Most consumer loyalty programs—think Starbucks, Delta, and American Express—reward their best, most engaged customers. The frequent fliers. The twice-daily mocha drinkers. The big spenders. For these brands, 20% of customers drive 80% of revenue, so it makes sense to focus on those who are most loyal.
For health plans, it’s a different story. 20% of members drive 80% of costs. And generally, these members are the unengaged and non-compliant. If your plan is only reaching the members who are already engaged in their care, you’re not addressing the members who are costing you the most.
To meaningfully impact performance, health plans must engage and motivate the unengaged. So, where can you start? First, make sure you’re focusing on the right populations. Don’t just reward those who are already engaged; focus on the members who aren’t engaged and aren’t compliant with their care gaps.
Then, customize your program design and communications. Most plans use a one-size-fits-all approach to member outreach and engagement, sending everyone the same postcard with the same generic message and reward.
A better approach is a segmented, targeted, and personalized approach at the measure and member level. Identify the quality measures where you need to boost performance, focus on the non-compliant population, and figure out exactly how many care gaps you need to close in order to reach the next cut point. Then, design and deliver your rewards program accordingly.
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