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Part 1. The Next Extraordinary Marketing Opportunity- Healthcare Reform
 

Part 1. The Next Extraordinary Marketing Opportunity- Healthcare Reform

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  • Age-group labels are simplistic and often inaccurate. GENERATIONS reveals and describes unique segments of the population by analyzing U.S. consumers using: Age PLUS Individual traits Affluence Household and neighborhood characteristics Credit activity Most demographic and geo-based segmentation systems cross over age groups. GENERATIONS clusters uniquely focus on the distinctions within specific age ranges, resulting in: More accurate profiles of each segment Better differentiation between segments Clearer view of the prospect market by generation Better targeting of best prospects Fine-tuning of offers for specific audience More effective way to target and manage specific generational audiences
  • Age-group labels are simplistic and often inaccurate. GENERATIONS reveals and describes unique segments of the population by analyzing U.S. consumers using: Age PLUS Individual traits Affluence Household and neighborhood characteristics Credit activity Most demographic and geo-based segmentation systems cross over age groups. GENERATIONS clusters uniquely focus on the distinctions within specific age ranges, resulting in: More accurate profiles of each segment Better differentiation between segments Clearer view of the prospect market by generation Better targeting of best prospects Fine-tuning of offers for specific audience More effective way to target and manage specific generational audiences

Part 1. The Next Extraordinary Marketing Opportunity- Healthcare Reform Part 1. The Next Extraordinary Marketing Opportunity- Healthcare Reform Presentation Transcript

  • The Next Extraordinary Marketing Opportunity Lindsay R. Resnick Chief Marketing Officer
  • "Health reform could benefit the insurance industry dramatically by generating billions of dollars of new revenue and millions of new customers . Harris Interactive Game Changer Retailization of healthcare “ Insurers will compete head-to-head as health insurance exchanges open up a $60 billion market in 2014 reaching an estimated $200 billion by 2019 and covering 28 million people.” PricewaterhouseCoopers PwC Health Research Institute “ The health insurance industry is moving from wholesale to retail . A direct-to-consumer sales process significantly changes the customer mix insurers are used to dealing with.” PNC Healthcare © 2011 KBM Group CONFIDENTIAL & PROPRIETARY
  • Market Transformation Customer Connection Marketing Remix User Experience Opportunity Pathway
  • If opportunity doesn't knock, build a door (MB)
  • Medicare Medicaid 1960 1970 1980 1990 2000 2010 HMOs PPOs CDHPs Medicare Advantage Part D PPACA History of Transformation Assess – Benefits – Cost U.S. health care spending is $2.7 trillion going to $4.6 trillion in 2020 (20% GDP) Average health care costs for families insured through their employer is $19,393 $3,280 Employee out-of-pocket $4,728 Employee contribution $11,385 Employer contribution
  • Health Care Reform Marketplace churn Patient Protection and Affordable Care Act (PPACA) 10-years, $940 billion, 32 million covered © 2011 KBM Group CONFIDENTIAL & PROPRIETARY 2011 2016 Scenario A 2016 Scenario B Employer 160 150 115 Individual 18 11 25 Uninsured 50 20 26 Medicaid 40 53 56 Medicare 45 58 58 Exchanges 0 24 36
    • Don’t Want It Young Invincible
    • Pre-Ex Denied Temporarily Unemployed
    • Medicaid/CHIP Eligible Illegal Immigrant
    Uninsured Americans: 52 million customers Who are they? Working families Low/moderate income Adults v children Minority v white Young adults High school only Poorer health No coverage 1+ years
  • Health Benefit Exchanges: 24 million customers Organized, structured marketplace for individuals and small businesses to access, shop and purchase health insurance.
          • Deliver consumer information
          • Provide plan choice
          • Promote price competition
          • Facilitate easy enrollment
    © 2011 KBM Group CONFIDENTIAL & PROPRIETARY
    • VARIABLES
      • Participation standards
      • Benefit & rate variability
      • Off-exchange restrictions
      • Exchange navigator role
      • Build it… will they come?
    • HURDLES
      • Administration & IT
      • Eligibility & enrollment
      • Plan contracting & pricing
      • Risk management & network
      • Consumer outreach & navigation
  • Exchange Customers Who are they? Majority eligible for subsidies (133% - 400% federal poverty level) Previously uninsured or uninsurable (affordability, health condition) Pent-up demand for healthcare Leaving employer coverage Desire decision support resources Small business employees Exchange consumers are expected to be older, less educated, lower income and more racially diverse than privately-insured population. Travel Web Portals (aka Exchanges) 90 + million visitors
    • KEY DRIVERS
    • Price
    • Benefits
    • Network
    • Quality/Reputation
    • Wellness
    © 2011 KBM Group CONFIDENTIAL & PROPRIETARY
  • Previously Uninsured Pre-Ex Timebombs Abandon Employees Opt-Out Employees Individual Shoppers Newly Subsidized Medicaid Qualified Newly Medicaid Medicare Boomers Medicare Switchers New Market Segments Seize opportunity, buffer risk Product Diversification Risk Profiles Compliance Maze Administrative Complexity Provider Network(s) Customer Experience Brand Position Marketing Outreach Distribution Channels LifeTime Value SEGMENTS IMPLICATIONS
  • Fish where the fishes are
  • Data Driven Marketing Knowledge-based customer intelligence
    • Enriched Database
      • Accuracy
      • Currency
      • Breadth
    • Advanced Analytics
      • Segmentation
      • Profiling
      • Clustering
      • Predictive Modeling
    Data driven, individualized consumer insights yield informed decisions © 2011 KBM Group CONFIDENTIAL & PROPRIETARY
    • Customer Connection
      • Who are they?
      • What’s important to them?
      • Where do they go?
      • How to get their attention?
      • What motivates them to buy?
      • Why do they remain loyal?
  • Customer Segmentation Data is the driver, knowledge is the asset
      • Demographic attributes
      • Socioeconomic status
      • Psychographic characteristics
      • Lifestyle choices
      • Life stage or generational
      • Responder indices
      • Common purchasing behavior
      • Attitudes and preferences
      • Health or condition indicators
  • EXAMPLE: Digital Segmentation * Digital Devices Digital Destinations * Digital Neighborhoods 2.0 Why consumers chose the digital devices they use Will they re-purchase and/or upgrade Who are early technology adopters vs. more conservative consumers What are their digital activities: professional, entertainment, education, buying, bill paying KNOW YOUR DIGITAL COMMUNITY By knowing digital attitudes and behaviors across range of technologies and devices marketers can deliver customized messages to customers via their most preferred digital media.
  • What matters today are conversations with & among consumers (LW)
    • Multi-Channel Preparedness
    Direct mail 52% mail volume $45 billion spend Every 60-seconds 700,000 Searches 100,000 Tweets Mobile web 60% Smartphones 15 billion Apple apps Third largest country 600+ million Facebook Users Monthly online shopping 100+ million Amazon visitors Message to moments of maximum influence
  • Customers are in control. They’re talking about you, reviewing you, and price checking you. They have a choice and they determine your value… so listen to them and engage in their conversation! © 2011 KBM Group CONFIDENTIAL & PROPRIETARY Marketing Remix Wherever, whenever, however
  • LOW ENGAGEMENT Push advertising One-way, top-down Broadcast/print/outdoor Brand-focused Mass marketing ENGAGEMENT Push messaging Interactive Email/search/banner Brand-response Mass-to-segment HIGH ENGAGEMENT Customer dialogue Always-on, digital-only Social/mobile/video “ Me” content focused Narrowcast 20% consumers trust advertising… 80% consumers trust other consumers Conversational Marketing Offline to online continuum
  • UR UX SUX
    • Healthcare Consumer Squeeze
        • Benefit and Financial Choices
        • Care Delivery Options
        • Family Budget Priorities
        • Intergenerational Navigation
        • Retirement Planning
        • Lifestyle Management
        • Information Overload
    Relationships revolve around customer touch-points Consumer Engagement 72% consumer say health insurance so complicated don’t know what’s covered or what it will cost them
  • Consumer Experience by Industry Customer Experience Index, 2011: Health Insurance Plans, April 29, 2011
    • Every touch point in the relationship a company has with its prospects and customers.
    • The sum total of everything they see, hear, feel and experience as part of their interaction with your company ―
        • … every visual encounter
        • … every telephone call
        • … every written word
        • … every transaction
        • … every online exchange
        • … every promise made.
    UX Every experience is a branded experience
  • HIGH ENGAGEMENT LOW ENGAGEMENT End-to-End UX Create bridge of relevant connections Superior UX is a marketing tool extraordinaire! © 2011 KBM Group CONFIDENTIAL & PROPRIETARY Knowledge Consistency Transparency Informed Active Trusting
  • Big ideas precede big achievement
  • Plan For Uncertainty Transformation yields opportunity © 2011 KBM Group CONFIDENTIAL & PROPRIETARY
  • I N N O V A T E OR DIE
    • Decision paralysis
      • “ Oh, health reform will be repealed”
    • Trend avoidance
      • “ They’ll never buy this online”
    • One-way marketing
        • “ But that’s the way we’ve always done it”
    • Cross-functional silos
      • “ That’s marketing’s problem”
      • “ That’s sales’ problem”
      • “ That’s compliance’s problem”
    Eliminate Fogeyism Entrepreneurship trumps bureaucracy
  • - Define what you stand for - Establish why you are different - Articulate your unique value proposition Clutter-Buster Differentiate Brand In commoditized and standardized markets… Who are your “best” most profitable customers ? What are your comparative marketplace advantages? Why do you get beat in sales situations? © 2011 KBM Group CONFIDENTIAL & PROPRIETARY Give your “ best potential ” customers a reason to convert to your brand and always have a pathway to loyalty.
  • 360 º Customer Intelligence Best customers, best channels
      • Integrated data architecture
      • End-to-end analytics
      • Rich, actionable customer insights
      • Personalized, creative communications
      • Offline-to-online channel transitions
      • Commitment to customer listening
      • Leverage, optimize, leverage
    Prepare for customers that never had or bought insurance before.
  • Customer Interaction Navigation resource and decision support If we ask customers to shop for benefits and engage in clinical decision-making, they need to be educated and supported about how to make smart economical individualized choices. Educate and guide your customers Provide information on price & quality Reward healthy behavior & choices Reinforce purchase with after-sale sale
  • Marketing Remix From monologue to dialogue Data – from acquisition to retention to ROI, use informatics to optimize marketing Different – break-through brand position and superior customer experience Direct – accountable creative supporting retail healthcare selling channels Digital – high engagement, socialized marketing to keep pace with customer trends © 2011 KBM Group CONFIDENTIAL & PROPRIETARY Identify opportunity and fine-tune relationships by listening to and joining customer conversations
  • Lindsay R. Resnick Chief Marketing Officer Phone 773.372.4961 Email [email_address] Web KBMGhealth.com Blog lindsayresnick.com Twitter @ ResnickLR Questions Comments Observations Opinions