When you first begin planning your Medicare marketing campaign, there are a few key questions which you have to ask yourself and your teammates. Having these answers will guide you on the right path as you draw up your marketing strategy and can help save you time and energy in the long run.
(1) What’s a New-to-Medicare Plan member worth to you?
As you determine your marketing budget, you want to develop a realistic goal of how much your company should spend on acquiring new members. This may seem like an insurmountable goal, but here are a few helpful questions to guide you in the right direction:
- How long will a new-to-Medicare member stay with your company?
- What will their lifetime value be over the time they stay with your company?
Partner with your product, finance and analytics teams to develop the net lifetime value of your actual customers to align on what to expect as you begin your New-to-Medicare marketing campaign.
(2) How does this compare to a member gained during AEP?
Once you have the numbers on your New-to-Medicare members, calculate the average tenure and lifetime value of new members gained during AEP. In order to maximize your ROI, you need to determine whether New-to-Medicare members or those gained during AEP are more valuable for your company. Once you have these statistics in hand, you know where to focus your marketing efforts.
(3) What metrics are most important to my campaign?
Work with your marketing leadership to determine which measure of success means the most to you. We’ve listed out some important metrics below:
- Response Rate = The percentage of customers who responded to a marketing campaign divided by the number of outbound marketing contacts.
- “Contacts” are classified as the number of pieces distributed, whether these are direct mail, fliers, brochures, inserts, or TV spots seen (unique impressions).
- Ensure that you’re only including viable responses. Don’t count hang ups, incomplete calls, or responses that lack valid consumer contact information.
- Why it’s important: The response rate is extremely helpful when comparing the effectiveness of your marketing programs. Did direct mail outpace TV and fliers in terms of response? Is one version of creative leaving the rest in the dust? Keeping an eye on the Response Rate ensures you keep funding the best campaigns and maximize your ROI.
- “Contacts” are classified as the number of pieces distributed, whether these are direct mail, fliers, brochures, inserts, or TV spots seen (unique impressions).
- Qualified Response Rate = The percentage of consumers who are “viable” leads that responded to your marketing campaign divided by the number of total contacts.
- Existing members asking questions or consumers who are outside of your business requirements are usually excluded from this count.
- Why it’s important: Keep an eye on your qualified response rate to ensure you’re contacting the right consumers at the right time. A clean and accurate database is the key to any good marketing campaign, and you need to know if your data is missing the mark.
- Existing members asking questions or consumers who are outside of your business requirements are usually excluded from this count.
- Net Member Rate = The Percentage of consumers who converted/purchased divided by the unique prospects who received the outbound marketing contacts.
- This statistic helps you determine your net return on marketing investment. How many new members did you acquire for the amount of money you spent?
- Why it’s important: New members multiplied by their average Lifetime Value gives you an estimate on the total revenue received for your marketing efforts. Now you can see an actual number for your ROI.
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