Insurers and Customer Relationship Management: The Key is in the Follow-Up

Every member is worth something to an insurer. In these challenging times—especially for health care insurance—it is still much more cost effective to retain members than to acquire new ones.

Still, where is that break-even point between marketing costs in retention and a member’s “worth” in terms of value?  HIPAA prevents insurers from making case-by-case “value” decisions. However, best customer look-alike models can enable some fairly accurate segmentation and decision-making as to tiered investments. The member that is most likely to be your customer for the long term may not need the hand-holding that a slightly lesser-value (but more churn-likely) member might. With these facts, you can design communications streams customized to each segment.

Regardless, there is such a thing as too much contact. The smart money is on regular outreach—typically quarterly—with some value proposition such as a newsletter, health tips, or benefits-usage stimulation message. Other than that, a great CRM program can be summed up in two words: FOLLOW UP.

Did a member call in with a question? FOLLOW UP by email thanking them for the call and making certain their question was answered. Was there a recent claim? FOLLOW UP with a note from the claims representative. Was there a problem, a service issue, or complaint? FOLLOW UP to make sure everything was resolved.

The gist of it is this: CRM is a state of mind…in essence a demonstration of good manners and your desire to keep that member happy and satisfied. Find the right mix of proactive and reactive communication styles, and the customer won’t just continue with you, they will thank you for the opportunity to do so.

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Direct Choice Inc. is a full-service direct marketing agency that has worked with national and regional brands in a wide variety of vertical markets. In addition to this blog, you can also find us on Facebook, Twitter, YouTube and LinkedIn.