The Medicare Advantage market has crossed 21 million beneficiaries as popularity among Boomers soars. It’s expected to move from 35% to 50% market share inside in the next 3-4 years. Health plans and health systems continue to be attracted to this direct-to-consumer, high-revenue health insurance market segment. And, with a surge of new-to-Medicare boomers entering the marketplace every day one thing is for sure…it’s fiercely competitive out there, you better have your Medicare marketing and sales house in order.
Following are 10 success factors to help sharpen your approach to Medicare marketing.
- Be DATA DRIVEN, be personal – Always start with consumer data. It needs to be sorted, cleaned, refined, and turned into actionable, personalized marketing insights. From building predictive models for most likely responders to variable direct response call-outs to optimize media buys, the goal is growth, while continually lowering cost per lead & cost per sale.
- Don’t ignore DIGITAL BOOMERS – As more and more Medicare shoppers use the Web as their primary research tool and point of market entry, it’s essential for Plans to have a Medicare online experience that’s user tested, compelling, and built for buyers. From ease-of-navigation to the images and words on your Medicare website, it needs to be tailored to your purchasing audience.
- Leverage MULTI-CHANNEL SALES – Different Medicare customers require different ‘doors of entry’….some will call; others come in through a website; some prefer to respond via mail; many like a discussion across their kitchen table; and, others may even desire a retail experience. A multi-channel sales distribution strategy is a path to sales success.
- Modernize your AGE-IN process – With thousands aging-in to Medicare every day, new approaches are needed to attract today’s boomers. It takes a combination of meaningful education, sequenced motivational messaging, and innovative approaches to outreach to connect with newly eligible beneficiaries often buying health insurance without an HR department for the first time.
- Focus on MEMBER RETENTION – In an intensely competitive Medicare market, now with an extended OEP, customer satisfaction has never been more important. The cost of acquiring a new member is 6X the cost of retaining an existing one. Loyalty-based member engagement plays a big role in a health plan’s long-term profitability under the label of LifeTime Value.
- Express DIFFERENTIATED VALUE – Being a Medicare plan of choice for is achieved by building trust, credibility and relevancy around your value proposition. This means understanding drivers that motivate prospects to select your plan, and an ability to get the most differentiated messaging and preferred product offerings in front of them.
- Respect COMPLIANCE – Today’s Medicare marketers must understand and respect the important role CMS compliance plays in the member acquisition process. This means making sure the link between marketing, sales and compliance is as strong as possible, not siloed, and always supporting the intent of CMS consumer protections.
- STAR RATINGS impact bottom line – Marketing’s role is critical to ensure member communications reinforce customer satisfaction and member engagement. Direct-to-consumer marketing practices – from on-boarding to care management to retention - go a long way in a Plan’s ability to achieve the highest possible Star Rating…and the bonus payments that go with it.
- CUSTOMER EXPERIENCE matters – Give beneficiaries a reason to engage and connect with a Medicare plan they trust. It’s all about them. It takes tested, personalized ‘brand direct’ marketing to create opportunities for one-on-one interaction to communicate value and answer a Medicare beneficiary’s most important question, “What’s in it for me?”
- Measure MARKETING ROI – You can’t manage what you can’t measure! Combining sophisticated upfront data analytics, direct response discipline, and flawless campaign execution can significantly lower member acquisition costs and increase retention. Tracking, analyzing and measuring results throughout the marketing cycle is a Medicare marketing must.
Successful Medicare marketing hinges on connecting with your target customers, rationally and emotionally. Define value to create motivated buyers. It takes learning as much as you can about Medicare-ready Boomers so you understand what’s important to them, what concerns them, and what they want from their Medicare plan. It goes a long way toward letting them know you want them, you’ll deliver for them, and you’ll keep winning for them!