Published on April 23, 2019
The pressure to boost Medicare member acquisition, revenue, and market share intensifies each year. Across the country, mid-sized regional health plans face national competitors with formidable resources and marketing muscle. To hold their own, regional plans must not maintain current member enrollment and also expand into new geographic markets and customer populations. Marketing departments are being asked to do more with less while facing increased scrutiny to measure performance, justify budgets, and defend resource allocation decisions.
As a result, health plans recognize that their AEP marketing must become more science and less guesswork. This means acquiring the capabilities for deep analysis, deliberative tactics, mid-campaign course corrections, and creative marketing approaches that enhance efficiency and ROI.
And it means it’s time to rethink and retool AEP marketing by leveraging robust data analytics.
A new white paper from Carrot Health introduces AEP Precision Marketing, a six-step, data-driven process that health plans can use to develop and direct highly structured and customer-responsive AEP campaigns. Here’s an overview of the steps and how a data-driven approach is critical to their efficacy:
- Define Growth Strategy and Objectives / Understanding both the makeup of the local population and the overall competitive landscape informs decisions about where the health plan thinks it can grow most successfully, which segments of the population fit the plan’s growth strategy and how marketing budgets should be allocated.
- Develop Market Segmentation / The right analytics can help identify customers who best fit plan goals and offerings based on differences in lifestyle, behavior, interests, hobbies, health status, and social determinants of health. This creates alignment between products and customer needs, which is a key driver in effective AEP campaigns.
- Determine Channel Preferences / Using data to predict response and conversion rates and accurately assess the cost to convert those leads, health plans can determine optimal resource allocations related to marketing channels, list rentals, and ad buys.
- Develop Messaging & Execute Campaign / Messaging and content assets must be correctly tuned and customized to each target customer segment. This includes branding that resonates and marketing materials that not only stand out from the competition but also address the decision-making factors that matter most to members and prospects.
- Monitor and Adjust Campaigns in Real Time / Marketing departments need daily reports with real-time data and insights to give them the power to shift or alter the direction of a campaign midstream. Here, live results can dramatically improve marketing performance and customer acquisition ROI.
- Measure Results and ROI / Robust analytics make it possible not only to determine the actual overall cost of the campaign and the cost to acquire each new member but also to break down new sales according to age, geography, personas, etc. and understand what differentiates members who stayed from those who left. By recognizing these patterns, the health plan can learn to drive better results and engage current members more effectively.
For details about these steps, along with sample tactical objectives for each and health plan examples including how AEP Precision Marketing worked for Health Alliance Plan, download the full white paper.