Old way of selling Medicare products: -Get as many leads as possible -Submit as many applications as possible -Don’t worry about retention New way: -Analyze data to find the most efficient lead sources -Focus on cohorts with best LTV / CAC (lifetime value / customer acquisition cost) -Put a spotlight on retention Sales may suffer in the short term, but sustainable profitability will emerge. ___ Give me a follow I post Medicare Market insights daily. P.S. - > sign up for my free newsletter. https://lnkd.in/gmv65ipM
Alex Dias
4d
All great points... The majority of healthcare cost in a macro and micro sense happens... in the first 6 months and the last 6 months of life. Focusing on the latter, to the carrier, the CAC is around $1,200 and the LTV to profit ranges between 2.5 & 3 years We need to innovate this space by thinking differently... like, wearables that synchronize prognostic markers and coordinate FinTech opportunities with membership benefits. IOW... How do we: 1. ⬆️ Margins 💡 2. Accelerate Access to Care 3. ⬆️ Healthy Outcomes 4. ⬇️ Cost of Care 5. Maximize Retention Rates 6. ✖️Market Share 7. Strengthen Provider Network Partnerships. How can we create behavior that leads members to strengthen their brand loyalty for our products and services? How do we innovate our products so that revenues & profits will last as long as they do, even if they're membership is somewhere else. It's time to start thinking outside the space... It's time for a portfolio of Deffered Cost-Share Plan...
Spot on as usual Jared Strock. I recently (oversimplified) analyzed, modeled, and evaluated a few different agent behaviors for building an insurance business, using retention and volume as my X,Y. https://www.linkedin.com/posts/joshuatravers_volume-or-retention-whats-more-important-activity-7209865459322482689-PEqW?utm_source=share&utm_medium=member_desktop My results support 100% what you are saying.
Spot on conclusion. Some payers will have to shift their focus and invest in back-office capabilities to effectively compete and serve their members.
We have always cared about retention, captive agents get PIP’s on rapid disenrollment and the issues of rapid disenrollment are due to a certain section of the population being able to change the first 3 quarters. Sell supplements and you will be pleased at retention, then when that supp becomes too expensive they go on a PPO MA plan…..everyone wins!
If we believe behavior follows incentive, then "old way" is behavior is simply following 'old way" incentive to drive volume over other possible metrics. Change the metrics, change the behavior. I've seen it happen practically overnight.
working on retention has been a big part of my Medicare practice, it definetely pays to keep in touch with your clients and serve them right.
President of Sales with Agent Boost Marketing
5dI would say the OLD OLD way was the way. Before the rise of the massive churn and burn and call centers. Pre 2016-2017. But the current state is just the fault of the massive eTelebrokers. Having 100+ HICNs in metro countries and unlimited SEPs has also lead to the need sell more to keep. Either way, optimization, stabilization, and retention are the path forward.