innovare's vocal insights at blue cross blue shield

Copyright © 2000-2008, Innovare, Inc. All rights reserved.

Creating Great Consumer ExperiencesCreating Great Consumer Experiences

Presented by:Presented by:

Nick KompareNick KompareDirector, Strategic Marketing and InnovationDirector, Strategic Marketing and Innovation

Excellus BlueCross BlueShieldExcellus BlueCross BlueShield&&

Donald Ross, PhD, MBADonald Ross, PhD, MBAPresidentPresident

Innovare, Inc.Innovare, Inc.

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3 3 ““How ToHow To”” Take Take AwaysAways

• Broaden the organization’s focus from product development to delivering high-value consumer experiences

• Immerse a broad cross-functional team into the voice of the customer without placing too high of a demand on the team’s most limited resource, their time

• Focus the organization’s capabilities and creativity towards creating new interactions at all key touch points that differentiate the brand in the marketplace

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Excellus Health PlanExcellus Health Plan

• A $5 billion nonprofit, mission-driven enterprise that finances and delivers health care

• Based in Rochester, N.Y., doing business throughout the nation

• One of upstate New York’s largest employers

– 2 million members– 5,000 employees

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Average Annual Worker Premium Paid by Covered WorkersAverage Annual Worker Premium Paid by Covered Workers

$318 $334 $355$508 $558 $610 $627 $721

$1,543 $1,619

$2,713

$3,354

$466*$694*

$3,281*$2,973*

$2,661*$2,412*

$2,137*

$1,787*

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Single Coverage

Family Coverage

*Statistically different from the previous year shown (p<.05).

Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2008.

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Healthcare Costs Shifting to ConsumersHealthcare Costs Shifting to Consumers

• Consumer insulated from true cost of care

• Costs continue to escalate– Rx– Imaging technologies

• Major expense for businesses

• Shifting costs to consumers

• High Deductible = “Consumer Driven”

• Result: The reluctantly empowered consumer

% Consumers Offered High Deductible Health Plan

18%

39%

2005 2007Source: 2005, 2007 BCBS Association Consumer Driven Health Plan Survey

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Our Internal FocusOur Internal Focus

• Excellus BCBS emerged from several separate entities– Near term focus on merging systems and processes

• Historically have battled the competition with new products– Benefit combination and price point

• Consolidated systems will result in efficiency– Competitive point of parity

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The Business ProblemThe Business Problem

• Swimming in the “red ocean”– Commoditized, price wars

• Historical focus on employer groups offering (1st stage of sale)

• Need to better understand, target the end consumer

• Differentiate to become a destination for “Health” throughout each life stage

– Provide value when healthy

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Service Industries Tend to be Service Industries Tend to be ““ProductProduct””--centriccentric

Source: Doblin Inc VHA Health Foundation Study 2007

Innovation Types

Business Model

Networking

Enabling Process

Core Process

Product Performance

Product System

Service

Channel

Brand

Customer Experience

Fina

nce

Proc

ess

Offe

ring

Del

iver

yValue Creation Innovation Efforts

How you make money

How you join forces with other companies

How we design our core offerings

How your customers feel when they interact with your company and its offerings

Low High

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Project DeliverablesProject Deliverables

• Business Need– Develop and sustain a long-term competitive advantage – Shift to consumerism in health care requires that we understand our customers and what they

value • Improve relationships with our customers based on a deeper understanding of needs• Provide additional services to customers based on their needs• Increase customer service and loyalty

• Evolve from a transaction processor to a source for health and wellness

• Provide a differentiated customer experience

• Project Description– Define who our target customers are; define by segment, life stage.– Determine what customers need throughout their lifespan/at each life stage.– Determine potential business models for how needs can be met and services delivered

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Innovating at Key Touch Points Innovating at Key Touch Points –– Team ImplicationsTeam Implications

• Engage very broad cross- functional team– Touch point owners

• Do not “tax the taxed”– Can’t significantly burden key subject

matter experts

HFL Steering (VP Level)Cenette Burdine (Chair) – Brand Mgt

Nick Kompare – Strategic Marketing and InnovationLynn Ford-Somma – Market Intelligence

Karen Black/Patti Ciciarelli – Customer ServiceMarty Lustick, MD -- Provider Network Strategy

Carrie Frank -- Clinical Performance SupportMike Cardillo – IT/ (Transformation)Chris Bergeman -- Transformation

Jim Spencer – FinanceKaren Doyle - Finance

HFL Work Group (Dir Level)Nick Kompare: Co-Chair

Lynn Ford-Somma: Co-ChairPat Culeton – Project Manager

Aaron Bertram -- TransformationNancy Sakran, Wendy Besio – Creative Business Solutions

Norm Lindenmuth, MD – Provider StrategyJulie VanRenseallar – Clinical Acct Mgt

Will Seabold – MedicareColleen Schmidt – Safety Net

Jeffrey Pankow, Eric Stephens – ITDoug Sanger, Rick Roberts – Finance

Jeanne Chirico -- Lifetime

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Outwardly Focused Front End ProcessOutwardly Focused Front End Process

• Formal discovery phase before ideation and concept development– Best practice front end increases innovation potential

• Chartered sub-groups to create discovery insights in 3 areas– Consumer needs using VOC methodology explored by the Innovare team members– In parallel, Excellus team members explored:

• Drivers of the healthcare market • Evolving technology – particularly IT and use of the Internet

Informs Ideation & Concept Development

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Vocal InsightsVocal Insights®® ApproachApproach

• Recruit to quota 36 consumers – Range of life stages, life styles, and health situations

• In-depth 1 on 1, immersion interviews (1 to 2 hours)– How they manage their health and wellness, navigate health care, and deal with health plans

• Consumer led conversation – pick a topic and let the consumer take us to what they find important

– Encouraged story telling, describing events– Probed for contextual details, meaning, feelings and emotions– Listened for what worked, the friction points, their work arounds

• Explored their world from their perspective – Discovered their experiences, processes, perceptions, challenges and needs

Voice of the Customer discovery interviews

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HandsHands--On Team Immersion Enables Local InnovationOn Team Immersion Enables Local Innovation

• Wanted to enable the broadly based cross functional team and their organizations to innovate at all touch points with consumers

– Without placing too many demands on their time

• Structured the project to provide a hands-on Immersion Workshop to transfer the VOC findings to the team

• Immersion Workshop created an “almost like being there” experience for the team members

– Team interacted with the VOC data in a more meaningful and engaging manner than merely reading a report

– Imbedded the customer experience knowledge deep within the team providing the foundation for ideation

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Project FlowProject Flow

• Innovare conducted the field work and prepared for team immersion by processing the interviews into written “Images”

• Cross functional team used the “images” to develop a deep understanding of consumer needs and develop consumer experience targets

• Cross functional team to create a range of innovations designed to deliver the experience targets at all key touch points

Two 2-dayfull team

workshops

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Team Immersion Through ImagesTeam Immersion Through Images

• Images and Image Mapping– Images are short written statements from the voice of the customer– A group can review and organize images into a conceptual framework

using an Image Mapping process

• Image Mapping allows for 3 important team experiences– They share and talk about the consumer images– They internalize the images– They create a shared understanding about what’s going on in the

consumer’s life, from the consumer’s perspective

My father-in-law had colon cancer. He spent the last ten

days of his life in a nursing home, and that was difficult.

I spent the evenings with him. When I got there the day

before he died, he was in a chair in the hall. I asked,

why is he here? They said we don’t have enough

people to check all the rooms….

The health insurance company sends information

about quitting smoking, but it’s to go to

organizations where they talk about it. Excuse

me, that’s the last thing I want to talk about when

I’m trying to quit…

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Sharing and Mapping ImagesSharing and Mapping Images

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Maps of the Customer’s World

Creating activities is a challenge…

Activities should be social ..

The entire class twisting and

Engaging Activities…

A rapid-fire trivia game …

Immersion Immersion -- From Images to Needs to Insight StoryboardsFrom Images to Needs to Insight Storyboards

“Context”Situation & occasion

Expressed as the Customer’s Desired Outcome and

Experiences

Teeth clenched, hands white knuckled,

I can hold the bottle in one

Insight Storyboarding

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Storyboarding Storyboarding –– Fun, Creative Task to Reinforce LearningFun, Creative Task to Reinforce Learning

IdeationIdeation

Insight Storyboard• Storyboards used for:

– Articulating the customer need as outcomes

– Inputs during informed ideation– Sharing the insights across the

organization

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““How ToHow To”” Deliver the Consumer Experience Targets?Deliver the Consumer Experience Targets?

I can have reliable healthcare information that I can understand

I can own and manage my

personal health information

I can trust the health plan to do what is right for me

• Focus of the Concept Development– Define new processes and new products that

deliver the experiences at each touch point

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BeginningConcept

Idea

Idea

Idea

Idea

Idea

Idea

Idea

Idea

TwoTwo--Day Concept Development WorkshopDay Concept Development Workshop

• Divergence

• Convergence

• Articulation

Three steps

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DivergenceDivergence

Needs Driven Ideation

•Break into small cross functional teams

•Select a need story board

•Create beginning ideas on “how to” satisfy the need…

Wow Experience Excursion

What experience would “wow” consumers?

Consider which life stage and what situation

•Generate a quick list

•Select the top 10

•Brainstorm ways to deliver

Brainstorming using the discovery insights to create beginning ideas

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ConvergenceConvergence

Transform beginning ideas into working concepts

• Step 1 - Itemized Response – Select beginning ideas for energy– Develop an itemized list of what the solution could be

• Need it addresses, how you deliver it, the technology, the challenges…

– Re-write the idea as a concept statement based on the team dialog

• Step 2 - Ways and Means– Select the challenges, and problem solve each issue

Convergence defines the concept, increase its feasibility, and lays out the development path

BeginningConcept

Idea

Idea

Idea

Idea

Idea

Idea

Idea

Idea

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Articulation

Transform the working concepts into concept descriptions and synthesized inputs for the strategic recommendation

• Use concept description templates

• Output ~ 12 fully articulated concepts – Covering new processes, services, and products that will

deliver the targeted consumer experiences

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Path ForwardPath Forward

• Kick off several “Development” efforts – Flesh out requirements; determine more about “what” the concept is and “how” it would

work– PHR, Limited benefits products, web enhancements

• Build information infrastructure to capture customer information, enable customer intimacy

– Realization that current customer information, collection capabilities are inadequate– Documented 200+ requirements for new info systems

• Develop strategic framework, criteria– Used as filter for existing project in flight; use to consider future projects– Input into budget process

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Success FactorsSuccess Factors

• Team structure– Involving the broad organization and linkage upward with senior management

• Strong team leadership– Boundary role to keep stakeholders on board

• Efficient learning process– Not too much burden with good content and fun activities

• Sharing images and story boards– Engaging the entire organization about customer needs

• Open-minded discovery– Truly listening for customer needs

• Safe development minded environment– Enabling team creativity and go where they might not have had permission

before

innovare's vocal insights at blue cross blue shield

Business

consumers consumer

empowered consumer

health care

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consumer driven result

high deductible health

consumers high deductible

term focus