Deft’s 2007 National Senior Loyalty Study tracks senior “willingness to recommend” Medicare Advantage and Drug Plans. The study finds that compared to last year, fewer seniors are willing to recommend either their medical or drug coverage to friends or colleagues.

According to past studies, willingness to recommend is the better predictor of customer loyalty compared to all measures studied. This year, the crucial Medicare Plans’ Net Promoter Loyalty Metric dropped from 33% in 2006 to 26% in 2007.

In Deft’s research, senior loyalty is tied to the health care company. This allows Deft’s customers to see which companies are hit hardest by this trend and to explain this in terms of benefit design, utilization, and perceptions of the company. The list below presents the number of captured responses from medical coverage customers by company:

• United Healthcare
• AARP
• Anthem
• Aetna
• Humana
• Kaiser

…plus CIGNA, Coventry, Highmark, Horizon, Health Net, UAFC, 9 Blues plans and others.

The results customers see will show how these major players differ in customer loyalty and how that loyalty is tied to intention to switch, perception of market differentiation, benefit design, and utilization experience.

Click here for your Loyalty and Retention Research Order Form.

The 2007 version of the study is enhanced in two ways.

• Larger Sample. This research will deliver more respondents for every major competitor. We will be able to deliver competitive profiles showing how consumers perceive major competitors’ trustworthiness, costs, customer service and several other differentiators.
• More Benefit Design Detail. The 2007 study will add analysis of the links
  between benefit designs, loyalty, retention, and market differentiation.

This is the only study that uses senior consumer perception to develop an actionable competitive analysis.

The Loyalty Story

Last year’s Loyalty study told the story of customer retention and its implications for plan growth.

“Loyal customers perceive positive differences between their own company and competitor
companies, and they are more likely to recommend their company to friends or colleagues.
They will use the perceived differences as the subjects of statements made during
recommendation. Both willingness to recommend and positive market differentiation are
likely to hold customers in a “no intention to switch” attitude. The strongest predictors that a customer will be loyal are whether they have experienced good customer service and have developed a sense of trust in the company. Companies who manage the perception of market differentiation among their customers will experience better retention and better growth triggered by positive word of mouth.”

source:
National Senior Loyalty Study, 2006.