If you’ve read any of our previous blogs, odds are that you may have seen us mention new member acquisition costs. Membership growth is obviously one of your top goals. But, member acquisition is typically one of the most expensive line items on your budget. Even though it can be costly, growth isn't bad. Quite the opposite actually! So how do you grow your membership without outgrowing your budget? Try these four tips for starters to see how you can grow your membership while keeping costs low.
It’s 2021, you can’t ignore social media anymore. Especially not when seven in ten Americans use it. Even if you’re not ignoring social media, there are ways to use it well (and not so well.) For the purpose of reducing member acquisition costs, you can reduce your advertising budgets by using social media more effectively. Posting on any social platform (Facebook, Twitter, LinkedIn, Instagram, etc.) is free and can get you great exposure, but if you want to reach a more specific audience, you can create effective, highly-targeted social ads at a very affordable rate.
This ties back to social media a little bit, but also to your website and any other online platforms where your health plan is represented. By building a well-rounded online presence, you’re increasing the amount of trust potential members have in you. Think about it, would you contract someone to build your house if all you knew was their name and that they build houses?
Databox shared one business’ experience through this quote, “The best method we found for reducing CAC was unrelated to media channels or ad copy. It was in the reputational signals on our site. Adding full founder profiles, a phone number, details about the company history, where the company is incorporated all helped customers get comfortable with purchasing from a company they had not encountered before.” It’s all about telling a good story and showing potential members you are humans and you care about them.
Surprise, surprise, the content marketer is telling you to use content marketing. It’s not my own opinion though! Quality content creation can lead to organic traffic, which means more eyeballs on your site, which means more leads for new member acquisition. Have your marketing team take the time to do keyword research using a tool like SEM Rush and figure out which keywords you can rank for by writing them into blogs, web pages, articles, guides, and more. Creating buyer personas is a great first step to identify the pain points and needs of your target audience. Knowing those needs will help you write content that’s relevant to your audience, which increases your odds of your content showing up in their search results.
Your current members can be your best, most loyal brand advocates. People trust their friends, family, and coworkers, and word-of-mouth marketing is still valuable even in our digital age. By treating your current members well, you’ll increase your chances of members sharing how great you are with the people they know. But if you really want to make sure members are referring others to your health plan, implement an actual program.
There’s no secret formula or top-secret method to reducing your member acquisition costs. It just takes a little extra planning and effort. But that extra time put in to create quality content or a fully-fledged online presence will lead to greater cost savings for your organizational budget and higher growth for your membership base.
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Lower members' overall out-of-pocket costs by encouraging them to be engaged with their health.
Affordable healthcare choices mean lower member costs, and that means happier members for your plan.