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Consumer health experience radar 2015

A consumer study prepared by PwC to investigate how behavioral, regulatory, and technological disruption are changing consumer's approaches to managing their health.

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Consumer health experience radar 2015

  1. 1. www.pwc.com Personal health management The rise of the empowered consumer Consumer Health Experience Radar 2015
  2. 2. Contents The changing expectations of healthcare consumers 1 Today’s consumers want to take charge of their health 1 What consumers told us 3 The seven healthcare trends underlying our research 5 Meet your plan members 6 Overview of the health plan groups 7 Private insurance – Single 7 Private insurance – Family 8 Medicare Advantage 9 Exchange customers 10 How to reach today’s healthcare consumers 28 Alternative care providers/new entrants: Increase your visibility, move beyond primary care 29 Wearables manufacturers: Expand your target market 29 About our research 30 How we developed our insights 30 Who we surveyed 30 Why these consumers? 30 Contributors 32
  3. 3. Personal health management ⏐ The rise of the empowered consumer 1 The changing expectations of healthcare consumers Today’s consumers want to take charge of their health We asked: What do you value most about your healthcare experience, and how much more responsibility would you accept in exchange for lower premiums? Based on feedback from the roughly 2,300 consumers we surveyed, it’s clear that consumers want to rely more on themselves for managing their health. And as they assume a larger share of costs, consumers also want to get the best value for their healthcare dollars, whether through the traditional healthcare system or via alternative service providers that are new entrants to the healthcare market (e.g., retail clinics, telemedicine service providers, etc.). They answered: Proactive health management, value for dollars, excellent service Consumers are getting smarter and more proactive about managing their health themselves. Armed with the Internet and a growing array of digital tools to monitor and improve their health, they’re no longer content to rely solely on a doctor’s advice. While almost half still go straight to the doctor when they face a health issue, one-third go online to research their symptoms before seeking medical care. Some visit urgent care clinics or pursue other forms of alternative care— an option customers love once they try it, but is unfamiliar to most due to a lack of mainstream advertising and promotion. Today’s healthcare consumers are also focused on value. If given the choice, they are willing to take on more risk and responsibility for managing their health in exchange for lower monthly health insurance premiums. But while most consumers are cost- conscious, there’s a split between those who want to pay more for higher quality care and those who prefer to spend less for “good enough” care. Whether focused on quality or value, healthcare consumers expect to be treated well. Trained by the retail industry to expect top-notch service, and empowered with tools to manage their own health, consumers have little patience for a poor healthcare experience. And when it occurs, they’ll often blame the brand or institution, not the person who provided the care. How can you reach these empowered consumers? No single approach will appeal to all healthcare consumers. Each segment has unique characteristics that require tailored solutions. But our research suggests that payers and providers can apply three key approaches that will have broad consumer appeal:
  4. 4. Personal health management ⏐ The rise of the empowered consumer 2 Give them tools to manage their health. Make it easier for consumers to monitor their health stats, track their fitness activity and progress, and manage chronic illnesses. Encourage or even subsidize the use of wearables, and enable plan members to share their fitness and wellness data with their doctors, making healthcare a team effort. Provide self-diagnosis tools and telemedicine options, to help consumers determine if they need to seek in-person care for their illness and to reduce care costs. Offer self-service options that enable consumers to perform common health-related tasks on their own, such as refilling prescriptions and scheduling follow-up visits. Help them to be proactive. Allow consumers to opt in to more comprehensive, proactive disease testing to maintain their health and avoid problems in exchange for a discount on their health insurance premiums. Provide proactive health warnings or alerts based on their activity data so they can avoid making potentially damaging lifestyle choices. Make care convenient. Adopt lessons from retail clinics, which succeed in part by catering to customers’ busy schedules—and in the process, delivering great customer experiences. Making care convenient (e.g., by offering scheduled or drop-in appointments on evenings and weekends) can help strengthen brand loyalty and attract new customers. Even more important, making care convenient can help to eliminate bad customer experiences, which play a more important role in shaping brand perceptions and determining customer loyalty.
  5. 5. Personal health management ⏐ The rise of the empowered consumer 3 What consumers told us Passive is out, proactive is in. Consumer health intelligence is increasing rapidly. The traditional concept of passive, qualitative “wellness” is being replaced by a proactive, quantitative approach called personal health management (PHM), with empowered consumers taking more responsibility for their healthcare. Armed with digital devices, consumers are monitoring key health stats on a regular basis, from weight and blood pressure to the number of steps they take each day. And they are proactive about maintaining their health: three in five of those we surveyed push themselves with challenging health goals, and almost half (46%) frequently reach their goals. In striving to achieve their goals, they are driven by personal satisfaction (89%), the ability to track progress quantitatively (71%), and validation from their doctors that they’re on the right track (69%). Customer satisfaction is fragile, and brands get blamed for bad experiences. Based on our research, consumers generally like the people and institutions involved with their healthcare, but only two in five are satisfied with the medical advice they receive, and 45% say they have never had a great healthcare experience. Positive experiences are overwhelmingly credited to the person who administered care (63%), while poor experiences are blamed on the institution—either the organization itself (44%) or the fees it charged (38%). Brands get little credit for great care but most of the blame when care is poor. Consumers agree on what they can and can’t accept in healthcare… We delved into what consumers value the most about their healthcare, and what changes they would be willing to make in exchange for lower premiums. When asked to create their ideal healthcare plan, consumers agreed on the most important feature: being able to see a doctor within 24 hours of getting sick. They also value the ability to choose their doctors. However, they showed a willingness to take on more risk and responsibility for managing their health in exchange for a lower premium (~5% average savings per consumer). That includes accepting more preventive screening tests (and the collection of additional personal information that accompanies testing); virtual consultations for follow-up appointments; and online self-service tools for simple tasks like prescription refills in exchange for a discounted health insurance premium. …but are split on how to approach it The majority of consumers (56%) are cost-conscious when it comes to care, but a sizable segment of the population (38%) is willing to pay for the highest quality care they can get. In addition, consumers fall into two camps when handling health issues: almost half (48%) go straight to their doctor, but nearly a third (32%) research their symptoms online first before seeking medical care. What do you track monthly? 83% weight 55% blood pressure 55% caloric intake 30% sleep patterns 24% steps What they want… See a doctor within 24 hours24 Get care in a doctor’s office from reputed health company Choose any doctor they want Receive health advice only when requested What they don’t want… Limits on which doctors they can choose for care 2 Unsolicited health alerts/ warnings from doctors Retail brands/facilities replacing doctors/hospitals
  6. 6. Personal health management ⏐ The rise of the empowered consumer 4 While most consumers are proactive about managing their health, 9% don’t engage in any preventive care, and 7% of consumers who purchased coverage through healthcare exchanges avoid care altogether because of the costs involved. As the cost of healthcare becomes increasingly prohibitive, this care-apathetic population is likely to grow quickly. Alternative care and wearable devices: Just outside the mainstream Consumers of alternative care1 —in particular, those who receive care at non- traditional facilities such as walk-in clinics (the most popular venue)— generally love the experience, but more than half of patients (53%) have never visited an alternative care facility. Lack of awareness is the main reason. Only one in five customers learn about alternative care options through marketing; instead, they find this option most often through word of mouth (40%) and online research (28%). Like alternative care, wearable devices have not yet reached the mainstream, but this is likely to change as comfort with technology grows. Less than 10% of the consumers we surveyed own a health-related wearable device, but of the 90%+ who don’t, one in five have considered buying such a device. In addition, while 84% of those interested would prefer a sub-$100 wearable, 15% would be willing to pay $200 for a more stylish model with advanced features. Most consumers are digitally savvy: 74% of those we surveyed go online multiple times a day, 83% say they have some comfort with mobile technology, and more than half (52%) consider themselves active mobile users. 1 For purposes of our research, we defined alternative care as follows: "Companies not normally associated with healthcare offering health-related services. Examples include drugstores & supermarkets with walk-in medical clinics, phone/online-based services that allow customers to virtually consult with a licensed doctor at any time, etc." How many feel that alternative care options are the same or better than typical doctors/hospitals in the following categories? 94% Proximity 91% Customer Service 88% Quality 81% Aesthetics 89% Convenience 82% Cost $
  7. 7. Personal health management ⏐ The rise of the empowered consumer 5 The seven healthcare trends underlying our research PwC identified seven major trends that are influencing changes in health-related consumer behavior. These trends served as the foundation for the development of our survey questions: 1. Care as commodity: A new generation of value-conscious consumers is treating healthcare like any other purchase. They are seeking the “best deal,” with little loyalty to brands or providers. 2. More empowered healthcare consumers: Today’s empowered consumers track their vitals, research symptoms online, and self-diagnose rather than rely solely on providers to diagnose and treat illnesses. 3. Higher share of cost burden: Healthcare is getting more expensive and consumers are sharing more of the cost burden. For many consumers, healthcare is changing from a given to a discretionary expense requiring a cost-benefit analysis. 4. More alternative care services from non-traditional players: Telemedicine start-ups, retail clinics, at-home medical kits, and more: Consumers have a growing number of options for managing their care. 5. Proliferation of health-tracking technology: The exploding wearables industry is enabling consumers to analyze their health with a level of precision traditionally reserved for doctors, and it’s changing the definition and capabilities of remote patient monitoring (RPM). 6. More insured consumers, thanks to the ACA: Millions of first-time customers are now buying health insurance, creating an opportunity for established payers and providers to grow their customer bases—and for non-traditional companies to disrupt the industry by offering innovative services at compelling price points. 7. Increased demand for primary care: With more doctors choosing specializations over general medicine, the demands on primary care practitioners have never been greater. This is forcing many states to expand PCP laws to enable RNs and pharmacists to diagnose illnesses and prescribe treatments.
  8. 8. Personal health management ⏐ The rise of the empowered consumer 6 Meet your plan members Different consumers, unique needs and preferences Understanding the differences among healthcare consumers, in terms of needs, preferences, and approaches to healthcare, is essential to attracting and retaining customers. To help payers and providers gain an understanding of the needs of healthcare consumers, we leveraged our Experience Radar methodology to identify four categories of consumers, based on the type of health insurance plans they purchased. We hypothesized, and our research confirmed, that each of the four groups represents a different approach to healthcare. We also found important differences in the responses of consumer segments within each of these groups: • Private health insurance customers (single person) • Private health insurance customers (family) • Medicare Advantage customers • Health Insurance Exchange customers We explored how consumers in each segment within the four plan groups currently manage their health, what they value most in healthcare, where they’re willing to accept more risk, and what customer experience features would most resonate with them. Their responses, detailed on the following pages, provide insights that payers and providers can use to tailor their marketing efforts and the customer experience efforts to meet the unique needs and preferences of each segment within each health plan group.
  9. 9. Personal health management ⏐ The rise of the empowered consumer 7 Overview of the health plan groups Private health insurance customers (single person) Fitness-focused Fay Fay is primarily a Millennial who lives in a major southern city. She’s digitally savvy, passionate about staying healthy, and searching for value. Wary Walter Walter is primarily a Baby Boomer who lives in a rural town. He tracks metrics to manage his chronic illness and visits a traditional provider when there’s a problem. He wants the best quality of care he can afford on his limited income. Trusting Terri Terri lives mainly in suburbs on the West Coast. He’s healthy, tracks metrics such as weight and calories, and is considering using a wearable. Health is a priority, so he seeks the best care his insurance allows, from traditional providers. Preoccupied Paolo Paulo is mostly Gen X living in the Midwest. He’s focused on his financial problems, and health isn’t a priority for him. He’s unhappy with his insurance and avoids care because of the cost, though he has visited a low-cost urgent care clinic. Fitness-focused Fay Healthy and cost-conscious 27% of consumers in this plan group Wary Walter Focused on managing illness 25% of consumers in this plan group Trusting Terri Healthiness = happiness 24% of consumers in this plan group Preoccupied Paolo Healthy but at risk 23% of consumers in this plan group
  10. 10. Personal health management ⏐ The rise of the empowered consumer 8 Private health insurance customers (family) Driven Darin Darin is a largely a healthy Gen X consumer living in a Southern suburb. He tracks his health stats closely, often using wearables. He’s happy with traditional care but also with new entrants such as the retail clinic he visited. He wants the best quality care available. Conventional Carl Carl is predominantly a Baby Boomer who lives in a Midwestern town and has a chronic illness that’s easy to manage. He’s “old school,” preferring traditional care. He handles non-urgent health issues on his own and visits his doctor only in an emergency. Try-it-out Tori Tori is a mainly a healthy Baby Boomer or Gen X consumer who lives in a Midwestern suburb. He’s casual about monitoring his health and ambivalent about his current care. He’s pleased with alternative care but had to be convinced of its value. Savvy Sam Sam is typically a healthy Millennial who lives in a moderate-sized city. She uses wearables to monitor her health and partly because of their “cool factor.” She values the social aspects of health. She’s rarely ill, so it’s unclear how she would manage health issues. Novice Natalie Natalie is mainly a healthy Millennial who lives in a Northeastern town. She uses wearables to monitor her fitness. Because of her age, she has limited experience with healthcare, but she thinks the walk-in clinic she visited was inferior to a traditional doctor’s office. She researches health issues online and seeks the lowest-cost care. Driven Darin Will pay for quality 24% of consumers in this plan group Conventional Carl “Old school” 23% of consumers in this plan group Try-it-out Tori Healthy but ambivalent about care 22% of consumers in this plan group Savvy Sam Trend-setter 17% of consumers in this plan group Novice Natalie Stressed student 14% of consumers in this plan group
  11. 11. Personal health management ⏐ The rise of the empowered consumer 9 Medicare Advantage customers Healthy Hogan Hogan is mainly a healthy Baby Boomer who lives in a Midwestern suburb. She’s digitally savvy and monitors her health stats regularly. She’s ambivalent about traditional care and was impressed with the urgent-care clinic she visited. When possible, she’ll search online to find self-treatments. Disengaged Dani Dani is mainly a Baby Boomer who lives in a rural town in the Northeast. He has a chronic condition, but it’s easy to manage, and he doesn’t monitor his health. He seeks the cheapest care available but has never tried alternative options like retail clinics. Health is just not a priority for him. Chronic-Care Cam Cam is typically a Baby Boomer who lives in a mid-size Southern city. She stays active and monitors her health stats often to manage her chronic illness. She likes to share her health data and would considering using a wearable. She’s happy with her traditional care provider, and she seeks the most cost-effective care options that her insurance covers. Spiritual Sai Sai is largely a Baby Boomer who lives in a metropolitan region in the West. He doesn’t actively monitor his health stats but he stays active to ensure his health, which he views as the path to happiness. He’s satisfied with his traditional care provider and has no interest in seeking alternative care. Healthy Hogan Low-maintenance 41% of consumers in this plan group Disengaged Dani Apathetic with chronic illness 21% of consumers in this plan group Chronic-Care Cam Focused on managing chronic illness 20% of consumers in this plan group Spiritual Sai Values quality care to ensure happiness 18% of consumers in this plan group
  12. 12. Personal health management ⏐ The rise of the empowered consumer 10 Health Insurance Exchange customers Premium Paul Paul is typically a healthy Baby Boomer who lives in a small Northeastern town. He’s retired but not yet on Medicare. He stays fit, pays for premium coverage, and is pleased with the care he receives from his traditional providers. He has no interest in alternative care options. Struggling Sue Sue is mostly a Millennial with a chronic illness. She only monitors her weight and blood pressure, but she’s digitally savvy and has considered wearables. She sets easy fitness goals and values encouragement. She likes her doctors but not her low-cost insurance plan, which limits her options. She visits walk-in clinics but finds them disappointing. Restarting Rita Rita is typically a healthy Gen X consumer who lives in a Midwestern suburb. She only tracks her weight, and she has no interest in wearables. Rita is unhappy with the limited options her bare-bones insurance policy covers, but she can’t afford the additional cost to visit a walk-in clinic. She tries to handle most health issues on her own. Aspirational Annie Annie is mostly a healthy Millennial who lives in a suburb near a mid-size Southern city. She monitors her fitness and has a strong interest in wearables, but she struggles to meet her health goals. She’s more impressed with alternative care than with her traditional providers. To keep costs low, she tries to deal with health issues on her own or visit a low-cost clinic. Premium Paul Successful, wants the best 31% of consumers in this plan group Struggling Sue Focused on managing chronic illness 26% of consumers in this plan group Restarting Rita Competing life priorities 24% of consumers in this plan group Aspirational Annie Wants to improve her health 20% of consumers in this plan group
  13. 13. Personal health management ⏐ The rise of the empowered consumer 11 Fitness-focused Fay Healthy and cost-conscious Consumers like Fitness-focused Fay are passionate about monitoring their fitness and maintaining a healthy lifestyle. They frequently track health stats, including calories and steps taken, monthly sleep patterns, and BMI, and they set and often meet challenging health goals. These digitally savvy consumers use wearables to monitor their health, and they appreciate the social features of the technology. Consumers like Fay are generally happy with their doctors, specialists, pharmacists, and local drug stores, but they also want the cheapest care possible. They prefer to research their symptoms online before seeking care and to self-treat their issues when possible. They have sampled alternative care in the form of walk-in clinics but have been disappointed by the cost and aesthetics of the facilities. How can you reach consumers like Fitness-focused Fay? • Make it easier for them to track their fitness and determine if they’re on track with their goals through remote monitoring of their wearables data. • Empower them with self-diagnosis tools to help them determine if they need to seek in-person care for their illness (versus making that decision on their own). • Give them more self-service and telemedicine options so they can perform common health-related tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily. • Allow them to opt in to more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums. 1 In our survey, the features of the “typical plan” were the same for each of the four plan groups. Only the cost of the typical plan differed, reflecting the varying demographics and risk profiles of consumers in each plan group. Hypothetical discounts were offered to consumers in exchange for taking on more responsibility/accountability – for instance, agreeing to more preventive screening or accepting telemedicine rather than in-person doctor visits. Meet Fitness-focused Fay (27% of consumers in this segment) Age 18-34 (Millennial) Gender Female Ethnicity African-American Education Graduate degree Employment Newly employed Income $50-$100K Digital literacy High Lives in Major southern city Health status Healthy Religious No These details are representative of the typical healthcare consumer in this segment. 20-50% more likely to be somewhat satisfied w/current careì 50% more likely to be cost-conscious with care$ 2.8%cost difference between ideal (discounted) and typical plan1 ★ 1.4X likely to be healthy w/no chronic issues✜
  14. 14. Personal health management ⏐ The rise of the empowered consumer 12 Wary Walter Focused on managing illness Wary Walter and consumers like him track their weight and blood pressure daily to manage their chronic illness. They also track calories occasionally when urged by a doctor. These consumers go online for health information but they’re not mobile- savvy. They set and achieve modest fitness goals now and then, but they’re focused mainly on managing their illness. Consumers like Walter are extremely satisfied with their doctors, specialists, pharmacists, drug efficacy, hospitals, health insurance, and advice they receive. They value analyzing their vitals and appreciate the encouragement that their doctors provide. They have never seen an alternative care practitioner, since alternative care clinics aren’t equipped to handle complex chronic illnesses like theirs. Consumers in this segment go straight to the doctor when they have a health issue. Despite limited means, they want the best quality care possible so they can prevent additional health problems. How can you reach consumers like Wary Walter? • Make it easier for them to manage their chronic illness and determine if their tracked vitals are within healthy limits, possibly with the help of simplified wearable technology. • Offer them more frequent check-ins with a doctor via telemedicine to promote better adherence to treatment plans and provide positive encouragement. • Give them more self-service options to perform common health-related tasks (e.g., refilling a prescription) simply and quickly. • Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, in order to prevent additional chronic health issues from arising. Meet Wary Walter (25% of consumers in this segment) Age 55+ (Baby Boomer) Gender Male Ethnicity Caucasian Education High school Employment Retired Income $25-50K Digital literacy Low Lives in Rural town Health status Chronic illness Religious Yes These details are representative of the typical healthcare consumer in this segment. 40-90% more likely to be very satisfied w/current careì 70% more likely to want the highest quality care possible$ 4.4%cost difference between ideal (discounted) and typical plan ★ 3.1X likely to have a difficult to manage chronic condition✜
  15. 15. Personal health management ⏐ The rise of the empowered consumer 13 Trusting Terri Healthiness = happiness Consumers like Trusting Terri monitor their health carefully. They track their weight and calories weekly, and their steps and BMI regularly, and have strongly considered using wearables. These consumers are highly motivated to reach their health goals and often do so. They value the encouragement of their friends, family, and doctors, and they like being able to track their progress. Their health has a major effect on their happiness, so when faced with a health issue, they seek the best care available through their insurance. Consumers in this segment are very pleased with their current healthcare. They trust their doctors, and they’re satisfied with the advice they receive, treatments prescribed, and specialists they consult. They have visited alternative care clinics on the advice of their doctors, but saw no difference in cost or convenience and felt that the quality of care was lower than the care they receive from their regular doctors. How can you reach consumers like Trusting Terri? • Subsidize wearables so that health tracking is integrated into their regular fitness/wellness routines and their data is made available to their doctors. • Provide proactive health warnings or alerts based on their activity data so they can avoid making potentially damaging lifestyle choices. • Give them more telemedicine options so they can connect with their doctors more conveniently when needed and complete simple tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily. • Offer them more comprehensive/proactive disease testing so they can continue maintaining their healthy lifestyles. Meet Trusting Terri (24% of consumers in this segment) Age Indeterminate* Gender Indeterminate* Ethnicity Asian Education Graduate degree Employment Indeterminate* Income $75-$150K Digital literacy High Lives in West Coast suburb Health status Healthy Religious Yes These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. 20-50% more likely to be somewhat satisfied w/current careì 20% more likely to want the highest quality care possible$ 4.6%cost difference between ideal (discounted) and typical plan ★ 1.5X likely to be healthy w/no chronic issues✜
  16. 16. Personal health management ⏐ The rise of the empowered consumer 14 Preoccupied Paolo Healthy but at risk Consumers like Preoccupied Paolo don’t have the time or energy to monitor their health, although they occasionally check their weight. They don’t value motivating tactics, such as encouragement or incentives, because maintaining health and fitness is simply not a priority for them. They’re focused mainly on staying afloat financially. Paolo and his cohorts are healthy but generally avoid care because of the costs involved. This could make them vulnerable to chronic health issues down the line. Consumers like Paolo are not satisfied with their current healthcare. They’re ambivalent about the people and institutions involved and dissatisfied with their health insurance, which makes them reluctant to seek care. On the recommendation of family members, they do visit urgent care clinics, and they value the proximity and lower cost of these facilities. How can you reach consumers like Preoccupied Paolo? • Offer them cost-effective and simple options for engaging in preventive care, possibly by offering coverage of their visits to walk-in clinics or providing remote support. • Give them low- or no-cost self-service resources that enhance their health intelligence and help them to manage their lifestyles with a minimal time commitment. • Sell them on the benefits of telemedicine in terms of cost and speed so they become more engaged customers and make their health a higher priority. • Explain to them the long-term benefit of comprehensive, proactive disease testing to help prevent complex (and costly) chronic illness. Meet Preoccupied Paolo (23% of consumers in this segment) Age 45-54 (Gen X) Gender Male Ethnicity Hispanic Education Four-year college degree Employment Employed Income $0-$50K Digital literacy Low Lives in Midwest Health status Healthy Religious Indeterminate* These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. 60-100% more likely to feel ambivalent about current careì 66% are cost-conscious with care$ 4.2%cost difference between ideal (discounted) and typical plan ★ 1.5X likely to be healthy w/no chronic issues✜
  17. 17. Personal health management ⏐ The rise of the empowered consumer 15 Driven Darin Willing to pay for quality Consumers in Driven Darin’s segment monitor their health stats closely, often tracking weight, blood pressure, steps, sleep patterns, and calories. These digitally-savvy consumers are interested in using wearables for self-improvement, and they value the ability to analyze their health data. They desire encouragement, which helps them to achieve their goals, but see little value in social incentives or progress sharing. Consumers like Darin are generally happy with their current care and fairly satisfied with the total healthcare experience; they like the institutions they visit, doctors they see, and advice they receive. But they’re also satisfied with alternative care, and feel that the cost, convenience, and customer service are superior to those provided by the typical doctor and hospital. They prefer to research non-threatening health issues online before seeking medical care, but when care is needed, they want the highest quality available. How can you reach consumers like Driven Darin? • Show them how to extract maximum value from wearables as tools to help them monitor their health stats and achieve their health goals. • Allow them to automatically share their activity data with their doctors to enable more precise feedback, health coaching, and proactive health alerts. • Give them robust self-service and telemedicine tools that enable them to perform common tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily and to access their primary care physicians easily when needed. • Offer them more comprehensive, proactive disease testing so they feel that they’re doing all they can to maintain their health and prevent the emergence of chronic health issues. Meet Driven Darin (24% of consumers in this segment) Age 35-54 (Gen X) Gender Male Ethnicity Asian Education Graduate degree Employment Employed Income $150K+ Digital literacy High Lives in Southern suburb Health status Healthy Religious Ambivalent These details are representative of the typical healthcare consumer in this segment. 20-30% more likely to be somewhat satisfied w/current careì 30% more likely to want the highest quality care possible$ 4.2%cost difference between ideal (discounted) and typical plan ★ 1.2X likely to be healthy w/no chronic issues✜
  18. 18. Personal health management ⏐ The rise of the empowered consumer 16 Conventional Carl “Old school,” values traditional care Consumers like Conventional Carl are not concerned about or interested in tracking health stats. Occasionally they monitor their blood pressure to manage their chronic illness, but they are not tech-savvy. Carl and his peers are very happy with all aspects of their current care (doctors, hospitals, etc.). They are “old school” consumers who prefer to use traditional healthcare to address issues. They are dissatisfied with alternative care, associating it with inferior quality and customer service compared to traditional care. Consumers like Carl rarely set health goals, but if they do, it’s for their own personal satisfaction, nothing more. For major health issues, they will seek the best care possible, but they’ll let non-emergency issues pass. How can you reach consumers like Conventional Carl? • Offer them simple self-service tools and telemedicine support to help them manage their chronic illness and reach their doctors when needed. • Engage them in health education around the importance of maintaining their fitness to avoid further complications from their chronic illness. • Make it easier for them to determine if their vitals are within healthy limits, possibly with the aid of simplified wearable technology. • Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, to help prevent additional chronic issues from arising. Meet Conventional Carl (23% of consumers in this segment) Age 55+ (Baby Boomer) Gender Male Ethnicity Caucasian Education Graduate degree Employment Retired Income $25-$75K Digital literacy Low Lives in Midwestern town Health status Chronic illness (easy to manage) Religious Ambivalent These details are representative of the typical healthcare consumer in this segment. 20-30% more likely to be very satisfied w/current careì 30% more likely to want the highest quality care possible$ 5.2%cost difference between ideal (discounted) and typical plan ★ 1.6X likely to have an easy-to- manage chronic condition✜
  19. 19. Personal health management ⏐ The rise of the empowered consumer 17 Try-it-out Tori Healthy but ambivalent about care Consumers like Try-it-out Tori don’t focus on tracking their health, but they’re somewhat tech-savvy, and they do monitor their blood pressure and sleep patterns sporadically. These consumers are ambivalent about the care they’re receiving and in some cases are unsatisfied when compared to other segments. They’re willing to try other options, and they’re pleased with alternative care facilities such as walk-in clinics, finding them superior to traditional care in terms of quality, cost, proximity, aesthetics, and customer service. Consumers like Tori don’t often set health goals, and the ones they do set are easy to achieve without any support. When facing a medical issue, these consumers seek out the most cost-effective treatment possible. How can you reach consumers like Try-it-out Tori? • Give them simple, low-cost self-service tools that will empower and encourage them to more closely monitor their health, possibly with the help of subsidized wearables. • Adopt the convenience and customer service features of retail clinics to provide a compelling experience that can win their business. • Give them more telemedicine options so they can connect with their doctors more conveniently when needed and complete simple tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily. • Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, to help prevent chronic health issues from developing. Meet Try-it-out Tori (22% of consumers in this segment) Age 45-64 (Gen X, Baby Boomer) Gender Indeterminate* Ethnicity African-American Education Two-year college degree Employment Employed Income $25-$75K Digital literacy Moderate Lives in Midwestern suburb Health status Healthy Religious Yes These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. 20% more likely to be satisfied w/current careì 30% more likely to be cost-conscious with care$ 5.8%cost difference between ideal (discounted) and typical plan ★ 1.2X likely to be healthy w/no chronic issues✜
  20. 20. Personal health management ⏐ The rise of the empowered consumer 18 Savvy Sam Trend-setter Consumers like Savvy Sam use wearables to monitor their health stats more precisely, maintain their fitness, and because of the devices’ “cool factor.” These consumers value the social aspects of fitness, such as sharing, incentives, encouragement, and peer competition. They also value the ability to analyze their wearable data to help them achieve their health goals. Because consumers in this segment have no chronic illness and rarely get sick, their approach to treating health issues is unclear. Some are ambivalent about their current healthcare experience while others are somewhat satisfied, especially with their local pharmacies and hospitals. Based on their doctors’ recommendations, consumers in this segment have visited alternative care facilities. They liked the aesthetics of the facilities but otherwise were indifferent about the experience. How can you reach consumers like Savvy Sam? • Allow them to automatically share their activity data with their doctors to enable more precise feedback, health coaching, and proactive health alerts. • Provide simple tools for self-reporting key health metrics to their doctors, to improve wellness tracking and enable proactive issue resolution. • Give them robust self-service and telemedicine tools so they can complete simple tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily and connect with their doctors more conveniently when needed. • Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, to help prevent chronic illness from arising. Meet Savvy Sam (17% of consumers in this segment) Age 25-34 (Millennial) Gender Indeterminate* Ethnicity Asian Education Two-year college degree Employment Indeterminate* Income $25-$50K Digital literacy High Lives in Moderate-sized city Health status Healthy Religious Indeterminate* These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. 20-50% more likely to be somewhat satisfied w/current careì 58% are cost-conscious with care$ 4.2%cost difference between ideal (discounted) and typical plan ★ 1.2X likely to be healthy w/no chronic issues✜
  21. 21. Personal health management ⏐ The rise of the empowered consumer 19 Novice Natalie Stressed student Consumers like Novice Natalie focus on tracking calories regularly and checking weight and BMI monthly to ensure healthiness. They are digitally savvy and use wearables to monitor their fitness levels. These consumers set easy fitness goals. They value the social aspects of fitness – including incentives, competition, and encouragement – sharing their progress to keep them motivated. Consumers in this segment are somewhat satisfied with their doctors and pharmacies, but given their age, they don’t have many points of comparison. They have visited urgent care clinics based on the recommendation of family or friends, but felt that the cost and aesthetics of these alternative care facilities were inferior to those of a traditional doctor’s office. Natalie and her peers are cost-conscious about their care. They will research their symptoms online before seeking care, and if they need treatment, they’ll pursue the cheapest option available. How can you reach consumers like Novice Natalie? • Subsidize wearables so they can track their fitness more effectively, and allow them to share activity data with their doctors, to enable better health coaching and proactive health alerts. • Empower them with self-diagnosis tools that help them determine if they need to seek in-person treatment for their illness (versus making that decision on their own). • Give them more telemedicine and self-service options so they can complete common health-related tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily. • Allow them to opt in to more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums. Meet Novice Natalie (14% of consumers in this segment) Age 18-24 (Millennial) Gender Female Ethnicity Caucasian Education Some college Employment Student Income < $25K Digital literacy High Lives in Northeastern town Health status Healthy Religious No These details are representative of the typical healthcare consumer in this segment. 20-30% more likely to be somewhat satisfied w/current careì 20% more likely to be cost-conscious with care$ 3.6%cost difference between ideal (discounted) and typical plan ★ 1.5X likely to be healthy w/no chronic issues✜
  22. 22. Personal health management ⏐ The rise of the empowered consumer 20 Healthy Hogan Low maintenance Consumers like Healthy Hogan diligently track many health stats, including BMI, steps taken, and especially caloric intake, which they monitor daily. These consumers are ambivalent about their current care and only somewhat satisfied with their primary hospital and the medical advice they receive. However, they are highly impressed with alternative care services. They have used urgent care clinics and found the experience to be equivalent to or better than traditional care in all aspects. Consumers in this segment are committed to their health goals and consider access to their health data critical to achieving those goals. They like to analyze data, and they value encouragement. These digitally savvy consumers rely on online research to help them find self-treatments for non-life-threatening health issues and avoid major medical costs. How can you reach consumers like Healthy Hogan? • Make it easier for them to track key fitness metrics by subsidizing wearables and integrating the devices into their wellness programs. • Give them low- or no-cost self-service and telemedicine tools that make it easier for them to access health resources, diagnose issues, and contact their doctors. • Consider offering coverage for walk-in clinics to help reduce their healthcare bills and generate loyalty for covering a service they value. • Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, to prevent the development of chronic health issues. Meet Healthy Hogan (41% of consumers in this segment) Age 65+ (Baby Boomer) Gender Indeterminate* Ethnicity Caucasian Education Four-year college degree Employment Retired Income $50-$65K Digital literacy High Lives in Midwestern suburb Health status Healthy Religious Indeterminate* These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. 20% more likely to be somewhat satisfied w/current careì 54% are cost-conscious with care$ 8.7%cost difference between ideal (discounted) and typical plan ★ 1.4X likely to be healthy w/no chronic issues, but occasionally sick✜
  23. 23. Personal health management ⏐ The rise of the empowered consumer 21 Disengaged Dani Apathetic with chronic illness Disengaged Dani and his segment peers don’t monitor their health at all; they never track BMI, steps taken, sleep patterns, or weight. They do go online, but they’re not mobile-savvy. They have little motivation to pursue health goals, although they occasionally set and reach easy goals. They rely solely on personal satisfaction to motivate them. Consumers like Dani typically are dealing with a chronic condition that is easy to manage, and they seek the cheapest health care options available. These consumers are ambivalent about their current care, and only somewhat satisfied with their primary hospital and advice they receive. Given the low priority they assign to their health, it’s not surprising that they’ve never pursued alternative care. How can you reach consumers like Disengaged Dani? • Give them low- or no-cost self-service resources that improve their health intelligence and help them to manage their chronic illness with a minimal time commitment. • Engage them in health education around the importance of maintaining their fitness, to avoid further complications from their chronic illness. • Sell them on the benefits of telemedicine, in terms of cost and speed, so they become more engaged customers and make their health a higher priority. • Explain to them the long-term benefit of comprehensive, proactive disease testing to help them avoid costly complications from their chronic illness. Meet Disengaged Dani (21% of consumers in this segment) Age 65+ (Baby Boomer) Gender Indeterminate* Ethnicity Indeterminate* Education Some college (no degree) Employment Retired Income < $50K Digital literacy Moderate Lives in Rural Northeastern town Health status Chronic illness (easy to manage) Religious Yes These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. 60% are generally satisfied w/current careì 30% more likely to want cheapest care option possible$ 10.9%cost difference between ideal (discounted) and typical plan ★ 1.2X likely to have an easy-to- manage chronic condition✜
  24. 24. Personal health management ⏐ The rise of the empowered consumer 22 Chronic-Care Cam Focused on managing chronic illness Consumers like Chronic-Care Cam track their health stats regularly (including daily weight checks) and make sure they stay active in order to manage their difficult chronic illness. These consumers are digitally savvy and would be interested in using wearables. They value the ability to analyze their health stats to ensure treatments are successful, and they like sharing their health data with their loved ones. Cam and her cohorts are highly satisfied with the care they receive, including the advice they’re given by their doctors and pharmacists. They do not use alternative care services, since they require the care of specialists to manage their chronic illness. Consumers like Cam are cost-conscious about their healthcare. Due to the complexity of their health conditions and the expenses involved, they seek out the most cost- effective treatment options covered by their insurance. How can you reach consumers like Chronic-Care Cam? • Make it easier for them to manage their chronic illness and determine if their tracked vitals are within healthy limits—possibly with the aid of subsidized wearable technology • Offer them more frequent, lower-cost check-ins with a doctor via telemedicine to assess their progress toward achieving health-related goals. • Give them more self-service options to enable them to perform common health-related tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily, and to share their progress with their families. • Offer them more comprehensive, proactive disease testing in exchange for a discount on their health care premiums, to prevent complications from their chronic illness. Meet Chronic-Care Cam (20% of consumers in this segment) Age 65+ (Baby Boomer) Gender Indeterminate* Ethnicity Indeterminate* Education Some college (no degree) Employment Retired Income $65-$95K Digital literacy High Lives in Mid-size Southern city Health status Chronic illness (difficult to manage) Religious Indeterminate* These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. 20-60% more likely to be somewhat satisfied w/current careì 20% more likely to be cost-conscious with care$ 8.2%cost difference between ideal (discounted) and typical plan ★ 1.2X likely to have a difficult to manage chronic condition✜
  25. 25. Personal health management ⏐ The rise of the empowered consumer 23 Spiritual Sai Values quality care to ensure happiness Consumers like Spiritual Sai do not actively track much health data, but they ensure that they maintain an active lifestyle by monitoring their steps monthly. They view health as a path to happiness, and set goals accordingly. They value encouragement from their doctors and the ability to analyze their health data to ensure they are on track. Consumers in this segment are very satisfied with their care, especially the quality of their specialists, medical advice, and health insurance. They usually seek the highest quality of care from their doctors, and they’re willing to pay a premium for it. Because of their satisfaction with their current care, they do not pursue alternative care services. How can you reach consumers like Spiritual Sai? • Educate them on the value of regularly tracking health stats as a means of better monitoring their chronic illness. Possibly recommend the use of wearables. • Offer them more frequent check-ins with their doctor via telemedicine to assess their progress against their health goals and encourage healthy behavior. • Give them more self-service options to enable them to perform common health-related tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily. • Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, to prevent complications from their chronic illness. Meet Spiritual Sai (18% of consumers in this segment) Age 65+ (Baby Boomer) Gender Indeterminate* Ethnicity Indeterminate* Education Indeterminate* Employment Retired Income $95K+ Digital literacy Moderate Lives in Western metropolitan region Health status Indeterminate* Religious Yes These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. 20-30% more likely to be very satisfied w/current careì 20% more likely to want highest quality care possible$ 8.1%cost difference between ideal (discounted) and typical plan ★ 58% have a chronic condition ✜
  26. 26. Personal health management ⏐ The rise of the empowered consumer 24 Premium Paul Successful in life, wants the best Consumers like Premium Paul are retired but not yet eligible for Medicare. These consumers are fitness-focused and self-motivated. They are comfortable with mobile technology and use it to check their weight and log their steps taken. Paul and consumers like him have paid for premium coverage, and they love their current care—the hospitals they visit, the doctors and specialists they see, the advice they receive, and the treatments they’re prescribed. When a health issue arises, they go straight to the doctor to determine the best treatment option. Because they’re satisfied with the care they receive, they see no need to visit an alternative care facility. How can you reach consumers like Premium Paul? • Show them how to extract maximum value from wearables as tools to help them monitor their health stats and achieve their health goals. • Offer them more frequent check-ins with their doctors via telemedicine to assess their progress toward achieving their health goals. • Give them more self-service options to enable them to perform common health- related tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily. • Offer them more comprehensive, proactive disease testing to help prevent any chronic health issues from arising. Meet Premium Paul (31% of consumers in this segment) Age 55+ (Baby Boomer) Gender Male Ethnicity Caucasian Education Graduate degree Employment Retired Income $80K+ Digital literacy Moderate Lives in Small Northeastern town Health status Healthy Religious No These details are representative of the typical healthcare consumer in this segment. 20-30% more likely to be very satisfied w/current careì 20% more likely to want highest quality care possible$ 8.1%cost difference between ideal (discounted) and typical plan ★ 58% have a chronic condition ✜
  27. 27. Personal health management ⏐ The rise of the empowered consumer 25 Struggling Sue Focused on managing chronic illness Struggling Sue and consumers like her don’t have time to track fitness-oriented metrics, but they do monitor their blood pressure and weight in order to manage their chronic illness. They are digitally savvy and have considered using wearables. Given their chronic illness, consumers like Sue have to set easy fitness goals. They value sharing and encouragement, and they rely on family and friends to keep them motivated. Consumers in this segment are satisfied with the level of care they receive from their physicians but are dissatisfied with their insurance plans, due to limited coverage. This coverage, and their low incomes, limit their options for dealing with health issues. They use walk-in clinics to reduce costs but are generally disappointed with the experience. How can you reach consumers like Struggling Sue? • Subsidize wearables so they can more easily and effectively track their fitness and progress against goals specific to managing their chronic illness. • Offer them more frequent, lower-cost check-ins with a doctor via telemedicine to check the status of their illness. • Give them low- or no-cost self-service tools that make it easier for them to access health resources, diagnose issues, and determine if they need to seek in- person care. • Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, to help prevent complications from their chronic illness. Meet Struggling Sue (26% of consumers in this segment) Age 18-34 (Millennial) Gender Female Ethnicity Caucasian Education 2- or 4-year degree Employment Indeterminate* Income $35-$50K Digital literacy High Lives in Indeterminate* Health status Chronic illness Religious Indeterminate* These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification.20-40% more likely to be somewhat satisfied w/current careì 64% are cost-conscious with care$ 3.7%cost difference between ideal (discounted) and typical plan ★ 1.2X likely to have an easy-to- manage chronic condition✜
  28. 28. Personal health management ⏐ The rise of the empowered consumer 26 Restarting Rita Competing life priorities Consumers like Restarting Rita have little free time to actively monitor their health, but they try to track their weight monthly, at a minimum. These consumers have a moderate level of digital literacy but no interest in wearables. Consumers in this segment are dissatisfied with their insurance coverage—specifically, the limited options it provides and the doctors they are forced to see. They have never tried a walk-in clinic because it is not covered by their insurance; with low incomes, they must limit their out-of-pocket expenses. Because consumers in this segment are cash-strapped, they deal with most health issues themselves or reach out to friends and family for help. For these consumers, struggling economically, setting health and fitness goals is not a priority. How can you reach consumers like Restarting Rita? • Engage them in health education around the importance of tracking their fitness as they grow older and become at greater risk for chronic health issues. • Give them low- or no-cost self-service and telemedicine tools that make it easier and cheaper for them to access health resources and diagnose issues on their own. • Consider offering coverage for walk-in clinics to give them a low-cost option for seeking care for non-emergency issues (versus avoiding care altogether). • Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, to help prevent chronic health issues from arising. Meet Restarting Rita (24% of consumers in this segment) Age 45-54 (Gen X) Gender Female Ethnicity Caucasian Education Two-year college degree Employment Employed Income $0-$50K Digital literacy Moderate Lives in Midwestern suburb Health status Healthy Religious No These details are representative of the typical healthcare consumer in this segment. 20-40% more likely to be ambivalent about current careì 20% more likely to want cost-conscious with care$ 2.8%cost difference between ideal (discounted) and typical plan ★ 1.2X likely to be healthy w/no chronic issues, but occasionally sick✜
  29. 29. Personal health management ⏐ The rise of the empowered consumer 27 Aspirational Annie Wants to improve health Consumers like Aspirational Annie actively track their weight, steps taken, and sleep patterns. They are mobile power users and are very interested in wearables as a means to obtain more accurate estimates of their health status. Consumers in this segment are ambivalent about their current care. They are unimpressed by the doctors and specialists they have seen and the hospitals and pharmacies they have visited. By contrast, they are impressed with the customer service and value of alternative care. Historically these consumers have struggled to meet their health goals. They value encouragement from their friends, family, and doctors. Annie and consumers like her are extremely cost-conscious in managing their health, and they search for the cheapest options available. They will research their symptoms before seeking care and will try to manage health issues on their own, or they’ll visit a local clinic for cost-effective care. How can you reach consumers like Aspirational Annie? • Subsidize wearables so these consumers they can track their fitness and progress against their personal health goals more easily and effectively. • Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, to help prevent any chronic health issues from arising in the future. • Give them low- or no-cost self-service and telemedicine tools that make it easier and cheaper for them to access health resources and diagnose issues on their own. • Give them the option of seeing a nurse or physician’s assistant as their primary caregiver for non-emergency issues in exchange for a discount on their health insurance premiums. Meet Aspirational Annie (20% of consumers in this segment) Age 25-34 (Millennial) Gender Female Ethnicity Indeterminate* Education Graduate degree Employment Indeterminate* Income $50-100K Digital literacy High Lives in Suburb near mid-size Southern city Health status Healthy Religious No These details are representative of the typical healthcare consumer in this segment. *Data does not support a single classification. 30-80% more likely to be ambivalent about current careì 14% more likely to be cost-conscious with care$ 3.9%cost difference between ideal (discounted) and typical plan ★ 1.5X likely to be healthy w/no chronic issues, but occasionally sick✜
  30. 30. Personal health management ⏐ The rise of the empowered consumer 28 How to reach today’s healthcare consumers 1. Learn from retail clinics. While retail clinics have not yet gained mainstream appeal, customers give them high marks for value, quality, aesthetics, service, and convenience. Adopt these retail lessons to increase customer satisfaction: Streamline paperwork, make costs transparent, install upscale design and fixtures in facilities, make customer service highly responsive, and forge strong brand partnerships with well-known hospital and healthcare groups. 2. Make the customer’s life easier. Focus on delivering the basics exceptionally well to win the trust and loyalty of healthcare consumers. To make the customer’s life easier, provide user-friendly health monitoring tools and services; make common health-related tasks simple to complete (e.g., online prescription refills, appointment scheduling, claims filing), and deliver world-class customer service—including streamlined issue resolution. 3. Care about each customer. Move away from a one-size-fits-all approach to care. Identify your customer segments and leverage the segment insights outlined above to understand their priorities. Tailor your offerings to meet the needs and preferences of each segment, and invest in customer analytics to offer more personalized products, services, and support. 4. Offer next-gen services. To move customer satisfaction to the next level, offer next-gen services. Leverage the rise of PHM and the increasing capabilities of wearables to incorporate voluntary remote patient monitoring into treatment and wellness programs, letting early adopters drive mainstream adoption. Consumers aren’t ready to accept a fully automated/self-service care model, even if it saves them money. Instead, position automated services as a supplement to, not a replacement for, existing care options. 5. Give consumers choice. Our research shows that consumers are willing to accept more risk and responsibility for healthcare and lead a healthier lifestyle in exchange for discounts on their health insurance premiums. To capitalize on this finding, create discount tiers, offer more options for customizing health plans, and promote cost-saving opportunities.
  31. 31. Personal health management ⏐ The rise of the empowered consumer 29 Alternative care providers & new entrants: Increase your visibility, move beyond primary care 1. Educate the public. Alternative care providers (retail clinics, telemedicine providers, etc.) enjoy stellar reviews from their customers, but most consumers are unaware of alternative care services. Use advertising, community outreach, and other means to raise consumer awareness and increase market visibility. 2. Get the message right. To attract consumers, ensure that your value proposition emphasizes quality, convenience, and customer support. Tout the credentials of your physicians, co-brand with respected health companies/institutions, emphasize cost savings, and address consumers’ quality concerns. 3. Go beyond primary care. Offer value-added services on top of primary care to promote "stickiness" and encourage repeat business. Provide tools to analyze personal health data, track progress against health goals, and share status with friends and family. Provide incentives for reaching milestones and for sharing of data with clinics, to help clinicians to improve the accuracy of diagnoses and effectiveness of treatments. Wearables manufacturers: Expand your target market 1. Look beyond Millennials. Wearables have the potential to be attractive to Gen Xers and Baby Boomers if the devices are positioned as essential personal health management tools. To address these potential customers, lower the barrier to entry by adding simplified, lower-price devices to your product mix; partner with payers; and integrate wearables into treatment plans. 2. Price it right. Not all customers are budget-conscious. Our research shows that 85% of consumers want a sub-$100 wearable, but 15% would prefer an advanced model and are willing to pay as much as $200 for it. Broaden your customer base by offering sub-$100 wearables to appeal to most consumers and higher-end models to attract early adopters and less budget-conscious consumers.
  32. 32. Personal health management ⏐ The rise of the empowered consumer 30 About our research Personal health management: The rise of the empowered consumer is a consumer study prepared by PwC to investigate how behavioral, regulatory, and technological disruptions are changing consumers’ approaches to managing their health. How we developed our insights Our findings are based on an assessment of the needs and preferences of healthcare consumers across the United States. Our methodology combined primary market research, conjoint-based trade-off analysis, consumer segmentation analysis, and industry knowledge to gain insights into what consumers value most when managing their health, and how much additional responsibility they’re willing to accept in exchange for reducing the cost of their healthcare. Who we surveyed PwC surveyed approximately 2,300 consumers over the age of 18 across the United States. The survey was administered online in June 2014. Why these consumers? Respondents were chosen based on their inclusion in one of four distinct consumer groups: Single people who have private insurance plans, families with private plans, seniors with Medicare Advantage plans, and individuals who purchased health insurance on an exchange such as HealthCare.gov. The distribution of the respondent pool mirrors percentages drawn from the 2010 US Census in terms of age, income, education, region, urbanicity, and other demographic categories.
  33. 33. Personal health management ⏐ The rise of the empowered consumer 31 PwC's Experience Radar A different class of insights To learn more about our detailed analysis of healthcare consumers and how PwC can apply this knowledge or our Experience Radar methodology to your business, contact one of our customer experience practice leads: Paul D’Alessandro Healthcare Data Science and Consumerism Leader +1 312 298 6810 pmd@us.pwc.com Ceci Connolly Managing Director, Health Research Institute +1 202 312 7910 ceci.connolly@us.pwc.com For more information on the Experience Radar and survey methodology, visit: http://www.pwc.com/us/en/advisory/customer/pwc-experience-radar.jhtml
  34. 34. Personal health management ⏐ The rise of the empowered consumer 32 Contributors Pradeep Giri Manager Nick Bafaloukos Director Anirban Bhaumik Manager Apoorv Singh Associate
  35. 35. © 2015 PricewaterhouseCoopers LLP. All rights reserved. PwC refers to the United States member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. www.pwc.com © 2015 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the United States member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. PricewaterhouseCoopers has exercised reasonable care in the collecting, processing, and reporting of this information but has not independently verified, validated, or audited the data to verify the accuracy or completeness of the information. PricewaterhouseCoopers gives no express or implied warranties, including but not limited to any warranties of merchantability or fitness for a particular purpose or use and shall not be liable to any entity or person using this document, or have any liability with respect to this document. This report is for general purposes only, and is not a substitute for consultation with professional advisors. .

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