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Making Sense of Consumer Research in the PHI Market

incorporating. Making Sense of Consumer Research in the PHI Market. Tony Quint General Manager Ipsos Australia t ony.quint@ipsos.com.au. November 2006. Cut to the Chase…. 10 key messages from consumers. From syndicated survey: Health Care & Insurance – Australia 2005

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Making Sense of Consumer Research in the PHI Market

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  1. incorporating Making Sense of Consumer Researchin the PHI Market Tony Quint General Manager Ipsos Australia tony.quint@ipsos.com.au November 2006

  2. Cut to the Chase….. • 10 key messages from consumers. • From syndicated survey: Health Care & Insurance – Australia 2005 • 5,200 comprehensive interviews • Shoring up PHI’s future.

  3. Message #1Private Hospitals….far from being a ‘must have’ • Community perceptions of public hospitals continue to improve • Patient satisfaction ratings at public hospitals on the UP; private hospitals steady • The market positioning of private hospitals in the eyes of the Australian health consumer is critical • Quicker Access YES • Better MARGINALLY • Value for money QUESTIONABLE • No unexpected large gaps A REAL PROBLEM

  4. Danger for PHI 50% rate private hospitals service as high (down six points from 2003) Public Vs Private HospitalsService Rating (Community Perception) Q A4(#1), 4.6.2 and Q A4(#3), 4.6.3Base: All n = 2629

  5. Message #2A lot of ‘stick’…not much ‘carrot’ • Consumers feel ‘forced’ into PHI (‘stick’)…….many need more than ‘stick’ • Value for PHI promotional dollar questionable • Making PHI a ‘must have’ for the majority …..should be industry’s #1 goal • Concept of health funds/hospitals getting together to do STRONG and EFFECTIVE ‘grow the pie’ promotion - Better case now than ever - Measure response and expand if it works - Most well-thought-out category campaigns work very well • bananas • red meat • radio as advertising medium • financial planners (taking on the industry super funds)

  6. Message #3If the ‘stick’ works….look for a bigger stick! • Plenty of well-heeled Aussies still don’t have PHI • Increasing Medicare Surcharge by 0.3% would have substantial impact • Not too ‘nasty’ • Revenue for government, not cost! • Better than lobbying for salary packaging, etc. • “We give you PHI guys enough already”

  7. Message #4Gaps Still Deter Millions! • The gap ‘hurdle’ is NOT declining in consumers’ minds • 57% expect a gap; 42% have one (entire hospital episode)…..FEAR FACTOR is REAL • Major impact on value proposition of PHI • 6% of ALL hospital claims involve gap exceeding $1,000 (2005) • 40% of gaps not informed in advance • PHI funds the ‘bad guys’ Majority of fund members would like assistance identifying specialists with no or lower gaps. Anesthetists and Assistants warrant considerable attention.

  8. Message #5Many Members Don’t Feel ‘Individual’ Attention • 33% of members say their fund recognises them as an individual, not just a number • Fair way to go! (but up 5 points since 2003) • Only one fund exceeds 60% (ahm); only two exceed 40% • Strong latent demand for more advice from funds about discussing costs with doctors/specialists (pre-hospital); other opportunities. • Ipsos Loyalty ‘acid test’ for service industries: AIM: “They feel like a friend”

  9. Message #6 Generation Y is Different….Key to Growth • If Yers don’t take out PHI when they commence work, they are not really ‘ripe’ again until they hit their 30’s…..and then only maybe. • “The folks will look after me”…..growing economic interdependence between generations, even beyond university. • “The baby-boomer parents are generous….they pay for everything….Gen Y is hard to wean off financially” • Opportunity: - “Wean-off PHI pack” for sons/daughters 23-30 yrs (DM) • Focusing on ancillary is well justified for Gen Y……“I’m bomb-proof.”

  10. Suggested Reading for Your Marketing Team Insightful guide to the thought processes and behaviour of today’s 18 – 29 year olds. Yes, it’s a plug! Rebecca Huntley works for Ipsos.

  11. Message #7“Not sure I really need it……convince me” • Killers: • Affordability (value!!!) • * Includes LHC ‘lock- out’ factor • Gap concerns • LHC ‘lock-out’ • Public system is OK Remains the PHI industry’s #1 opportunity

  12. Message #8PHI can be a valuable element of employment • 63% of those obtaining PHI via employer regard it as VALUABLE ELEMENT OF EMPLOYMENT • Worth pursuing • Health funds not that visible in the workplace (to employees) • New means of internal e-promotion worth exploring in large employer organisations

  13. Message #9High Excess Hospital Products Have “Legs” • $1,000 family excess quite popular among ‘brinkers’ close to taking out private hospital cover. • Lobby for legislative change worthwhile

  14. Message #10Those Without PHI are ‘Sailing Blind’ • Not aware of 30% rebate • Fuzzy on Medicare Surcharge • LHC has created a notion “wait until you are 30” or “I’m locked out now” Scope for much better information to this segment Arguably the role of government, funds, private health operators….ALL Many current messages too long-winded …… ‘tune-out’ factor

  15. Rejoice! • 48% of Australians are signed up • Most with PHI see PHI as good value for money; converse applies too! • Defend the 48% or try to grow with some aggression? • Our strong belief ……… ‘The best defence is attack’ • Reforms do provide opportunity to add value to PHI

  16. Thank You Your support for the syndicated survey Health Care & Insurance – Australia is greatly appreciated. The survey will be conducted again in winter 2007. Tony Quint (03) 9946 0812 Erik Okerstrom (03) 9946 0888 Graeme Peacock (03) 9946 0815 17 Contents

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