SSG for DTC 2014_30 Day countdown to ACA 2 -Growth, Retention & Cost Extended-post_final 10-16-14
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Explore with us how will the second open enrollment: Further shift the face of insured consumers, Redraw market shares, Demand changes in the way insurers, Hospitals, drug retailers and pharma deliver health care solutions
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SSG for DTC 2014_30 Day countdown to ACA 2 -Growth, Retention & Cost Extended-post_final 10-16-14
- 1. www.SantiagoSolutionsGroup.com P: 818.905.5666 Marketing to a Diverse America Conference 3rd Multicultural Health Marketing Conference October 15-17 – Atlanta ACA 2.0 From Untapped Demand to Focused Growth, Retention & Cost Management As presented by: Carlos Santiago Chief Strategist 30 day Countdown to THIS IS AN EXTENDED VERSION OF THE CONFERENCE PRESENTATION http://bit.ly/SSGDTCextended
- 2. 2014 © Santiago Solutions Group, Inc 1. Consumers – New Faces, New Needs Barriers Remain Key Similarities & Nuances Wellness Segments 2. The Race Is ON Market Share Shifts Highly Multicultural & Millennial Exchange Potential 3. Marketing Effectiveness -Powerful Advantage Consumer-centric Approaches Data-Rich Decisions Planning Tools 4. Strategic Implications 30-Day Countdown to ACA 2.0 From Untapped Demand to Focused Growth, Retention & Cost Management
- 3. 2014 © Santiago Solutions Group, Inc We guide clients using advanced research, projectable opportunity sizings, innovative modeling and predictive analytics. Yet, integrating and distilling rigorous data is just the base to reduce your marketing unknowns. Leveraging client-side and broad consulting experience, we arm you with intelligence, ownable insights to purchase, strategic pathways aligned with the highest impact priorities, and effective Total Market roadmaps inclusive of customer journeys. 3 About Us Santiago Solutions GroupHealth Experience
- 4. 2014 © Santiago Solutions Group, Inc Exchange Consumers New Faces, New Needs Barriers, Similarities & Nuances 1
- 5. 2014 © Santiago Solutions Group, Inc. SantiagoSolutionsGroup.com Cultural & Generational Nuances Relevant Comm. Perceived Value Customer Experience 5 Hispanics, African Americans & Millennials Face Additional Interdependent Barriers To Adoption
- 6. 2014SantiagoSolutionsGroupInc. Hispanics Have Distinct Healthcare Adoption Cultural Nuances I didn’t have health insurance growing up Cash is king! I feel healthier than ever I’m a 27 year old proud Latina Mom… I have a degree but work 2 part-time service jobs I love the web, but prefer transactions in person I’m on my smartphone 24hrs/day I watch Drop Dead Diva after my “novela” I’m slow to trust… Not many doctors understand me! 6
- 7. 2014 © Santiago Solutions Group, Inc Feel invincible Be under-employed, living with parents Afraid costs will increase1 Believe “I am my own doctor” and only go to doctor when ill2 Be hyper-connected, hyper-informed, hyper-influenced by SM/video clips Engage in physical activities, often for socializing2 7 Millennials: Digital & On-the-go Among the uninsured eligible for subsidies, Millennials are more likely than Total to: Sources: 1. Harvard Public Opinion Poll, Dec 2013 2. SSG analyses of 2013 Doublebase GfK-MRI 2013 , N= 50,764
- 8. 2014SantiagoSolutionsGroupInc. Millennials & Hispanics are Facing Value Choices 8 The Moya-Baum’s, a typical eligible Millennial couple in their 30’s Los Perez… an Upscale, FPL 250- 400, fully Bicultural/Bilingual San Antonio, fa. of two,~$36K/yr Basic plans from $1–4K/yr with fa. deductibles from $4.5–13K/yr Healthcare expenses last year ~$1,200 Penalty of $360 is better for us! Los Angeles, fa. of 5, ~$65K/yr Basic plans from $4–6K/yr with fa. deductibles from $3–10K/yr Healthcare expenses last year ~$4,000 We’ll deal with the Penalty of $650 8
- 9. 2014SantiagoSolutionsGroupInc. 66% 34% Insured Communications Will Need To Be Adapted to Uninsured 9 Uninsured Eligibles Insured Uninsured Eligibles 70% 30% 57% 25% 29 % 14% 29% 47% Source: SSG Analyses of Scarborough USA+ 2013R2Uninsured Eligibles: Uninsured, Ages 25-64, FPL 139-400 Insured: Insured, FPL400+
- 10. 2014SantiagoSolutionsGroupInc. 61% 59% 20% 34% 19% 7% Insured Uninsured Banking Methods 18-34 Phone-In Bankers Drop-In Bankers Log-In Bankers 83% 57% 1% 3% 6% 3% 10% 38% Insured Uninsured Internet & Mobile Web HISP 25-64 Mobi-Savvy Netizens Homepagers Offliners .7x 3.8x Hisp 1.7x Despite Digital Adoption, Face-To-Face Still Key 1/3 Uninsured Millennials Prefer in Person Transaction; 6 in 10 Hispanic Uninsured Eligibles Mobile Savvy 10 Source: Scarborough USA+ 2013 and GfK MRI Fusion R2 Survey of the American Consumer; Enrolled a/o Apr 19 FPL 400%+ vs Uninsured + FPL 139-400%; Age 25- 64Significance tests run at 95% confidence level Mill
- 11. 2014SantiagoSolutionsGroupInc. Exchange Population Has A More Balanced Approach To Medical Care 11 Insured Exchange Eligible Nuances Mindset Towards Traditional Medicine 63% 52% 37% 48% Insured Uninsured I'm My Own Doctor Doctor Knows Best Uninsured (ages 25-64) are 29% more likely to act as if they are their own doctors in comparison to those already insured Source: SSG Analyses of Scarborough USA+ 2013R2Uninsured Eligibles: Uninsured, Ages 25-64, FPL 139-400 Insured: Insured, FPL400+
- 12. 2014SantiagoSolutionsGroupInc. 12 Wellness: A Code for Lifestyle Choices Hundreds of healthy to unhealthy attitudes & behaviors that shape lifestyle choices modeled against 4 largest preventable chronic diseases. SSG Wellness Spectrum™ is the joint property of GfK US, LLC and Santiago Solutions Group, Inc. HBP Obesity Diabetes II High Cholesterol LifestyleChoicesAttitudes&Behaviors EAT HEALTHY SLEEP WELL EXERCISE DRINK WATER SMOKING SEDENTARY HIGH SODIUM BADCHOICESGOODCHOICES Healthier Lifestyle Unhealthier Lifestyle BAD FAT Brand Selection Products Retailers Restaurants Services Lower Incidence of Preventable Chronic Diseases GfK MRI 2014SantiagoSolutionsGroupInc.
- 13. 2014SantiagoSolutionsGroupInc. Individuals Range Across A Spectrum According To Their Wellness Mindset & Behaviors • SSG Wellness Spectrum assigns each individual with a Wellness Score -relative to the average U.S. adult. This ‘FICO-like’ score is individually based on specific wellness attitudes & behaviors. • The individual Wellness Spectrum scores can be aggregated and averaged by brand, class of trade, channel, category, generational level, ethnicity, race, etc. • The Wellness Scores aids marketers to understand their buyers through wellness patterns, barriers, and engagement drivers to focus growth strategies on the appropriate level of wellness receptivity. 13 0 50 100 150 200 SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc. ©2014 GfK US LLC. All Rights Reserved Least Wellness Outlook Greatest Wellness OutlookAverage Wellness Outlook GfK MRI
- 14. 2014SantiagoSolutionsGroupInc. Wellness Personas Consumers Migrating from Savvy Indulgents to Busy Strivers and Fit & Holistic 14 SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc. ©2014 GfK US LLC. All Rights Reserved 46% of U.S. Adults 35% of U.S. Adults 19% of U.S. Adults Savvy-Indulgents cost-conscious individuals who do not care to cook. You probably won’t find these individuals at a gym but may catch them playing some soccer with friends. They are hunters in games, actions and mindsets and will not compromise taste for wellness sakes. Fit & Holistic live by the motto: “You are what you eat and wear.” They understand and incorporate healthy lifestyle choices. They shop with the environment in mind, purchasing organic food products and listen to the doctor. Busy Strivers make a great effort to balance their busy lives, yet are more driven by convenience rather than health. They might try to sneak in a Pilates work out to shed some excess pounds. They like to have semi-prepared foods, that require little additional work.
- 15. 2014SantiagoSolutionsGroupInc. Propensity Towards Lifestyle Choices Diseases Strongly Correlates with Wellness-Outlooks 15 Fit & Holistic Busy StriversSavvy- Indulgents 100 Index US Total Avg. Have/ Had Preventable Chronic Disease (PCD) SSG Wellness SpectrumTM Powered by GfK-MRI Generation: GenX Indices vs. US Total GenX Avg. Likelihood to Have PCD Above or Below US Avg. Source: SSG Wellness SpectrumTM Powered by GfK MRI 2013 Market to Market. Survey of the American Consumer 9 9 -5 18 -5 -9 5 14 -14 -9 -23 0 Tot WnH H AATot WnH H AA H Tot WnH AA GfK MRI
- 16. 2014SantiagoSolutionsGroupInc. 17% 34% 49% 20% 39% 41% 23% 32% 45% Uninsured Wellness Outlooks Not Riskier, Actually Quite Similar To Insured 21% 34% 45% Insured Source: Scarborough & GfK-MRI data fusion USA+ 2013 R2 Survey of the American Consumer. Uninsured Eligibles: Uninsured ,Ages 25-64, FPL 139-400 Insured: Insured, FPL400+ Uninsured Eligibles Total Market (Outer Circle) Hispanic (Middle Circle) Afr Am (Inner Circle) 39%38% 21% 41% 22% 39% GfK MRI 16
- 17. 2014 © Santiago Solutions Group, Inc The Race Is On 2 Shifting Competitive Advantages; Brand Connections Where is the Growth in the Next Wave of ACA Open Enrollment
- 18. 2014SantiagoSolutionsGroupInc. ACA Has Reshuffled Consumer Health Care Marketplace Blues & HN in California & CO-OPs in New York 18 Sources: Covered CA Enrollment Press Released on April 2014, NY State of Health 2014 Open Enrollment Report June 2014, & Scarborough CA & NY DMAs 2011, 2012 R2 Index 32 57 161 317 Exchange Enrollment 2014 Commercial Insurance 2012 Index 267 50 180 19% 30% 6% 36% 8% 19% 58% 2% Exchange Enrollment 2014 Commercial Insurance 2012 13% 40% 5% 3% 12% 6% 6% 17 6% 17% 17% 20% 9% 8% 19% 17% 15% 11% 62%
- 19. 2014SantiagoSolutionsGroupInc. Some States Performed Stronger Than Others Yet The ACA Triathlon Offers Vast Opportunity To Sprint Ahead 19 1,396 36% 2,447 64% Remaining Opportunity Enrolled Twice as Many Eligibles Remain in the Sidelines Total Eligible Opp’y 3.8M One Fifth of the Eligibles Enrolled in NY 371 22% 1,310 78% Remaining Opportunity Enrolled Total Eligible Opp’y 1.7M Remaining Opportunity 21,665 80% Four Times as Many Eligibles Remain in the Sidelines Total Eligible Opp’y 27M Enrolled 5,446 20% Analysis excludes Medicaid Expansion (FPL 100-138), Universe Consists: Eligible Uninsured (139-400) + IFP (139-400)
- 20. 2014SantiagoSolutionsGroupInc. California Most Successful at Enrolling Hispanics & Millennials In Exchange 20 Total White NH Hispanic African Am. Asian/ Other NH Millennial California 36% 29% 27% 15% 111% 23% New York 22% 22% 17% 12% 107% 16% FFM 20% 20% 14% 20% 44% 13% CA and NY most successful at attracting A/O; More work needed for AA Source: SSG Analyses of Covered California Press Release on April 17, NY State of Health Open Enrollment Report June 2014, DHHS Summary Enrollment Report-DHHS on May 2014, and Kaiser Family Foundation, and Scarborough USA+ 2013 R2; Enrolled a/o Mar 31 vs Uninsured + IFP Opportunity; Total estimated elegibles: Insurable Uninsured + IFP (FPL 139-400%): 3.8M; Age: 18-64
- 21. 2014SantiagoSolutionsGroupInc. 31% 30% 10% 8% 1%, A/O 10% 8% 1% WNH nonMill Mill WNH Mill Hisp Mill AA Mill A/O Hisp nonMill AA nonMill A/O non-Mill ~34M Opportunity Remaining; 24M, or 7 in 10, Are Multicultural & Millennial 21 Opportunity By Segment 1.WNH 61% 2.Millennials 49% 3.Multicultural 39% 4.Hispanic 20% 5.AA 16% Includes Uninsured + Individually Insured in FPL 139-400 Eligibles Multicultural 39% Source: Based on Share of Eligible Opportunity in 38 states (FFM states, CA & NY) projected to US Total
- 22. 2014SantiagoSolutionsGroupInc. 42% 66% 58% 34% Enrolled Eligible Eng Dom Spa Dom 39% 68% 61% 32% Enrolled Eligible Spanish Dominant Hispanics Underperformed In ACA 1 Exchange 22 Sources: Covered California Press Release on April 17, NY State of Health, 2014 Open Enrollment Report June 2014 & Scarborough USA+ 2013 R2 Index Calculation: (Hispanic enrolled) / (Hispanic Eligible) Enrollment Rate by Language of Preference Among Hispanics Index 171 64 191 57 Index
- 23. 2014 © Santiago Solutions Group, Inc Increasing Marketing Effectiveness Consumer-Centric Approaches Planning Tool rooted on Growth Propensities Engaging Connecting with Relevance Retaining Managing Cost of Portfolio 3
- 24. 2014SantiagoSolutionsGroupInc. 2% 6% 47% 3% -17% -22% 42% 26% -15% 31% 2% 4% 14% 0% 7% Insurer B 38% 15% 21% 104% 75% 130% -23% -1% 23% -36% 46% -28% 19% 22% 19% 15% Insurer C Wellness Segments Most Appropriate For Growth Depends on Multiple Factors i.e.: Lifecycle, Positioning, Strength of Differentiated Benefits, Innovativeness… Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Breakfast Buyers 18+ SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc. TM: Total Market, WNH: White non-Hispanic, H: Hispanic, BNH: Black non-Hispanic, A/O: Asian/Other, MILL: Millennials, S&I: Savvy & Indulgents 9% 13% 12% -14% -9% 3% 6% 7% -14% -6% 17% -6% 0% -1% 1% 0% Mill Fit&Holistic Mill Busy Strive Mill S&I A/O NH Fit & Holistic A/O NH Busy Strive A/O NH S&I BNH Fit&Holistic BNH Busy Strive BNH S&I H Fit&Holistic H Busy Strive H S&I WNH Fit&Holistic WNH Busy Strive WNH S&I TM Insurer A YOY Growth GfK MRI 24
- 25. 2014SantiagoSolutionsGroupInc. Savvy Indulgents 23% Busy Strivers 59% Fit & Holistic 2% WNH 34% A/O 1% AA 20% Hisp 46% Busy Strivers Lead In Generating Growth For Two Sample Insurers Multicultural Segments Account for 18-43% of Base and 64-67% Share of Growth Share of Base Share of Growth Segments Source: SSG Wellness SpectrumTM Powered by GfK-MRI 2012 Double Base Survey of the American Consumer. Base: Total 18+; SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc. WNH 82% A/O 3% AA 7% Hisp 8% WNH 57% A/O 11% AA 10% Hisp 22% Savvy Indulgents 46% Busy Strivers 34% Fit & Holistic 20% Savvy Indulgents 38% Busy Strivers 36% Fit & Holistic 27% Savvy Indulgents 38% Busy Strivers 54% Fit & Holistic 7% WNH 35% A/O 3% AA 23% Hisp 38% 1% 1% 1% 1% 3% 3% 1%3%3% 17% 27% 38% 3% 7%16% 38% 35% GfK MRI Insurer A 3% 4% 4% 3% 5% 3% 6% 8% 9% 15% 20% 22% Insurer B 25 1% 9% 11% 24% 21% 2%7% 27% Total Market Busy Strivers Approach with Cross Cultural + Segmented Hispanic & AA Approaches
- 26. 2014SantiagoSolutionsGroupInc. ‘New Growth’ Personas vs. ‘Base Personas’ Will Often Suggest Messaging Refinements 26 Base New Growth • Driven by convenience • Enjoy unwinding activities like yoga & cycling • Busy consumers • Mostly Hispanic consumers: evenly split b/w English & Spanish dominance • Hyper-connected & 100% Millennial • Health driven consumer • Environmentally considerate • Hispanic Spanish dominant, very in-culture • 6 in 10 are Millennial • Physically Fit and Confident • Loves Organic and Green Loves Adventure • Not secure in physical appearance • Seek balance • Semi-prepared foods SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc. Yogurt X Cereal Y GfK MRI
- 27. 2014SantiagoSolutionsGroupInc. Precise Channel Selection Tools for Mass to Personalized Efforts 27 White NH Hispanic Afr Am Asian/O California Uninsured FPL 139-400 Source: Uninsured/IFP, age 18-64 in FPL 139-400% (000’s) SSG Analysis of Scarborough USA+ 2013 R2 1.TV viewers 2.Online Radio listeners 1,075 1,595 185 339 441 674 59 162
- 28. 2014SantiagoSolutionsGroupInc. 28 Path To Purchase Uninsured Exchange Eligible w/ PCD or Mental Health Condition Seek More Info in Apps, Want To Live Healthier, Super Influential Often Exceeds Insured Varies By Condition & Wellness Segment Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase; SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc. GfK MRI Info Gathering Look for new ways to live healthier PCD 108; MH 106 PCD Uninsured Fit & Hol: 194 MH Uninsured Fit & Hol: 192 Disease Management Healthcare Influential (recommend Friends/Family) PCD 77; MH 102 MH Uninsured Fit & Hol: 143 Index of Uninsured Exchange Eligible vs Health Insured PCD = Preventable Chronic Disease MH = Mental Health Super Influential Seek Advice bef purchase PCD 178; MH 119 Mobile App Happy PCD 130; MH 133 Uninsured Fit & Hol MH: 161 Use Health Apps PCD 150; MH 145 Uninsured Fit & Hol MH: 161 I Take Med as soon as I don’t feel well PCD 115; MH 87 PCD Uninsured Fit & Hol: 125 MH Uninsured Fit & Hol: 169 Rx Influential PCD 85; MH 93 MH Uninsured. Fit & Hol: 117 PCD Uninsured Fit & Hol: 127
- 29. 2014SantiagoSolutionsGroupInc. WHITE NH Ethnicity Does Play A Key Role In Determining Healthier-Outlook Consumers Preferences = Key To Partnerships 29 HISPANIC SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc. Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase 100 AFRICAN AM GfK MRI 29 100100
- 30. 2014SantiagoSolutionsGroupInc. 30 Drug Store A Cult. Competent Health Provider Householder Fit & Holistic Busy Strivers Savvy -Indulgents *CAGR = Compound Annual Growth Rate Source: SSG Longitudinal Analysis of Scarborough USA+ 2011 & 2013 R1 SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc. Retailers Wellness Scores can be identified for any group of Adults in the U.S. to enrich internal client databases or targetable email/mobile prospect lists through BigData vendors like Axciom, etc. Wellness Scores Allow For Geographic To Individual-level Classification 1:1 Personalization via Digital, On-The-Go, @ Providers GfK MRI Drug Store A & Culturally Competent Hospital A Drug Store B Culturally Comp Health Provider B
- 31. 2014SantiagoSolutionsGroupInc. -20 -22 -35 7 1 -4 -26 59 55 71 36 43 Healthier-Outlook Advocacy Exponential Influencer Value Strongest Brand Advocate 31 Healthcare: Knowledge & WOM SSG Wellness SpectrumTM Powered by GfK-MRI Uninsured 18+ Fit & HolisticWellness- Busy Strivers Savvy- Indulgents 100 Index US Total Avg. Tot WnH H AA WnH H Tot AA Tot WnH H AA SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc.©2014 GfK US LLC. All Rights Reserved Source: SSG Wellness SpectrumTM Powered by GfK MRI 2013 Doublebase Survey of the American Consumer. Base: Uninsured 18+ US Total Avg. Category Influentialism Segments*- Categories Recommended To People: Healthcare Family/Friends or Neighbors/Colleagues or People you Don't Necessarily Know (in stores, online, etc.) AND Healthcare: I have a great deal of knowledge in this area Healthier-outlook segments are more likely to be Early Adopters & Trendsetters Highly Influential among peers GfK MRI
- 32. 2014SantiagoSolutionsGroupInc. -31 -33 -44 0 20 17 6 64 47 42 56 50 Busy Strivers & Fit & Holistic Individuals Most Prone to Engage in Prevention & Disease Management Fit & HolisticBusy Strivers Savvy- Indulgents Regularly Go to Dr. for Check-ups Uninsured 18+ FPL 139-400 SSG Wellness SpectrumTM Powered by GfK-MRI 100 Index US Total Avg. Tot WnH H AA Tot WnH H AA Tot WnH H AA 32 SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc.©2014 GfK US LLC. All Rights Reserved Source: SSG Wellness SpectrumTM Powered by GfK MRI 2012 Doublebase Survey of the American Consumer. Base: Total Uninsured 18+, National GfK MRI
- 33. 2014 © Santiago Solutions Group, Inc Strategic Implications Tips to focus on right now to maximize growth and retain share 33 4
- 34. 2014SantiagoSolutionsGroupInc. Countdown to ACA 2nd Growth Race Foundation of Main Sources of Growth 34 Wellness Outlook Sets Lifestyle Choices •Directly correlates with PCDs •Key driver to care & health preservation Exchange Brings a New Consumer •Not necessarily detached from health or riskier than insured base Spotty ACA Exchange Progress Vast Opportunity •70% Millennial or Multicultural
- 35. 2014SantiagoSolutionsGroupInc. Effectiveness & Best Practices Insights & Data Rich Decision Making 35 Enhance messaging using cultural triggers and motivators of eligible segments to enhance conversion and brand relevance Overlay wellness propensity onto Multicultural & Millennial segments Select channels and engagement methods that reach eligibles directly Bond with new customers by engaging culturally in treatment of health disparities Identify and exceed the expectations of Brand Advocates to influence trust and positive WoM Manage costs by focusing prevention & disease management directly to individuals who are most wellness responsive Acquisition Loyalty Cost Management
- 36. 2014SantiagoSolutionsGroupInc. Success Rx Improving Efficacy Of Multicultural & Millennial Efforts 5 Tips & 2 Foundations 36 Create relevant & relatable identity Revisit network design to ensure culturally competent access Enable face-to-face, where Hisp & Mill are Bring mobile solutions Leverage personal circles of influence-SM Create identity reflecting community Secure in-culture and in- language medical and support staff Bolster pertinent disease maintenance & prevention programs In-person and mobile Go way beyond H-CAHPS Simplicity Relevance Foundations
- 37. www.SantiagoSolutionsGroup.com P: 818.905.5666 Santiago Solutions Group SantiagoSolutionsGroup.com @Santiago_Group @Carlos_SSG SantiagoSolutionsGroup.com/subscribe/ Carlos@SantiagoSolutionsGroup.com Contact Us · Follow Our Insights SSG: 818.905.5666 We believe focus is essential for results. Our focus: Growth Multicultural & Millennial Growth & Insights Newsletter, VIP webinars, Full access to studies THIS IS AN EXTENDED VERSION OF THE CONFERENCE PRESENTATION http://bit.ly/SSGDTCextended
Editor's Notes
- First of all, please feel free to submit your questions any time. Just click the Q&A button on the upper left of your screen and type your questions into the box. If you're viewing along with others at your site, please designate a scribe to submit questions on your group’s behalf. We plan to respond to questions at the end of the webinar, so please do keep them coming. Secondly, if you happen to have any technical difficulties, you can call 888-506-3671 over the phone and they will be happy to help you. Finally, as you might have realized by now, everyone else is on mute, so only those of us in the presenting room can be heard. This webinar is being recorded and an archived version will be available to view after the live session. I think that takes care of all house keeping matters. So we're going to get started. Let me take a moment to introduce our presenter.
- … we are here to focus on factors specific to those populations, such as additional interdependent barriers to adoption that make the overall proposition of the exchange less attractive to Hispanics and Millenials. Specifically, culture, generation, communications, perceptions of value and the overall customer experience of the last few months are key factors in the slow engagement of target subsidy eligible populations. Understanding the barriers specific to your growth target segments is important in creating your messaging – from advertising to web content to contact center scripts. Sometimes it can seem complicated, especially when it involves functions outside of marketing’s purview. That’s why some organizations are opting to create workgroups to serve as internal consultants or securing outside help. Oftentimes, SSG works with our clients to help them determine relevant key messages and ensure consistency across the board.
- The success of any product or service is heavily dependent on how well it represents the consumer it serves. For young Hispanics, culture still plays and important role in their awareness, saliency and purchase consideration. We must keep in mind that Hispanics… Are the ethnic group hardest hit by the recession They live in a bi-cultural world, depend heavily on word of mouth and, while they’re on their smart phones 24/7 and they are the fastest growing group on-line, they prefer to transact in person to seal any deal Are not very trusting of the government, for reasons other than healthcare – and are not trusting of brands they don’t really know. They still prefer dealing in cash. They lack healthcare literacy. They grew up w/o health insurance and are generally healthy. In the few instances they’ve needed some healthcare, they’ve experienced limited access/choice of providers, brought about by limited true in-language/in-culture providers, long wait times and transportation issues, to say the least. So many eligible ACA Hispanics haven’t had much interaction with the healthcare system overall and don’t feel the “burning need” to get insurance now. DATA POINTS 21% or 1.6M of subsidy-eligible Millenials are Hispanics nationwide (source: Scarborough Double Base R1 2013, R2 2012) The average age of people enrolling in ACA plans is estimated to be 43 nationwide, while the average age of all non-elderly American is 32. The 10-year difference gap between exchange plan customers and the US population wasn't probably expected by health insurers (source: Bloomberg Business http://www.businessweek.com/news/2014-01-13/obamacare-customers-skew-older-as-young-invincibles-wait-to-see) The median age of Hispanics is 28 years old nationwide vs 43 White (source: ACS 2012)
- Now let’s turn to the coveted Millennials, who share some of the same barriers with Hispanics. This is not surprising, given the great proportion of them who are Hispanic. In CA alone, 60% of all millennials are Hispanic. So, we see that many are under-employed and skeptics of the ACA, afraid that costs will rise. They haven’t depended on the system and think they can be their own doctor. When seeking healthcare, it is often for maternity care They are hyper-connected, especially on mobile, and tend to be very visual
- Prices haven’t changed in CA … An the choices Millennials and Hispanics are facing. Meet the Moya-Baum couple [follow screen] Now let’s get to know the Perez… [follow screen]
- SSG Wellness SpectrumTM breakthrough methodology was engineered with a clinical approach, incorporating an assessment of disease states, health situations and controllable mindsets to predict wellness behaviors and market preferences. 93% of all deaths in the U.S. are caused by health related diseases/ conditions Of those, over 50% are caused by diseases/conditions correlated with lifestyle choices
- THE SSG WELLNESS SCORE IS LIKE THE FICO SCORE, BUT INSTEAD OF MEASURING CREDIT-WORTHINESS IT MEASURES HOW MUCH IS EACH INDIVIDUAL IS WELLNESS-ATTUNED, IF YOU WILL. THE SCORE IS AGGREGATED BY AVERAGING THE SCORE OF THE INDIVIDUALS. SO IF I SAY ACTIVIA’S WELLNESS SCORE, WHAT I AM REALLY SAYING IS “THE AVERAGE WELLNESS SCORE OF ACTIVIA USERS IS SUCH AND SUCH”. THIS IS SUBTLE BUT IMPORTANT, BECAUSE IMPLIES THAT THE SCORE CAN CHANGE AS A BRAND’S CONSUMER BASE CHANGES. THE SCORE ITSELF IS INDEXED TO THE AVERAGE AMERICAN ADULT, SO IF SOMEONE’S SCORE WAS 120, IT WOULD MEAN THAT THAT PERSON IS 20% MORE WELLNESS-ATTUNED THAN THE AVERAGE AMERICAN ADULT. THAT COVERS THE SCORE.
- Consistent with industry facts, since 2011, consumers are migrating out of Savvy Indulgents, into the Busy Strivers or Fit & Holistic. This represents many opportunities for marketers and brand managers that may be hesitant to make healthy "tweaks" to their products or messaging.
- “Only go to the doctor when very ill” Uninsured 18+ index: 40% “I go to the doctor regularly for check-ups” Uninsured 18+ index: 36%
- Does not include IFP There have been many interesting shifts in the market due to the ACA. But now let’s switch gears to discuss what we should expect for round 2. If we look at the pie on the left, we see that 4 in 10 uninsured Eligibles are multi-cultural. This of course re-iterates what has been a constant theme in the ACA enrollment…a smart multi-cultural strategy that goes beyond translated advertisements, and documents, is critical. As per the total risk pool in the Nation among uninsured Eligibles, we do not see any notable differences with their already-insured counterparts. What this means is that if insurers practice smart acquisition, with a good segmented strategy they can gain a competitive edge by attracting enrollees from the green segments that are more aligned with wellness, rather than from the higher risk red section.
- Health Republic Insurance.- CO-OP (Consumer Operated & Oriented Plan). It is a non-profit Fidelis Care.- Catholic Health Plan organization that started in 1993 as Catholic Health Services Plan. Grew from 82K to 921K member in 2013 Metro Plus Health Plan.- Low, non-cost health insurance organization MVP Health Care.- Non-profit http://www.aetna.com/health-reform-connection/reform-explained/transcript-HCR-Large-Group-Part3.html
- Does not include IFP There have been many interesting shifts in the market due to the ACA. But now let’s switch gears to discuss what we should expect for round 2. If we look at the pie on the left, we see that 4 in 10 uninsured Eligibles are multi-cultural. This of course re-iterates what has been a constant theme in the ACA enrollment…a smart multi-cultural strategy that goes beyond translated advertisements, and documents, is critical. As per the total risk pool in the Nation among uninsured Eligibles, we do not see any notable differences with their already-insured counterparts. What this means is that if insurers practice smart acquisition, with a good segmented strategy they can gain a competitive edge by attracting enrollees from the green segments that are more aligned with wellness, rather than from the higher risk red section.
- Indo-European Languages = 0.24% of Total Enrollment in California Footnotes: Other/Unknown includes individuals who hold mixed, other, or unknown race Asian + Native Hawaiian + Pacific Islander is 21%
- OCR Evenly Split Between Busy Strivers and Fit & Holistic Dannon Wellness Share of Growth: 31% Savvy Indulgents ; 69% Busy Strivers Oatmeal Crisp w/ Raisins Share of Growth: 23% Savvy Indulgents; 40% Busy Strivers; 37% Fit & Holistic MILL make up 27% of Oatmeal Crisp Buyer base and 30% of Dannon MILL make up 58% of Oatmeal Crisp Growth segments & 100% of Dannon Growth Segments
- Managed Care CMO’s can influence new and confused enrollees by connecting with them in the proper channels…Relevantly!
- AS A MANUFACTURER, AFTER YOU HAVE CHOSEN A LOCATION, THE NEXT DECISION IS WHICH RETAILERS TO PARTNER WITH, IN ORDER TO SPEND SLOTTING FEES EFFICIENTLY. WELL, HERE WE SEE THAT DEPENDING ON THE ETHNIC SEGMENT, THE HEALTHIER CONSUMERS MAY FREQUENT DIFFERENT RETAILERS. SO IF YOUR BEST BET FOR GROWTH IS ATTRACTING FIT & HOLISTIC HISPANICS, YOU MAY NEED TO CHOOSE A DIFFERENT RETAILER, THAN THAT OF FIT & HOLISTIC CAUCASIANS. AS A RETAILER, YOU CAN BE PROACTIVE, AND OFFER THE RIGHT VARIETY OF PRODUCTS. THIS CAN BE ACHIEVED BY KNOWING HOW YOUR SSG WELLNESS SCORE VARIES FROM ETHNICITY TO ETHNICITY. DOING THIS ENABLES YOU TO BENEFIT FROM SHORT-TERM GAIN OF SLOTTING FEES, BUT AT THE SAME TIME GAIN THE LOYALTY OF CONSUMERS IN YOUR TRADE AREA, AS THEY FIND THEIR CONSUMPTION NEEDS AND DESIRES FULFILLED BY YOUR STORES. A TRUE WIN-WIN FOR THE MANUFACTURERS AND THE RETAILERS.
- Message: Manufacturers need to keep product portfolio fresh with new products to generate more demand Retailers on the other hand want to make sure that there product mix attracts the right consumers Targeted Slotting can meet these objectives by ensuring that manufacturers are investing in the right trade areas to get Higher ROI. Retailers benefit from both short-term profit gain from slotting fees, but also ensures long-term loyalty by having optimal product mix for your trade area
- Indexed to Uninsured 18+ percentage of 13
- “Only go to the doctor when very ill” Uninsured 18+ index: 40% “I go to the doctor regularly for check-ups” Uninsured 18+ index: 36% Base: Strongly Agree - Uninsured 18+ Indices vs. US Total Avg. Likelihood to Strongly Agree Above or Below US Avg “Only go to the doctor when very ill” Uninsured 18+ index: 40% “I go to the doctor regularly for check-ups” Uninsured 18+ index: 36%
- Ground rule: Customers have choices; relevance and simplicity are essential (i.e., leverage storefronts & build partnerships) CHEAT SHEETS, CHAT, HOTLINE, PHARMACY( i.e., diabetics, maternity)