You probably read about the August 2007 Census Bureau report showing that
47 million Americans — more than 15 percent of the population — lack health insurance. But if you look behind its headlines, you’ll find not just statistics but the seeds for developing a sales strategy to tap into several rapidly growing markets.
Consider the following:
- Certain ethnic groups have higher rates of uninsured members
- Job-based health insurance has been falling since 2001 and dropped below 60 percent in 2006
- About 40 percent of the uninsured — some 19 million people — are in the 18 to 34-year-old age group
- Some 9.3 million of the uninsured have household incomes of more than $75,000, which is usually more than enough to afford coverage
Many of these uninsured are qualified candidates for the flexible, affordable health insurance products available today. But if your marketing still uses the scattershot, one-size-fits-all approach, few prospects will become your customers. The key to capitalizing on this opportunity is targeted niche marketing using messages, products, and services that are customized to your ideal client’s unique needs.
Know your audience
If you’ve been paying attention to what’s happening in your local and business communities, you probably have a good sense of which ethnic, demographic, or occupational groups are your best targets. Maybe certain neighborhoods have seen an influx of young adults or a specific ethnic group. Perhaps a large employer has had to cut back on its workforce, or maybe your chamber of commerce recently added quite a few small-business owners to its membership roster.
Whichever group you choose, remember the first rule of marketing: Know your audience. Be sure you understand their needs and hot buttons. If you’re pitching to young adults, for example, you’re not likely to pique their interest by talking about long-term financial planning.
Whenever possible, communicate through marketing channels that your audience knows and trusts. You can reach entrepreneurs through chamber of commerce events and newsletters, where you might be able to talk about what’s new in health savings accounts (HSAs). If a local employer no longer provides insurance, you can suggest they help their employees find the coverage they need. Also, consider using alternative media (cultural or special interest newspapers, grocery cart advertising, etc.) in certain neighborhoods.
Focus your efforts
In some areas, particularly in the South and Southwest, agents have had considerable success selling individual medical policies to early retirees (ages 50 to 64), the second fastest-growing population of the uninsured. Communications to this audience should explain how different types of plans can fill the gap before policyholders qualify for Medicare. Benefits to highlight could include prescription coverage, the tax and savings advantages of an HSA, and options regarding condition-specific deductibles that would cap their out-of-pocket costs. Conversely, marketing to a younger age group can emphasize plans with low-cost premiums, plus the speed and convenience of easy, online enrollment.
No matter who you’re targeting, it’s critical that you respond quickly to an interested prospect. Americans of all ages, races, and ethnicities want fast, definitive answers, and the last thing you want to do is burden them with lengthy, complicated application forms.
Whether by choice or circumstance, more people will need health coverage. To capitalize on this trend, you must connect with your potential customers in a personalized way that demonstrates that you understand and can help them address their concerns. By segmenting your prospects into distinct groups and targeting them through focused, benefits-driven niche marketing, you will greatly increase your chances of success.
Mike Norderhaug is vice president of sales strategy for Assurant Health. He can be reached at 800-800-1212 or mike.norderhaug@assurant.com. 