TriCare and Kaiser Permanente Lead Health Plans in Customer Experience

We recently released the 2015 Temkin Experience Ratings which ranks the customer experience of 293 companies across 20 industries based on a survey of 10,000 U.S. consumers.

Overall, health plans averaged a 54% rating and placed 18th out of 20 industries.

TriCare took the top spot with a rating of 67%, placing it 128th overall out of 293 companies across 20 industries. Kaiser Permanente came in second with a rating of 66% and an overall ranking of 136th. TriCare and Kaiser Permanente have been jockeying for the highest score since the Ratings began in 2011, with TriCare earning the top spot in 2011, 2013, and 2015, while Kaiser Permanente came in first in 2012 and 2014.

At the other end of the spectrum, Coventry Health Care was both the lowest-scoring health plan, and the lowest scoring company we evaluated in the entire Ratings. Coventry Health Care scored 39%, making it the lowest-ranked company for the second year in a row.

Here are some other highlights:

  • The average rating for the health plan industry dropped from 56% in 2014 to 54% in 2015—the first time that this industry’s average declined.
  • Of the twelve health plans that we looked at in both 2014 and 2015, Medicaid and TriCare were the only two to increase their scores over the last year. Medicaid’s rating went up by six percentage-points, while TriCare’s increased by five percentage-points.
  • Although it scored below the industry averages for both effort and success, Health Net scored 1.7 points higher than the industry average for emotion, the overall lowest scoring component in the Ratings.
  • The average rating of each of the three components dropped over the past year, but while success and effort each only dropped by one percentage-point, emotion dropped by three percentage-points. This is the first year since the Ratings began that the average score of any of the three components decreased.

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Congrats To Industry Leaders in Customer Service

Since today is the last day of Customer Service Week, I’m give a shout out to industry leaders in the 2014 Temkin Customer Service Ratings. The chart below shows the leaders across 19 industries, along with where they ranked compared with the 233 companies in the ratings.

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The bottom line: Happy Customer Service Week!

 

Kaiser Permanente and Humana Lead Health Plans in 2014 Temkin Experience Ratings

We recently released the 2014 Temkin Experience Ratings that ranks the customer experience of 268 companies across 19 industries based on a survey of 10,000 U.S. consumers.

Kaiser Permanente earned the top spot with a 68% rating, positioning the company in 109th place overall out of 268 organizations across 19 industries. Humana, meanwhile, earned a rating of 63% and placed 160th overall. While Kaiser Permanente consistently ranks near the top of the list—even taking first place in 2012—this year, Humana ascended from the middle of the pack to the top, improving its rating by an astonishing 12 percentage points.

At the other end of the spectrum, Coventry Health Care (BCBS) plummeted down the ranks after declining 18 percentage points from 2013, leaving it in last place across all 268 companies in the ratings with a score of 41%. Empire (BCBS), Highmark (BCBS), and Medicaid joined Coventry as the lowest-rated companies across any industry.

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Here are some additional findings from the health plan industry:

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Report: What Happens After a Good or Bad Experience, 2014

1402_WhatHappensAfterGoodBadExperiences_COVERWe just published a Temkin Group report, What Happens After a Good or Bad Experience, 2014. The report, which includes 19 data charts, examines which companies and industries provide the most bad experiences, what impact those experiences have on spending, and how the negative impacts of bad experiences can be mitigated by good service recovery. The report also examines how consumers share their good and bad experiences with companies as well as with other people. Here’s the executive summary:

To understand the effect of good and bad experiences, we asked 10,000 U.S. consumers about their recent interactions with 268 companies across 19 industries. Results show that Internet services and TV services are the industries most likely to deliver a bad experience to their customers, while grocery chains are the least likely to. At the company level, Scottrade had the smallest percentage of customers reporting a recent bad experience with the company and Time Warner Cable had the highest. More than half of the customers who encountered a bad experience at a fast food chain, credit card issuer, grocery store, or hotel either decreased their spending with the company or stopped altogether. However, our data shows that a good service recovery effort can help mitigate a bad experience. Unfortunately, many firms—especially in the banking, Internet services, and TV services sectors—aren’t very good at service recovery. In addition to the consequences of bad interactions, we also examined which channels customers use to share their good and bad experiences and how these changed across age groups. We then compared these results to survey responses from the past two years. We also uncovered a negative bias inherent in how customers provide feedback. ING Direct, Residence Inn, and Fairfield Inn have the most negative bias in the feedback they receive directly from customers, while Hy-Vee and Hyundai have the most negative bias on Facebook. 

Click link to see full list of industries and companies covered in this report (.pdf).

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One of the most interesting analyses in the report is the look at how service recovery after a bad experience affects the spending pattern of consumers. Here’s a summary of one of the charts showing just how important it is for a company to recover well after making a mistake:

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Here are some other insights from the research:

  • Sixteen percent of consumers who have interacted with TV service and Internet service providers report having a bad experience over the previous six months. Next on the list are wireless carriers, with 12% of their customers reporting a bad experience. At the other end of the spectrum, only 3% of consumers report a bad experience with grocery chains and 4% report having a bad experience with fast food chains.
  • The five companies with the most customers reporting bad experiences are Time Warner Cable (25%), Motel 6 (22%), Coventry Health Care (21%), and Comcast (21%). There were 10 companies with only 1% or less of their customers reporting bad experiences: Scottrade, Chick-fil-A, H.E.B., Whole Foods, ShopRite, ING Direct, Starbucks, Trader Joe’s, Vanguard, and True Value.
  • More than one-quarter of consumers who have a bad experience stop spending with computer makers, car rental agencies, credit card issuers, hotel chains, and software companies. The impact of bad experiences is less costly for parcel delivery services, wireless carriers, health plans, TV service providers, Internet service providers, and grocery chains, as less than 15% of their customers with bad experience stopped spending.
  • The industries that are the best at responding to a bad experience are investment firms, major appliances, retailers, and car rental agencies. The industries that are the worst at responding to a bad experience are TV service providers, wireless carriers, Internet service providers, parcel delivery services, and health plans.
  • Thirty-two percent of consumers give feedback directly to companies after a very bad experience and 23% give feedback after a very good experience.
  • Overall, 25- to 34-year-olds are the most likely to share feedback about their experiences. After a good experience 57% tell a friend directly, 28% share on Facebook, and 18% put a comment or rating on a review site. After a bad experience, 60% tell a friend directly, 31% share on Facebook, and 20% write a review.

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The bottom line: Make sure to recover quickly after a bad experience

Congratulations to Customer Service Industry Leaders

Today is the first day of Customer Service Week, so it’s a great opportunity to once again congratulate the industry leaders in the 2013 Temkin Customer Service Ratings (60% or more is a strong score):

  • Airlines: Alaska Airlines (67%)
  • Appliance maker: WhirlpoolSamsung (51%)
  • Auto dealer: Toyota (62%)
  • Bank: USAA (75%)
  • Computer maker: Apple (57%)
  • Credit card issuer: USAA (63%)
  • Fast food chain: Chick-fil-A (70%)
  • Grocery chain: Hy-VeeTrader Joe’s (69%)
  • Health plan: Kaiser PermanenteTriCare (59%)
  • Hotel chain: Marriott (65%)
  • Insurance carrier: USAA (76%)
  • Internet service: AOL (47%)
  • Investment firm: Charles Schwab (71%)
  • Parcel delivery: FedEx (58%)
  • Rental car agency: Advantage (68%)
  • Retailer: Ace Hardware (71%)
  • Software firm: Blackboard (56%)
  • TV service: Bright House Networks (46%)
  • Wireless carrier: Virgin Mobile (46%)

I also want to congratulate the organizations that are improving. These firms earned 2013 Temkin Customer Service Ratings that are 15 percentage points or more higher than their 2012 ratings: Citibank, U.S. Bank, Hyundai, Nissan. Citigroup, and Old Navy.

It’s also a good time to reiterate the distinction between customer service and customer experience. I like what Amazon.com’s CEO Jeff Bezos had to say on this topic:

Internally, customer service is a component of customer experience. Customer experience includes having the lowest price, having the fastest delivery, having it reliable enough so that you don’t need to contact [anyone]. Then you save customer service for those truly unusual situations. You know, I got my book and it’s missing pages 47 through 58

The bottom line: Happy Customer Service Week!

TriCare and Kaiser Permanente Lead Health Plans in 2013 Temkin Experience Ratings

We recently released the 2013 Temkin Experience Ratings that ranks the customer experience of 246 companies across 19 industries based on a survey of 10,000 U.S. consumers. Here are highlights from the health insurance industry:

  • The health plan industry has the second-lowest average rating. The average score was 55%, tied with Internet service providers. (The lowest-ranked industry was TV service providers.)
  • The industry has been steadily improving over the last three years, from an average rating of 50.3% in 2011 to 54.8% this year.
  • The highest-ranked health plan, TriCare, is #78 across all industries in the ratings.  The plan’s rating of 71% is six percentage points ahead of the second-highest-ranked health plan, Kaiser Permanente.
  • TriCare earned the top marks for functional and emotional experience while Kaiser Permanente earned the top accessible rating.
  • TriCare earned the largest improvement over 2012, 12 points, followed by Anthem (BSBS) with an eight point gain and Highpoint (BCBS) with a seven point gain.
  • Coventry Health Care has an unusual profile, somewhat below average functional rating with a strong accessible and emotional ratings.
  • Thirteen of the 15 health insurance companies surveyed have scores considered “poor” or “very poor.”
  • Three plans tied for the lowest functional component: CareFirst (BCBS), Health Net, and Empire (BCBS).
  • Medicaid earned the lowest score for the accessible component.
  • CIGNA and CareFirst (BCBS) earned the lowest emotional ratings.
  • The lowest-ranked health plan, #242 Empire (BCBS), was the only plan with a “very poor” rating.
  • Here’s a link to industry results from the 2012 ratings.

Download entire dataset for $395

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Temkin Ratings website

Report: 2013 Temkin Experience Ratings

Temkin Ratings website

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We published the 2013 Temkin Experience Ratings. The report analyzes feedback from 10,000 U.S. consumers to rate 246 organizations across 19 industries. Congratulations to the top firms in this year’s ratings: Publix, Trader Joe’s, Aldi, Chick-fil-A, Amazon.com, and Sam’s Club.

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You can also download the data for $395.

The Temkin Experience Ratings are based on evaluating three elements of experience:

  1. Functional: How well do experiences meet customers’ needs?
  2. Accessible: How easy is it for customers to do what they want to do?
  3. Emotional: How do customers feel about the experiences?

Here are the top and bottom companies in the ratings:

2013TER_BestWorstHere’s how the industries compare with each other:

(NOTE: We have published posts on the detailed results for all 19 industries)

2013TER_IndustriesHere are the companies that are leaders and laggards across the 19 industries:

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In this year’s ratings, 37% of companies earned “good” or “excellent” scores, while 28% are rated as “poor” or ”very poor.” Companies with at least a “good” rating grew by nine-percentage points since 2012 and by 21-points since 2011. Of the 203 companies that are included in both the 2012 and 2013 Temkin Experience Ratings, 57% firms had at least a modest increase. The companies that made the largest improvement over 2012 are Citibank, TriCare, TD Ameritrade, Office Depot, EarthLink, Hardees, and Regions Bank.

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Get the Data

Do you want to see all of the data? You can purchase an excel spreadsheet for $395…

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To view all of our ratings (experience, loyalty, trust, forgiveness, customer service, and web experience), visit the Temkin Ratings website

Temkin Ratings website

The bottom line: Customer experience is improving, but there’s still a long way to go

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