Highmark Health Services and Hacker Group discuss embracing change in the new customer-centric era for marketing Medicare plans. They focus on anticipating customer needs through educational content and engagement at multiple points. Sales improvements include dashboards to prioritize follow up and personalized automated communications. Marketing data is rapidly integrated with sales to provide daily metrics and targeted lists using predictive models. Data flows are optimized to capture responses across channels for improved targeting and performance. The presentation advocates starting initiatives small but designing for scale, measuring all results, and gaining alignment between sales, marketing and IT.

1. No Fear – Embracing
Change in the New
Customer-Centric Era
Justin Skerbetz, Highmark Health Services
Tom Reid, Hacker Group

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. Highmark Response Capture Data Flow

9. 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

10. 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

11. Embracing Change in the
New Customer-Centric Era
David Banks, AT&T
Steve Rosenblum, Hacker Group

12. Using Enhanced Targeting to Improve
ROM in a Changing Market
Big Ideas for ROM = Return on Marketing
Marketing Costs Marketing Benefits?

13. The Velocity of Change

14. Targeting and Performance Optimization
• It’s all about the customer (still)!

15. AT&T U-verse
• Launched 2006
• IP-based “Advanced Television”
• TV, internet, voice
• 22-state footprint
• 5 million customers today

16. 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

17. 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
Response
Preferences

18. Start with simplest level of organization
• Eligibility
• Time-based
• Propensity models
• Credit
information about
target behavior
Original

19. 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

20. Big Idea #2 – Intelligent Household

21. Big Idea #3: Going Local
Precision targeting
• Highly targeted
• Measureable
• Scalable

22. Improving the Customer Experience
BRAND
MARKETING:
MASS
MEDIA
DIRECT
MARKETING:
1 TO 1
COMMUNICATION
Convergence of
awareness and
relevance

23. 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)

24. • Does improved customer
experience outweigh cost
of extra step?
Streamlining the Purchase Pathway

25. Meeting customer at their door
• Evolution of mobile e-commerce
• Better customer experience
• When and when customer wants it

26. Evaluating ROM of New Technology

27. Make it count!
• Measure everything
• Start at the beginning, work backwards
• What do you need to know?
• Constant feedback loop

28. • 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

29. Thank you!