15
Nov

Shared Decision-Making about Treatment Improves Member Experience

By: Linda Sookman, Behavioral Health Quality and Accreditation Consultant at Morpace

Today’s healthcare environment has given rise to different clinical approaches to care, and how healthcare is delivered. No longer is the patient merely a recipient of medical care – today, they are a vocal partner and participant in the initiatives that will help them lead healthier lives. This has made it critically important that healthcare organizations transform their approach to their members, or risk losing ground to more progressive plans.

Within the last half-generation, we’ve seen this patient-centric philosophy result in the creation of initiatives such as patient-centered medical homes, integrated medical and behavioral health treatment, and the incorporation of community resources. All of these evolutions are the result of a mindset that social determinants critical in ensuring that comprehensive treatment plans are developed with the individual’s needs in mind.

This effort has closed the gap between patient and professional. Between February and March 2018, the Deloitte Center for Health Solutions reported in a survey of adults that an awareness and use of national quality rating tools, and innovations such as wearable tracking devices, have indeed helped to improve the public’s perception about their engagement in treatment.

At the focal point of all of this new activity that supports the necessity of an individual’s engagement in their healthcare treatment, is shared decision-making – a trend I, and my colleagues here at Morpace, have been tracking for some time.

An article published by the Journal of the American Board of Family Medicine, “How Much Shared Decision Making Occurs in Usual Primary Care of Depression?,” defines shared decision-making as “a collaborative process that allows patients and their providers to make health care decisions together, taking into account the best scientific evidence available, as well as the patient’s values and preferences.”

Researchers found that the impact of shared decision-making between healthcare providers and their patients leads to an improvement in members’ experiences, as well as their overall satisfaction with the treatment received. It was found that individuals who participated and engaged in their treatment gained a higher level of satisfaction than such variables as gender, education level, and/or the total visits they received.

The National Quality Forum (NQF), in conjunction with its National Quality Partners Shared Decision Making Action Team, issued a national call to action to support and incorporate shared decision-making as a standard of clinical practice. The National Quality Partners Team recommended applying the following strategies.

  1. Promote leadership and culture. The success or failure of incorporating shared decision-making into a standard of clinical practice is wholly dependent on the leadership of the organization. Strong leadership impacts the integration of shared decision-making into the culture of the organization.
  2. Enhance patient education and engagement. Practice leaders must take an active role in informing members and their families about the importance of shared decision-making to promote their engagement in treatment. This helps keep the health literacy of patient populations at the forefront.
  3. Provide your healthcare team with knowledge and training. Teams and providers should be coached on the specifics of improving communication with members and their families. This will result in a greater focus on members’ preferences, beliefs, and objectives for treatment. A better understanding of members’ treatment needs, and a discussion of treatment options, can nurture mutual respect and trust.
  4. Take concrete actions. Integrating decision-making tools into healthcare team processes leads to improved efficiency when communicating with members. AHRQ published a variety of clinical decision-making resources at particular points during the members’ treatment. The organization recommends the deployment of clinical decision-making tools based on particular illnesses, specific member populations, preventive health reminders, or notifications that may impact member safety.
  5. Track, monitor, and report. Providers should offer an update on shared decision-making outcomes and member self-reported experiences with organizational leaders, clinical teams, members, and providers.
  6. Establish accountability. Such activity should now become a permanent fixture in the practice’s annual Quality Improvement Program and Work Plan. This should include shared decision-making goals, objectives, and processes, and assignments of team accountability.

The integration of shared decision-making into clinical practice is no longer an option. It is has taken a prominent focus in healthcare policy-making, healthcare quality payment models, healthcare delivery, and with healthcare consumers. I personally believe that adopting such a stance proactively can be measured in much more than the bottom line (though revenue growth, too, is a tidy benefit of being proactive).

My colleagues here at Morpace have the expertise and innovation to assess shared decision-making practices and to recommend strategies that will improve members’ experiences. Morpace can partner with relevant stakeholders to design research projects that assess members’ experience and outcomes, and execute a closed-loop protocol to assure integration of results.

If you would like to discuss this further, or have any questions, please contact me at 248-756-0532 or lsookman@morpace.com.

Linda Sookman, RN, BSN, CPHQ, Lean Six Sigma Green Belt, is the Behavioral Health Quality and Accreditation Consultant at Morpace.

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7
Nov

An Autonomous Future – Electric Vehicle Driver Opinion on Autonomous Vehicles

Autonomous connected electric vehicles


For automobile manufacturers, a bold new future has arrived. Technology that adds autonomous features to the driving experience are now available on vehicles by all major manufacturers – inching us ever closer to the day where the driver is a passive, rather than active, participant in the driving experience. To take a closer look at what’s to come, automotive research experts from Market Strategies-Morpace will share their insights in an occasional blog series titled “An Autonomous Future.” In this blog, Stephan Schroeder, Vice President of Automotive Business Development at Market Strategies-Morpace, shares insights about how electric and hybrid vehicle drivers view the advantages and disadvantages of autonomous vehicles.

By: Stephan Schroeder, Vice President of Business Development, Automotive

The prospect of autonomous driving and connected mobility has energized the automotive industry and spurred billions of dollars of investments in autonomy, connectivity, and electrification. While startups and blue-chip corporations alike are convinced about the potential of autonomous vehicles (AV), consumers are more incredulous.

As previously reported in our An Autonomous Future series (Consumer Awareness & Opinion and The Role of the Consumer), media coverage has and will play a critical role in creating driver and rider awareness for AVs, but it is also becoming clear that the transition to this new form of mobility will require a multifaceted approach and unprecedented levels of investment in order to earn their trust.

One group that appears to be further along in their favorable opinion towards autonomous driving are drivers of electric vehicles. In a recent Morpace MyDrivingPower* online survey conducted among over 100 electric vehicle drivers, 3 out of 4 respondents expressed a “very positive” or “somewhat positive” opinion about AVs, more than twice the rate reported by drivers of vehicles with traditional powertrains. Given that difference in favorable opinions and their unique vantage point as early adopters, we took a closer look at the pros and cons of autonomous driving from their perspective.

 

Electric Vehicle Drivers’ Worry Revolves Around AV Tech-Related Challenges

Maybe not surprisingly, the biggest concern has to do with the technology itself. Concerns range from the quality of programming and the risk of being hacked to the inability of drivers to “program” the cars correctly.

And herein lies maybe the biggest challenge for AVs. We all have, over decades, become used to the limits of technology and the fact that it is not fail safe. However, we have accepted this risk because either our lives don’t depend on it (i.e. cell phones, computers, etc.) or because we have experts standing by to jump in if necessary (i.e. pilots, doctors, etc.). When a simple system reboot does not suffice or experts are not physically available, we dial help lines and call upon customer support to aid in our problems.

However, when it comes to AVs: what would happen in the event of an emergency or failure? The thought of being stranded with your family by the roadside and having to navigate through a helpdesk menu or wait hours for a call back is not something that would be acceptable in an autonomous world. Overcoming the doubts about the reliability of the technology and providing a highly responsive, end-user support system will be the two biggest hurdles that mobility providers will have to overcome to gain broad acceptance among consumers.

The next largest challenge has to do with concerns regarding vehicle performance due to bad weather conditions. Additional performance-related comments had to do with poor road conditions or construction. Of course, there is also the question of performance in more demanding environments, such as off-roading, which interestingly enough leads to a related disadvantage mentioned in another category: the thought of having to give up driving and losing the joy of driving a car. Many drivers are not happy about the thought of losing their freedom to drive or the ability to drive themselves.

While less frequent, concerns about liability and data privacy are also weighing heavy on the minds of consumers. Both of these issues tie back to our experience with technology. Who will be responsible in the event of an accident? What damages will be covered and not covered? Who will be responsible for the condition of the vehicle, especially if it is being shared amongst multiple parties? Ironically, some respondents felt that there would actually be more accidents because they did not trust their fellow drivers to behave responsibly or manage the technology properly.

The fear of lack of data privacy points to another significant concern with AVs. Considering the amount of time we spend in our cars and the amount of interaction that will take place through text, voice, video, sensing, etc., AVs will take the question of data privacy to a whole new level. Morpace is planning to explore this and other issues related to the question of trust and autonomous mobility further in one of its upcoming studies.

 

Electric Vehicle Drivers’ Opinion of AV Advantages

When asked about the expected advantages of AVs, electric vehicle drivers have a wide range of expectations, from safety to cost and environmental issues.

Most notably, electric vehicle drivers expect fewer accidents due to a reduction in distractions or unsafe driving. Furthermore, they expect lower cost of insurance, which could be a function of less accidents but also a lower rate of car ownership.

While many also expect less traffic and lower emissions, the verdict for a majority of people is still out, which shows the uncertainty around certain benefits:

  • Will AV lead to less or more cars on the road?
  • Which powertrain technology will prevail?
  • What will be the mix of autonomous and non-autonomous vehicles?

While many people believe that there will be efficiencies due to the use of autonomous vehicles (i.e. faster commutes), it could be offset by higher traffic volumes or the expectation that “the slowest car will dictate speed on the road.”

Finally, electric vehicle drivers pointed out two more major advantages. First, they noted that AVs will provide options for people who either can’t drive due to age, health, income or legal reasons – or who simply don’t want to drive. Secondly, many consumers mentioned that they expect a reduction in stress and greater happiness, which will contribute to a better quality of life and increased productiveness. The luxury of permanently “being taxied by your own car,” as one responded put it, seems to be a very appealing benefit for many drivers.

As a result, when asked how likely they would consider riding in an AV, 72% of electric vehicle drivers said that they would be “very likely “or “somewhat likely” to do so.

 

Time Spent While Driving in AV

For those with the most positive opinion of AVs, what else do they think and feel? When asked what they would do during the drive, the majority of drivers said they would use it to socialize with others, inside or outside of the vehicle, or simply make good use of the time otherwise. That said, many of the comments also revealed the anxiety that electric vehicle drivers feel when it comes to technology. Their comments ranged from “nervously watch the traffic/road,” to “carefully monitor the technology” and “pay full attention to driving and be completely ready to take over controls.”  In other words, while many drivers dream of a more enjoyable and fun ride, they simply can’t imagine a vehicle performing 100% of their activities 100% of the time with 0% failure yet.

 

AV Price Points for Electric Vehicle Driver

So, given all of the pros and cons, how much more would electric vehicle drivers be willing to spend for a vehicle that has autonomous technology?

On average, electric vehicle drivers indicated that they would be willing to pay an additional $6,000, with answers ranging from $1000 at the low end to $10,000 at the upper end.

The bottom-line is that the automotive industry has the attention of electric vehicle drivers and they are willing to pay for the added value. That said, the expectations are high and there is a healthy level of skepticism about the ability of making the technology work. The promise of a better quality of life is a huge opportunity for everyone involved but it will most likely come in baby steps as we learn to feel our way around the new world of unlimited mobility for everyone.

For more information about our AV research or if you have questions, please contact me and visit morpace.com.

 

*MyDrivingPower is an Insight Community comprised of over 500 electric and hybrid vehicle owners across the U.S., which is managed by the automotive market research professionals at Morpace. Results are based on responses from BEV and PHEV vehicles owners only.

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9
Oct

Improve Member Satisfaction of Behavioral Health Treatment among the Severely Mentally Ill Population

By: Linda Sookman, Behavioral Health Quality and Accreditation Consultant at Morpace

Member experience outcomes are subjective based on an individual’s perceived reality. It is important to consider that members who are severely mentally ill (SMI) may already have a distorted perception of reality due to their illness. So how do you improve members’ experience of behavioral health treatment within this specific population?

In our work at Morpace, we know how challenging it can be to achieve satisfaction among SMI members. Factors such as the severity of an individual’s mental illness, medical complications, and comorbid substance use play a distinct role. The degree of family and community support, treatment compliance, and socioeconomic status are also critical to their overall perception of care.

With these considerations in mind, we can utilize a combination of healthcare analyses and actionable processes to increase comprehensive satisfaction and improve outcomes.

How to Improve Your SMI Members’ Satisfaction, Based on Data

In 2011, the Agency for Healthcare Research and Quality (AHRQ) published the National Quality Strategy (NQS) to define a framework for national healthcare policy on healthcare quality improvement. The Centers for Medicare and Medicaid Services (CMS) adopted the same approach in defining the value of quality healthcare. If you are one of the many MHBOs working to improve your SMI population’s member experience, I recommend leveraging these ideas that occur within the three aims of the NQS framework:

Aim #1 – Provide Better Care

Strive to improve the overall quality of care by making the healthcare you provide more person-centered, reliable, accessible, and safe. This includes:

Education: In order to promote positive outcomes, your members, caregivers, network, and clinical staff should understand the importance of shared decision-making to improve expectations of treatment, treatment planning, and goal setting.

  • Assessment: Work to understand and quantify the members’ caregiver(s)’ experience in both treatment and planning, while utilizing the appropriate member consent process.
  • Encouragement: Leverage member and family-centered interactive behavioral health self-management tools to improve both member and caregiver’s management of their illness, adherence to treatment recommendations, and positive experiences to stimulate better outcomes.
  • Integration: Explore the level of integration of behavioral and medical services within your network and community. This process includes identifying gaps and developing innovative interventions to address them. It’s also essential to coordinate local community resources into the members’ treatment plan, such as self-help groups, along with publicly funded sources for housing, financial, transportation, nutritional, legal, and vocational training services.
  • Evaluation: Conduct quarterly access and availability evaluations in coordination with member compliance and grievance data to ensure members have easy and timely contact with credentialed behavioral health prescribers and non-prescribers. This should be based on clinical urgency while simultaneously meeting the needs and preferences of the member population.
  • Nurturing: Create and implement a quality-focused culture among your internal leadership, staff, and external stakeholders. These people and parties include network practitioners, providers, acute care facilities, PCPs, medical specialists, pharmacies, and local community organizations. Seek internal and external stakeholders’ feedback on a regular basis. Brainstorm opportunities for improvement in developing innovative clinical and service programs.

Aim #2 – Engage in Smarter Spending

Work to reduce the cost of quality healthcare for individuals, families, employers, government, and communities. You can do this by:

  • Focusing on the voice of your member: This approach generates a 360-degree view of experience from multiple data sources. Conduct member experience surveys, and review member complaints and grievances. Additional insights can also be gained through member and caregiver focus groups, as well as social media within the constraints of the HIPAA Privacy Rules and 42 CFR, Part 2.
  • Considering new service delivery models: Determine which avenues could reduce your organization’s healthcare costs, such as value-based payment models, monthly case rates, integrated payment models, or capitated networks.
  • Refocusing reimbursement of treatment to value based quality care: Collaborate with network providers on outcomes that demonstrate quality and value.
  • Assessing the effectiveness of current programs: How well are they working against the cost to implement them? Evaluate the expenditures and staffing resources needed to efficiently promote population health management, and carry out innovative programs such shared-decision making and transitions of care rather than having licensed case management staff designated for data entry.

Aim #3: Promote Healthier People and Communities

Improve the health of Americans by supporting proven interventions to address behavioral, social, and environmental determinants of health while delivering higher-quality care. Achieve this by:

  • Conducting useful patient analyses: Administer SMI patient stratification analyses and develop behavioral health screening programs for high-risk SMI members as part of secondary and tertiary prevention.
  • Promoting wellness: Incentivize your members to access their community health and wellness improvement programs.
  • Encouraging peer support: Identify Peer Support Specialists within the local community to encourage positive treatment experiences to improve the quality of life for this high-risk, high-cost member population.
  • Sponsoring Integrated Medical and Behavioral (IMBH) activities: Sponsor community health and wellness fairs, educational seminars, or preventive health/wellness focused events.
  • Improving patient communication strategies: Assess the methods and frequency of your organization’s patient communications. Aim to reach a larger circle of patients through text messaging, e-appointment reminders, or other digital communications which are preferred modes by younger members.
  • Considering new health and wellness strategies: Promote wellness programs based on the special needs of the population in collaboration with national or local sponsors, such as NAMI or local community services.

Keep in mind, the more positive your SMI members’ experiences are, the greater reduction in costly behavioral health and medical expenditures you will have, the healthier the member population will be. Morpace has the tools and expertise that can lead to improved member experiences and provider satisfaction. If you would like to discuss this further, or have any questions, please contact me, Linda Sookman, RN, BSN, CPHQ, Lean Six Sigma Green Belt, Behavioral Health Quality and Accreditation Consultant, at 248.756.0532 or lsookman@morpace.com.

References:

  1. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3538837/
  2. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4780300/
  3. https://pmj.bmj.com/content/79/932/337
  4. https://ps.psychiatryonline.org/doi/10.1176/appi.ps.201700359
  5. https://www.ncqa.org/programs/health-plans/population-health-management-resource-guide/
  6. https://nrchealth.com/wp-content/uploads/2018/01/Real-time-for-Millennials-Research-Brief.pdf

 

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29
Aug

NIMH Info on Suicide Prevention Awareness Month


By Linda Sookman, RN BSN, CPHQ, Lean Six Sigma Greenbelt
Healthcare Quality and Accreditation Consultant

In 2016, NIMH reported that suicide was the 10th leading cause of death overall in the US, and it has increasingly become a more prevalent topic in everyday conversation.

As part of Suicide Prevention Awareness Month in September, Morpace wanted to share the activities and strategies that NIMH is sponsoring. The endorsement of health and safety programs among your at-risk member populations saves lives, and can support positive member experiences. It is important to evaluate your current access and availability processes for members in crisis, coordinate services early in the members’ treatment and avoid more restrictive and costly services.

As you strive to meet your members’ needs, and in the promotion of safe practices, please let us know if there are annual or interim surveys, access and availability projects, or case management program evaluations that Morpace can assist with.

You can contact me at lsookman@morpace.com or 248.756.0532.

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23
Aug

An Autonomous Future: How the Role of the Consumer Will Impact AV Development

An Autonomous Future: How the Role of the Consumer Will Impact AV Development

For automobile manufacturers, a bold new future has arrived. Technology that adds autonomous features to the driving experience are now available on vehicles by all major manufacturers – inching us ever closer to the day where the driver is a passive, rather than active, participant in the driving experience. To take a closer look at what’s to come, automotive research experts from Market Strategies-Morpace will share their insights in an occasional blog series titled “An Autonomous Future.” In this blog, Chris Leiman, Senior Vice President of Automotive at Market Strategies-Morpace, talks about how consumers are influencing the adoption of these autonomous features.

By: Chris Leiman, Senior Vice President, Automotive

 

When most consumers envision an autonomous vehicle (AV), they think of Tesla Autopilot or a Waymo self-driving car powered by Google. They often do not realize that their brand-new car, truck, or SUV already includes added safety features that already make the automobile more autonomous in nature.

Take the Toyota Highlander, for example. This popular sport utility vehicle is equipped with helpful lane departure warnings, along with a feature that pulls drivers back into their current lane with the power of radar. As soon as the driver begins to traverse against lines on the road, the vehicle ensures he or she tracks back safely.

While these features serve as a subtle introduction to the benefits of AV technology, it’s hard for consumers to escape news of incidents involving self-driving vehicles. From grisly reports of accidents with General Motors’ AVs last fall, to the frightening media headlines warning of robotic systems that decide who dies in a crash, AV developers must constantly walk a thin tightrope.

While pushing the technology forward will allow more people and businesses to benefit from it, factors like societal fears and negative media coverage will also continue to shape the outcome and pace of the industry.

As an automotive researcher at Market StrategiesMorpace, my role is centered on the continuous quest to understand consumers and the decisions they make. It’s one of the primary reasons why I have the opportunity to attend the Autonomous Vehicle Conference, an informative and annual event including speakers from all parts of the AV ecosystem.

Through my work at the company and my insights from this conference, I’ve learned much about the potential impact – and role – the consumer will play in the future of self-driving cars. Here are a few of the main and immediate factors influencing the automotive vehicle industry:


Top Consumer Factors Influencing Autonomous Vehicle Development


Media Coverage of the AV Market

Media Coverage of the AV Market Autonomous vehicle technology bears a variety of safety and mobility benefits, including quick transport and automatic driver assistance features. However, consumer acceptance is still a significant barrier to overcome. This is primarily influenced by the media, which focuses on AV accidents and death without detailing the daily triumphs in the industry.

News programming giants have a saying: “If it bleeds, it leads.” While reporting on a pedestrian being killed by a self-driving car, they leave out comparative data, such as the fact that more than 6,000 walkers and bikers were killed by human drivers in 2017. As fatalities rise, autonomous safety features could help reduce these rates.

This is a primary example of how the AV industry must do a better job managing its own narrative. A combined effort by all members of the AV ecosystem will likely be required to change the tone and provide perspective.


Driver/Rider Exposure to ADAS Features

Driver/Rider Exposure to ADAS Features with AVIn addition to better management of news coverage, exposure to Advanced Driver Assistance Systems (ADAS) features is a critical stepping stone to further consumer acceptance. These include characteristics that are already commonplace in many newer vehicle models, including adaptive cruise control (ACC), adaptive light control, automatic parking, and blind spot monitors. The proliferation of these features, combined with proper messaging and education, will go a long way in developing consumer trust.

One strategy is to gradually expose passengers to the features. Consider the example given by a Lyft representative who spoke at the Autonomous Vehicle Conference. She explained how a self-driving BMW transporting 2018 Consumer Electronics Show attendees included a Lyft employee and a safety driver. Since these two human beings were also in the car, people felt safer. However, the vehicle still completely drove itself.

This speaks to a gradual adoption approach. Once consumers get more exposure to the technology, it will reduce and, presumably, eliminate their anxiety. By safely riding with Lyft employees through multiple rides, for example, the technology will become as familiar as riding in a taxi or regular ride sharing vehicle.

Early technology adopters such as Tesla Autopilot drivers, as well as those eager to try out self-driving cars, will help the industry to convince skeptics over time. Eventually, experts say, benefits like time and convenience will continue to develop within the technology, making them more apparent to the average consumer.


Consumer-Centered Business Models

Consumer-Centered Business Models with AVWe are already witnessing the emergence of various business models in the auto industry. How drivers and riders accept these models will also affect the future development and dispersal of the technology. While companies like Tesla continue to push the self-owned AV, enterprises like Uber and Lyft currently operate with the help of freelance drivers, who are responsible for their own cars.

To become and remain profitable, they will need to develop a viable autonomous vehicle strategy, which could affect their freelance driving program. In addition, the new technology may or may not be acceptable to the consumer. It is possible that the widespread adoption of these brands in their current form will help pave the way for consumers’ autonomous mobility options in the future.

In addition to the ride sharing model, fleets are another option. From ambulances and school buses to programs comparable to Lyft and Uber, maintaining a group of company-owned cars would save money while providing consumers with a seamless experience.

Finally, startups and blue-chip businesses alike will need to focus on the quality of customer experience. From vehicle choices to entertainment options, the enjoyment of the autonomous ride will become nearly as important to the future of the industry as safety benefits.


Ushering Consumers into the AV Revolution

Ushering Consumers into the AV Revolution I’m proud to work for a company like Market Strategies-Morpace that helps AV enterprises use research to support their value proposition. In short, we’ve found that acclimating consumers to self-driving technology while changing the prevailing mindset around AV depends on the in-vehicle experience, how often and how safely they use those cars, and their willingness to pay for the features and services, whether it is their own car or via a pay-per-ride service. Marketing will play a key role for all brands. AV organizations will need to clearly communicate safety benefits and value to their customers to charge for services in the end.

In considering the consumer’s impact on acceptability, I’m reminded of a recent Car and Driver article by illustrious author Malcolm Gladwell. In the piece, he writes about the phenomenon of consumer control. In our society, our ability to choose our vehicle and drive it where we want is a part of the American fabric.

Whether it’s a man who won’t part with his 1968 Corvette or a young mother who doesn’t trust her children to an autonomous vehicle, giving up control of the driving experience will take some time. By staying diligent with market research, gaining better control of the media narrative, and clearly explaining the lifestyle and safety benefits of self-driving cars, the consumer will become more comfortable with – and enthusiastic about – what AVs can do for their lives.

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16
Aug

An Autonomous Future: Consumer Awareness & Opinion about the Emergence of AV

An Autonomous Future: Consumer Awareness & Opinion about the Emergence of AV

For automobile manufacturers, a bold new future has arrived. Technology that adds autonomous features to the driving experience are now available on vehicles by all major manufacturers – inching us ever closer to the day where the driver is a passive, rather than active, participant in the driving experience. To take a closer look at what’s to come, automotive research experts at Market Strategies-Morpace will share their insights in an occasional blog series titled “An Autonomous Future.” In this first blog, we hear from Dania Rich-Spencer, Vice President of Automotive at Market Strategies-Morpace, about how consumers are responding to these new autonomous enhancements.

By: Dania Rich-Spencer, Vice President, Automotive

 

When Chairman and CEO of General Motors Mary Barra wrote an article for the World Economic Forum in 2016, she stated “I believe the auto industry will change more in the next five to 10 years than it has in the last 50.” Given vehicle companies’ quest to transition from a car maker to a valued mobility company offering services that many of us couldn’t even imagine a few years ago, Barra is spot on about the swift transformation of the auto industry.

While automotive manufacturers have historically described themselves as makers of vehicles for personal and commercial use, today’s OEMs refer to their brands as mobility companies. Yes, they still make cars, trucks, and SUVs – but a combination of new connectivity technology and consumers’ willingness to share products and services now enable auto manufacturers to redefine their relationship with customers – and to enhance the vehicle ownership experience.


A Glimpse into Industry Innovation by Today’s Leading OEMs

A Glimpse into Industry Innovation & AV by Today’s Leading OEMs A variety of popular car makers are investing considerable time, money, technology, and talent to make vast transitions within the marketplace. For instance, the General Motors Marketplace app is considered the “automotive industry’s first commerce platform for on-demand reservations and purchases of goods and services.”

Ford positions FordPass as “the app that amplifies your ownership experience…all to help you get from A to B better.”  Lincoln is redefining the traditional lease with a month-to-month subscription service to better meet customers’ needs and attract younger buyers. Cadillac, Volvo, and Porsche are also offering services to complement the traditional car buying/servicing transactional model.

One may argue that the greatest contribution to this transformation is the development of autonomous vehicles (AVs).  While timelines for fully-developed AVs vary by OEM, there is no doubt they are coming.  It reminds me of the quote attributed to Benjamin Franklin: “…but in this world, nothing can be said to be certain except death and taxes.” Today, self-driving vehicles are also part of the inevitable! In fact, Mcity Driverless Shuttle, “the first driverless shuttle project in the U.S. focusing on user behavior research” was launched beginning June 2018, on the University of Michigan’s North Campus.

I consider myself extremely fortunate to be a part of this automotive industry transformation and look forward to reminiscing with the grandkids about a world before the car was a powerful computing platform that drove itself. However, I often wonder: do other people see this industry transformation in the same light as I do? How does the “regular Joe” feel about the emergence of self-driving vehicles?

Based on my experience as both a vehicle consumer and professional at Market StrategiesMorpace, I know that familiarity drives acceptance of new technology. With that said, how familiar is the general population with AV technology – and how might they see themselves benefiting from these cars?


Insights into Consumer Awareness & Opinion of Autonomous Vehicles Today

Insights into Consumer Awareness & Opinion of Autonomous Vehicles Today To find out, these are some of the questions we explored in the Morpace Automotive Consumer Pulse Study, an online survey* conducted monthly among approximately 1,000 U.S. adults 18 years of age and older.  We noted several surprising findings, including feedback about the level of awareness for self-driving vehicles:

  • Over eight in ten consumers have heard at least some information about companies working on developing self-driving vehicles. This statistic has remained fairly consistent since October 2017, when the study was initially conducted. It is also consistent with other research.
  • While the general public is aware of autonomous vehicles, there is a lot of uncertainty about the implications of self-driving vehicles. People are not sure if there will be more or fewer accidents and fatalities, whether there will be more or fewer vehicles on the road, or if personal ownership will increase or decline.
  • When asked how the development of self-driving vehicles will benefit them personally, responses are almost equally distributed in thirds across “Positive/Negative/Not Sure.”

Since factors like media coverage and clear, enthusiastic, consumer-based marketing affect the current and future awareness of self-driving automobiles, the interplay between these two factors will shape the short-term pace and long-term outcome of the industry.


Demographic Differences in Consumer Awareness

Demographic Differences in Consumer Awareness of Autonomous VehiclesOne aspect is for sure, however – young adults, followed by those with disabilities and those who have lost their license, will be the first to use a self-driving vehicle. In addition, more males than females are engaged with this topic and are more likely to embrace using a self-driving vehicle. Other data shows:

  • Twice as many males compared to females say that they have seen or heard “a lot” about cars and trucks that can operate on their own without a human driver.
  • Almost half of males think self-driving vehicles are positive for them, compared to just under a third of females.
  • Compared to females, almost twice as many males provide a Top2Box rating (9/10) to being open to using a self-driving vehicle.

This gender difference is not surprising to me, but I’m wondering if auto manufacturers are paying attention to the information. Is it too early to charm females to autonomous vehicles?  Given that women influence a significant portion of the vehicle purchase decision, it may be prudent for OEMs to start the marketing process now by crafting a message targeted to women around the positive implications and personal benefits of using and owning an AV.


A Future with Self-Driving Cars

The industry and its consumers are also interested to know which auto maker may be the first to offer a fully autonomous vehicle for personal use. Toyota takes top spot, followed closely by Ford. Similar to their marketing of apps and subscription services, trusted vehicle makers like these must make the benefits of AVs clear to both male and female consumers, as well as those young and old. These include the benefits of Advanced Drive Assistance Systems (ADAS) features, as well as how their self-driving business models will make operating these vehicles both safe and beneficial to daily life.

While OEMs and their partners evolve their marketing strategies, I am optimistic about the future of transportation and the role the autonomous vehicle plays. Here’s to the next few years of unprecedented change – and the wonder it will bring!

 

*The data collected by the Morpace Automotive Consumer Pulse Study are weighted to ensure relevant demographic characteristics of the sample matched those of the U.S. general population.  All respondents are weighted to U.S. Census Bureau demographic profiles for the U.S. population 18+ on gender, age, income and ethnicity.

 

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18
Jul

Consumer Impact on the Future of Smart Devices

By: Greg Swando, Sr. Director of Client Services, & Richard Clarke, VP Global Partnerships, Vision Critical

 

Are you ready for an experiment? Spend some time watching commercials during primetime TV, or while waiting to board your flight at the airport. In a matter of minutes, you will notice an ever-increasing number of impressive and exciting ads touting smart Internet of Things (IoT) technology. Whether it’s a lonely grandmother connecting with her far-away family, thanks to Alexa and the Amazon Echo Spot, or a busy father scouting Greek food locations with his LG OLED TV with Google Assistant, IoT devices are the present and future answer to consolidating seemingly endless daily tasks and helping consumers connect with family.

Rapid developments are present everywhere we turn. This year’s Consumer Electronics Show (CES) featured a Smart Home Marketplace more advanced – and promising – than ever before. In addition to efficient and connection-based clocks and televisions, trusted brands like Kohler, Whirlpool, and Honeywell are showcasing retail innovations promising to make homes safer, healthier, and more comfortable.

Whether it’s a refrigerator reminding you that your apples and oranges are about to rot – or a connected dishwasher that starts rinsing your dirty china with a simple voice command – appliances and entertainment technology are joining the ranks of smart automobiles and security systems to become the assistants families and professionals didn’t know they needed.

In fact, a recent feature story in Forbes magazine spotlighted how the aforementioned “Alexa” of Amazon fame is now the latest virtual butler to cater to guests staying at Marriott-branded hotels.

“Customers tell us they love how easy it is to get information, enjoy entertainment and control connected devices by simply asking Alexa,” explained Amazon VP Daniel Rausch in the Forbes feature. “We want to offer those experiences everywhere customers want them.”

Consider how the world recently became captivated by the news that the Google Virtual Assistant had used an eerily human sounding voice (replete with “ums” and “ahhs”) to book a hair appointment by phone. Clearly, our ability to engage in multiple tasks at one time – while enjoying the experience – is advancing at a rapid pace that both shocks and delights the American and global consumer base.

From predictive data collection to nearly overnight developments in natural language processing, consumer-oriented brands in all industries are eager to capitalize off the many benefits these devices provide. While the technology is undoubtedly thrilling, the key for commercial enterprises is ensuring their customers understand it, then accept it as quickly as possible.

Top Factors Driving Smart IoT Devices & Consumer Adoption

To obtain wide acceptance, it is up to various industries, from automotive to healthcare to retail, to convince the public that these products are not only beneficial, but necessary. One of the easiest arguments to make to consumers is that it helps them save time while delivering a needed boost in a world of instant gratification. Though companies are finding ways to benefit on their end of the IoT paradigm, what will they need to overcome consumer resistance to giving up a modicum of privacy and control in order to foster wider adoption of the technologies?

     1. Consumer Brand Loyalty  

In a society dominated by brand loyalty, consumers want to know the trusted entities behind the technology – and these savvy virtual assistants. For example, Marriott’s Guestroom Innovation Lab collaborates with Samsung and Legrand to optimize their stay experience. As a result of this technology partnership, guests will interact with Bixby and store much of their data in the ARTIK platform and SmartThings cloud. Put simply, they must like and trust these brands to want to use them. This phenomenon extends across industries.

A family’s smart thermostat may be powered by Alexa, for example – but there still are a limited number of tasks the assistant can handle. If they do not enjoy using Alexa, their continued adoption of similar technology may dwindle. By the same regard, some products will be powered by Apple, while others will run on Google technology. Whether it is the voice assistant drivers used in their Toyota – or the underlying technology which powers the commands to control kitchen appliances, for example  – helping consumers define the relationship between the perks of their devices and who drives them is key.

While it is possible enterprises will be overthinking consumer loyalty to Apple, Microsoft, or another entity, it will behoove them to help their buyers understand who is owning and collecting their data – and how it helps them to achieve their goals and complete daily tasks. In turn, the organizations creating the technology will benefit by hashing out how their devices and clouds interconnect.

     2. Privacy Concerns and the Race for Data Collection

As alluded to previously, the battle is on for the ownership and collection of data by technology companies. The more information businesses have about people using smart IoT devices, the more they will be able to enhance consumer experience and dominate their marketplace. Like-minded, competitive organizations will not be sharing consumer data, so building trust matters.  Autonomous vehicle manufacturers, smart television makers, and blue-chip appliance giants can be sure that their customers haven’t yet forgotten about the Facebook and Cambridge Analytica scandal – or the almost regular notices they receive about their data being included in a restaurant or bank data breach. It is how they handle consumer perception that will drive future adoption.

There are also concerns about IoT smart device spying – and the potential security risks that come with billions of cars, appliances, and entertainment products being connected by the year 2020. With this discussion, however, comes promise – the global market will grow to up to $475 billion by then – a Compound Annual Growth Rate (CAGR) of a whopping 28.5 percent.

     3. Consumer Budgets, Product Lifecycles, and Device Efficiency

If you have ever had to argue with Siri to get an answer to a simple question, you know the first-hand limitations of smart tech. At a minimum, all devices need to learn from Google Virtual Assistant’s example — concisely understanding what the consumer is saying and using it to complete myriad tasks. Businesses will have to grapple with people who don’t want to adopt new or difficult technology, so ease of use is essential.

These factors intersect with consumer budget. When weighing benefits of smart IoT devices vs. price, difficulty or affordability of adoption may affect the speed at which the industry evolves. For example, a millennial who recently bought a 2016 KIA Soul has some voice capability in their car, but not the newest technology. While they may think new IoT innovations are neat, they are not going to necessarily invest in a new car until they finish making payments. At the point they buy a brand new vehicle, they will upgrade to the latest technology – and then learn how to use it. Many companies at CES argued about the impact price point will have in the speed of adoption – it will be less painful for consumers to buy a smart dishwasher or clock versus a $30,000 vehicle.

     4. Global Adoption of Smart IoT

While it is relatively simple to predict the future of the smart IoT device industry in the fast-paced, instantly gratified United States, it is additionally important for large organizations to consider how the rest of the world deploys and utilizes the technology. While Apple, Google, and Amazon are among the most trusted and used brands in America, Asian and European consumers prefer South Korea’s Samsung and other local companies while Apple’s popularity declines in large markets like China.

Since there are various technological and societal dynamics across the world, companies interested in capitalizing off smart IoT devices must complete their due diligence via extensive and relevant research to understand the various marketplaces in which they compete.

     5. Growing Consumer Industries by Leveraging the Benefits of IoT

Advancements in IoT devices are undoubtedly useful and exciting to both customers and consumer-based industries. However, it is up to the organizations creating innovative products to transform their knowledge about clients’ emotions, needs, and wants into a trust-building engagement strategy.

Automotive companies, for example, must learn how to balance headlines about self-driving car fatalities with public knowledge about the prevalence and usefulness of advanced driver assistance systems (ADAS), while large home appliance leaders should leverage data to overcome consumers’ inner battle between cost, budget, and benefit.  No matter how advanced a TV or sedan becomes, consumer attitude will drive adoption. These organizations should focus on ways to engage their customer base to add context and establish the “why” factor in using their products.

It is the everyday mission of Market Strategies International-Morpace to assist companies in understanding these nuances through research about consumer habits to support the value proposition of their devices. The companies who currently make IoT devices are primarily focused on technological advancement and product features but ignore customer perception at their own peril. If enterprises can turn consumer data and sentiment into a strategy that delivers on promises of better efficiency and improved connectivity, the increase in global smart IoT will be coupled with a sentiment that consumers cannot live without it. The drive of habit change is trust – and research to inform development, implementation, and marketing strategies will bridge the gap.

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25
Jun

Changing Tides in IoT New Product Development

By Lucas Lowden
Research Director

In early February 2018, I was lucky enough to embark on what many might consider the trip of a lifetime.

My wife and I, along with three other couples, arranged a bareboat charter to sail around the Abaco Islands in the northeast Bahamas for eight days and seven nights. The chartered 40’ catamaran was our “home” for the subsequent week’s adventure of going somewhere new and different each day.

If you are considering taking a trip like this, I can’t recommend it enough. As Nike says – just do it!

Back home, and finally remembering what I did for my day job, came a realization.

My sailing trip parallels well with the development of innovative solutions here at Morpace, and the lessons we continue to learn in the product development process:

  1. Find someone to captain the ship in unfamiliar territory
  2. Focus first, then iterate development so you don’t end up marooned at sea
  3. Don’t let rough seas deter your development – embrace a flexible and adaptive mindset that comes with new adventures

My focus over the last 18 months has been facilitating a cross-functional team to develop big data and IoT capabilities within Morpace – specifically, our first-ever commercially-released mobile application, DataDialogue™|Pulse. This app takes our knowledge of commercial fleets and their business purpose as well as our experience working with telematics data to provide fleet professionals with an easy-to-use mobile app designed to prioritize performance issues adversely impacting profitability.
With data management and analytics in our marketing research DNA, that sounds pretty straightforward, right? Hardly. It has required deep internal engagements, a lot of perspective, and some key partnerships along the way.

  1. In any new venture, it is paramount to be strategic in your pursuits, working closely with partners, as needed.

Seems like a no-brainer, but it is not always easy. This requires you and your team to be completely honest with yourselves—taking a good, hard look in the mirror. The key is to play to your strengths and find partners to supplement you where needed.

In my boating analogy, a friend in the group is a certified and licensed captain, so we were not required to hire a captain or crew. With the captain in place, the other seven of us were the de facto crew. While this was our second trip as a group, we still leaned on his expertise to navigate us safely through the sea. Who knows where we would have ended up if I was captain of that ship.

As we’ve built DataDialogue|Pulse, there are skills and workflows required that are not necessarily the forte of a traditional marketing research company. After some internal cross-functional efforts and debate, we partnered and consulted with a Michigan-based fleet, data scientist, and application development agency (among others) to supplement our product development process with their deeper subject matter expertise.

We see this in today’s changing automotive landscape as well. OEMs are acquiring or partnering within the mobility and autonomy ecosystems with focused start-ups in hopes of getting a leg up in the race to establish a presence in this emerging space. Generally, the more narrowly-focused start-ups lend a much deeper, specific expertise to the broader-focused OEM.

  1. You want to start with the end in mind. Develop a solution that delivers the minimum acceptable level of value and iterate solutions from there.

Especially in today’s tech-centric approach to development, you must begin with a vision for a minimum viable product – a set of features and content that is essential to the success of the product or service. From there, you can plan for more detailed development around expansion in future iterations.

This also requires you to acknowledge selecting tools that work best for your problem/solution, and not vice versa. For example, we built the proof of concept within Microsoft’s PowerBI offering. This worked quite well for that stage of development, however, we ultimately opted for a custom app build to deliver the long-term scalable solution.

Our trip began and ended at the same marina, so we planned an overall course to achieve this. We certainly couldn’t stray hundreds of miles into the open ocean -after all, we had to end back where we started. This required deciding which islands and cays would best fit into a desirable route. Lastly, we decided on the specifics of choosing which islands and activities we wanted to enjoy.

  1. Despite all the planning in the world, your development process will ebb and flow. In the face of it, you will forge ahead even better if you remain flexible.

Doing so requires an adaptive mindset. Seas and weather change, much as does the business environment. You have to constantly assess your situation for disruption or, if you’re lucky, opportunity. Things do not always go as planned, so you need to be able to think quickly, improvise strategically, and move on.

Fortunately in sailing, if the weather becomes prohibitive, there isn’t much of an option than to stay put and ride it out. In business, that generally isn’t the best strategy. Many times, it may require reversing some decisions or work completed to get back onto the best path of development. Do not be discouraged by setbacks; rather, embrace them and learn from them. Sometimes, small setbacks can be the catalyst for an even better strategy.

In our app, we had assumed a relationship of one fleet manager to one fleet business. We quickly learned that one fleet manager may oversee multiple business lines. This dynamic forced our hand to allow for one user to profile multiple fleets’ data sets. While it was a step back in development, it also gave us a more scalable and robust solution in the long run.

As inspiration to you on your path to new product development, I share a handful of adages that ring true for us on our path to developing DataDialogue|Pulse:

  • Be a trailblazer, take the road less traveled
  • If it was easy, everyone would be doing it
  • Take calculated risks – nothing ventured, nothing gained
  • Embrace the opportunity to learn and grow, but fail fast
  • Enjoy the ride – it’s about the journey as well as the destination

If you’ve made it this far, thank you for dedicating your valuable time. Feel free to contact me directly to discuss our new product development journey, more details about my sailing adventure, or to tell me how much you love/hate my blog at llowden@morpace.com.

And don’t forget to pay attention for more news from Morpace and the upcoming release of the DataDialogue|Pulse v1.0 mobile app!

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12
Apr

Nudging Consumers in the Right Direction

By Steven Welling, Morpace Senior Project Director

Nudging

Recently, I decided to stop putting off updating my iPhone and crossed my fingers that I wasn’t going to risk losing anything that was stored on there (fortunately, everything saved just fine). After my iPhone finished updating, something interesting happened. My iPhone informed me that, in order to finish the update, I needed to add a credit card into my mobile wallet.

I was surprised my phone asked me to do this, as it really wasn’t a requirement for a software update. Plus, I am still more comfortable using an actual card when making a purchase in a store. I did what most people may have done and selected to do it later. The very next day, a reminder popped up on my phone asking me to complete the phone update and add a card into my mobile wallet. Eventually, due to the reminder, I decided to bite the bullet and load my credit card into my phone. My curiosity was piqued since my phone informed me it would help me set it up. Now, even though I haven’t used it in a store yet, I’m tempted to try and make a purchase with my mobile wallet just to see what the experience is like.

Altering Consumers’ Behavior

Thinking about my iPhone update experience, it’s actually a creative way to get consumers to change or try something new. In the behavioral economics world, this is considered a “nudge.”  A nudge is described as a way to alter a consumer’s behavior in a predictable way without forbidding any options or significantly changing their economic incentives. This intervention must also be easy and inexpensive (you can learn more from the book NUDGE). Another example of a “nudge” is automatically enrolling people in a program such as a 401k or organ donation, with the option of opting out (instead of the other way around).  Doing this increases participation rates without actually forcing anyone to join. Adding calorie content on menus is another example of a nudge, in which some people may be driven towards lower calorie options they may not have previously considered.

What does this all mean and how does it apply to market research?

When introducing a new product or service, it can be challenging to build awareness and get consumers to try something. With my mobile wallet example, I had heard about mobile wallet for quite a while, but never moved forward with it over concerns about security and usability. Perhaps, I needed just a gentle “nudge” in the right direction.

When conducting research, you shouldn’t simply ask why someone is using a particular product or service, or what got them to start. You should also consider the settings surrounding that event. By probing further into behavioral triggers, you can identify new ways to increase awareness or usage.

Asking the Right Questions

Let’s say we are working for a bank trying to increase mobile app usage. Just asking someone “why they signed-up” or “what would make them sign-up” may not provide the full answer. Common responses may be “an incentive” or “I’m not interested”, which are not very helpful. To understand if a nudge could take place (or has already taken place), you need to understand what happened when current users became aware or started using the app. For example, ask questions that capture the various steps that an individual took:

  • How did you first learn about the app?
  • Where were you when you signed up or started using the app?
  • Were you with anyone?

By understanding and re-creating the circumstances around the event, you may identify similarities around those who have already become aware of, or have started using, the app. You can then leverage those similarities to help “nudge” non-users and potentially increase mobile app usage.

When it comes to nudging, my iPhone update experience was a deliberate attempt to change my behavior and to get me to use mobile wallet. Nudges happen all the time and, in most cases, consumers do not even realize it is happening!

Businesses are always looking for ways to focus your attention somewhere, or get you to do something, all while feeling that you are acting completely on your own choice. In the restaurant example, patrons feel they have free will to order what they want without realizing the calories listed on the menu are meant to nudge them to healthier alternatives.

As a researcher, understanding nudges is important because consumers are motivated all the time by things they do not consciously realize and, as a result, would not be able to tell you about it if asked directly. Who knows…thanks to that reminder I received, maybe I’ll become a mobile wallet user after all!

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14
Mar

Insight Communities – Driving ROI, Not Just Research Value


Richard Clarke, Vice President
Global Partnerships, VisionCritical

For decades, research has delivered powerful consumer sentiment and opinion into organizations – enabling these organizations to put the voice of the consumer into their decisions with the goal of creating more meaningful, successful, and effective products and services.

Methods and modes have changed over the years, with more and more complex solutions being created to get closer to the consumer truth at an ever-increasing speed. Incredible insight has been (and will continue to be) gleaned from consumers, informing multiple parts of clients’ business eco-systems. However, for many clients and users, research is seen as a cost center within an organization – something that needs to be done as part of a process or something that must be purchased as part of the broader vision of the business. The value of research is not generally associated as being an integral and fundamental part of overall business planning and development.

This is why whenever there is a downturn in business performance, or regional/global downturns (ex: 2008 Global Financial Crisis), one of the first areas to be questioned and lose budget is research.

What is the “value” that research is delivering?

There are many answers to this question, both objective and subjective, however, too few times does research itself get directly linked back to business performance. Ultimately, asking about the “value” of research is the wrong question. We should be asking: What is the “Return on Investment” of research? Because that is what research is: an investment into the organization, and not a cost.

There are many ways that Return on Investment in research can be measured, including:

  • More informed/accurate business decisions – what is the cost savings from NOT doing the wrong thing or validating the decision (risk aversion)?
  • Faster to market with the RIGHT product – how much does speeding up the development cycle save?
  • Quicker reaction time to customer feedback and demand – what is the short- and long-term savings of rapidly reacting to the situation or of knowing your customers’ buyer journey and pain points?

For years, I have been an advocate of research and Insight Communities – the idea of engaging with individuals to answer the business issues at hand with engaged members who, ultimately, also drive advocacy for the brand. Insight Communities should not be considered a research “cost” but rather as an organizational asset that both informs business decisions and creates brand advocacy among members.

Forrester Consulting recently completed a Total Economic Impact™ Study on the ROI of Insight Communities to clients. In addition to the cost efficiencies and speed value propositions of Insight Communities, Forrester quantified the financial value of continually engaging with members in a community. The highlights include:

  • $1.7M business value from increased customer insight
  • 590% ROI
  • $546K incremental profit and $4.7M increased sales from community members
  • 39% increase in average order value and 70% lower churn rate from community members
  • 75% reduction in cost compared to traditional market research methodologies
  • 4-6x faster speed to results

This continues to reaffirm the belief that an Insight Community is not only an incredibly valuable tool in providing fast and efficient consumer insight, but also drives business action that results in incremental sales and profit for organizations.

These are just some of the reasons that organizations are implementing communities. The client stories about the impact of an ongoing Insight Community are powerful and continue to prove out the short-term and long-term Return on Investment. Shifting the mindset to consumer engagement is resulting in hundreds of organizations realizing significant returns and outcomes (click here for client stories).

Five years ago, communities were more of a niche solution or emerging technology but, according to the latest GreenBook Research Industry Trends Report (Q3 2017), 82% of respondents stated that communities were either in use (60%) or under consideration (22%). This has led GreenBook to no longer believe that they are an emerging solution but are, in fact, a mainstream solution:

“In future editions of GRIT, it is likely that online communities will also be removed from “emerging methods” now that it is mainstream.” (GRIT Q3/Q4 2017).

Ultimately, these two pieces of evidence indicate that an Insight Community is not only a solution that spreads efficient business insight across organizations but is also an asset that drives revenue and profitability – thereby attaching a real-world ROI to the value of the asset.

Feel free to contact me to learn more about how an Insight Community can become your most powerful asset.

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