The Medicare market opportunity has never been bigger or better. Today, 11.8 million beneficiaries are enrolled in Medicare Advantage plans, approximately 18 million have a Part D prescription drug plan, and another 9.5 million have a Medicare Supplement or Medigap plan. And when you add the 3.6 million baby boomers aging in to Medicare every year for the foreseeable future to the mix, it’s easy to see why.
Whether first-time buyers or those switching from one Medicare plan to another, seniors are shopping. From regional health plans to national mega-players, product supply remains robust and competition has never been greater. The range of benefit plan options cuts across every product design and price point, from network-based zero-premium Medicare Advantage plans to open-access Medicare Supplement (Medigap).
In a marketplace characterized by a wide range of distribution channels that include a mix of field agents, telemarketing, online sales and retail outlets, it is critical to embrace the basic tenets of value-based senior selling. With a growing customer base and a multitude of product options, Medicare offers a unique opportunity to smart salespeople: It’s time to sharpen your approach to the Medicare market by finding a balance between education and selling.
Communicating with Medicare prospects about product features, benefit structure and premiums is crucial. Setting expectations about a Medicare plan’s value and anticipating questions in advance will go a long way toward creating informed, confident consumers. This means a careful blend of two essential consumer-centric tactics: being an expert resource and value-based solution selling.
Expert Resource
This is the time to be your prospects’ personal Medicare navigator or advisor by taking a consultative sales approach. Your audience is already skeptical because it’s insurance. Many, particularly boomers, are confirmed cynics when it comes to insurance sales agents. Your challenge is to fight through the incredible amount of apathy that’s already lingering. What is the single most important thought that you want to communicate? Is it believable? Does it relate to your audience? How are you going to deliver it so it’s most relevant?
Focus on plan features and benefits along with all the rules that go with it; but keep it simple. For example, Medicare sales collateral or Web content needs to be easy-to-read and informative (and of course, compliant). Consumer education needs to create an understanding of a plan’s structure and how it works — basics such as deductibles, co-pays and coinsurance; and complicating features like formularies, plan gaps and benefit extras. And don’t forget to explain key administrative components, such as billing and customer service. It’s a tough balance to achieve — not providing enough information could mean no decision; too much information could result in “overload” and decision shutdown.
A sequenced, education-based approach resonates with Medicare consumers. This is not a one-size-fits-all marketplace. Helping a turning-65 individual navigate their initial Medicare shopping experience and seeding their product knowledge is key to success. The same holds true for prospects or existing customers thinking about switching plans. Education creates credibility, initiates the sales cycle, and is the first step the customer relationship bond. Be the expert.
Solution Selling
This is where a Medicare plan’s value proposition is communicated and sold. It’s your opportunity to affirm why your solution is the right solution. This needs to come through loud and clear — all within a framework of the benefit design you want to promote. Sales communications need to be persuasive as well as actionable, always driving a prospect deeper into the sales cycle. Most importantly, you must answer the big consumer question: “What’s in it for me?” This may include a range of value-based factors such as premium savings, enhanced benefits, greater freedom of provider choice, comprehensive drug formulary, or a company’s brand stability.
Remember, this is also where an element of salesmanship delivers a big payoff. Find the most powerful features of your plans and products and link these features to benefits for your prospect. Keep the tone conversational, and engage in a meaningful one-on-one discussion. Your approach should always reward a prospective customer for spending time with you, their Medicare expert.
Successful senior selling comes from connecting with customers logically and emotionally. Learn as much as you can about your target market; it allows you to understand what’s important to them, what concerns them, and what they want from their Medicare plan. Throw away the jargon and industry acronyms. Use practical explanations, and provide plenty of opportunities to compare plans. If its fine print, call it fine print; if there’s a benefit gap, identify it, don’t hide it. Let customers know what’s covered and what’s not.
Medicare, like most insurance products, can be intimidating, frustrating and often bureaucratic. There are complex benefits, tricky rules and a lot of options from which to choose, which means there’s bound to be confusion among Medicare beneficiaries. Successful Medicare marketing hinges on educating seniors, defining value and creating motivated buyers. This is a customer segment that wants to understand, upfront, what they are purchasing, how benefits work, and how your plan fits into their financial and lifestyle situation.
And, don’t forget to answer the No. 1 question: “What’s in it for me?”
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