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REAL REVENUE

TRANSFORMATION™

A HEALTHCARE
CASE STUDY
How Kaiser Permanente’s Colorado region
implemented modern, integrated marketing
with Intelligent Demand.

LET’S DIVE IN »
TABLE 04 » 25 »
OF The Healthcare
Marketplace
Key takeaways

CONTENTS
Real Revenue Transformation provides a
roadmap for moving from where you are now
Double Disruption – in the health industry and to becoming the hero of your own story.
the marketing profession – requires health

26 »
marketers to redefine their roles and to adopt
modern marketing techniques. It requires them to
become agents of Real Revenue Transformation.

07 »
B2B story of
Why
Intelligent Demand
With dozens of implementations under our belts,
we can be your strategic partner, creative developer,
revenue growth technology guru, and biggest cheerleader.

This case study features a health organization


wrestling with Double Disruption. While the marketing
team was doing many things well, they were not seen
as integral to the organization’s revenue goals.

»
Click on the

to jump to
that page. 16 »
B2C story of
revenue growth
With the new insurance Exchange marketplace on the
horizon, Kaiser Permanente and Intelligent Demand
pivoted to bring Real Revenue Transformation to the
consumer marketing program. The success of the
B2C program — its methodology and technologyi—
paved the way to winning the Exchange.

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TABLE

“Health marketers need to step


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up. We are no longer a support


function. We are customer
service. We are operations.
We are part of the product.
We have to become direct
contributors to revenue success.”

STEVE KRIZMAN,
Senior Director of Integrated Communication and Brand Management,
Kaiser Permanente Colorado

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The Healthcare Marketplace
TABLE

The National Landscape


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CONTENTS

DOUBLE DISRUPTION

The Affordable Care Act has rebooted the system. More individuals
are shopping for and using insurance, seeking care well upstream of
emergency rooms. Large employers are passing cost increases onto
employees. Health systems have to be more accountable for outcomes.
Consumers have ever-increasing service expectations. Baby Boomers
are aging, and Millennials are on the rise. Everyone has to do more—be
smarter, be more nimble.

Those of you who do health marketing are dealing with Double


Disruption. The marketing profession is morphing through the media
revolution, awakening to consumer personas and buyer journeys,
catching up with technology, learning new research and measurement
techniques, and discovering that we are no longer a support function.
Marketing is operations. Marketing is now accountable for
revenue impact.

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The Healthcare Marketplace
TABLE

The National Landscape


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CONTENTS

MARKE TING STEPS UP A WAY FORWARD

The organization’s revenue success now depends on health marketers’ This case study follows the story of Kaiser Permanente Colorado, a
abilities to: health insurance and healthcare provider whose marketing team was
wrestling with these industry trends. You will learn the steps they
• Identify the ideal customer. Who is your organization best
took to redefine what it is they do, how they do it, and with whom they
positioned to help? What is their need? Where do they gather?
do it. You will see they started where the organizational energy was:
• Engage consumers through groups and channel partners before, Business to Business. Then, they pivoted to Business to Consumer
during, and after purchase. Do they know your value? Do they know to meet the challenges of the Affordable Care Act. By so doing, they
how best to use you? Will they be loyal? created an infrastructure and foundation that could scale and innovate.

• Capture and share market insights. Is the organization remaining


relevant? Has it taken advantage of technology?

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The Healthcare Marketplace
TABLE

the starting line


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THE NEED
ABOUT KAI SER P ERM A NENTE CO LORA DO
Despite an advertising campaign that was winning awards, Kaiser
Permanente Colorado’s leadership was not convinced that brand-level
PROVIDES HEALTH INSURANCE & Care is provided by on-staff medical
TV, radio, and online advertising were worth it. When budgets got tight HEALTHCARE TO MORE THAN providers in Kaiser Permanente

600,000
– which was every year – the advertising spend was trimmed. facilities, allowing for integration
of care across specialties.

Colorado is a highly competitive


THE PROBL EM
PEOPLE ALONG THE insurance and care delivery market,

The marketing team’s time and money was tied up in big campaigns
FRONT RANGE OF COLORADO in which Kaiser Permanente was
one of the top three in size.
delivered in annual cycles. Its PR and communications team was
Kaiser Permanente has a highly
PART OF A NATIONAL PROGRAM THAT
blasting out content. The sales team was air-dropping collateral. successful brand advertising
INSURES & PROVIDES TO

10 MILLION
And no one knew if anything was working. program, Thrive, which has been
in market since 2003.

8
THE SOLUTION PEOPLE IN The company did not have a lead

STATES
management program until the
program discussed within this
The team redefined marketing’s goal, the tactics to achieve them, case study.
and who’s responsible. & THE DISTRICT OF COLUMBIA

New goals: Real Revenue Transformation


New tactics: From batch and blast to tailored and targeted.
From push to pull. From manual to automated. From hunch-based
to evidence-based.
New owners: From the marketing team to a revenue team.

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B2B
TABLE
OF
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TRANSFORMATIONAL
REVENUE GROWTH
From random acts of marketing to
a new, evolving alignment between
marketing and sales.

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B2B Story of Revenue Growth
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START WHERE THE ENERGY IS


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THE NEED THE SOLUTION

For all the challenge and promise of healthcare consumerization and The Kaiser Permanente marketing team called Intelligent Demand to
the growing B2C opportunity, Kaiser Permanente Colorado in 2010 analyze the gaps and develop a cohesive, integrated program.
was – and still is – primarily a B2B company. Most of its members
belong to large and small employer groups. Leadership was intent on Intelligent Demand discovered:
acquiring market share, expanding within existing employer groups,
• Marketing efforts were sporadic, but the buying journey was long
and capturing new employers entering the service area.
and fluctuated with the seasons.

THE PROBL EM • Marketing was focused on awareness, and sales was focused on
the quick close. Nothing was happening in between those extremes.
Marketing was viewed as air cover. Carpet bomb with advertising
and the sales team would collar the prospects who were scared up. • There was a lot of communication and media activity in many
Or marketing was viewed as sales support: “We tell you what to say; channels, but it was not coordinated or strategic.
you make it pretty.” Or marketing wasn’t thought of at all until the
• Marketing technology was lacking and what existed was not
quarterly numbers weren’t being met, at which time random acts of
integrated or interconnected.
marketing were hustled into the field, producing business reply cards
that sat gathering dust on sales people’s desks. No one knew • Business impact was not measured; activity was.
if anything was working.
Intelligent Demand recommended Real Revenue Transformation.

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WHAT IS REAL REVENUE
TABLE
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TRANSFORMATION?
REAL PROVEN APPROACH
MEASURABLE Real Revenue Transformation is a proven approach for improving
MODERN revenue performance in the near term. But it’s also how our clients
AUTHENTIC modernize, and permanently improve, the way they engage, convert,
and retain their ideal customers.

INTEGRATED PROCESS

This approach works by synchronizing all of the moving parts of your


revenue program with your target audience’s true customer journey.
At the same time, we align all of your key internal stakeholders around
revenue performance.

Success is achieved through a step-by-step process to integrate, scale,


measure, and build a sound foundation for your revenue program.

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B2B Story of Revenue Growth
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Real Revenue Transformation


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IT BEGINS WITH THE HUMANS NEXT STEP, K NOW THY PROSPECT

Everyone at Kaiser Permanente Colorado wanted to win. They were The employer decision makers were CEOs, CFOs, HR, VPs, and
smart and creative. They knew their business. sometimes the owner’s spouse. Most shopping and evaluation involved
either a big-name benefits consultant or a local insurance broker.
Intelligent Demand helped them to:
Intelligent Demand, working with the new team of Kaiser Permanente
• Align their goals and roles toward team-based revenue growth.
marketers, sales associates, and brokers,
• Create a shared understanding of their target accounts and
• Developed buyer personas, and associated customer journeys.
personas, lead management process, and definition of Marketing
Qualified Leads. And agree to revisit the definition as they • Mapped messaging to meet each prospect at their spot in
gained experience. the journey.

• Develop an integrated strategy and execution plan that would • Translated brand look and language into appropriate B2B
guide marketing efforts through the year. messaging, creative, and content.

• Meet regularly in agile sessions to refine and report.

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B2B Story of Revenue Growth
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Putting the plan into action


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BEGIN WITH THE END IN MIND CONNECTING BRAND TO SALES TO IMPACT

The ultimate goal was a program that: The team created a plan rooted in proven demand generation tactics:
consistent, targeted multichannel, highly relevant content and calls-to-
• Filled the gap between brand awareness and sales with a scalable
action, sophisticated marketing automation, and in-depth reporting.
program that nurtured prospect accounts and personas through
their individual buying journeys. Leads came in through SEM, social media advertising, email marketing,
teleprospecting, industry associations, and events. Leads exhibiting
• Addressed prospects’ knowledge gaps about the Kaiser
latent demand were nurtured. Those with active demand had “Get a
Permanente difference.
Quote” opportunities on every campaign asset.
• Gave brokers and sales Marketing Qualified Leads and tools to
Leads were nurtured by messages and touches tailored to each
continue the sales conversation.
prospect in their particular stage of the buyers’ journey. Questions
• Made a measurable impact on Kaiser Permanente’s revenue. about the ACA? We’re here to help. Wondering how to keep rates down?
Here’s an interactive guide. Ready to buy? Click “Get a Quote.”

Leads were scored by automated programs that were fine-tuned in


consultation with the Sales team. When ready, leads were returned
to human hands (sales and brokers) to navigate the last mile.

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B2B Story of Revenue Growth
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B2B INTEGRATED
Here REVENUE PROGRAM
OF

Headline
CONTENTS

KPCO B2B Revenue Engine Design


Lead Gen > Lead Capture > Lead Nurture > Purchase > Loyalty
Lead Gen/Lead Capture
TeleMktg Lead Nurture
Quick Lead Qualify & Manage
Landing General Nurture
Email Close ID Assisted Campaigns
Pages

PPC
Renewal
Buy Cycle
Industry Date
De-Dupe and
Associations Cleanse HR 4 mos
followed by Reengagement
Special Target
CSV
Events Upload into
Marketing
Other Automation
KPCO
Lead Marketing SALES NOTIFICATION:
GAO, MQL, BCL (SAX)
Route to KPCO Sales
Sources Automation

Year-Round Nurture
On Demand Communications

Page 23

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B2B Story of Revenue Growth
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Wait, there’s more


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NO LEAD LEF T BEHIND


When the Open Enrollment sales deadline passed, what do we do with
the leads still in the pipeline? How do we handle those prospects who
asked questions, downloaded information, and/or provided information
to us?

A Year-Round Nurture Campaign was developed for the “off season.”

Each touch was a brief email to educate and inform – and to keep the
relationship warm. Links to more information kept the engagement
active, and allowed us to continue scoring for the next sales cycle.

We had graduated from episodic frenzy to a program that paid


dividends forward.

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B2B RESULTS TABLE
OF

IT WORKED!
CONTENTS

FIRST, THE NUMBERS

52 MILLION
OVER
TARGETED, BRANDED IMPRESSIONS

$48 MILLION
CLOSE RATE FROM

»»»
»»»
»»»
»»»
»»»
»»»
IN MARKETING-SOURCED 3% TO 33%
REVENUE TO DATE FOR IN-HOUSE SALES VIA THE BROKER CHANNEL

»»»
»»»
»»»
»»»
»»»
»»»
6,788 LEADS
opted-in
»»»
»»»
»»»
»»»
»»»
»»»

»»»
»»»
»»»
»»»
»»»
»»»

from inception to market:

53%
7
OVER
PHASE ONE WAS COMPLETED IN

of small group WEEKS


PIPLINE INFLUENCED
5,146 LEADS engaged

»»
»»
»»
»»
BY PROGRAM

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B2B RESULTS TABLE
OF

IT WORKED!
CONTENTS

NOW THE SOF T STUFF

• New, evolving alignment between marketing and sales

• Deeper conversations with prospects

“Our leads are asking more educated questions…


and beginning to see KP as a thought leader, a
trusted advisor. This is the position we want in
the minds of our audience.”

TAYLOR RODDY,
Advertising & Marketing Consultant, Kaiser Permanente Colorado

“This program has become an essential


way that my Sales team hits its sales goals.
The partnership between sales and marketing
was critical to our success.”

MELISSA CHISUM,
Sales Manager, Kaiser Permanente Colorado

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B2C
TABLE
OF
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TRANSFORMATIONAL
REVENUE GROWTH
From direct mail overkill to meeting
prospects where they live and play.

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B2C Story of Revenue Growth
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The empowered consumer


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THE NEED THE SOLUTION

As Kaiser Permanente Colorado prepared to join the great exchange Complete the Real Revenue Transformation. The Kaiser Permanente
experiment in 2013, its marketing team had to get very good, very fast, marketing team and Intelligent Demand agreed that the principles they
at marketing directly to consumers. They had to shift from a wholesale had followed in the B2B program could be applied to B2C by:
B2B mindset to a retail B2C mindset. And they needed to be nimble.
• Synchronizing and aligning marketing and sales – even PR and
Because there wasn’t a proven approach, they knew they would have
media relations – to support a program that engaged prospects
to adapt on the fly.
as they navigated this new and confusing buyers’ journey.

THE PROBL EM • Nurturing and managing leads – not just capturing and sending
all to sales. Create a pipeline that leaves no lead behind while
What the marketing team knew about direct-to-consumer marketing
onboarding buyers and nurturing them with relevant, useful content
simply would not scale to this challenge. Their B2C experience had
that points toward next year’s renewal.
primarily been in the Medicare market, where they had been using a
direct mail bombardment on a distinct age demographic three months • Redefining marketing success. Shift the emphasis from response
out of the year. It would take millions of dollars to expand that outdated rates to close rates. Demonstrate revenue impact.
approach to the entire 26-to-64 population.
The team knew that applying these principles in a consumer context
would look very different than the B2B program. But with a
methodology and a technology foundation beneath them, they
had a platform for innovation, creativity, learning, and optimization.

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“We needed more effective ways


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to activate our Thrive brand.


Consumers are getting more and
more sophisticated at tuning out
messages that don’t offer insight,
entertainment, or value.”

KEITH EVANS,
VP of Sales, Marketing, and Business Dev.,
Kaiser Permanente Colorado

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B2C Story of Revenue Growth
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An entirely different idea…


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CUT THROUGH THE NOISE

The target audience was only dimly aware they had choices to make
that fall. They did not know how to shop for insurance. Political
controversy confused them even more. The Kaiser Permanente and
Intelligent Demand team had to cut through the noise, and they knew
it would require unconventional methods.

Intelligent Demand designed and deployed two separate, but related,


programs:

1. Brand Activation / Lead Generation Events – They called it a


“Boardwalk” – a fun attraction that looked like a carnival tent. It was
set up at major events through the summer, and attracted tens of
thousands of individuals who provided information via a custom data
capture application.

2. Lead Nurturing / Lead Management Program – a multi-touch,


multichannel, consumer-focused marketing program that provided
prospects valuable and relevant information on the healthcare
insurance marketplace. As with the B2B program, the leads were
scored as they were nurtured until they became Marketing Qualified
Leads that were handed off to Sales channels.

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B2C Story of Revenue Growth
TABLE

The Boardwalk
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B2C Story of Revenue Growth
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B2C INTEGRATED REVENUE PROGRAM


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KPCO B2C Revenue Engine Design


Lead Gen > Lead Capture > Lead Nurture > Purchase > Loyalty
Lead Gen
Opt-In Discovery Nurture Lead Nurture
Welcome
Large BEE Landing
4 Touches ID Assisted Campaigns
Retention
Pages
Capture OPEN EXCHANGE
App
BEE Lite
Acquisition Buy Cycle Campaign
6 Touches
Facebook Retention Buy Cycle Campaign
Lead Gen* Other 4 ODCs+6 Touches and Facebook
KPCO Remarketing
Additional Opted-In
Channels Lead
Sources
Marketing
CRM
Automation

Year-Round Nurture 26 Touches


*These leads are not
being nurtured currently.
On Demand Communications
Social Media (Facebook and Twitter)

Page 30

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B2C Story of Revenue Growth
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It wasn’t all fun and games


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FOLLOW A ME THODOLOGY Technology and data. Sales helped develop scoring models to ensure
that the automated marketing platform nurtured the most likely Kaiser
Kaiser Permanente had set up booths at many events in the past.
Permanente prospects.
They handed out water bottles and shopping bags at any gathering
that would have them. It was strictly an awareness play with no Reporting and analytics. The teams eyes were glued to the data, and all
connection to revenue. eyes were on the team. Data had to be regularly analyzed for program
performance and reports customized for sales and for executives.
Real Revenue Transformation doesn’t work that way. Before the
first beanbag was thrown, before leads were captured, before Sales Program management and optimization. An agile approach allowed
collateral was developed, the team assessed: for quick adjustments as this new field was being plowed. The system
and methodology allowed for nimbleness and speed to market as
Strategy. The brand experience event would be set up only at events
information changed.
that met minimum requirements for attendance by target audiences.

Content and messaging. Putting themselves in the shoes of their target


audience, a hierarchy of messaging was developed that started from
the basic health insurance information and stepped up to the Kaiser
Permanente unique value proposition.

Media and channels. The word had to spread in entertaining and


engaging ways, and appear at the right time and the right place during
the prospects’ buying journey.

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B2C RESULTS TABLE
OF

WE WON!
CONTENTS

FIRST, THE NUMBERS


21,511 TOTA L
opted-in
LEADS
in acquisition nurture &
buy cycle campaigns
SUPPORTED KAISER PERMANENTE COLORADO IN 2014
IN ACHIEVING 25+ COMMUNITY EVENTS

»»»
»»»
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»»»
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49% exchange, »»»
market share
in the 2013/14 COST-PER-LEAD WAS REDUCED FROM

$100+/LEAD TO
UP $18 PER LEAD
FROM 21%
IN
11,318 2013

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»»» »
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»»» »
»»» »
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»»» »

ACQUISITION BUY CYCLE LEADS


SENT TO SALES FOR OPEN ENROLLMENT

23% customers
»»
»»
»»
»»
»»
»»

converted into

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B2C RESULTS TABLE
OF

IT WORKED!
CONTENTS

NOW THE SOF T STUFF “We needed to get people in Colorado to engage with
our brand in the community, beyond the TV screen or
The marketing team developed a richer, more dimensional view of
the radio, to truly show them what Thrive means, and
the prospect audience. Going forward, their outreach will be more
have a little fun as well.”
sophisticated as they approach hard-to-reach audiences, such as
the never-insured and the low-income population. TAYLOR RODDY,
Advertising & Marketing Consultant, Kaiser Permanente Colorado
By meeting the prospects where they live and play, the organization
developed new relationships and strengthened existing ones.

The traditional way of event presence was changed forever. “There is a contingent within the marketing sphere
Opportunities are evaluated and designated as either pure community that are very content with using impressions, clicks,
engagement or marketing opportunities where leads can be captured. and likes as the indicator of how well marketing is
doing. A separate faction sees the writing on the wall,
and they’re saying ‘clicks and impressions are great,
but only if you can connect them directly to sales.’
This program is making a clear connection between
our marketing efforts and our Sales results.”

LAWRENCE MONTGOMERY,
Advertising & Marketing Manager, Kaiser Permanente Colorado

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Key Takeaways
TABLE

ESSENTIALS FOR TRANSFORMATION


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The healthcare marketplace has shifted. Individuals are shopping for TAKEAWAYS
and using insurance differently, and health marketers need to evolve
to account for the change. Today’s health marketing departments can,
and should, move away from reactive cost centers and transform into
proactive profit centers—where health marketers are held accountable
01 COLLABORATION AND
ALIGNMENT ARE ESSENTIAL
Success happens when marketing and sales get
for revenue impact. Together with Intelligent Demand, the marketing
on (and stay on) the same page.
team at Kaiser Permanente Colorado redefined marketing’s role to
bring about company-wide revenue success. On the B2B side, random
acts of marketing were replaced with a cohesive, integrated program
that engaged prospects throughout every turn of the customer journey. 02 ENGAGE TARGET PERSONAS
WHERE THEY TRULY ARE
Then, the team built upon the knowledge they gained from the B2B
Today’s healthcare buyers expect cohesive,
program’s success, and created a new way to appeal to empowered
engaging experiences across channels, devices,
consumers on the B2C side of business.
and locations.

03 GET YOUR TECH STACK


IN PLACE
You cannot transform random acts of marketing into
integrated marketing programs without having the
right technology stack (MA, CRM, CMS, Data) properly
implemented and integrated.

©2016, Intelligent Demand. All Rights Reserved. Get In Touch Now » | 25


Why Intelligent Demand
TABLE

Revenue Transformation is a Process


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WE KNOW WHAT IT TAKES

We, at Intelligent Demand, are proud to work alongside health F UTURE E- B O O K S


marketers. You are on a noble mission doing battle with rules, hierarchy,
Be on the lookout for future e-Books
and tradition. Marketing in any industry is a fantastic challenge, but it’s
describing how Intelligent Demand brings
even more so for health. It’s not easy, but it’s incredibly rewarding. You
about transformational growth in all sectors
need an agency partner who has expert skills, real-world experience,
of the health industry by assembling the
and a proven approach to make an immediate impact.
right people, working together in the right
Our integrated demand generation programs help you turn visitors into way, toward the right goals.
leads, leads into customers, and customers into advocates. We believe
a holistic, agile approach that integrates strategy, creative, media,
technology, and analytics is the best way to deliver ROI in today’s
complex healthcare-buying environment. Our integrated services
support you and your team through every step of the revenue journey.

Learn more at IntelligentDemand.com.

©2016, Intelligent Demand. All Rights Reserved. Get In Touch Now » | 26


THE RIGHT
STRATEGY, EXECUTED
WITH PRECISION AND
PASSION
You deserve an agency partner who is tenaciously focused on
modern, measurable revenue growth—one who will work shoulder-
to-shoulder with you, and hold themselves accountable for your
marketing and revenue goals. That partner is Intelligent Demand.

GET IN TOUCH NOW

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