Medibank to give back $20m to customers and launch new loyalty program

ASX-listed health insurance provider is launching a new customer loyalty program for long-standing members

Medibank will give $20 million back to customers as part of a one-off loyalty bonus coinciding with the launch of its new Priority program for long-standing members.

The health insurance provider made the announcement as part of its half-year financial results presentation today. Medibank reported a net profit of $245.6 million for the half-year to 31 December 2017, up 5.9 per cent year-on-year off total revenue of $3.47 billion. Other highlights included an increase in operating profit to $277.3 million, premium revenue growth of 1.8 per cent and adjusted health insurance profit of $243.5 million.

Medibank CEO, Craig Drummond, attributed the “solid” result to business changes made over the past 18 months as well as initial benefits from its productivity program. Like many of its competitors, the company has been working to take a more customer-centric position on its products and services, which Drummond said was starting to pay off.

According to its financial report, service NPS improved on the Medibank brand to +15.6, and +30.4 on the ahm sub brand.

“Today’s result reflects the progress we have made in delivering our customers a better experience, better service, better products and more value,” he said. “This half, we have paid $2.6 billion in claims on behalf of our customers, supporting them with their health and well-being.”

Read more: Medibank CEO: We're getting better at customer experience

As part of these ongoing efforts, Medibank will launch a Priority program for customers who have been with the insurance provider for at least 10 years. Drummond said the focus is on formally recognising and thanking these more loyal members with benefits such as a dedicated service line, health professionals supporting them when they go to hospital, and partner-only offers.

In line with the launch, Medibank will also give $20m in a one-off loyalty bonus to customers in June this year, starting with Priority customers.

“This means customers who have been with us for more than 10 years and have hospital and extras cover, will be able to put the bonus towards increasing their extras limits or seeing a physiotherapist,” Drummond said.

The offer is also a nod to the concerns Australians have about ever-rising private health insurance premiums and the affordability of such cover.

“We have just delivered our lowest premium increase in 17 years because of the work we have done to cut our own costs and because we passed on 100 per cent of savings from prostheses reforms,” Drummond claimed, adding management expenses were down 1.9 per cent this year.

“There is urgency for further structural reform to the health system to maintain the downward pressure on health costs and premiums and we are looking forward to working with the committees established by the federal Government into our-of-pocket costs and low-value care.

“Improving affordability remains a key focus and we need to keep working even harder to deliver on this promise for our customers.”

Initiatives for FY18 will include targeting 250,000 proactive customer interactions, expanding health concierge services for health pathway guidance, and quarterly activity statements for 1 million Medibank and ahm customers with extras limits and health reminders.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu

 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Data has the power to build or burn brands

A brand can be severely wounded by use or misuse of any of its assets and you could say data has the greatest power of all to inflict damage.

Lucy Acheson

Head of data strategy and customer experience, LIDA

Totto and your inorganic future

At Cannes Lions this year we’ve been treated to many artificial intelligence (AI) insights. It’s one of the major discourses of our time.

Richard Brett

CEO, opr

Personas of one and the rise of ‘always there’ marketing

I’ve got some bad news. The ‘always on’ marketing approach that many companies have only just fully implemented is already out of date.

Nigel Roberts

Founding partner and strategy lead, Yell

Promotion is difficult. You should be able to do it. Sometimes it turns out bad, and when you turn to professionals, it turns out well - ...

Jordan Samuil

Village Roadshow partners with Lion for pourage rights and promotional partnership

Read more

This is very good news for Australian SMEs as ActiveCampaign is an very powerful marketing automation / email marketing tool that costs a...

Lawrence

SMB marketing automation provider sets up Asia Pac HQ in Sydney

Read more

Thanks for the info! If you are looking for commercial real estate in Mumbai, visit us at Jagaha.com! We have over 20,000 verified proper...

Gizelle

Salesforce ups the Marketing Cloud ante with Datorama acquisition

Read more

Completely agree! For the best commercial properties in Mumbai, visit our website - Jagaha!

Gizelle

Salesforce ups the Marketing Cloud ante with Datorama acquisition

Read more

Carisoprodol is used for treatment of pain.so it has some amount of drug use it carefully . Get its complete usage and prescription from ...

jensons henry

CMO profile: The strategy behind Cash Converters brand and customer experience reboot

Read more

Latest Podcast

More podcasts

Sign in