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Confidential & Proprietary - 20 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

Confidential & Proprietary -

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

Confidential & Proprietary - 3

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


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


Context For Proactivity: Customer Experience

Proprietary © 2013 CCMC

5


Firefighting Mode


Size of Satisfaction and Revenue Opportunity• Formal complaints

• Grumbles

• Silent

• Potential

Proprietary © 2012 TARP Worldwide


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%


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


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


Real Psychic Pizza


Quicken Loan Tracker


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


Proactive Education


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


Customer Education

Here is what we do to smash

your package!


Customer Responsibilities

Here are your responsibilitiesas customer for

preventing damage to your

shipment!


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


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%


=

=

=

=

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


=

=

=

=

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%


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


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.


Word of Mouth Impacts

• Patients and families – especially given social media impacts

• Referring physicians


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


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


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


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


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


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


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!


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

mailto:[email protected]

confidential & proprietary - page 0 20 south quaker lane, suite 230 alexandria, virginia 22314...

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