In our Anatomy of a Solution series, we take a look at some direct challenges and disruptive solutions that Amsive has driven for clients. This week, we set out to prove to a regional Medicare client why a one-size-fits-all approach simply won’t cut it.
Medicare consumers are a loyal bunch. McKinsey research found that, in the last five years, 81 percent of 75-and-older Medicare consumers renewed their plans without taking steps to review and shop for new plans. Seventy-six percent of the 71-74-year-old demographic, and 70 percent of the 65-69-year-old demographic did the same.
It goes without saying that, for the industry, retention is relatively easy. New customer acquisitioniCustomer acquisition is the act of creating a new customer for a business through a trackable method such as advertising, marketing or sales. Customer acquisition transcends marketing and indicates an action was taken such as a purchase. For example, marketing might get a potential customer to click on a digital ad which creates recognition, but acquisition is the sale whi... Read More on the other hand, is an incredibly difficult challenge to take on.
That’s just what Amsive was tasked to do for a regional Medicare client, based on the east coast, that had been critically underwhelmed by the one-size-fits-all modeling strategy put in place by a former agency that just didn’t deliver the results the client needed. It was a make-or-break moment for us to brainstorm and deploy a hyper-focused audienceiBy focusing on identifying your ideal audience instead of looking at your entire audience, you can speak to that perfect customer group at the perfect time and generate greater results. A well- researched audience strategy helps arm you to reach the best consumer with your message who is going to have a higher propensity to buy your product, click your link or sign up for ... Read More model, and test strategies to increase new member leads for the industry’s all-important annual enrollment period.
On the surface, that catch-all approach seems like the most obvious choice for providers. The numbers don’t lie — beneficiaries tend not to switch from unsuitable plans to ones that may better meet their needs simply out of loyalty and convenience.
Cost isn’t even a factor when determining whether to renew with an existing provider. The same McKinsey survey mentioned above found that only 14 percent of respondents noted they were in the lowest-cost plan, and half weren’t even sure how their premiums compared in terms of overall cost. So, shifting factors within a one-size-fits-all solution weren’t the right path.
For Amsive, the pandemic produced a particularly difficult double whammy of slowed marketing activities on one side, and forced even more risk-averse consumers to stick with what they had and to embrace the wait-and-see approach on the other. But we did have what didn’t work for the client in their former agency’s underperforming campaign.
In a sense, Amsive’s differentiator was the foundational data and deep understanding of member bases and prospect market landscapes that drive our fundamental campaigns.
Given the challenges above, the plan of attack was to dig deep and cast a very niche net. A more focused modeliA predictive model in marketing is a tool used to predict buyer behavior. A predictive model identifies customers or prospects who have the right demographic or psychographic behavior to rate them as someone who has a high propensity to purchase a certain product. The predictions can also be a great tool to aid in communication with certain prospective customers. test strategy attempted to deliver more effective, more personalized messaging that would garner more leads and boost plan enrollment that the client sorely lacked.
We took on this challenge by trying to understand and then define what we saw as the three key desired business outcomes for this model test strategy. They included:
- Lead rate
- Cost per lead
- Cost per acquisition
To drive value to these outcomes, we developed an audience strategy using member and proprietary data to create county-level prospect models, then dug deeper into targeted personaiA buyer persona is like an avatar of a company's typical customer that has been designed using real data about existing customers. It is a simulated target customer profile created with research and existing customer information that can be used to determine where to focus time and marketing efforts. When done properly, using a buyer persona should help a company attract l... Read More groupings that would allow for more poignant and relevant messaging.
The test campaign included both synchronized direct mail and integrated digital advertising to reach prospects in a synchronized, personalized sequence. The last step was to measure the results across the three key KPIs above.
Amsive knows healthcare marketing, and the findings bore that out.
- A 427 percent increased lead rate
- A 56 percent reduction in cost-per-lead
- A 45 percent reduction in cost-per-acquisition
Personalized messaging through an omnichanneliOmnichannel marketing is delivering a targeted, consistent and often personalized message to your consumer that is the same across all channels and devices. Unlike multi-channel marketing which delivers unique cross-channel messages, omnichannel marketing aims at making a purchase seamless for the consumer thanks to consistent messaging. An omnichannel marketing strategy s... Read More strategy drove an effective campaign that bounced the client back from the brink and broke them free from a stagnant, one-size-fits -all approach. In short, it got the results they were after. It proved the growing impact that focused audience model test strategies can have when Medicare clients need to crack the lead generationiLead generation is a way to reach potential customers early, get them in your pipeline and then nurture, educate and communcate with them as a way to earn their trust and build a relationship until you convert them into a customer. Productive lead generation should result in increased brand awareness, new relationships, higher quality leads, and ultimately more sales. Comp... Read More and retention equation.