MarkeTrak 10: Hearing Aids in an Era of Disruption and DTC/OTC … · 2020-01-16 · Hearing aid...

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RESEARCH // MARKETRAK 10 T he hearing aid market is poised for waves of disruption over the next few years. This will come in several forms: n New technology from the existing manu- facturers; n New manufacturers entering into the hearing aid market; n New entries into the upcoming OTC (Over-the-Counter) market; and n New delivery channels including the expansion of the evolving DTC (direct- to-consumer) market. These will impact the professional com- munity in many ways, from the types of products they provide in their practice, to the pricing structure of those products. The man- ufacturing community will also be impacted by the disruption. However, the group that may see the larg- est impact is the consumer. They will be presented with many alternative methods to obtain testing and fitting services, as well as new delivery models. For many hearing- impaired individuals who find the existing journey complicated, the new realities of the hearing aid marketplace may be more confus- ing, if not overwhelming. The purpose of the MarkeTrak research over the past 30 years has been to examine the trends in hearing healthcare, provide pro- fessionals with a better understanding of the consumer journey, and assist the consumer in their quest for treatment of their hearing impairment. MarkeTrak 10 (MT10) is the latest survey conducted by the Hearing Industries Association (HIA) that continues this impor- tant research. MT10 builds on the data collected in MT9, 1 which in late 2014 looked into the incidence of hearing loss, usage of hearing aids, and into the key areas of the patient journey for those with hearing loss. Authors’ note: As Abrams and Kihm noted in their publication, MT9 was the first in the MT series to employ an online (instead of a pencil-and-paper) survey. For more details on MT methodology, see “An Introduction to MarkeTrak IX: A New Baseline for the Hearing Aid Market.” 1 The research method for MT10 was similar to MT9, using online surveys to collect the data. In Part 1, a survey was sent to a large sample of 20,072 households representing over 55,000 individuals. This sample group was balanced and weighted to reflect key US census data characteristics. In Part 2, MT10 recruited those individuals identified as hav- ing a hearing loss/difficulty. This resulted in a total sample of 3,132 individuals who received the second survey which provided us with deeper insights. The final group included 969 owners of hearing aids and 2,163 non-owners of hearing aids. MT10 asked the traditional set of ques- tions on a wide range of topics: estimating the extent of hearing loss; the decision path and journey of both owners and non-owners of hearing aids; and satisfaction of owners and non-owners with their devices and with hear- ing care providers. It also went a step further, including a set of questions directed to owners and non-owners of PSAPs (Personal Sound Amplification Products). MT10 is one of the first surveys to gather data on the topic of PSAPs from those who currently use these devices, shedding light on the possible differences in the patient journey for those who may use the upcoming OTC devices. MT10 was initiated in the fall of 2018, when speculation was peaking about how OTC hearing aids will be defined, what their performance characteristics will be (eg, gain and output characteristics), what the labeling will say, and many more factors. Therefore, it posed specific questions designed to explore the beliefs, perceptions, attitudes, and possible actions of consumers with hearing loss regard- ing do-it-yourself (DIY) hearing care. Their responses may help provide direction to those who currently deliver services and technology to people with hearing loss. Examining Hearing loss Hearing loss has been a “hidden” medical issue for quite some time, with many individu- als not recognizing or willing to accept they have a loss. With no outward symptoms —and most individuals reluctant to admit they have a problem—the treatment options are elusive to many. Studies indicate that about 1 in 10 individu- als have a hearing loss that interferes with their communication. This represents approximately 38 million people in the US, and many millions Thomas A. Powers, PhD, is Managing Member of Powers Consulting based near Piscataway, NJ, and is a consultant to the Hearing Industries Assn (HIA), Washington, DC. Carole M. Rogin is Strategic Advisor and the retired President of the HIA. MarkeTrak 10: Hearing Aids in an Era of Disruption and DTC/OTC Devices The journey continues for the industry’s longest-running survey of consumers with hearing loss On the eve of major changes in the regulations governing the distribution of hearing aids in the United States, including the new upcoming class of over-the-counter (OTC) hearing devices, MT10 looks at consumers’ perceptions about hearing aids and personal sound amplification products (PSAPs)—as well as their attitudes about OTC devices and do-it-yourself hearing care. By THOMAS A. POWERS, PhD, and CAROLE M. ROGIN 12 HEARINGREVIEW.COM I AUGUST 2019

Transcript of MarkeTrak 10: Hearing Aids in an Era of Disruption and DTC/OTC … · 2020-01-16 · Hearing aid...

RESEARCH // MARKETRAK 10

The hearing aid market is poised for waves of disruption over the next few years. This will come in several forms:

n New technology from the existing manu-facturers;

n New manufacturers entering into the hearing aid market;

n New entries into the upcoming OTC (Over-the-Counter) market; and

n New delivery channels including the expansion of the evolving DTC (direct-to-consumer) market.

These will impact the professional com-munity in many ways, from the types of products they provide in their practice, to the pricing structure of those products. The man-ufacturing community will also be impacted by the disruption.

However, the group that may see the larg-est impact is the consumer. They will be presented with many alternative methods to obtain testing and fitting services, as well as new delivery models. For many hearing-impaired individuals who find the existing journey complicated, the new realities of the hearing aid marketplace may be more confus-

ing, if not overwhelming. The purpose of the MarkeTrak research

over the past 30 years has been to examine the trends in hearing healthcare, provide pro-fessionals with a better understanding of the consumer journey, and assist the consumer in their quest for treatment of their hearing impairment. MarkeTrak 10 (MT10) is the latest survey conducted by the Hearing Industries Association (HIA) that continues this impor-tant research. MT10 builds on the data collected in MT9,1 which in late 2014 looked into the incidence of hearing loss, usage of hearing aids, and into the key areas of the patient journey for those with hearing loss. Authors’ note: As Abrams and Kihm noted in their publication, MT9 was the first in the MT series to employ an online (instead of a pencil-and-paper) survey. For more details on MT methodology, see “An Introduction to MarkeTrak IX: A New Baseline for the Hearing Aid Market.”1

The research method for MT10 was similar to MT9, using online surveys to collect the data. In Part 1, a survey was sent to a large sample of 20,072 households representing over 55,000 individuals. This sample group was balanced and weighted to reflect key US census data characteristics. In Part 2, MT10

recruited those individuals identified as hav-ing a hearing loss/difficulty. This resulted in a total sample of 3,132 individuals who received the second survey which provided us with deeper insights. The final group included 969 owners of hearing aids and 2,163 non-owners of hearing aids.

MT10 asked the traditional set of ques-tions on a wide range of topics: estimating the extent of hearing loss; the decision path and journey of both owners and non-owners of hearing aids; and satisfaction of owners and non-owners with their devices and with hear-ing care providers. It also went a step further, including a set of questions directed to owners and non-owners of PSAPs (Personal Sound Amplification Products).

MT10 is one of the first surveys to gather data on the topic of PSAPs from those who currently use these devices, shedding light on the possible differences in the patient journey for those who may use the upcoming OTC devices. MT10 was initiated in the fall of 2018, when speculation was peaking about how OTC hearing aids will be defined, what their performance characteristics will be (eg, gain and output characteristics), what the labeling will say, and many more factors. Therefore, it posed specific questions designed to explore the beliefs, perceptions, attitudes, and possible actions of consumers with hearing loss regard-ing do-it-yourself (DIY) hearing care. Their responses may help provide direction to those who currently deliver services and technology to people with hearing loss.

Examining Hearing lossHearing loss has been a “hidden” medical

issue for quite some time, with many individu-als not recognizing or willing to accept they have a loss. With no outward symptoms —and most individuals reluctant to admit they have a problem—the treatment options are elusive to many.

Studies indicate that about 1 in 10 individu-als have a hearing loss that interferes with their communication. This represents approximately 38 million people in the US, and many millions

Thomas A. Powers, PhD, is Managing Member of Powers Consulting based near Piscataway, NJ, and is a consultant to the Hearing Industries Assn (HIA), Washington, DC. Carole M. Rogin is Strategic Advisor and the retired President of the HIA.

MarkeTrak 10: Hearing Aids in an Era of Disruption and DTC/OTC DevicesThe journey continues for the industry’s longest-running survey of consumers with hearing loss

On the eve of major changes in the regulations governing the

distribution of hearing aids in the United States, including the new

upcoming class of over-the-counter (OTC) hearing devices, MT10 looks

at consumers’ perceptions about hearing aids and personal sound

amplification products (PSAPs)—as well as their attitudes about OTC

devices and do-it-yourself hearing care.

By THOMAS A. POWERS, PhD, and CAROLE M. ROGIN

12 HEARINGREVIEW.COM I AuGuST 2019

more around the world. MarkeTrak data has shown the incidence of hearing loss has remain stable over time (Figure 1), and the average person is aware they have a hearing impairment for about 12 years (Figure 2). On average, once people become aware of their hearing difficulty it takes on average 4 to 5 years for them to schedule a visit with a hearing care professional, and in some cases an additional 6 years to obtain a hear-ing aid (Figure 3).

For those who do not obtain hearing aids (non-owners), their journey is dif-ferent than those of owners. Non-owners don’t move to the next stage of hearing assistance for a variety of reasons: they believe that they can hear well enough in most situations; they feel that hearing aids are too expensive; they have other priori-ties; or they have no coverage/insurance that will assist with acquiring hearing aids. For others, the old stigma about hear-ing aids still prevails; hearing aids can be perceived as being large and bulky, and/or not provide enough benefit in challeng-ing listening environments to warrant the time and money to obtain them.

Hearing Aid Owners One of the closely followed out-

comes of MarkeTrak is the hearing aid adoption rate. The MT10 results shows that 3.7% of all individuals reporting hearing difficulty own hearing aids. This equates to an adoption rate of 34.1%—an increase from 30.2% reported in MT9 (Figure 4). Although MT10 did ask spe-cific questions about PSAP ownership, the MT10 definition of a hearing aids emphasizes the channel of acquisition (eg, obtained through a hearing care professional) and therefore the reported adoption rate is based on hearing aid ownership.

Another interesting finding revolves around the first-time buyer rate. This has fluctuating over past surveys from 37% in 2008 to 57% for MT9. The responses in MT10 indicate the first-time buyer rate has remained high at 56% in 2018, certainly a positive trend (Figure 4).

For those who seek help for their hear-ing loss, the path forward usually involves a hearing care professional. Almost all own-ers (96%) report they have had a “formal”

Figure 3. Average number of years for each step required in the customer journey to obtain hearing aids after awareness of hearing disability (HD).

Year

s afte

r Aw

are

of H

D

30

20

Discuss HD withgeneral medicinedoctor or (n=606)

10

0

4.2 4.24.5 4.6 4.611.1

Discuss HD withan ENT (n=625)

Had test to evaluatehearing difficulty

(n=1578)

Visit 1st HCP (n=1529) Got 1st HA(s) - allowners (n=834)

Got 2nd HA (those on 2nd now (n=187)

Figure 1. Hearing difficulty rates from 1989 to present, as reported by MarkeTrak surveys.

20%

0%

10.0% 10.3% 10.0% 10.2% 10.1% 10.7% 10.8%10.6%11.3%

1989 1991 1994 1997 2000 2004 2008 2014 -MT9online

2018 -MT10online

20181614121086420

Figure 2. Number of years respondents were aware of hearing difficulty (total respondents and hearing aid owners and non-owners).

Year

s

12.0%

14.6%

10.5%

Total (n=3132) HA Owners (n=969) Non Owners (n=2163)

Figure 4. Hearing aid (HA) adoption rate, first-time buyer rate, and hearing aid satisfaction rate in MarkeTrak surveys. *The hearing aid satisfac-tion question was changed in 2004 from a 5-point to a 7-point Likert scale to include “somewhat satisfied” and somewhat dissatisfied.2

0%

10%

20%

30%

40%

50%

60%

70%

80%

Hearing Aid Adoption Rate First-time Buyer Rate Satisfaction w/HA*

1989 1991 1994 1997 2000 2004* 2008 2014 2018

Figure 5. Types of hearing tests reported by hearing aid owners and non-owners.

100%

80%

60%

40%

20%

0%Formal test (using equipment,

booth, etc.)An online tool An 'app’ on a smart phone

or tablet

Total (3132) HA Owners (969) Non-Owners (2163)

69%

96%

55%

6% 5% 6%4%6% 7%

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hearing test, while about 70% of non-owners report having a hearing test (Figure 5). The use of an online or app-based hearing test is still very minimal (4-7%), and has not increased from the data reported in MT9. However, many expect an increase in the use of online and app-based hearing tests once the final OTC regulations are released by the US Food and Drug Administration (FDA) by YE2020, if not sooner.

Recommendations from the hearing care professional are a critical component in the decision pathway for the patient to seek help for their hearing loss. However, many hearing care professionals do not make a recommen-dation to explore hearing aids, even with the presence of a hearing loss (Figure 6). This is a critical aspect of moving the hearing-impaired consumer through their journey, as we know

that this recommendation is an integral step in trying and accepting amplification.

For owners of hearing aids, satisfaction with their devices and their hearing care profession-als remains high. The satisfaction rate for hear-ing aids has increased from 74% in 2008 to 81% in MT9 (2014), and is now 83% for MT10 (see Figure 4). Since 2004, the satisfaction rating has been based on a 7-point scale with the top-3 rat-ings (scores of 5-7) combined to form the over-all satisfaction rate.2 Current hearing aid owners are also very satisfied with their interactions with hearing care professionals, with the top-3 satisfaction rate at 94%. Among the factors contributing to this rating are the hearing pro-fessional provided realistic expectations of what hearing aids can do; they considered the needs and abilities of the patient; and they addressed their concerns during the evaluation phase.

Non-owners As shown in Figure 7, non-owners cite

a variety of reasons for not moving forward to seek treatment/assistance for their hearing difficulty. When we look at the both groups of non-owners, the top-4 reasons cited are: hear well enough; can’t afford; too expensive; no coverage. This would indicate that three impor-tant drivers of action on obtaining hearing help would be expanded insurance coverage, additional information on the benefit of ampli-fication, and the range of costs for hearing aids.

PSAPsAlthough PSAPs (in various forms) have

been around for decades, consumers are gen-erally less familiar with them than hearing aids, and the devices may often be purchased for situational listening (more about this

Figure 9. Device identification by PSAP owners (n=193).

Not Sure

Amplifier orpersonal sound

amplifier

17%

41%

Hearing aid

42%

Figure 7. Top reasons for not progressing on hearing aid journey.

43% 42%

26% 22% 21%17% 14% 14% 13%

40%

24% 20% 19% 17% 17% 14% 12% 12% 12% 12% 11%

Can h

ear w

ell en

ough

Can h

ear w

ell en

ough

Too e

xpensi

ve

Too e

xpensi

ve

Cann

ot aff

ord

Cann

ot aff

ord

Have

other

priori

ties

Have

other

priori

ties

No cove

rage/i

nsuran

ce

No cove

rage/i

nsuran

ceGot

PSAP

/HA di

rectly

Too e

mbarra

ssing

Too e

mbarra

ssing

to w

ear

Not en

ough

bene

fit

Not en

ough

bene

fit to

justify

Do no

t kno

w whe

re to

go to

get te

sted

Too n

oticea

ble/vis

ible

Afraid

of be

coming

depe

nden

tUna

ttractiv

e

Uncomfor

table

physi

cally

Too y

oung

to ha

ve he

aring

aid(s

)

Non-Owners Who Have Taken No Steps (n=586) Non-Owners Where HCP Recommended HA (n=367)

Figure 8. Overall satisfaction of PSAP owners by age of device.

Very Dissatisfied Very SatisfiedNeutral

<=1 yr (n=85)

2+ years ago (n=108)

Past owners (n=291)

3% 7% 21% 22% 13% 31%3%

9%

17% 14% 9% 25% 8% 13% 14%

7% 8% 13% 6% 23% 33%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1 2 3 5 6 74

Figure 6. Recommendations from hearing care professional after visit for evaluation.

87%

39%

91%

53%

5%24%

4% 4%2% 2% 2% 2%3% 1%11% 13% 7% 6%

Recommended HA Some hearing loss HA won’t helpmuch

Wait before retesting

Hearing was normal

Rec’d surgery/etc. Something else Do not recallLoss not badenough

Current HA Owners (n=922) Current HA Non-Owners (n=855)

0%

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below). Thus, it is not surprising MT10 found the average age of these devices was 3.4 years, compared to 4.2 for hearing aids. Figure 8 shows that consumers who have purchased PSAP devices within the past year have sat-isfaction ratings (top-3 ratings, scores of 5-7) comparable to those of owners of devices that are over 2 years old. However, consumers with older devices (>2 years) have significantly lower satisfaction ratings (Figure 8).

PSAP owners are mixed on what they think their device should be called (Figure 9). About 40% identify their product as a hearing aid and 40% refer to it as an amplifier. Approximately 20% of them are not sure how to classify the device. Given the expanding sales channels in the amplification market, it may be that some of these devices are actually hearing aids that are being sold either as PSAPs or through DTC distribution. It is unclear whether the OTC channel will create greater confusion about these devices or provide better guidance on what these devices should be called.

The point of purchase for these devices cuts across a variety of internet websites, including Amazon, specific manufacturer sites, and big box stores (Figure 10). For those devices purchased from a store, the most-cited locations included drug stores and electronics retailers.

When asked about the listening situations where they use their PSAP devices, the top three environments were: at home watching TV (64%), at home when communicating (63%), and at restaurants (42%).

The motivation to purchase a PSAP device centered around lifestyle issues, with the most common responses: tired of asking people to repeat, they felt “ready” to do something about their hearing problem, had a life experi-ence that reinforced the need, or a life change event (family, job, etc).

It appeared that, in some ways, PSAP owners were similar to hearing aid owners in that they reached a point in the hearing journey when they were ready to take action.

However, instead of seeking a professional for that help, they obtained their device on their own. Previous MarkeTrak data has shown high satisfaction rates for hearing care profes-sionals reported by owners of hearing aids (ie, 94% in MT10). It is not clear if PSAP owners were aware of the significant role hearing care professionals play or simply elected to obtain devices without their assistance.

As previously mentioned, MT10 asked a series of questions directed at previous pur-chasers of PSAP devices to gain insights into what may be a changing environment for hearing healthcare. One of the more intrigu-ing set of questions assessed perceptions of the changes and opportunities associated with the pending OTC legislation. The participants in the survey were informed about the impend-ing change to allow OTC purchase of hearing aids, and that these purchases would be made without the assistance of a hearing care profes-sional. The six areas examined were: assessing your hearing loss; selecting an appropriate hearing aid; getting started using the device; using the features to adjust the device; clean-

ing/maintenance; and trouble shooting. As shown in Figure 11, a small minority

(14% to 24%) were very comfortable taking on the tasks that would be required for an OTC purchase. The least comfortable task was troubleshooting, followed by assessing their own hearing, and selecting an appropriate hearing aid. The area that respondents showed the most comfortable rating was the cleaning and maintenance tasks. It is assumed that the cleaning/maintenance task was the most familiar as many in this group owned a PSAP device. However, hearing care professionals might be quick to point out the potential longer-term problems caused by earwax and debris that often require a visit to a practice.

Hearing Aid Owners vs PSAP OwnersWhen comparing the satisfaction of all own-

ers and past owners, the differences between hearing aid and PSAPs become clearer. Most of the comparisons have at least a 20% difference, with the exception of the price paid (Figure 12).

Some of the most interesting findings were the answers to the questions relating to the use

Figure 10. Place of purchase by PSAP owners.

Not sure

Phone

Mail

Store

Online

12%16%

Past Owners (n=291)

Current Owners (n=193)

Total (n=484)16%

17%7%

14%

14%

13%

28%

28%

23%26%

15%

40%33%

Figure 11. Comfort level for tasks associated with OTC from all respondents with hearing difficulty (n=3113).

Assessing your hearing loss (level, which ears, etc.)

Not at all Comfortable Not Very Comfortable Fairly Comfortable Very Comfortable

Selecting an appropriate hearing aid for your needs

Getting started using the hearing aid (inserting, etc.)

Using the feature to adjust settings, etc.

Cleaning/maintaining the hearing aid

Troubleshooting, if a question or an issue arose

28% 25% 32% 15%

15%

14%

19%

18%

24%

32%

26% 34%26%

19% 23% 39%

17% 22% 43%

15% 18% 44%

27% 27%

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of the OTC option by both hearing aid owners and non-owners (Figure 13). Their responses certainly support the idea that OTC will have at least some impact on the current hearing aid market.

Conclusions This is not a time when any party involved

in hearing healthcare can remain complacent. Change is happening every day, with much more coming in the months and years ahead. When tak-ing the overall picture from MT10 into account, it is clear that one of the most important findings is the need to educate consumers about hearing loss and the impact on their lives and their health. An education and awareness campaign from HIA is sending the message that maintaining hearing health keeps us vital so we can enjoy the things we love most (www.hearwellstayvital.org).

The results from the owners of hearing aids indicate that a discussion with a hearing care professional and the explanation of their test results resulted in them taking action to seek help. Further, many hearing-impaired individu-als mentioned that discussion with their hearing care professional on the co-morbidities associ-ated with hearing loss, memory issues, balance, tinnitus, and cognition provided additional moti-vation to seek help.

These results indicate that the role of the hearing care professional is very important to those owners who took advantage of the ser-vices provided. It is unclear how the new OTC products/channel will use this resource—or will consumers navigate this new customer journey by themselves?

As the market moves towards the availability of OTC hearing aids, there is a need for exten-sive consumer information campaigns on the availability and use of OTC and DTC devices. In addition, hearing healthcare professionals need

CORRESPONDENCE can be addressed to HR or Dr Powers at: [email protected]

Figure 12. Comparison of satisfaction by amplification product for all current and past owners of hearing aids and PSAP’s.

0%10%20%30%40%50%60%70%80%90%

Ease

of use

Produ

ct qu

ality

Reliab

ility

Appe

arance

Durab

ility

Soun

d qua

lityCla

rity of

tone

and s

ound

Effort

for m

ainten

ance

Physi

cal co

mfort

How “n

atural

” thin

gs sou

nd

Richn

ess of

soun

dEn

hance

d fea

tures

Value

Comfor

t w/ lo

ud so

unds

Out of

pocke

t price

paid

61%

86%

59% 59% 56% 54% 55% 55%56% 57%52%60% 63%60%55%

85% 85% 84% 82% 82% 81% 81% 78% 76% 76% 73% 72%64% 61%

80%

PSAP (n=391) HA (n=789)

Figure 13. Use of the OTC purchase option for hearing aid owners (left) and non-owners (right).

How do you think you would have purchased if an OTC option had been available?

(Current HA Owners (n=967))

How do you think you will purchase, if an OTC option is available?

(Current HA Non-Owners (n=2141))

Definitely HA through HCP

Definitely HA through HCP

65% 28%

6%

22%

2% 5%Not Sure

Not Sure

Definitely OTC Definitely OTCProbably OTC

Probably OTC

4%

17%

23%

28%

May have looked at

OTC, but probably HA through HCP

May look at OTC, but probably HA

through HCP

to become better informed about the new realities of the market: in particular, the risk/benefit of these new DTC or OTC products, and how to guide their patients on making choices for their hearing health.

The extensive data in MT10 explores the differences between owners and non-owners of hearing aids. It also explores a variety of areas of the current hearing care delivery system, including: satisfaction with hearing care professionals; satisfac-tion with hearing devices; satisfaction while listening in a variety of environments; and which features are most important and useful. MT10 also includes detailed data about the cost of the devices and source of insurance/third party coverage. These will be discussed in depth in a publication in the fall edition of Seminars in Hearing. ◗

AcknowledgementFunding for the MarkeTrak survey was

provided by the Hearing Industries Association (HIA) and its members. The authors thank Jan Kihm, president of Az Marketing Research, St Paul, Minn, and her colleagues for their work on data collection and analysis of the survey.

References1. Abrams HB, Kihm J. An introduction to

MarkeTrak IX: A new baseline for the hearing aid market. Hearing Review. 2015;22(6):16-21.

2. Kochkin S. MarkeTrak VII: Hearing loss population tops 31 million. Hearing Review. 2005;12(7):16-29.

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