The Engagement Welcome Mat

First impressions are powerful. Research consistently shows that they’re both lasting and difficult to reverse. In fact, one study reveals that it takes just a tenth of a second to start forming judgements about traits like trustworthiness.

For insurers, quickly gaining the confidence and trust of new plan members has become increasingly important. As highlighted in a previous post, more members are shopping around and switching plans during open enrollment periods.

While easier plan-switching raises concerns for payers, investing in strategies to retain members can lead to significant gains. Bain & Company reports that a 5% increase in customer retention can boost profits by more than 25%.

Given the stakes, establishing and reinforcing positive relationships with new enrollees is more critical than ever.

Building the Engagement-Retention Cycle

Member engagement is key to fostering retention. Research from McKinsey on healthcare consumerism emphasizes that consumer engagement has become increasingly important for all healthcare industry stakeholders. Both payers and providers are now evaluated through customer satisfaction ratings, creating strong incentives to enhance the consumer experience.

Engagement and retention create a self-reinforcing cycle. Positive experiences build trust and loyalty, encouraging re-enrollment. This, in turn, offers more opportunities for engagement. However, this cycle starts with successful onboarding—a pivotal step requiring thoughtfulness and personalization.

The Golden Hour of Onboarding

The first interaction between a health plan and a new member is critical. The Healthcare Financial Management Association (HFMA) refers to this as the “golden hour” of onboarding—a brief but crucial window to make a lasting impression.

Relay Network notes, “When a member enrolls in a new healthcare plan, they are naturally the most engaged and open to learning about their coverage.” Thus, this is the best time for health plans to establish effective communication, drive adoption of digital tools, and make a strong first impression.

As Groove, a customer support software company, points out, “Onboarding isn’t just about your product or service. It’s about the entire experience of doing business with you.” It sets the stage for a successful relationship by achieving two key milestones: the moment a customer signs up and the moment they experience their first success.

For many payers, the health insurance ID card is the first tangible touchpoint. Even this small item, along with its accompanying materials, provides an opportunity to make a positive impression and deliver an initial success for the member. Personalization is essential to achieving this.

The Power of Personalization

Generic communication, such as mail addressed to “Occupant,” fails to connect. In healthcare, personalization is especially critical. For instance, simply having lungs doesn’t make someone a candidate for asthma treatment.

Receiving irrelevant or overly general information is a red flag for consumers. McKinsey advises that payers and providers should better meet the needs of specific consumer segments through personalized information, delivered when, how, and where consumers need it.

Even small personal touches can have a big impact. Dale Carnegie famously stated, “A person’s name is, to that person, the sweetest and most important sound in any language.” This belief is now backed by evidence across disciplines.

Consumers increasingly value personalized content. A 2020 Statista survey found that 42% of respondents considered personalized recommendations, offers, and experiences to be important. Gartner research also shows that personalized messages perceived as helpful are the most impactful. Additionally, Accenture found that 83% of consumers are willing to share their data for a personalized experience.

Personalized outreach positions payers as true partners in improving their members’ health. For example, a personalized health insurance ID card with interactive features like QR codes or stickers, paired with a customized welcome guide, signals to members that their needs are understood and valued.

Simplifying the Experience

Health plans aren’t typically associated with simplicity and user-friendliness. Yet, creating a straightforward and supportive experience can significantly boost satisfaction and loyalty.

Even in the initial mailing of an ID card, plans can highlight benefits and demonstrate ease of use. Offering mobile delivery of ID cards and plan information through apps ensures members have access to services and resources anytime, anywhere.

Personalized communication also aids members’ understanding of plan benefits. This is vital, as Forbes reports that two-thirds of Americans struggle to define basic healthcare concepts like premiums, co-payments, and deductibles. HubSpot research suggests that personalization reduces perceived information overload by delivering exactly what consumers need, avoiding unnecessary complexity.

Honoring Member Preferences

Understanding and respecting communication preferences is another opportunity to enhance retention. Knowing the communication preferences of members is akin to speaking to them in a language they understand.

Digital channels are increasingly favored, especially by younger generations. Fullstory’s research shows that 40% of customers avoid companies that don’t offer their preferred channels, and 55% (68% among Millennials and Gen Z) prefer digital communication.

Choice is crucial. A Keypoint study found that 74% of customers want to choose how brands communicate with them. Honoring these preferences improves satisfaction and loyalty.

Early Efforts, Lasting Impact

Investing in strong onboarding processes lays the foundation for member loyalty. Accenture’s 2020 Payer Consumer Experience Benchmark Survey found that 70% of consumers left their healthcare payer due to poor experiences. Conversely, Relay reports that personalized onboarding increases engagement by 30% and reduces costs by 21%.

As competition among health plans grows, so do consumer expectations for convenience and value. Innovative strategies that prioritize the member experience, such as enhanced health insurance ID cards and personalized onboarding, are essential for fostering loyalty and retention.