Retail Strategies: Healthcare B2C

Retail Strategies: Healthcare B2C

Shift Happens.Context For ActionWhole ConsumerBrand DirectEngagement MarketingCustomer ExperienceCarpe Annum© 2012 KBM Group PROPRIETARY & CONFIDENTIAL

WHY are we talking about it?Because insanity is doingthe same thing over andover again and expectingdifferent results.

Context For ActionConsumers in crisisECONOMY%Unemployment 8.1Poverty 15.1Uninsured 17.2Seniors 65+ 13.0Health Spending GDP 17.010-yr Increase:Inflation 28.0Wages 33.0Premiums 100.0© 2012 KBM Group PROPRIETARY & CONFIDENTIAL

Customer MigrationBy Market. By Product. By Distribution.Chronic UninsuredExisting Most ValuableIndividual ShoppersExisting Most VulnerablePre-Ex TimebombsSubsidy EligibleAbandon EmployeesExisting MedicaidOpt-Out EmployeesNewly MedicaidPublic Exchange ShoppersMedicaid In & OutsMedicare SwitchersPrivate Exchange ShoppersMedicare Turning 65

The Whole Consumer

360º View: The Whole ConsumerContinuum of insight: personal, historical, contextualPARTICIPANTBUYERWho they are, lifestage, lifestyle, howthey use benefits &healthcareINFORMINGBuying needs &product offersWhat they care about,what they like to do,where they do itINFORMINGService & ExperienceWho they hang outwith, how they feelabout healthcareINFORMINGHow you influencethem & how theyinfluence othersADVOCATEKNOW EXISTING CUSTOMERS & TARGET PROSPECTS

Create Meaningful Consumer InsightsMeet Megan, an existing member.Part of a Small GroupFemaleAge: 29Had no Medicalclaims past 6-months;$500 in pharmacyclaims YTDMeganMegan Hatters2807 Woods AvenueChicago, IL 60657H: 773-555-1234M: xxx-xxx-xxxxEmail: Unknown

How Do You Get To Know Megan?Use multi-sourced 3 rd party data and end-to-end analytics to get a complete understandingof your members and prospects…demographic, attitudinal, behavioral, predictiveCombine With Your Member Data• Product Information• Enrollment & Billing• Provider Network• Medical & RX Claims• Customer Service Interactions© 2012 KBM Group PROPRIETARY & CONFIDENTIAL

Now, we’re getting to know the “Whole” MeganSpent $70 on organiccotton sweat shirt, size 10Nov 8, 2011Health segmentationshows “healthy living”attitude & behaviorGroup Insurancemember since 2010;PPO productHad no Medicalclaims past 6 months;$500 in Pharmacyclaims YTDPrefers emailmessages for claims;phone for everythingInteraction historyelsewith Health Plan isonline via memberportalMegan Hatters2807 Woods AvenueChicago, IL 60657H: 773-555-1234M: 773-444-9876Email: Hatter@gmail.netHas pet; spent $125 oncat productsin 2011Rarely visits healthinformation sitesSpent $2,000 onhome furnishings usingAmex card withinpast 6-monthsHHI: $75KOccupation: DesignerAge: 29NOT ELIGIBLE FOR SUBSIDYSpends 2hrs/day LinkedIn,FacebookFrequent online &catalog buyerManages credit card billon Smartphone

The Whole ConsumerMulti-dimensional profilingIdentify target audience atpersonally identifiable levelUnderstand theirpreferences & attitudesQuantify on-linesocial conversationsUnderstand theirpurchase patterns &transactionsUnderstand cross-webbehaviors: contentconsumption & conversionUnderstand customerpopulation: demographics,lifestage & lifestyle

Customer LifecycleCombine the art of marketing with the science of big data.© 2012 KBM Group PROPRIETARY & CONFIDENTIAL

Customer LifecycleInform and optimize marketing decisions with good big data


Actionable Consumer InfluenceCreate a branded response funnelBrand is more than just a logo or slogan…• It’s your organization’s promise, your unique point of distinction.• Its attributes generate desire, evoke emotion and build loyalty.• It’s your passport to breakout of the competitive sea of sameness.Direct response is more than just a URL or 800 #…• It begins your one-on-one relationship with customers.• It seeks immediate and measurable response.• It’s your ability to provoke action and be personal.Convert lookers to triers, triers to buyers & buyers to loyal customers.© 2012 KBM Group PROPRIETARY & CONFIDENTIAL

Brand Direct ContinuumLeverage the tools of direct response to change behaviorD I R E C TAwareness Familiarity Consideration Preference LoyaltyHave I heardof you?Do I knowwhat you are?Do you meetmy needs?Do you meetmy needsbetter thananyone else?Do you deliveron your promises?INTEGRATE[Emotional]INFLUENCE[Emotional Rational]ENGAGE[Rational Emotional]CONNECT[Rational]

BRAND1All communicationshave brand impactAs consumers demand more transparency and haveunimpeded access to information we’ll see a dramaticshift in how brands connect with their customers.2 3Listen to prospects Can’t manage whatand customersyou don’t measureDIRECT• Build value-based brandawareness and equity• Qualify prospects andalways elicit a response• Create a consumerpurchasing environment• Understand the voiceof the customer• Leverage cross-channelin-market learning• Inform and optimizemarketing decisions• Brand strength, statureand preference• Direct response KPIs –CPL, CPS, R2C• Marketing & customermetrics – ROI, LTV© 2012 KBM Group PROPRIETARY & CONFIDENTIAL

Living Your BrandDrive growth and marginCredibleRelevantDifferentAspirationalActionableSustainableWill your customers and stakeholders believe it?Will it resonate & “stick” with prospects/customers?Does it set the company apart from competitors?Does it take you far enough…too far?Can you consistently deliver on it?Does it have a long-shelf life and can it evolve?As Shakespeare wrote in Othello:“Reputation, reputation, reputation.”© 2012 KBM Group PROPRIETARY & CONFIDENTIAL

Engagement Marketing

3BillionSEARCHES PER DAYHyper-Tasking ConsumersOn their terms…anytime, anywhere , any device3MEMAILS PER SECOND110TEXTS/DAY AGES 18-24108MAMAZON PER MONTH1BillionFacebook Users90MTABLETS BY 201463MBANKING ONLINE

Engagement MarketingA shifting customer journeyPRODUCT FOCUSED• Start with product, see whowill buy it• One size fits all–you can haveany color, as long as it’s black!• It’s tactical – push marketing;product sales…right nowCUSTOMER CENTRIC• Start with person, see how theyengage• Products & services tailored tounique customer segments• It’s strategic – leverages customerintelligence and it’s interactiveCONSUMER ENGAGEMENTWho are they? Where are they?How will they discover you?What motivates them to buy?What’s important to them? Why?How do you get their attention?What’s being said about you? Where?

CONTENTCONTEXTMarketing RemixCRM = Customers Really ManageMARKETERS ATTEMPT INTEGRATECONSUMERS INTEGRATE SEAMLESSLYMOBILEPERSONALSOCIALLOW ENGAGEMENT PUSH MESSAGINGHIGH ENGAGEMENT ALWAYS ONCustomers 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, engage in their conversations!

Consumer OutreachMoments of maximum influenceGrassrootsSocialMulti-culturalOnlineRadioPrintDirect MailTVEmailSmart PhoneTablet© 2012 KBM Group PROPRIETARY & CONFIDENTIAL

Integrated Distribution“No Wrong Door” consumer enablementSeamless, coordinated and consistent multichannel selling experience.Field Sales• Agent-Broker• FMOs• In-houseTelesales• Lead Nurturing• Appointments• Licensed AgentsDigital• Exchange• Private Portal• AggregatorMobile• Apps• Texting• Service/SalesRetail• Branded• Partners• Service/Sales© 2012 KBM Group PROPRIETARY & CONFIDENTIAL

B2C Direct ResponseImmediate consumer engagementHow does it affect ME? What am I eligible for? What’s in it for ME?Reassure Educate Engage Influence SellEDUCATIONFeaturesOpen-endedRules & LimitsInformativeCreates understandingStructureSELLINGValueCalls for actionBenefits to individualPersuasiveCreates buyersWhat’s in it for ME?© 2012 KBM Group PROPRIETARY & CONFIDENTIAL

Customer Experience

Consumer Experience by IndustryCustomer Experience Index, 2011: Health Insurance Plans, January 23, 2012

Current State: Member CommunicationsAcquiring new customers is 5x cost of keeping existing ones.Incomplete, redundant or inconsistent messagingLittle relevance or personalizationSiloed by functional areaLacking results measurement

Diagnostics: Touchpoint MappingTreat customer experience as a business disciplineUser Experience (UX) encompasses all aspects of an end-user'sinteraction with your company’s services and products…and people.1 2 3Make customerMap today’sMap idealexperience astrategic prioritycustomertouchpointscustomerjourney4Document andPrioritizemake actionable“quick hit”what needs toimprovementchange & whenopportunities65Addressorganizational& infrastructurechallenges© 2012 KBM Group PROPRIETARY & CONFIDENTIAL

Future State: Lifecycle CommunicationsAcquire with intent to retain, retain with intent to growOPTIMIZED CUSTOMER ENGAGEMENTMember DataCommunicationsRenewal&RetentionMemberEnrollment&On-boardingCustomer ServiceMedical ManagementMarketingResponseMeasurementEngagementPerformanceImprovementClear, measurable communicationsData-driven, behavioral targetingAligned customer lifecycleAfter-sale sale

In any moment of decision―…the best thing you can do is the right thing…the next best thing is the wrong thing…the worst thing you can do is nothing.

Offense & DefenseHealth Reform Survival Stress Test1. What is ACA’s impact on customer retention?2. How do you acquire new customers…which ones do you want?3. What’s the product portfolio that’s going to carry you forward?4. How do you position your brand in a reformed marketplace?5. What infrastructure or value chain adjustments need to be made?6. How will marketing outreach adapt to shifting consumer trends?7. What mix of distribution channels will achieve growth targets?8. Are there diversification opportunities…and which ones?9. What are your competitors doing…can you be different?10. How will you track and measure success…what’s the ROI?© 2012 KBM Group PROPRIETARY & CONFIDENTIAL

B2C Engagement Marketing RoadmapMEASUREMENT & OPTIMIZATION KPI development Campaign tracking Rapid test & adjust ReportingCOMMUNICATIONS Accountable creative B2C messaging Relevant content Tools & tacticsASSESSMENT & DATA ANALYSIS Whole consumer perspective External data appends Profiling & predictive modeling Customer experience mapping Product integration & adjacenciesMARKETING PLAN Consumer centricity Multi-channel outreach Sales goal focused ROI & LTV metricsSTRATEGY DEVELOPMENT Campaign development Communications targeting Channel recommendations Social influencer strategy© 2012 KBM Group PROPRIETARY & CONFIDENTIAL

Member Engagement ContinuumTake care of your customers and they'll take care of you.MEMBERPROSPECTEstablish relationshipBecome trusted sourceLoyalty-based UXNurture & retainCross-sell & upsellPATIENTBrand awarenessProduct knowledgeMotivate for actionPoints of entrySales cycle acquisitionBetter clinical outcomesImprove complianceAppropriate utilizationIntegrated care managementBend the curve (MLR)Establish positive member relationships spanning the customer lifecycle byinteracting consistently with personalized content to nurture and retain.

Retail Consumer Strategies – Making the ShiftFirst movers may sometimes fail, but last movers don't survive.KEY TAKEAWAYSBIG DATA Know your customers better than your competitorsBRAND DIRECT Increase preference, change behavior, provoke actionPERSONAL MARKETING Move from brand push to customer conversationsINTEGRATED SALES Enable a point of entry for every prospective customerCUSTOMER CENTRICITY Optimize every touchpoint for superior UXCARPE ANNUM Establish a sequenced health reform marketing plan

"If the rate of change outside your organization is greater than therate of change inside your organization, then the END is near.”

Lindsay R. ResnickChief Marketing OfficerA CONSUMER ENGAGEMENT DIRECT MARKETING AGENCY773.372.4961lindsay.resnick@kbmg.comKBMGhealth.comThank

WHO WE AREA consumer engagement direct marketing agency combining proprietary datawith sophisticated analytics to drive direct-to-consumer marketing campaigns.WHAT WE DO• Motivate consumers to respond at rates that significantly lower cost of acquisition• Improve retention and loyalty through personally relevant user experiences• Leverage marketing to improve health outcomes while reducing cost of careHOW WE DO IT• National Consumer Database & Analytics• Segmentation & Predictive Modeling• Direct Response & Brand Positioning• Sales Optimization & Customer Engagement• Digital Marketing & Social Media• Campaign Management & Informatics

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