By Alex Tolmasoff, Director, KPMG Sales Transformation and HCLS Lead
In our three-part healthcare payer sales model series, we discuss the hurdles sales leaders face with finding and keeping members, how outdated sales models can impact revenue growth, and how updates to your sales model can impact results.
Prior to COVID-19, health insurance carriers faced a challenging market with new entrants, new products, and high patient and provider expectations. First, COVID-19 increased the pressure to maintain revenue growth and margins, while delivering new services that engage members virtually and digitally. At the same time, legacy sales model issues did not get easier – if anything they got more complex and challenging. Commercial leaders today need to re-examine their sales models to ensure they keep up with member expectations and gain access to new members.
What’s so difficult? A member is a member, right?
Wrong. Not all members are created equal, and not all have the same desire or ability to consume high growth or high margin offerings. Without good customer intelligence and aligned sales enablement, such as analytics, revamped sales processes, new training and coaching, and updated incentives, leaders are likely to see:
- Poor expansion of ancillaries, such as dental and wellness, with high growth and margin potential
- Focus on accounts that want lower margin narrow networks and self-funded business
- Increased Selling, General, and Administrative (SG&A) costs and decreased productivity per seller