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Retention
Modeling insights yield increased acquisition and retention for health insurance provider
The Client
Major health care insurance provider
The Challenge
A major health care insurance provider needed insight into its current employer group members in order to better understand which prospects would be the most valuable clients in the future, and to streamline its product and service offerings and its marketing efforts to ensure that the level of service and menu of products were appropriate for its employer group members. The value assigned to employer group members and prospects would take into account factors including:
- Expected tenure of the relationship
- Expected number of employee sign-ups
- Exclusivity
- Choice of health care plan.
The Breakthrough
SIGMA's solution was simple, but highly effective. Step one was to gain a better understanding of the client's current members. Current business clients and prospects were profiled, received model scores and were assigned to target segments based on potential yield.
Step two was to use the member scores and segmentation as input to a series of business segmentation models. SIGMA developed separate Predictive Models built to rank prospects and employer groups on four different factors:
- Employer Group Look-alike – predicts which prospects look most like the client's employer groups
- Member Sign-Up – predicts what proportion of employees within an Employer Group or prospect would choose the client as their health care provider.
- Tenure – predicts the length of the relationship an Employer Group or prospect is likely to have with the client.
- Plan-Type – predicts which of the client's heath care plans the majority of employees would sign up for.
The Win
By scoring and segmenting current business clients, the client gained the necessary information to create customized marketing programs to non-members and members to increase acquisition, loyalty and retention. The segmentation allowed the client to:
• Create value-added programs for members
• Enhance and personalize communication
• Improve targeting
• Measure and track the value of members.
Utilizing the information from the business models, SIGMA developed recommendations, including customized marketing solutions based on specific combinations of each of the four predictive models, resulting in greater efficiency.