Published – Feb 2014
“With the Digital Strategy Framework, we were able to create a roadmap of online solutions to connect with our senior markets. We increased our membership and prepared our company for the next generation of seniors.”
Joseph Brand – Former Chief Technology Officer, Leading Commercial Payer.
State Population: 8.8M
Senior Population growth: 42% between 2014 & 2018.
The Affordable Care Act (ACA) was passed in 2009; health insurance companies have been facing a consumer-driven market. Companies needed to prepare a comprehensive digital strategy to extend their reach digitally and engage multiple demographic population. With senior markets growing at 40% in the various States, and many seniors demanding digital technologies for both access to information, and transactional capabilities, it became apparent that companies needed to invest in digital channels targeted to engage seniors. Additionally, the company websites had not kept current with content, design, and technologies. The company had to come up with a comprehensive digital strategy to ensure growth in their business and optimize their operational business at the same time.
- Both content and the design of the Medicare website was antiquated and the bounce rate was at an alarming 65%.
- Application processing was mostly manual via mail and re-typing causing compliance issues with the Center of Medicare & Medicaid Services (CMS).
- While online application was available, the completion rate was less than 15% and lack of back-office automation caused delays in processing the application.
- There was no ability to engage seniors prior to 65 and get insight into the expectations and create new leads for the company.
Solution using Strategic Digital Framework:
The Company leveraged the digital strategy framework to quickly formulate their vision and objectives. The objectives were then classified into 3 categories: short-term, mid-range, and long-term. Short-term objectives focused on time-bound wins for increasing revenue and compliance, while the mid-range objectives focused on end-to-end process efficiencies. The long-term objectives focused on engaging soon-to-be seniors through digital channels.
With objectives clearly defined, the team defined the capabilities required through various channels (web, mobile, IVR, telesales, etc.). For each capability, the team documented both success criteria and the assumptions. This included technology and business functions. The product teams were engaged to simplify the way the product and plan content were represented. Hence, one of the core capabilities was to have simplified content and presentable formats. Teams understood that drawn out sentence practices needed to go and a new way of writing to the point had to be adopted. New capabilities such as a simplified application process, guided selling, validation of address data, and understanding customer’s preferences were documented. Over 50 new capabilities were documented in total and a roadmap of delivery was drawn.
During the prioritization process, it was important for the team to ensure that all stakeholders signed off on the capabilities and core changes in the processes. This ensured that the modified business functions could be made for the digital channels.
Technology Execution & Innovation
Innovation was built into the process so that the solutions could be presented on tablets such as Apple’s iPad and Samsung’s Galaxy. The solutions were designed and implemented for multiple users – field sales, telesales, marketing teams and end-consumers. The strategy and the technology came together when the same solutions were leveraged for retail center and the mobile vans for location based sales, and marketing events. Once the customer became a member, there was continuity in the solution roadmap to make them “online” or “digital” customers with solutions such as the member portal and mobile application. We always recommend that our clients run a “Future Proofing” exercise to ensure that the solutions can be scaled to new business models.
Measuring the Success
For each modified process and new capability enabled through these digital channels, the team drew success metrics and the assumptions that led to predicting the success criteria. Success criteria included end-to-end application processing time, increased membership, telesales productivity, manual application processing reduction, and a variety of other efficiency criteria.
- Over the next 3 years, both online applications and self-service from customers grew at a rate of 25% per year.
- Application submissions to CMS improved to 24 – 48 hours from 7 – 11 days as the applications were processed through electronic approvals and submitted to back-end systems.
- Over 150 leads were generated through the “Medicare Prep” program for 62 – 64 year olds.
- Site bounce rate reduced to 23%.
About Our Company
Digital Strategy Yoga provides proven strategies and solutions for Medicare plans to improve their market presence.