This document discusses how health insurance companies can improve their sales processes in preparation for healthcare reform. It outlines common gaps in sales processes, such as a lack of coordination between sales and marketing. It then provides recommendations to address these gaps, including lead scoring, multi-touch lead nurturing, and rigorous data reporting. Implementing the recommendations could increase conversion rates by 2-5% and generate over $3.1 million in additional revenue.

1. How to Construct a “Reform Ready” Sales Process
Boston, MA
May 13th, 2010

2. MDI Perspective
Direct-Response Healthcare Marketing Agency
o Founded to support PacifiCare and the launch of Secure Horizons
o Head-Quartered in Saint Louis with field offices in MA, CA, IL, FL, NY
o Direct-to-Consumer Health Insurance Marketing for Seniors and
Individuals
Focused Exclusively In Health Care
o Currently support 27 healthcare clients
o Mostly mid-sized, regionally dominant plans; many are provider owned
o Deep industry and domain expertise
Proven Processes To Bridge The Gap Between Strategy &
Tactics
o Core offerings include: Strategy, Creative, Database and Analytics
Analytics Strategy
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Database Creative

3. Reform is Coming….Reform is Coming!!!
1. Threat of declining reimbursement rates
and/or MLR restrictions
2. Pre-reform membership and profitability
expectations in the consumer segments
3. Ongoing competitive pressures; the rise of
the exchanges
4. Demand for greater accountability, line of
sight into the sales process, results
5. Desire to optimize the go-to-market
strategies for greater conversion yield and
increased return on investment
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4. Common Gaps in a Carrier’s Sales process
1. Sales and Marketing are not always on the
same page
 Lack of agreed upon definitions, conversion steps
 Sales operation out of synch with Marketing
2. Every lead is treated the same
 Lead scoring, routing and differential fulfillment is not
done
 Internet leads are often processed the same as offline
leads (eg. Slowly)
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5. Common Gaps in a Carrier’s Sales processing
3. Leads that don’t sell immediately are
often ignored
 “Urgency of now” by the sales organization
 A customer’s need may develop overtime
4. Data reporting and analytics are
incomplete
 Campaign and response channel “waterfall
reporting” is not in place
 KPI’s needed for every step of the way
 CRM tools are not being completely leveraged
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6. Conversion Drivers the Increase ROI
Planning & Strategy
Other Conversion Drivers
Brand Awareness
Offer Strength (products)
Sales Process/ Pricing
Sales Effectiveness
Competitive Landscape
Other Market Conditions (e.g.,
health care reform)
Sales
Communications
Conversion Success
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7. MDI’s Response-to-Conversion Framework
Category: Category: Category:
Planning & Strategy Sales Process/Effectiveness Sales Communications

8. Solutions for Gaps in the Sales Process
1. Identify high impact leaks in the
sales funnel
 Map current processes
 Use benchmarking and testing
strategies to close performance gaps
2. Perform more rigorous lead
qualification, scoring and routing
 Introduce lead scoring, routing of leads to
highest closing channel/resource and
differential fulfillment
 Process internet leads as fast as possible
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9. Together, Sales and Marketing define the lead stages and processes
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10. Testing Strategies Determine Most Effective Sales Process
Application
Tactic Lead Rate Cost
Rate
Adding
+37% +43% i/b calls $$$
Telesales
Adding email +14% +7% i/b calls $
# of mailings
No change +16% $$
(2 vs 1)
Letter vs
+15% +26% $
Postcard
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Medicare AEP 2010

11. Benchmarking Results
30%
25%
20%
Conversion Rate
15%
10%
5%
0%
Q S A R M P L T O C N U B
CR Overall 26% 25% 23% 22% 21% 20% 18% 14% 14% 10% 11% 8% 7%
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12. Key
Recommendation Impact
Processes present
Process not optimized
Process missing
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13. Sales Process Changes: Integrated Online and Offline Channels
Call
Chat
Click

14. Solutions for Gaps in Sales Process
3. Initiate multi-touch lead nurturing
routines
 Leverage existing creative
 Vary routines based upon frequency,
intensity, modality and creative
4. Vigorously apply reporting and
analytics
 Response and conversion modeling
 Sales performance reporting
 Production, revenue, utilization and quality
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15. Based upon lead score, initiate a lead nurturing routine
Fulfillment
START
SALE
First Point of contact
 Lead converts
 Lead does not
convert
Lead nurturing program
Campaign Follow-up Secondary
fulfillment kits communications communications Campaigns
BRC & Web Request for Info  Outbound Phone Call  Birthday Cards  Responder Non-
 Basic Product Information  Email  Healthy Living Tips convert
 Thank You Postcard  Medicare News
Phone & Web Request for Quote
 Customized Product Info
 Customized Quote
Ready to Buy? Ready to Buy? Ready to Buy? Prospect initiates contact
YES NO YES NO YES NO YES NO
Outside
END
Agents

16. Create a Response to Sales Conversion Waterfall
Response
Response
Response rate Media Type Direct Mail DRTV PPC All Media
Total Responses 1386 3289 1765 6440
Total Leads 1252 2543 1765 5560
Leads
Leads Total Quotes 412 1189 908 2509
Qualified lead rate Total Application Submitted 153 227 787 1167
Total Applications Approved 150 156 411 717
Total Policies Issued 147 156 389 692
Response to Lead Rate 90% 77% 100% 86%
Quotes
Quotes Lead to Quote Rate 33% 47% 51% 45%
Quote rate Quote to Application Rate 37% 19% 87% 47%
Application Approval Rate 98% 69% 52% 61%
Policy to Lead Rate (conversion) 12% 6% 22% 12%
Applications
Applications Total Media Spend $ 66,528.00 $ 189,234.00 $ 37,643.00 $ 293,405.00
Application start rate Cost per Response $ 48.00 $ 57.54 $ 21.33 $ 45.56
Application submit rate Cost per Lead $ 53.14 $ 74.41 $ 21.33 $ 52.77
Cost per Quote $ 161.48 $ 159.15 $ 41.46 $ 116.94
Cost per Application $ 434.82 $ 833.63 $ 47.83 $ 251.42
Cost per Member $ 452.57 $ 1,213.04 $ 96.77 $ 424.00
Paid Sales
Offer rate Sales
Paid
Acceptance rate
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17. Client Impact Summary
Implementing both short term and longer term recommendations will yield an increase of 2-5% in the
overall conversion rate and deliver more than $3.1 million in incremental revenue.
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18. Questions?
Peter Rodes
Vice President, Strategy and Consulting
Marketing Direct, Inc.
Prodes@marketingdirect.com
Office: 847-256-1931
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