When it comes to consumer trust – losing, earning, and preserving it – healthcare organizations have much to learn from financial institutions.
In this episode of the Oliver Wyman Health Podcast, we hear from Scott McDonald, CEO of Oliver Wyman. He talks about trust and how organizations lose the trust of their customers when they lose focus of consumer needs. He provides examples from his own experiences in the financial services industry, where consumer trust dropped off a cliff and institutions are still working to win it back.
He cautions that healthcare is now heading into dangerous lack-of-trust territory, and he calls on healthcare organizations that are driving market transformation to put customers at the center of that effort. He urges health players to make consumer needs a sincere focus, rather than a series of initiatives that just improves profitability.
Memorable Moments From This Episode:
- Banking may be struggling with consumer trust now, but think back to the 1970s, Scott says, when banking was boring. Bankers wore gray suits and were quite trusted as productive members of society.
- But between 1970 and now, trust in the banking industry has completely vaporized. (2:10)
- It fell off because banks put profitability over customer experience. In fact, they focused on “super profitability” at the expense of their customers, according to Scott. And in the process, they irreparably damaged the reputation of the financial services industry. (3:44)
- The relationship between customers and banks deteriorated from trust to distrust and even hatred in many parts of financial services industry. (5:50)
- Healthcare is now heading into similar territory, as trust is eroding, and eroding pretty quickly. (5:15)
- Consider: In 1966, three-quarters of Americans had great confidence in the medical profession; in 2014, one-third of Americans had the same view. (6:20)
- People’s experience is often that they don’t know what they are being billed for, they don’t trust hospitals and they don’t trust insurance companies. (6:45)
- “The trust is eroding pretty quickly and this bodes very, very badly both for the industry but also for its customers.” 8:13
- But it’s not irreparable, Scott says.
- “As you go about your work restructuring your industry, you have to put customers at the center of that effort, and it has to be a real focus on customer needs, rather than a series of customer initiatives that actually just benefit the industry. (8:53)
- “Healthcare can learn a lot from financial services, but it requires a pretty different mindset.” (11:11)