Winter 2006 / No. 66
In the last issue of Outside/Input (Fall, 2005), we
discussed the growing importance of “advice” in the
voluntary buying decision and went on to forecast that bundling
advice into the product/service offering will eventually become
one key to sales success. We used the 401(k) business as a model
to isolate the industry’s need to provide consumer knowledge
as well as create immediacy and support around the decision-making
process.
The next steps are to operationalize these objectives and begin
considering delivery options. The previous discussion suggests
that we need to help consumers reach four different understandings.
#1: Here’s how this issue impacts you (relevance)
First, the consumer needs to perceive the need being addressed
as relevant. Through exposure to your process, the consumer needs
to believe:
- She has that particular need.
- There are practical responses available that can address
the need.
- The responses are open to her.
As industry competition increases and consumers become more
aware, new methods of addressing this issue will emerge. Already
companies are experimenting with predetermined product bundles
and, even more interesting, with lifecycle bundles and mini needs-based
approaches. One goal of these systems is to cast a wider needs
net, increasing the possibility that each consumer will identify
one or more needs that are relevant.
We know that there are certain levers that are key to building
relevance: the amount of information we have on consumers (pre-populated
forms are better than blank forms), the ability to factor in
soft issues about the person (perceived needs, priorities, goals)
and instilling the feeling that the consumer is making choices,
not having them forced on her.
Web-based systems (especially with call center support or click-to-chat
features) and laptop systems (one-on-one) offer the greatest
potential to deliver on #1.
#2: You need to make a decision (immediacy)
Second, we have to create immediacy around the decision-making
process. The decision needs to be made now (or soon) and cannot
be indefinitely postponed. Open enrollment systems that are on-line
often fail in voluntary settings because the consumer can delay
the decision until the opportunity has passed.
Immediacy is created by having a very tight purchase window
or by the presence of another person to prod the consumer to
act. One-on-one systems create the greatest immediacy as they
combine the tight timeline and the human presence. Traditional
face-to-face enrollments and scheduled outbound telephonic enrollments
are best at addressing issue #2, with group meetings coming in
as next most effective.
#3: Here are the answers to your questions (information)
Next, we need to be ready to provide knowledge, information,
comparisons, alternatives, etc. We need to answer the inevitable
questions (spoken or not). And the more comprehensive our response
and the less hurried, the better. And if the Q&A dialog had
no timeline at all (meaning the consumer can ask questions anytime
including long after the sale), that would be even better.
Web-based systems are the clear winners in terms of potential,
with call centers coming in second.
#4: You’re doing the right thing (affirmation)
And last, the ideal process needs to reinforce the purchase
decision by affirming the outcome, as described in the last issue
of Outside/Input. We know that this step is a key to
customer satisfaction and its relatives: persistency, repeat
purchase behavior, etc.
Affirmation is an emotional, inter-personal behavior. As a result,
one-on-one methods (traditional and call center systems) do best
with face-to-face being preferable.
If we consider today’s enrollment processes and rank them
on the four issues (with “green” as most effective, “red” as
least effective), we find the following:
| |
1
Relevance |
2
Immediacy |
3
Information |
4
Affirmation |
One-on-one, face-to-face |
G |
G |
Y |
G |
| One-on-one, outbound call center |
Y |
G |
Y |
G |
| One-on-one, inbound call center |
Y |
R |
G |
Y |
| Group meetings |
R |
Y |
R |
R |
| Web-based |
G |
R |
G |
R |
| Video/mail |
R |
R |
R |
R |
And, of course, this analysis deals only with the consumer’s
needs and ignores cost, difficulty, etc. But the results are
still interesting. No system scores well on all measures, which
suggests that our current systems will need to evolve or future
systems will consist of a combination of today’s methods
(more likely).
Combinations like web-based and outbound call center and face-to-face
and inbound call center (or web) seem to hold a lot of promise.
A company might also develop a web platform with either a face-to-face
or outbound call center support option. That approach offers
two systems that cover all the bases, leverages the web platform
on both, and appeals to both traditional individual platform
purists and a wide range of group platform employee benefit brokers.
Clearly, there is still a lot of work to be done, and companies
that are choosing to address these needs now (rather than waiting
for the inevitable pressure) are already making strides.
Call us to discuss your enrollment strategy and consumer
marketing of voluntary products. |
