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Strategies for Improving Health Plan Member Retention and Loyalty

Member retention is becoming an issue of increasing concern and focus among HMOs and other health plans. There was a natural tendency to grow through aggressive new member acquisition in the early growth stages of the managed care industry. As market penetration has increased and the marketplace has become very competitive, new members are increasingly lost members from other plans. Attention is therefore being given to member retention.

There are a number of steps you can take now to increase member retention and build customer loyalty. This page will offer a series of tips to help you achieve these goals.

Step #4: Develop Separate Member Services Resources for Significant Subpopulations.

As plans launch broader arrays of product lines, a single member services function may be inadequate for the needs of any one population. This is perhaps most relevant in a plan that serves two or more commercial, Medicare or Medicaid populations.

  • Each group has significantly different benefits and needs. A dedicated customer service function is valuable for retention purposes.

  • Customer service is everybody's business in the plan. It is important that everyone in the plan receive at least some customer service training.

  • The telephone may be the most frequent contact vehicle with members. Everyone should understand that whoever answers the phone represents the organization. As Nancy Friedman, a St. Louis telecommunications consultant advocates, "Encourage everyone who answers member inquiries to be aware of the tone of their voice when they pick up the phone; it sets the mood for the entire conversation. When members call, make it a point to communicate to them that the organization truly cares about them and wants to please them."

    Sign HSM's Keep Me Posted page to receive e-mail notification of when updates are added to this ongoing series designed to help you leverage member loyalty and improve your bottom line.

Step #1 | Step #2 | Step #3 | Step #4 | Step #5 | Step #6 | Step #7

 

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