Deft Research Releases Study showing Senior Customer Loyalty to Insurer

MINNEAPOLIS, Minn., Nov. 17 — Customer retention is a primary concern for health plans now that Medicare Open Enrollment is underway. Customer loyalty – a key in successful member retention – varies between plans and is highly correlated with intention to shop for coverage alternatives. Deft Research, LLC recently released the 2008 National Senior Loyalty Study, which draws attention to AARP and Kaiser as Medicare insurers with different but successful approaches for generating loyalty among senior customers.

AARP’s Supplemental Medicare insurance (Medigap) business stands out. There exists consensus among its customers that AARP is better than competition at trustworthiness and nationwide healthcare access. “AARP Medigap generates loyalty by excelling at these basics,” reports Richard Hamer, Principal, Deft Research. AARP’s ratings drop off after assessing basics, but high basic measures still achieve high loyalty scores. “AARP’s brand promise is focused. It’s remarkable how many AARP’s customers believe it is better than competition in areas where all health plans compete,” said Hamer.

Kaiser’s Medicare Advantage business differentiates itself uniquely. Comparatively, Kaiser’s customers are convinced it is outstanding in member communications and delivering early detection and special programs. “Special health programs are difficult to execute. The percentage of Kaiser’s customers who believe their plan is better than others in this area is really impressive,” said Hamer.

Over 3,000 seniors participated, making this study the largest on-going project of its kind. The 2008 National Senior Loyalty Study uses customer perceptions to develop pictures of health plan loyalty. Results show that health plans use different ways to generate loyalty among customers. The research provides a scoring system that includes senior consumer perceptions of brands, medical and drug coverage, services, sales channels, prices and costs. The results give an overall measure of senior loyalty, a breakdown of how loyalty is generated, and insurer comparisons. Top competitors are profiled with these measures and fifty-three plan attributes or market differentiators.

About Deft Research, LLC
Deft Research, LLC is a market research firm specializing in custom and syndicated research designed for those in the healthcare, insurance, and pharmaceutical industries. Deft Research works with management to define pertinent issues and conducts research that guides management and allows them to make better, well supported decisions.

For more information see www.deftresearch.com or contact:

Barb Strnad
(612)436-8315
bstrnad@deftresearch.com