Market Segmentation

Maximize Profit and Spur Growth While Optimizing Market Segmentation, Strategy and Products

Overview:

A regional health plan sought to grow its membership through targeted marketing by identifying the most desirable and profitable consumer segments, whether because of favorable reimbursement rates and/or the ability of our client to effectively and efficiently manage their health.

Challenge

Establish meaningful market segmentation among profitable current members. Provide insight into communication strategies to attract profitable market segments. Type lookalike potential members for exposure to targeted marketing anticipating they will behave similarly to highly profitable members. Explore plan configuration preferences using a conjoint design.

Approach

The first phase of research involved intensive interviews among plan members exploring health-related attitudes and behaviors. The next phase involved a similarly intensive survey of consumers in the health plan’s service area to determine how the prospect market was similar or different from the current membership. Finally, focus groups were held to further develop market segmentation and add depth and flavor for persona development.

Outcome

The research drove a number of powerful changes. First, the typing tool delivered a highly predictive and reliable indicator of segment membership, allowing our client to confidently create targeted communications to attract new customers. Secondly, the research provided segment personification, supporting the creation of targeted social media advertising, ads, and viral content. Thirdly, our client leveraged the research to build brand awareness and generate leads by capturing search activity. This drove customers to website content, aiding retention and attracting new members. Finally, the client was able to optimize their plan design using the market simulator.