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

Is artificial intelligence riddled with bias?

The purpose of Artificial Intelligence (AI) has always been to replace the menial and repetitive tasks we do each day in every sector, so that we can concentrate on doing what we do best. Saving time and money has certainly been a decent outcome as AI infiltrates the business landscape, however, now we are starting to see problems that cause major issues in practice.

Katja Forbes

Founder and chief, sfyte

5 things every business can do to drive brand loyalty

If you’re in any customer-centric role, you’ll likely be familiar with the Net Promoter Score (NPS) – one of the most popular tools for brands to measure their customer sentiment.

Catherine Anderson

Chief customer officer, Powershop Australia

What the modern gig economy is doing to customer experience

Most marketing theory was established in the context of stable employment relationships. From front-line staff to marketing strategists and brand managers, employees generally enjoyed job security with classic benefits such as superannuation plans, stable income streams, employment rights, training, sabbaticals and long-service leave.

Dr Chris Baumann

Associate professor, Macquarie University

Thank you! That was useful to know.

Belia Adam

Why your best social marketing brand tool could be hiding in plain sight

Read more

Because you are missing the point of the term "disruption"

Sean

Uber for the truckies: How one Aussie startup is disrupting the freight industry

Read more

Absolutely agree with this ... Facebook doesn't care what adds they show. You report an add for fake news/scam and it just remains "open...

Quasi Carbon

Unilever CMO threatens Facebook, Google with digital advertising boycott

Read more

How to create Pinball game in 4 minshttps://youtu.be/S1bsp7del3M

Alex Atmavan

Rethinking gamification in marketing

Read more

True Local - one of the least credible review sites on the entire internet.

MyNameIsStomp

Former Virgin Mobile CMO and CEO joins oOh! as first customer chief

Read more

Latest Podcast

More podcasts

Sign in