SeQuel Case Study: Health Insurance - Turning 65 - Med Supp
Client:
Wisconsin’s largest not-for-profit health insurer, this client markets individual and senior health products direct-to-consumer. Having been around since Medicare began, the client has established itself as the #1 selling Medicare Supplement provider in Wisconsin and was recently named one of the World’s Most Ethical Companies –receiving the award in back-to-back years.
Situation:
For this client, adding customers as they “age-in” to Medicare is critical; amplifying the importance of a direct mail campaign which engages seniors early and often (creating the “Turning 65” program). The client’s Control strategy – a multi-touch effort reaching prospects eight months before their 65th birthday – had been very effective in profitably acquiring customers.
Never complacent, in 2011 Sequel Response partnered with the client to launch a multi-phase, multivariate direct marketing test to compete against the Control approach in an effort to cost-effectively boost response rates, improve conversion, lower cost-per-acquisition and ultimately drive an increase in profit and profitability.
Action:
SeQuel approached the mission through three key test phases, implemented in order of projected impact: 1) frequency/quantity, 2) timing, and 3) content. Over a 12 month period, six unique approaches were tested against the Control strategy; each leveraging varying touch quantities, touch timing, creative versioning, offer positioning, and ultimately, new unique creative concepts.
Results: SeQuel’s campaign analytics revealed and supported a categorical shift in strategy; ultimately increasing the number of touches, the spacing of communication, and the rotation of creative that define the new “Turning 65” Control strategy. In total, four of six new creative concepts outperformed Control.
Rolling out in 2012, the new structure is forecasted to increase response rates by 32% and drive a nearly 50% lift in conversion; leading to a near doubling of projected annual sales, an 18.7% decrease in CPA and an 86% increase in campaign profit.