Harry Potter books) compared to the bill I get from my insurance company. Or should I say, the “THIS IS NOT A BILL” I get from my health plan. Take a look at a sample Explanation of Benefits (EOB) below.
Firstly, I find it somewhat ironic that it is called an Explanation of Benefits – as it is neither a benefit nor a good explanation of what I owe. I am not picking on any one plan – I just happened to be able to find a sample EOB for them online. And not wanting to post my own, I had to have something to speak to, so they are the lucky winners. In truth, from what I know and what I have heard, all if not almost all insurance companies are this bad.
Here is what drives me crazy about this document. It gives me more than I need in a poorly laid out manner, so it guarantees my confusion. Thus, resulting in my need to call them. Thus, having to deal with the call center for the insurance company. Thus, ensuring I add anger to my confusion. This repeat cycle is a never-ending loop for million of customers across the country.
When will the health insurance companies get it right? If AT&T can do it, I now expect them can as well.
Any healthcare company that builds products or talks with customers ought to have an “Innovation Center”. The idea is to create a physical facility that is part consumer lab, part living laboratory, and part workplace- aimed at designing and delivering the healthcare models of the future. It will be an environment where all organizational and community stakeholders can experience your company’s view of the future of healthcare and be inspired to help create it. An Innovation Center can incorporate the brand promise within a physical setting. An Innovation Center shows true commitment to practice innovation in healthcare. It is time for all healthcare companies embrace the future the way the Mayo Clinic has done for years.
To get started on what I am about to talk about, watch this virtual walk-through of the Mayo Clinic Center for Innovation.
What is an Innovation Center and Why Would You Need One?
The main objectives for an Innovation Center are:
1. Designing
2. Prototyping
3. Collaborating
4. Simulating
5. Validating
6. Envisioning
Lets discus them in some detail.
1. Designing.
Job # 1 of an Innovation Center should be to create (and improve upon) intentional experiences for your customers. You cannot have a good experience without good design. The Customer lab can serve as the place to visualize and practice Design Thinking. Wikipedia defines Design Thinking as “a style of thinking [designed with] the ability to combine empathy for the context of a problem, creativity in the generation of insights and solutions, and rationality to analyze and fit solutions to the context. “
An Innovation Center lets you teach the process and the methods of Design Thinking. These are the tools and techniques that great designers use to generate ideas and solve problems. Your aim should be to create an employee base trained in the arts of creative problem-solving.
Source: Design Thinking for Developing Innovative Communication Strategies By Don Bulmer
2. Prototyping.
Job # 2 of an Innovation Center should be to create faster paths to market for new products and models. One such method to do this is referred to as rapid prototyping and uses the discipline of Minimum Viable Product (MVP). MVP enables designers to validate assumptions about their “product” in two important aspects: its value and the demand for it.
By definition, MVP is the version of a product that gets built through one cycle of a build, measure, and learn loop – as fast as possible. Once the MVP is confirmed (keep in mind it may take a few iterations), other lean methodologies can be employed to build upon it. An Innovation Center allows this rapid prototyping to occur outside the traction of the legacy product and technology build systems at your company. MVP delivered through an Innovation Center enables product developers, system designers, and business analysts to determine whether people want what they are building – in a manner that gauges acceptance and demand – yet preserves capital and time for your company.
3. Collaborating.
Job # 3 of an Innovation Center should be to create a physical place designed to facilitate adult learning and team collaboration. As discussed in the book Where Good Ideas Come From: The Natural History of Innovation, big ideas are a series of smaller ideas coming together to form something that is meaningful to the market. The Innovation Center should be a co-laboratory that brings multi-disciplinary thinkers together on a common problem. Think of it as a modern version of a Library, except you are allowed to talk, experiment, and interact on topics of importance to your customers and your company.
You cannot ask people to collaborate on work if there has been no historical support for collaboration at your company – they simply just do not know how. They remember when they were kids but were programmed out of that model through a progression of educational settings and work scenarios where individual work product was the mode of operation. Asking people to change their work models without giving a realistic means to do so is merely rhetoric. An Innovation Center is designed to force interaction between co-workers. When combined with modern adult learning techniques like teaching collaboration, an Innovation Center can be the breakthrough that your company needs to re-educate its employees on how to work together.
4. Simulating.
Job # 4 of an Innovation Center should be to create a place to simulate customer interactions. Simulation is another great tool for adult education. While classroom learning and computer-based training still have their (small) place in the arsenal of training tools, nothing substitutes simulating a real life scenario to embed the training into the mind, and actions, of the trainee.
If your current training facilities do not invoke/inspire interest and a spirit of learning about how the customer feels in response to your customer-facing interactions – consider extending the facilities into an Innovation Center. Use the space as a simulation center to teach how to deliver the best results to a member and video it to review in private.
I had the opportunity to a take tour of the CAMLS — Center For Advanced Medical Learning And Simulation in Tampa, FL. I was highly impressed with this innovation facility and what it will accomplish for the future of medicine and healthcare. You can see some images from my time there in this short video.
5. Validating.
Job # 5 of an Innovation Center should be to create a place to have customers provide feedback on your company’s products and services. Part of the MVP concept mentioned above requires feedback. Healthcare is not like software – it is harder to have Beta users and not create tenuous or even dangerous situations. Proper validation through customer feedback is essential to great product design.
An Innovation Center as a customer lab allows this to happen with the control and confines of your company and reduces the need to pay outside parties to accomplish this oft-repeated task. To be a great consumer company, your company should foster its ability to do firsthand consumer research.
6. Working.
Job # 6 of an Innovation Center should be to your workplace of the future. Unless your company offers workspace like Google (and there are many of these, especially in Austin!) – consider using your space to transform your company’s cube farm into a dynamic workplace. Even if you are doing the best work on Earth, if you are sitting in a cube farm only lit by artificial overhead lighting, chances are you are miserable. Employers are obligated to make great environments for all people to work in, not just the executives. But convincing leaders about what this space should look like is hard to do.
An Innovation Center is supposed to look different – so make it your staging ground for your transforming workplace. Build it with the most modern yet simple furniture. Give it the technology bells and whistles that are fun to use and make people happier when using them. Keep it open and well lit. Provide couches and comfortable chairs to think in. Make it like everybody’s favorite thinking place – Starbuck’s. This will greatly enhance the employee experience and value proposition – and as a result, create a more productive workforce.
7. Envisioning.
Job #7 of an Innovation Center should be to create a fluid understanding of what the future of healthcare might look like. According to Microsoft, their “Microsoft Innovation Centers (MICs ) are state of the art technology facilities for collaboration on innovative research, technology or software solutions, involving a combination of government, academic and industry participants.” Apparently there are now more than 100 Microsoft Innovation Centers worldwide. IBM has several IBM Innovation Centers as well. The concept used at Microsoft’s Innovation Center is “Behind this door lies the future – not a vision of what we want, but a vision of what will be.” Your company should adopt this philosophy as well.
Telling is greatly improved by showing. Teaching a man to fish is how the old adage goes – try putting the pole in his hand near the water, and you are off to the races. Showing removes the need for employees to try and interpret what your leaders are envisioning. Instead, it evokes people to quickly debate on what they see or come up with ideas on how best to implement them. This should be a focus for your company.
Justifying the Cost
In Summary, an Innovation Center can be easily justified as both a capital expenditure and a resource development tool. To compete in a consumer economy, a company needs the capacity to think, react, and dream at the speed of the customer. The natural functioning of business units is contrary to this need. A customer lab opens up the ability for consumer thinking for the whole company, without jeopardizing the current operations.
So the question is not, how can an insurance plan justify an innovation center on an ongoing basis? – but how can they not if they want to become great consumer healthcare companies?
But a word of caution on this idea – companies and the people that work for them change – what is needed today will be old hat tomorrow. If you are going to build your own innovation center – don’t pour it in concrete. Meaning, save room for new ideas and build it modularly so sections that are no longer relevant can be removed.
Wednesday, March 13, 2013, 1:00 pm – 4:00 pm in Lake Mary, FL; 5th Annual Leadership Summit on Health Plan Innovation
In the mid 2000’s, there was a disruptive movement in healthcare to build nurse practitioner run clinics within grocery store settings. Retail Health was disrupted again when insurance companies started building retail stores to attract consumers and sell their insurance products. Recently, partnerships between health plans and urgent care centers/retail clinics have spurred even more opportunity for plans to identify options for additional non-emergency services instead of expensive emergency room visits, when appropriate.In this workshop, learn how insurers are exploring this changing dynamic to not only control costs, but also attract new customers and coordinate member care. Key takeaways include:
Understanding the purpose and use of a retail storefront
Assessing the impact on the plan-member relationship
Understanding the payment model for a retail care clinic
Assessing the impact on the plan-provider relationship
Incorporating retail clinics and urgent care centers into accountable care and changing models
This workshop will be split into three distinct sections:
Part 1 – A brief history of retail health and its place in insurance
Part 2 – Case Studies from successful organizations
Part 3 – Open Discussion and Q&A on “The Future of Retail Stores and Clinics for Insurers”
PANEL DISCUSSION: Power to the Patient: Technology and Networks that Support Consumerism
Tuesday, February 26, 2013 at 1:30 – 2:45 in Arlington, VA 22201; 6th Annual Consumer-Directed Healthcare Forum
Consumer-directed healthcare at its best empowers consumers-providing information about price, quality and treatment options; offering network options and incentives, including access to low cost self-care and retail healthcare; and providing tools, technology and interventions that help consumers make the best choices possible. Finally, you’ll learn the value of providing members access to critical pricing and quality information. Key takeaways include:
Learn about demand management programs that educate members on proper utilization of services.
Explore trends and development in the availability of price and quality data.
Gain insights on the evolution of retail healthcare and learn what’s coming next.
Retail health— from convenient care clinics in drugstores to the emerging insurance exchanges mandated by healthcare reform—has the potential to reshape the provider and payer markets. Health plans are taking a position by investing in technology, assisting members with price and quality transparency, and developing innovative care networks that broaden member access. This webinar in brief is about how consumer-directed healthcare empowers “shoppers” by providing them with information about price and treatment options so that they can pursue cost-saving opportunities. As a result, a growing number of managed care organizations are adding retail health stores and clinics within their networks. Consumers want convenience in their health care options, which is right in line with retail channels offer.
PANEL DISCUSSION: Power to the Patient: Technology and Networks that Support Consumerism
I will be giving a talk on Tuesday, February 26, 2013, at 1:30 – 2:45 in Arlington, VA at the 6th Annual Consumer-Directed Healthcare Forum.
Here we will discuss how consumer-directed healthcare (at its best) empowers consumer-providing information about price, quality and treatment options; offering network options and incentives, including access to low-cost self-care and retail healthcare; and providing tools, technology and interventions that help consumers make the best choices possible. I will provide insights on the evolution of retail healthcare and learn what’s coming next.
You can see an extended version of the talk I will be giving in the Slideshare below.
I will be giving the keynote at the Pre-Event Kickoff for Jacksonville Startup Weekend today and I am going to speak on a simple, but valuable concept – learning from your competitors. Last year at the Startup Weekend for North East Florida I was honored to give the keynote. I am proud to say that I am slated to give it again this year at the 2013 Startup Weekend on January 25th.
Understanding of the Consumer’s Need of Your Product
This is obviously of the utmost importance. If you cannot clearly and simply identify your consumer, you do not have a product. I speak in great depth about this in other BLOG posts so I will not go into detail on it here. But I will refer you to the following blog posts for reference:
At Last Year’s Startup Weekend I focused on how start-ups need to consider the larger market ecosystem surrounding their product. At the time, I was the Chief Innovation Officer for GuideWell and we were making plans to build our own start-up accelerator. We also had an active pipeline of ideas that we were watching the market for with the intent that we would make an informed build, buy, or ally decision on how to proceed.
During the discussion at Startup Weekend, I attempted to elevate the attendees thinking about their product so that they considered how it fit inside the prioritized needs of the existing marketplace. This is especially true in the healthcare space, where market entry is difficult and reliance on the existing infrastructure is of utmost importance. I asked them to consider if the product had viability to a large insurer like the one I worked for, and if so, would the best path forward be as a vendor or to outright sell it. I cautioned them that being a product vendor of a multi-billion dollar, highly-regulated company is high on the impossible side for a start-up, and could ultimately bankrupt them trying to get up to compliance with a long list of requirements and regulations. While this can be viewed as very unfortunate, it is nonetheless true.
Instead, I planted a seed for them to consider approaching large companies with the intent to sell their product and its IP in its current state. This form of exit strategy, I believe, will become more viable over the next several years. It allows the entrepreneur to acquire cash and most probably a retained contract to further develop it for the legacy company. Of course, that too comes with its’ own set of difficulties.
Understanding Your Competitors Position Against Your Product
Henry Ford
I wanted to make some additional points on the need to have a greater understanding of the market and your product’s place in it. Today we will look at what we can learn from our competition. Here again, I advocate that if you cannot clearly and simply identify your competitors, you do not have a product. Even product category inventors like Ford and Apple have competitors.
Henry Ford, the inventor of the automobile, was once quoted as saying “If I had asked people what they wanted, they would have said faster horses.” While this may contradict the points I make around properly identifying your minimum viable product, at least it points to the fact that there is always some form of competition. I add to that the notion that you can learn a great deal from them.
My absolute favorite writing on this subject is from the blog of Marc Hedlund, the founder and CEO of the failed start-up Wesabe. His cautionary tale is entitled “Why Wesabe Lost to Mint .” Both Wesabe and Mint were/are online financial tools that puts the users’ bank accounts into one place, sets a budget, tracks their goals, etc. In 2009, Mint was acquired by Intuit (the makers of Quicken) for $170 million – not bad. Even with a year head start, users, press, and revenue – Wesabe lost to Mint and closed its doors forever. Why?
In his post, Hedlund bravely looks at the mistakes he made that led to being beat by Mint. In essence, he boils it down to Mint’s superior efforts in creating a simpler and more automated tool for consumers. Wesabe’s product features went deeper but required more user input and manipulation. Mint’s product features started at a much higher level but gave the appearance to the user of full automation. Hence, Mint was easier to use – so more people used it. By the way, since 2007 Mint has added all of those “deeper” features, and so much more. The lesson here is (in my opinion), it is better to win today with less, and add more tomorrow. This is the heart of the minimum viable concept model.
Hedlund and the team at Wesabe were mistaken in their interpretation of what their consumer’s minimum viable product actually was. They learned it by watching their competitor, but they learned it too late. Today’s start-ups must be nimble enough to quickly recognize market needs and pivot to ensure they always serve the customer best.
Final Words
So I ask all you entrepreneurs out there, particularly in the healthcare space, to take heed of my words and think extensively not only about who are your customers, but who your competitors are and what you can learn from them. You can see the deck I presented with here.
Join me as I give a talk on Retail Healthcare and its Implications for the Future of Health Insurance this Tuesday, January 8, 2013 from 2:00 PM – 3:15 PM EST.
Retail healthcare—from convenient care clinics in drugstores to the emerging insurance exchanges mandated by ObamaCare—has the potential to reshape the provider and payer markets in the U.S. Health plans are taking a leading position by investing in exchange technology, assisting members with price and quality information, and developing innovating networks that broader member access. This webinar will outline how you can best position your organization for success in the burgeoning retail healthcare sector.
What You Will Learn
Attend this webinar to:
Explore the origins and evolution of retail healthcare with an eye toward emerging trends that will impact your business.
Understand how retail healthcare coupled with consumerism can impact member behaviors—improving quality and cost.
Assess the impact of retail clinics on member access, costs and quality.
Formulate a retail healthcare strategy that encompasses market-based initiatives couples and reform-driven mandates.
I invite you to attend a webinar I will present this week on The Implications of Retail Health and The Future of Health Insurance on Tuesday, January 8, 2013, from 2:00 PM – 3:15 PM ET.
Retail health— from convenient care clinics in drugstores to the emerging insurance exchanges mandated by healthcare reform—has the potential to reshape the provider and payer markets. Health plans are taking a position by investing in technology, assisting members with price and quality transparency, and developing innovative care networks that broaden member access.
This webinar, in brief, is about how consumer-directed healthcare empowers “shoppers” by providing them with information about price and treatment options so that they can pursue cost-saving opportunities. As a result, a growing number of managed care organizations are adding retail health stores and clinics within their networks. Consumers want convenience in their health care options, which is right in line with retail channels.
What You Will Learn
This webinar will outline how you can best position your organization for success via retail health.
We will explore the origins and evolution of retail healthcare with an eye toward emerging trends that will impact your business.
I hope to show you how retail health coupled with consumerism can impact member behaviors—improving quality and cost.
We will also look at the impact of retail clinics on member access, costs, and quality.
Finally, we will examine how plans might formulate a retail health strategy to encompass market-based initiatives coupled with reform-driven mandates.
Do Healthcare Companies need a Chief Exp. Officer?
What do I mean by Experience? Great customer-focused companies have built their business around the voice and perspectives of their customers. Healthcare companies, more specifically health insurance companies, are typically not primarily viewed as consumer-centric entities. The Affordable Care Act is a major impetus in changing healthcare from an almost industrialized, business-to-business modality to a retail one. This change is also driving healthcare companies to adopt the best practices of big box retailers and banks. One of those practices, albeit still somewhat new, is to have a C-level position dedicated to bringing emphasis on the customer to the forefront, as well as to govern the traditional business in how they “go retail.”
I advocate that all healthcare companies follow suit – provider, payers, and everyone in between – and create a Chief Experience Officer or Chief Customer Experience Officer.
Forrester has done some great research (April 2011 “Customer Experience Index, 2011: Health Insurance Plans”) on how customers feel about various industries. In 2009 health insurance ranked near the bottom at 51% – in 2011, it remained relatively unchanged – at 53%. What makes it worse is that other forms of insurance, like auto and life, rank much higher at 72%, so there should be no excuse for the healthcare companies to be satisfied with status quo. To also be perceived as lower than the cable companies is shocking, as it is nearly impossible in my experience to find someone who thinks they create great customer experiences.
Source Forrester Research
Too many companies equate customer experience with customer service (or support). Service is a part of what makes a great overall customer experience. Experience is a lot more than just service and is certainly more than just a measure of your “first call resolution.” If you are more worried about solving the problems you create, as opposed to ceasing to cause problems altogether, you have missed the boat. Furthermore, if you consider “first call resolution” to technically be a good experience when the customer stays on the same phone call but talks with 3 or 4 “support specialists” and managers then you have again missed the boat.
WIKI defines “customer experience” as: “the sum of all experiences a customer has with a supplier of goods or services, over the duration of their relationship with that supplier. From awareness, discovery, attraction, interaction, purchase, use, cultivation and advocacy.”
This works for me. What is to be understood from this is that many single experiences accumulated together provide an overall customer experience, which in turn drives the attitudes and behaviors of a customer towards a company. Let’s take a look at what this might look like for an average healthcare consumer.
A Consumer’s Healthcare Vignette
Sam is employed and has his benefits through his employer. His company has sponsored an annual worksite wellness event where Sam gets his blood glucose and cholesterol checked. Sam also plans to get a full diagnostic screening using ultrasound technology sometime this year from his in-network primary care provider. He also scheduled an annual physical that includes a full blood lipid panel workup. Additionally, Sam has access to a kiosk located in his worksite clinic to check and report on his glucose levels. He also has a WebMD account through his employer but chooses not to use it because he perceives it as too complex. Sam’s wife gets a mailer from their insurance company inviting them to come in at the newly opened insurance retail center. If they do so – they get a free screening.
None of these experiences communicate to each other electronically, and none of them automatically or conveniently store Sam’s data in his Microsoft Health Vault account.
Because his previous annual physical showed a high glucose score, Sam was identified as pre-diabetic. He has received messages and calls about pre-diabetes care options from a “consultant” at his insurance provider. He wonders if this nurse works for his doctor and if not, does his doctor know she is calling and what she is saying. He wonders if his doctor would agree?
This only gets more confusing the more we go on. Consumer oriented or consumer focused companies understand and plan for an intentional customer experience. To drive a consistent customer experience (a branded experience) across all of your channels, you need someone in control who has both the purview and the spine to get things done. This example is where a Chief Experience/Customer Experience Officer comes in.
What is a Chief Experience Officer?
This C-level position is most commonly referred to as the Chief Customer Officer (CXO), though other titles are used: Chief Client Officer (at OptumHealth), Chief Experience Officer (at Cigna), or Executive Vice President, Member Experience (at USAA). What is important to note is that these individuals are empowered to design, orchestrate, and improve customer experiences across every customer interaction.
In The Rise Of The Chief Customer Officer, a report by Forrester Research, they looked closely at this growing corporate trend. In summary, the report found that the role is far beyond just fixing the problems of unhappy customers. It is ultimately responsible for determining how to accelerate the practice of customer-centricity throughout an organization by teaching the techniques and building the capabilities that are needed to serve a consumer. This report, like many reports that deal with change management, also echoes the need for change to stem from the executive management team, which brings the impetus for change to the company and the customer’s voice into the boardroom.
Influence agreement on what and how to deliver the greatest value to customers
Establish metrics for defining relationships and value creation with customers
Drive accountability through the organization for those data and metrics
Clarify a common approach and process for driving the work across the organization
The Key Takeaways
So what should you get if your take the leap and create your own CXO role?
Better Design
You cannot have a good experience without good design. The CXO must be a believer in the principles of User Centered Design and invest in bringing those techniques into their company. In this role, creativity – not productivity is the key to business success. In my opinion, the incumbent should serve as the chief design officer as well. It does not mean that the CXO has to be a great designer, but they must appreciate the need for great design, recognize when they do not have it, and push to ensure they get it across all touch-points. This consistency can also be served by having a strong partnership with the brand team and brand officer.
Better Consistency
Consistently clear messages and appealing design only come when a company has a common design language and consistent design principles. If your company does not integrate the communications and consumer experience efforts, you will send mixed and probably confusing signals to your customers – without even trying. Brand is brand, and should stay that way. But ensuring the promise of the brand is delivered in a consistent and clear way, across channels, synchronized for maximum effectiveness, requires a CXO, in partnership with business operations and the brand team, to bring it to action.
Better Transparency
Consumers’ standards for clarity have changed. Regardless of what industry you are in, the best-in-class retailers are setting your customers’ expectations for a clear understanding of your products, their price, and what you are going to do when something goes wrong. But it is complex to deliver a good customer experience. Forrester analyst Liz Boehm says it best when she states the goal “it is not simply to provide what the consumer wants but provide it in a way that gives them information about something they might not want to understand.” Your customers expect you to have access to the same information about them as Amazon does, and the same winning attitude as Zappos does. Chances are that you are probably not there on either count right now. The role of the CXO is to bridge the communication gap and close the consumer’s disconnect between expectations and reality.
Can it work at a legacy Healthcare company?
How do we make it (customer experience focus) work? This question is a far better question for healthcare companies to ask then- can it work? For any healthcare company that is preparing to conduct business in an environment impacted by reform, the voice of the customer is, and should be, a priority. I advocate here to create the role and office of a CXO to drive, help lead, and manage your company’s journey towards ensuring that the customer’s perspective is always brought to the forefront, storefront, and boardroom for consideration in all business decisions.
It bears repeating that the CXO role is not a senior support role. A company should not, as Forrester’s research indicates, rush to appoint a CXO in the attempt to solve poor customer satisfaction ratings. As Hagan suggests in his HBR article, creating a CXO requires three preconditions for success:
a mandate to differentiate based on customer experience, preferably from the CEO,
a portfolio of successful projects that create buy-in across the organization, and
a uniform understanding on the leadership team for what the position can accomplish.
While all retail companies must place emphasis on their customers’ perspective, a brand new C-level position may not always be necessary. As Manning states, the work of the CXO function is vital to achieving customer-centricity, but may be able to be fulfilled by an existing executive dedicated to overseeing and linking different functional groups, with the ultimate objective of maximizing customer and corporate value. Whether you appoint a CXO or not, it is clear that healthcare companies will benefit from a single executive, sitting on the executive management team, focused exclusively on the customer experience.
Some quick tips to get started
I plan to write more on these later but should you decide to create a CXO role here is a basic
6-step plan to get you started.
Announce the Role and its Premise
Design the Framework in which the role it will Exist and Operate
Define the Resources internal and external to the Department
Explain the Process, Tools, and Techniques that will support the framework
Outline the Governance model for the strategy and work
Publish the Metrics for Measurement
Here are some other good sources on Customer Experience.
I just wrapped up giving a condensed version of my Workshop 1a – Claim your customer at the 4th Annual Medicare Advantage Strategic Business Symposium in San Juan, Puerto Rico. It was a fantastic group, and we all learned from each other. Participants ranged from major insurance plans to renowned hospitals, and everything in between.
We went through how to create personas specific for a Medicare market so that product developers at these companies will be able to create something that is meaningful for a specific audience. You can see my intro deck here.
According to John Pruitt, personas are “detailed descriptions of imaginary people constructed out of well-understood, highly specified data about real people”.
Every healthcare company should become familiar with and practice the discipline of persona development. This realization is a result of The Affordable Care Act changing the market from wholesale to retail. As I have said many times before – retail means a focus on the consumer’s wants, not your products. As consumers are offered a choice of competing products, healthcare companies need to create offerings that have a clear value proposition or risk losing share. A standard method for persona development looks something like the following:
But person creation for healthcare, in my opinion, has some points to keep in mind, which I refer to as tenants. I describe these in brief below, but I will focus on them in depth in future posts.
Tenant #1 – All of this Exists in an Ecosystem
All of this exists in an ecosystem, only some of which is in your control. A good persona has detail about the user’s needs, attitudes, and behaviors, and a great one includes the most important and relevant influencers as well. Outside of the patients themselves (note: I did not say member or customer), healthcare influencers in my model are comprised of:
The provider – including all care providers and health information providers, such as doctors, family members, Oprah, Google, …
The payer – this is the insurance company and their intermediaries, such as brokers, employers, government, organizations, …
The purveyor – or those entities selling the products and tools we need to get and stay healthy, such as the pharmaceutical companies, Nike, gyms, trainers, …
Your personas must take into account the dynamic of this ecosystem and provide insight into how the person is influenced in a positive and negative way about their health and your product(s). This will help not only the product designers but also the product marketing team later down the road.
Tenant #2 – You are a Retailer Now
Dear healthcare company, you are a retailer now, get used to it and act like one. As I mentioned earlier, the healthcare market is being forced into a retail setting. This is not just for the payers but includes the care providers as well. Groups like The Cleveland Clinic and Mayo figured this out early on and established themselves as the Zappos of their trade.
It is important for companies new to retail to understand that retail has its own rules – and the customer has the advantage. According to Willard N. Ander and Neil Z. Stern in their book Winning at Retail: Developing a Sustained Model for Retail Success, a successful retailer will only try and sell to one value position, and customers who prioritize that value position will shop at them. This means you can be Wal-Mart, or Target, but not K-mart.
One of the axioms of direct-to-consumer business is that you cannot be all things to all people. This means no more talking about your Medicare market as Over 65. The diversity of people over 65, in their health, and health knowledge, and how they shop is varied. Lumping them into one market with one set of products means you will be meaningless to all. It is time to pick a horse and commit to the race.
Tenant #3 – Customers Behaviors Vary
Your customers attitudes (may) stay the same, but their needs and behaviors do not. People do not think of their health holistically. Instead, they break things down into jobs-to-be-done, as described by Clayton Christensen. A single person, based on their changing health jobs-to-be-done and knowledge specific to them, can change their behavior and attitudes. This means that the same person you lump into one segment can have very different behaviors associated with the different aspects of their health.
Smart healthcare companies have to realize this. Infinite customization of health products is a pipedream at this point. But matching a product to a like grouping, and being flexible enough to modify interactions based on a current job-to-be-done is crucial for creating lifetime customers, and the resulting value a company gets from that.
To Thine Own Self Be True
Healthcare companies, as all good retailers must know what they are capable of and should optimize their capabilities to 1) create meaningful value exchanges with customers around a specific value position, and 2) capture all of the data involved in a consumer making a purchase decision, not just the outcome of that decision.
You cannot just have a traditional “enROLLment” system. Instead, you need a “ROLLing” system that moves with the customer through their health decisions, capturing all of the nuances along the way – and then uses that data, and some logical inferences, to create relevant and reasonable predictions for additional consumer needs.
