A Hole in the Side of the Boat
"There's a hole in the side of the boat, and that hole is never going to be fixed - and it's never going away - and you can't get a new boat. This is your boat. What you have to do is bail out the water, faster than it's coming in."*
Thus begins the day of far too many HR and benefits professionals - and consultants and vendors - across America, on any given day of the week.
The siren sings her baleful song, continuously
It's a constant challenge, a nagging problem that refuses to go away. And the inevitable consequence if left unchecked: the boat will sink. This scenario, of course, mirrors the perpetual battle of keeping health plan costs under control.
Despite the best-laid plans and strategies, and implementing the most cutting-edge programs, and contracting with the most pre-eminent vendors in the cost mitigation space, health plan budgets continue to escalate faster than any CFO wants. These costs erode profit margins, and the resultant (all-too-common) cost-shifting places an ongoing, deeply painful burden on employees. But if the boat – our businesses – cannot be replaced, what's the solution?
Bailing out the boat
One significant way to counteract the influx of water (or rising costs) is by driving more engagement in underutilized benefit programs that are proven to reduce health plan costs. As we've noted in many previous posts - these programs work - but only for those who participate! And there's just not enough enrolled and engaged employees to move that irrepressible cost needle.
So, how do we fix that? Enter the era of psychographic profiling.
The next wave of personalization
Traditional demographics-based targeting, which uses attributes like age, gender, and income, has been a common strategy for years. However, in our increasingly complex and individualized world, this method lacks the depth required to truly connect with employees on a personal level.
Psychographic profiling, on the other hand, delves deeper. It's about understanding an individual's attitudes, interests, lifestyles, and values. By leveraging this information, HR and benefit professionals - and consultants and vendors - can craft targeted messages that resonate with employees on a more profound, personal level.
The power of "WIIFM" (what's in it for me?)
One of the challenges of promoting underutilized benefit programs has always been to convey to employees how they can personally benefit. With psychographic profiling, HR and benefits professionals - and consultants and vendors - can answer the pivotal question every employee subconsciously (or even vociferously) asks: "What's in it for me?"
For example, an employee who is a fitness enthusiast may resonate more with a message that emphasizes the health and physical benefits of a program, while a family-oriented individual might be more swayed by emphasizing how the program ensures that they can be there for those who count on them.
Implementing psychographic profiling in benefits communications (i.e. marketing)
By tailoring the message to align with an individual's psychographic profile, businesses can make a compelling case for why an employee should enroll and engage in a program. There are several key steps to make this happen. Many have tried to compellingly personalize their messages, but few have succeeded - because the personalization process is broad and complicated, with many failure points.
Data collection and segmentation: The first step is to gather relevant data about employees. Once that data is collected, the process must be able to categorize the workforce into different, values-based psychographic profiles.
Here's the good news - we've already figured this out. Our BenefitPersonas? model is a 5-segment system that was developed specifically for employee benefits and healthcare - and we can categorize employees simply using an eligibility file with name and home address.
Tailored Messaging: Next, personalized communication strategies for each segment have to be created. We start with your existing materials, so that we preserve your "brand voice." Then we highlight the benefits of underutilized programs in a way that speaks directly to the interests and values of each profile.
Feedback Loop: Then, (ideally), you'll gather regular feedback so that we can work together to refine and adapt the messages, the cadence, and the tone. This will ensure that the messaging stays relevant and effective.
Periodic Updates: As employees grow and evolve, their interests and values may shift. Regular updates to psychographic profiles ensure that the messaging remains accurate and pertinent.
The last word
The challenge of mitigating health plan costs is a daunting one, much like the persistent hole in our metaphorical boat. And there is simply not a one-size-fits-all solution to "fixing the hole." Literally, every iteration of that has been tried, and found to be wanting. Psychographic profiling, however, offers a proven methodology to help counteract the rising tide.
In a world that's increasingly personalized, it's time for HR and benefits professionals - and consultants and vendors - to harness the power of psychographics. By understanding and catering to the unique motivations and interests of employees, businesses can not only drive more engagement, but also foster a more inclusive, responsive, and effective workplace culture.
It sure beats bailing water out of the boat.
~ Mark Head
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*This quote is from "The Newsroom," created by Aaron Sorkin.
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