As the health insurance industry shifts its focus to the individual consumer, the benefits of market segmentation are clear. Carriers must develop new strategies that will allow them to identify meaningful market segments and target these segments with clarity and focus in real time. A carrier that can divide and pinpoint its customer base into defined market groups will be able to enhance its competitive position, lower their operating costs through more proactive management of risk and increase sales and market share.
There are many ways to segment and define customer groups. Traditionally, this has been done through demographics (such as age group, income segment, or life stage) or through source of health insurance (individual, group, employer-sponsored), which provides little information about customer behavior or preference. For example, categorizing individuals as “young invincibles” based on an age range, does not account for the fact that some of those people may be managing a chronic disease. As competition in the health insurance sector increases and consumers become more aware of their health care options, there is a growing opportunity to shift to a more substantial method of segmenting customers. Leveraging market data sources combined with existing member data will not only maximize efficiency, but will allow carriers to tailor experiences for each market segment and optimize sales goals.
In this way, carriers will be able to target market groups that are in transition, perhaps approaching retirement age and in need of supplemental insurance, or that have specific needs related to their medical condition. Carriers that can provide these sorts of targeted marketing campaigns will be able to differentiate themselves from their competitors and will see an uptick in consumer interest and ultimately revenue. Offering consumers more focused marketing and better-targeted products; thereby connecting consumers with the most appropriate plan to manage their health will yield reduced medical cost, improved care management and increased retention.
The Zipari Customer Experience Platform has a direct impact on carrier’s bottom lines by enabling them to listen to and understand their customers at every click. Being able to identify a target market allows carriers to focus their efforts by tailoring their communications and offering personalized products and services. The Zipari Customer Experience Platform is designed to deliver products that match consumers’ needs with precision and specificity. Carriers will be able to have an ongoing real-time “conversation” with consumers and adapt quickly to their needs to enhance their experience.
Understanding customer segments and personalizing benefits is one of many areas where carriers can optimize the demands of the new consumer marketplace. It will take a synchronized effort that puts the customer at the center of the healthcare lifecycle and empowers carriers with data that’s predictive, optimized, and operationalized.