Systematic targeting to shortlist customers

Abdul September 10, 2020

Large player in the US healthcare industry

Problem Statement

• Company wants to improve the completion rate by reaching out to customers more likely to complete the HRA ( for commercial plans)
• Company does not want to invest huge sums of money on this campaign and hence wants a very precise and concise target list
• Company expects more customers coming out of exchanges due to the implementation of the Obama Care and has no idea about the characteristics of these members

Analytics Led Approach

• Leveraged the company’s claims data (medical claims, Rx claims, Mental Health Claims, Vision Claims), enrolment and case management data to shortlist 400+ predictors of HRA completion
• Company did not have psychographic / behavioral data; leveraged its partnership with 3rd party vendors to arrive at 200+ behavioral predictors
• Interactions between predictors were studied and principal components were identified.
• Robust statistical techniques were employed to arrive at propensity rates for HRA completion based on which targets were identified.

Business Impact

• Company was in a position to target customers for HRA completion from 10% of customer base and still increase the HRA completion rate over five fold
• Company could compute the propensity to complete HRA at a customer level depending on behavioral parameters and change in utilization behavior

Critical Success Factors

• partnership with 3rd party vendors enabled the clients leverage critical psychographic information that would help predict the HRA completion behavior of the members, especially for people coming off exchanges