Medicare Marketing Tactics that Maximize Enrollment

Irving Albrecht MBA, FLMI, FAHM, CFCI AVP Direct & MA Marketing and New Marketing Development BlueCross BlueShield of South Carolina

Medicare Market Innovations, July 18-19, 2011 Newport Beach CA.

2011 MA Marketing

• • • • •

10/1 – 12/7 Only MA Reimbursements Poor Economy – Tight Budgets Tighter CMS marketing guidelines We have our work cut out

Outline • • • •

Build a Common Understanding Review an old Model Introduce a new Model Review 9 Rules of Marketing

Rule #1

KISS

Rule #1

KISS KEEP IT SIMPLE SILLY

AIDA • Developed in 1898 by American advertising and sales pioneer, E. St. Elmo Lewis as a practical sales tool using the latest Scientific Management insights • Created AIDA funnel model on customer studies in the US life insurance market to explain the mechanisms of personal selling

marketing basics

AIDA

marketing basics

AIDA Attention Interest Desire Action

attention




Attention


Must break through clutter & noise Our lives now are a constant message avg. 3,500 messages per day (3.6 per minute)
You must find a way to quickly and effectively gain attention


attention

• print size • size standard vs oversize, color vs bw, colors, print style, copy language, message, use outside of envelop or official look (plain white addressed), paper “rich” vs plain, etc.“free premium”, look inside,interactives, • tv, free standing insert, banner ads, email, direct mail, print, etc.

interest

• Special offers; promote value added benefits; limited time; how you benefit; how solve problem and satisfy wants and needs. • We are selling a promise and must convince that it satisfies

desire

• brand, image, feel, fulfillment, want, longing, completion, finalization, realization

action

Strong call to action road to success and failure – Call now, click here, fill out mail in

AIDA A – Attention Must get attention or waste dollars I – Interest Demonstrating features, advantages, and benefits D – Desire Convince they want, desire and satisfy their needs A – Action Strong Call to take action

half battle won?

• that should get you half way . . . . . . but do you know where to start?

AIDA

• The key to successful AIDA implementation is to understand the state of the prospect. This requires skill and experience on the side of the sales person

AIDA? • Who, What, When, Where & How? • Who's attention? – age, sex, income, demo, lifestyle

• How? – tv, dm, fsi, rop, online, radio, out of home, email, Internet, banners, dvd, vhs, infomercial, facebook

• Interest? – interest, needs, wants, concerns,

• Action how? – best way to guide to action?

New acronym and model

• • • •

ADIA (mirror image) of AIDA Reflect back Who, What, When, Where & How Attention, Interest, Desire, Action

ADIA before AIDA

ADIA guides you to AIDA A - Analyze D - Develop I - Implement A - Adjust

ADIA will reflect AIDA • ADIA will reflect correct AIDA – Analyze (markets, segments, results) – Develop ( message ,campaign, sales budget) – Implement (execute on the plan) – Adjust (dynamically, real time!) • Tracking (TCPL(rt)

Rule # 2



Always Use ADIA & Start with the Market

Growth of Medicare Eligible Population Medicare market is a significant growing segment of the population.

80,000,000

• 2005 - 43.3 million Medicare eligibles

76.8 M

70,000,000 60.9 M 60,000,000 45.9 M

50,000,000 39.5 M

40,000,000 28.4 M

30,000,000 20,000,000

34.3 M

20.4 M

10,000,000 0

1970 1980 1990 2000 2010 2020 2030 Source: U.S. Census Bureau, Population Division, Interim State Population Projections, 2005

Elderly Disabled/ESRD

• 2030 - 76.8 million Medicare eligibles.

ADIA - analyze • Do you know your Market? • Number over 65, medigaps, MA, duals, competitors enrollment, type of plans? • For 2011 & 2012 in your market

ADIA - analyze • Analyze • Start highest level - working down – Who is buying? Why? what? – What worked? – Who is your market? – What message? Why?

ADIA - analyze • • • •

CMS Data NAIC Data Census Data Mine your Own Data

ADIA - analyze – detailed annual historical data • • • • • •

market data, size of mkt., growth potential direct sales vs agent sales CPL CPL(t), CPS (t) conversion rates, placement rates demographics, lifestyle, buyer profiles non-buyers, other segments, counselor; in and out calls, talk time, calls per sale,

ADIA - analyze

CPI DM FSI TV Birthday Overall

N/A $44.32 $53.46 N/A $

©Blue Cross Blue Shield of South Carolina

CPS $258.30 $226.95 $328.79 $74.12 254.00

ADIA - analyze

• Who is buying what, where, when and how? – Segment market • Buyer profiles Targeting reach more and eliminate waste • Non-buyers profiles New plan – msg,, media to reach non buyers

Do you know your market?  Basic Demographic Data:  Market  Age  Income  Under/over 65,  Projected growth rate?  Sex  Ethnic identity

 Market segmentation tools to

better understand your markets  Claritas Prizm LifeStage

– 66 Life Stage segments » 7 over age 65 segments » 13 over age 55 segments

Senior Segments

“Greatest Generation” Born between 1911 – 1924 86 – 99 years old “Silent Generation” Born between 1925 – 1945 64 – 85 years old

“Leading Edge Boomers” Born between 1946 – 1954 56 – 64 years old “Trailing Edge Boomers” Born between 1955 – 1964 Now 46 – 55 years old

Rule # 3

Don’t Hunt Elephants in Alaska

Do you know your members?  Basic Demographic Data:  Market  Age  Income  Under/over 65  Sex  Ethnic identity

 Market geodemographic segmentation  Who are they?  How Do I reach them?  What Do I say?

Claritas Prizm 24 Senior Segments

Primary research  Annual surveys of members to determine how you are performing  Cancellation research every year on product lines  Valuable information in providing insight into

customers and former customers attitudes and feelings about service, products, claims, enrollment procedures, etc.

Secondary Research

  

Track subject on the web Internet is valuable resource Spend time in Senior Blogs

Secondary Research 2008 National NAIC Boomer Survey Found: •

Only 36% of Boomers knew when Medicare eligibility begins 21% said 62 • 9% said 67 • 6% 59.5 • 28% were unsure •

 48% thought that Medicare would cover all of their

health care needs  66% indicated they were not familiar with Medicare Part B, MA Plans, Medicare prescription drug coverage and Medicare Supplement plans

 For many Boomers this will be the first time in life they will have full responsibility for health care decisions

ADIA - develop

• sales budget for the year • Implementation plan to accomplish sales • expense budget to support plan for all media and campaigns • methodology to track sales, expense, CPI & CPS

©Blue Cross Blue Shield of South Carolina

ADIA - develop

•Develop message and plan based on analysis •Mix of media to use and how to optimize dollars to generate best results •Support or reach different segment

ADIA - develop

• methods to reach target market segments • media plans, budgets & goals • Medium: TV, direct mail, internet, radio, print, inserts, etc. • message, approach, call to action • copy, tv & tele. scripts, layout, formats, look & feel, colors, type style & size • tracking methods & reports ©Blue Cross Blue Shield of South Carolina

Key Metrics 

What are your key metrics? 

Response Rate, Conversion Rate, CPL, CPS 



Must be able to track all to sales, over time

“How are sales tracking so far this year” 

   

Through 12 week sales total compared to last year? Last 8 years? By channel, external agent vs direct response? By product? By plan type? By media? By campaign? Closed sales based on future effective dates through next quarter as of today?

Key Metrics



Single Direct Response Database 

Tracking all contacts, letters, inbound & outbound, fulfilment, leads, TV, direct mail, FSI, BRC, etc.

Purchase data including demographic and lifestyle indicators.



ADIA - implement

• Implementation plan is guided by ADIA and AIDA – Develop & manage implementation plan – Critical to hit all key days – October 1st can begin Marketing – October 15th AEP Begins – December 7th AEP Ends

©Blue Cross Blue Shield of South Carolina

direct response area

• • • •

extensive analysis and preparation careful planning & coordination precise execution & constant monitoring precise tracking, analysis and “real time” adjustments

©Blue Cross Blue Shield of South Carolina

Annual Campaign Plan May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Comprehensive Analysis Control Pieces Chosen Concept Discussions Budget Plan Approval Medicare Changes Announced Actuarial Rating Analysis DOI Rate Filing Rework of Campaign Controls Outlines Brochures Rate Charts Forms FSI TV Direct Mail Fufillment Concept/Development -Test Creative FSI TV Direct Mail Fullfilment Open Enrollment Campaigns Blue Select Blue Care Birthday Campaign Development Production/Printing In Campaign Finished

promotion schedule Page 1 of 1

12/7/98

1999 SPECIAL ENROLLMENT Direct Response Television

3

31

21

March 28 7 14

3/18

1/18

Direct Mail

Out-Bound Telemarketing

24

February 7 14

1/6

Newspaper Inserts

In-Bound Telemarketing

January 10 17

1/18

1/25

2/1

1/6

3/18

1/6

3/18

©Blue Cross Blue Shield of South Carolina

AIDA adjust

Broad Market – Broad Media  

Control & Test Adjustments to minimize CPI

– Leads tracked to sales for CPS

©Blue Cross Blue Shield of South Carolina

AIDA adjust

• tracking & adjustment of all media • Direct mail, fsi, drtv, Internet,

©Blue Cross Blue Shield of South Carolina

Rule # 4

Test Everything

Rule # 5

• Don't put all your eggs in one basket

Direct mail • Direct Mail - Backbone most campaigns • Constant testing • A/B split between Control piece & Test piece – Attention • – premium, “free offer”, express pack colors, message, • General Mailing Response Rates 1.5% real good?! • 3.64%, 4.53%, 2.48%, 3.23%

Don't put all your eggs in one basket  MA Marketing 10/1-12/7  Select most effective media but use multiple methods/media and adjust real time  Some media might act in a supporting role but necessary for overall campaign results  Use Controls and Test effectiveness of new pieces  TV, FSI, Direct Mail, Radio, Fulfilment Kits,

DRTV – New Test Spot & Control – CPL(rt) with adjustments • Weekly traffic call with prior week results and adjustments - time slot, station, programming, spot, NLR 90 WITH NUMBER 1-16-09.wmv

Seminars – Agent Sales support – Total Control – Transparent Marketing – Direct mail Geo Coded to locations – Call in reservations – Online Agent Results Tracking

Rule # 6

Track Everything

tracking & adjustment

• If you want Measurable and Actionable information • Leads & Sales tracked by response medium • Cost per Sale by Distribution Channel

©Blue Cross Blue Shield of South Carolina

CPS(lt) -cost per sale over time

©Blue Cross Blue Shield of South Carolina

Rule # 7

Do More with Less

Do more with less

 



Maximize budget $$ Look for ways to do more with same amount of budget Lower print cost, paper, quantity, bid print jobs out, better mail list – more accuracy, buy segments, maximize postage dollars – same mailing less cost

Rule # 8

Grab the low hanging fruit

Grab the low hanging fruit  Competitive bid printing, print for mail  eliminate non buyers and improve CPL/CPS  Use data analytics to significantly reduce your cost per lead/sale  Eliminate non-repliers/non-buyers from DR Mail, current members, actively employed O65, military retirees  Eliminate the 5% “bad address” – Maintain a “do not mail/contact list” – Be careful not to violate CMS “cherry picking” rule

Age In & Member Retention

 Engage & Educate on Medicare  Tracking of results and “tweaking” of message  Focused effort to retain current members  Member cancellations surveys

Leveraging online functionality  Fulfillment of online customers through specialized PDFs of 1 step packages (very low cost)  Agent Website linkage to shopping site with tracking  Online tracking of CPL and CPS from any media  banner ads, websites, paid search, SEO,

Rule # 9

• Dot your I’s and cross your T’s

Dot your i's & cross your t's  Innovation & Implementation  Look for new ways to reach buyers

 Testing & Tracking  Test and Track results to sales

Solutions Strategy  Series of Newsletter – educating  Basic of Medicare, who, what, when , how  What is and is not covered – PDP  Various ways to cover – self select  Value added programs  Toll Free Assistance for questions  BRC for mailing  Self Select  Target retirement age  Need for coverage?  Product interest  DMail, online, Call

AIDA mirror image ADIA • 1st part of our job -ADIA! • ADIA reflect correct AIDA back – Analyze - markets, results, competition – Develop - msg.,campaign, media, tracking – Implement - execute on the plan – Adjust - dynamically, real time! • Tracking (TCPL(rt)

remember the new basics • ADIA – Analyze – Develop – Implement – Adjust

• AIDA • • • •

Attention Interest Desire Action

Medicare Marketing Tactics that Maximize Enrollment

Irving Albrecht MBA, FLMI, FAHM, CFCI AVP Direct & MA Marketing and New Marketing Development BlueCross BlueShield of South Carolina [email protected] 803-556-4129

Medicare Marketing Tactics that Maximize Enrollment

Irving Albrecht MBA, FLMI, FAHM, CFCI AVP Direct & MA Marketing and New Marketing Development BlueCross BlueShield of South Carolina

Medicare Market Innovations, July 18-19, 2011 Newport Beach CA.