The Economic Value of Star Ratings and Reviews in Healthcare

November 8, 2020

// By Ed Rafalski //

Using Customer Lifetime Value and ratings, organizations can identify the total cost of acquisition of new customers and the total incremental cost of retaining existing customers. BayCare Health has seen promising results with its proactive strategy.

Now more than ever before, reviews and star ratings influence consumers’ purchasing decisions, especially in retail. When it comes to healthcare, consumers are factoring pandemic safety measures taken by physicians and care facilities into their decision-making, and they are paying close attention to consumer reviews when considering their healthcare options. Can healthcare systems use the same methods employed by Amazon and other retail giants to improve the patient experience, build deep customer relationships, and positively influence customer lifetime value (CLV)?

Ratings and reviews are public-facing forms of feedback that provide both quantitative and qualitative insights. While ratings provide a quantitative measure, analysis of reviews can provide thematic insights into the customer experience and create an opportunity for operational improvements. Customer comments on sites such as Google, Facebook, and Yelp go beyond the clinical experience and can include feedback about billing, convenience, and cleanliness, among other themes.

Impact of Ratings and Reviews on Reputation

The reputation of any healthcare organization — small or large ­­— can be advanced or damaged with ratings and reviews posted online.


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