Dive into how a leading health insurance technology company finally gained visibility into the impact of their existing customer retention programs. The Client lacked the infrastructure to investigate the efficiency of their Welcome Direct Mail and New Members Services programs until Blend360 stepped in. By designing and running multiple tests, we made critical recommendations for the Client that led to them prioritizing the right program.
The Client is a leading health insurance technology company with ongoing programs under Welcome Direct Mail and New Members Services. However, the Client lacked visibility into these programs' impact on their customers. At the same time, they lacked the infrastructure necessary to investigate the efficacy of these programs.
The Client’s goal was to understand which, if any, of these programs in place were effective in customer retention.
Blend360 began by designing multiple tests to measure the program’s impact, including configuring code to capture these programs in the client databases. The team then designed tests and controls to understand the effect of a Welcome Direct Mail campaign focused on retention. A separate test & control was set up to evaluate the impact of calls under New Member services.
Blend360 then performed the tests over 90 days and subsequently conducted an ROI analysis to summarize the findings and make recommendations to the client.
The retention analysis showed that calls made by New Member Services had a significantly negative impact on customer retention, at -9.9%. The Welcome Direct Mail campaign, on the other hand, had a positive impact in driving retention, reducing member disenrollment by 1.2%
Blend360 recommended auditing the New Member calls to understand factors contributing to the negative outcomes and to continue investing in the Welcome Direct Mail and further test designs.
Blend360 also found that the mailer had a negligible impact on Early terminations, but mailers record a positive impact on rapid disenrollment through 90 days.