No Fear – Embracing Change in the New Customer-Centric Era Justin Skerbetz, Highmark Health Services

Tom Reid, Hacker Group

Highmark Senior Markets

• Medicare marketing

• Focused on the O65 market – seniors

• Competitive market – many plan options

• Many stakeholders – product, legal, Govt.

• Mistakes are costly – no time to recover

Customer Focused Improvements

Acquisition Strategy:

• Anticipate audience needs

– Medicare plan decisions can feel complex

– Fearful of a wrong decision

• Control the sales funnel

– Take on a larger part of the sales process

– Allow sales resources to focus on closing

Highmark Senior Markets Performance

• Marketing AND Sales story of customer focus • Media allocation based on performance

• Maintaining sales attention on customers nearest to their buying decision

Customer Focused Marketing Improvements

Campaign Strategy - anticipating needs

• Uncertainty and confusion –

– Engage with educational offers; early, mid and late stage

– Being there when needed; online, on phone, retail stores, seminars, 1-on-1

– Approach across all senses – printed content, videos, presentations, TV

• Start early; complex decisions can take time

– First Eligible program engages at 64.5 years

– Worksite seminars for retiree programs

• Member outreach

– Keep customers informed and assured

Customer Focused Sales Improvements

Sales Strategy – maintaining sales focus

• Sales dashboard

– Ensure follow-up on most interested prospects

• Branded sales channel with personalized automation

– Medicare Advisors – same message and next best action

– Fulfillment kits with individual plan recommendations

– “Hand written” letters and email to seminar attendance

• Making it easy to buy via preferred sales channel

– Mail-in, online, phone assisted, seminars, 1-on-1, in-home, retail store

• Flexible lead routing to promote follow-up & hot hand

• Engagement & Retention communications

Marketing Data for Sales Enablement

• Rapid integration of response and fulfillment

– Response capture across all touch points

– Nightly de-duplication and data hygiene

– Daily fulfillment and integration with SalesForce.com

• Daily and weekly metrics

– “Cost-per” metrics for each vehicle and execution

– Media mix optimization

• Targeted Lists

– Predictive models for response and conversion

– Communication history, demographic appends

– Follow-up email and telemarketing lists

Highmark Response Capture Data Flow

Embracing Change – Highmark Takeaways • Start small, but design

for scale

• Measure everything that moves

• Alignment with senior Sales and IT is vital

• Smaller teams for bigger, faster decisions

Embracing Change – Futures

• Enrich online shopping experience

– Emulate consultative sale

– More educational and shopping resources

• Further investment in digital engagement

• Enrich telesales shopping experience

– Integrate more data resources real time

• More use of predictive modeling for targeting, lead scoring, and channel preference

Embracing Change in the New Customer-Centric Era David Banks, AT&T

Steve Rosenblum, Hacker Group

Using Enhanced Targeting to Improve ROM in a Changing Market

Big Ideas for ROM = Return on Marketing

Marketing Costs Marketing Benefits ?

The Velocity of Change

Targeting and Performance Optimization

• It’s all about the customer (still)!

AT&T U-verse

• Launched 2006

• IP-based “Advanced Television”

• TV, internet, voice

• 22-state footprint

• 5 million customers today

U-verse Acquisition Challenge

• Market Situation: 2006 - Present • Rapidly evolving offering for consumer

• Extremely crowded space

• Fragmented assortment of providers

• Educate -> Switch

• High acquisition cost

Customer-Centric Approach

Product-Centric

Customer-Centric

YESTERDAY

Product and Sales Goals

Customers

Channels Offers

One-Way Monologue vs.

Product-Focused vs.

Campaign Orientation vs.

Customer Centric

TODAY… AND TOMORROW

Customer Insight

Customer Segments

Continuous Dialogue

Customer Relationship Focused

Value-Based Management

Differentiated Value Propositions Product, Promotion, Pricing

Re

spo

nse

Pre

fere

nce

s

Start with simplest level of organization

• Eligibility

• Time-based

• Propensity models

• Credit

information about target behavior

Original

Big Idea #1 – Micro-segmentation

• Dig even deeper

• Time-based triggers

• Behavior-based triggers

• Channel of Preference

• Named vs. unnamed records

• Expanded view of credit

4 segments

14 Segments

Better view of Performance

Big Idea #2 – Intelligent Household

Big Idea #3: Going Local

Precision targeting • Highly targeted

• Measureable

• Scalable

Improving the Customer Experience

BRAND MARKETING:

MASS MEDIA

DIRECT MARKETING:

1 TO 1 COMMUNICATION

Convergence of awareness and

relevance

Improving the Customer Experience

• Make it easier

• Coordinating messages across media • (landing pages)

• Optimize for their convenience/usage patterns

• Mobile optimized websites

• Leverage technology where it matters

• (QR codes, MMS, Augmented reality)

• Does improved customer experience outweigh cost of extra step?

Streamlining the Purchase Pathway

Meeting customer at their door

• Evolution of mobile e-commerce

• Better customer experience

• When and when customer wants it

Evaluating ROM of New Technology

Make it count!

• Measure everything • Start at the beginning, work backwards

• What do you need to know?

• Constant feedback loop

• Offer variety has minimal impact on product sold

• Simplify strategy

• Adjust messaging = be more relevant to customer

Detail reveals “actionable” behavior

Percentage & Product sold

Offer code

Thank you!