boston presentation mdi rodes may 12th final
TRANSCRIPT
How to Construct a “Reform Ready” Sales Process
Boston, MA
May 13th, 2010
StrategyAnalytics
Database Creative2
Direct-Response Healthcare Marketing Agencyo Founded to support PacifiCare and the launch of Secure Horizons
o Head-Quartered in Saint Louis with field offices in MA, CA, IL, FL, NY
o Direct-to-Consumer Health Insurance Marketing for Seniors and Individuals
Focused Exclusively In Health Careo Currently support 27 healthcare clients
o Mostly mid-sized, regionally dominant plans; many are provider owned
o Deep industry and domain expertise
Proven Processes To Bridge The Gap Between Strategy & Tacticso Core offerings include: Strategy, Creative, Database and Analytics
MDI Perspective
3
Reform is Coming….Reform is Coming!!!
1. Threat of declining reimbursement rates
and/or MLR restrictions
2. Pre-reform membership and profitability
expectations in the consumer segments
3. Ongoing competitive pressures; the rise of
the exchanges
4. Demand for greater accountability, line of
sight into the sales process, results
5. Desire to optimize the go-to-market
strategies for greater conversion yield and
increased return on investment
4
Common Gaps in a Carrier’s Sales process
1. Sales and Marketing are not always on the
same page Lack of agreed upon definitions, conversion steps
Sales operation out of synch with Marketing
2. Every lead is treated the same Lead scoring, routing and differential fulfillment is not
done
Internet leads are often processed the same as offline
leads (eg. Slowly)
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Common Gaps in a Carrier’s Sales processing
3. Leads that don’t sell immediately are
often ignored “Urgency of now” by the sales organization
A customer’s need may develop overtime
4. Data reporting and analytics are
incomplete Campaign and response channel “waterfall
reporting” is not in place
KPI’s needed for every step of the way
CRM tools are not being completely leveraged
Conversion Drivers the Increase ROI
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Planning & Strategy
Sales Process/
Sales Effectiveness
Sales
Communications
Conversion Success
Other Conversion Drivers
Brand Awareness
Offer Strength (products)
Pricing
Competitive Landscape
Other Market Conditions (e.g.,
health care reform)
MDI’s Response-to-Conversion Framework
Category:
Planning & Strategy
Category:
Sales Process/Effectiveness
Category:
Sales Communications
8
Solutions for Gaps in the Sales Process
1. Identify high impact leaks in the
sales funnel Map current processes
Use benchmarking and testing
strategies to close performance gaps
2. Perform more rigorous lead
qualification, scoring and routing Introduce lead scoring, routing of leads to
highest closing channel/resource and
differential fulfillment
Process internet leads as fast as possible
Together, Sales and Marketing define the lead stages and processes
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10
Testing Strategies Determine Most Effective Sales Process
TacticApplication
RateLead Rate Cost
Adding
Telesales+37% +43% i/b calls $$$
Adding email +14% +7% i/b calls $
# of mailings
(2 vs 1)No change +16% $$
Letter vs
Postcard+15% +26% $
Medicare AEP 2010
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Q S A R M P L T O C N U B
CR Overall 26% 25% 23% 22% 21% 20% 18% 14% 14% 10% 11% 8% 7%
0%
5%
10%
15%
20%
25%
30%
Co
nve
rsio
n R
ate
Benchmarking Results
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Recommendation ImpactKey
Processes present
Process not optimized
Process missing
Sales Process Changes: Integrated Online and Offline Channels
Chat
Call
Click
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3. Initiate multi-touch lead nurturing
routines Leverage existing creative
Vary routines based upon frequency,
intensity, modality and creative
4. Vigorously apply reporting and
analytics Response and conversion modeling
Sales performance reporting Production, revenue, utilization and quality
Solutions for Gaps in Sales Process
Based upon lead score, initiate a lead nurturing routine
Fulfillment
Campaigns
First Point of contact Lead nurturing program
Prospect initiates contact
Campaign
fulfillment kits
Follow-up
communications
Secondary
communications
SALE
Lead does not
convert
Responder Non-
convert Outbound Phone Call
Thank You Postcard
Birthday Cards
Healthy Living Tips
Medicare News
BRC & Web Request for Info
Basic Product Information
Phone & Web Request for Quote
Customized Product Info
Customized Quote
Ready to Buy? Ready to Buy? Ready to Buy?
YES NO YES YES YESNO NONO
Outside
AgentsEND
Lead converts
START
Response
Leads
Quotes
Applications
Paid Sales
Create a Response to Sales Conversion Waterfall
Response
Leads
Quotes
Applications
Paid Sales
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Response rate
Qualified lead rate
Quote rate
Application start rate
Application submit rate
Offer rate
Acceptance rate
Media Type Direct Mail DRTV PPC All Media
Total Responses 1386 3289 1765 6440
Total Leads 1252 2543 1765 5560
Total Quotes 412 1189 908 2509
Total Application Submitted 153 227 787 1167
Total Applications Approved 150 156 411 717
Total Policies Issued 147 156 389 692
Response to Lead Rate 90% 77% 100% 86%
Lead to Quote Rate 33% 47% 51% 45%
Quote to Application Rate 37% 19% 87% 47%
Application Approval Rate 98% 69% 52% 61%
Policy to Lead Rate (conversion) 12% 6% 22% 12%
Total Media Spend $ 66,528.00 $ 189,234.00 $ 37,643.00 $ 293,405.00
Cost per Response $ 48.00 $ 57.54 $ 21.33 $ 45.56
Cost per Lead $ 53.14 $ 74.41 $ 21.33 $ 52.77
Cost per Quote $ 161.48 $ 159.15 $ 41.46 $ 116.94
Cost per Application $ 434.82 $ 833.63 $ 47.83 $ 251.42
Cost per Member $ 452.57 $ 1,213.04 $ 96.77 $ 424.00
Client Impact Summary
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Implementing both short term and longer term recommendations will yield an increase of 2-5% in the
overall conversion rate and deliver more than $3.1 million in incremental revenue.
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Questions?
Peter Rodes
Vice President, Strategy and Consulting
Marketing Direct, Inc.
Office: 847-256-1931