Deft Research’s National Senior Loyalty Study was conducted on-line in September, 2009. 3,492 seniors (aged 65 or more) responded to our survey. The results were released on November 12th. 2009 is the fourth year of the study and interesting views of industry trends are available.
This EXECUTIVE RESEARCH BRIEF focuses on Humana’s path to the present. In the graph below, we present four years of Humana’s MAPD Loyalty Index and Switch Intention data.

HUMANA MAPD LOYALTY AND SWITCH TREND

SOURCE: DEFT RESEARCH, 2009

The graph shows that the loyalty of Humana’s customers has varied inversely with the switch intention percent.

In 2009 both Loyalty Index and Switch Intention indicators for Humana are above the industry averages. This is a paradox, their customers are more loyal than average but also have a higher likelihood of switching. The National Senior Loyalty Study 2009 suggests that Humana has attracted active consumers. These are consumers who, despite loyalty, remain shoppers and continue to look for health insurance that suits them even better.
_____________________________________________________________________________
Generating Loyalty

The loyalty study identified six top attributes for generating loyalty. If, either through experience or promotion, customers come to believe that their insurer is better than competition regarding these attributes, they are likely to be loyal customers and less likely to switch. Below, the six attributes and Humana compared to the overall MAPD industry.

HUMANA AND SIX TOP ATTRIBUTES FOR GENERATING LOYALTY

SOURCE: DEFT RESEARCH, 2009

Humana’s % Better Scores are considerably higher than average for understanding the needs of seniors and having honest sales people. But customers are less likely to view Humana as better than competition at offering lower copayments, easy paperwork, or early detection programs.

The National Senior Loyalty Study’s Humana profile does show one unique theme pointing to the development of customer loyalty. Humana’s % Better Scores are much higher than average when customers assess the company’s communications with them and the information provided to help them save money on drugs.

Helping seniors watch their money is part of Humana’s brand image and attractiveness to active shoppers. But is it enough to keep customers loyal?