DIRECT MAIL DELIVERS 17% ENGAGEMENT RATE RESULTING IN $11MM TOTAL SAVINGS

The Challenge

How to Reach Select Members with Sensitive Information While Building Trust

This data-driven software company helps employers, health plans, and its members reduce prescription drug costs through an unmatched combination of clinical technology, proactive member engagement, and concierge support.

With pharmacy spend commonly being the largest driver of cost for any health plan, this software layers on top of its clients’ existing pharmacy benefit offering and finds all possible lower-cost prescription drug therapies that can save the plan and the member money.

The challenge was determining how to reach these select members with the most efficient type of messaging showing how they can save on their prescription drugs — which is paramount to this company’s success.


The Solution

Using Highly Personalized Direct Mail

An internal data analysis project identified member data that led to the selection of direct mail and data personalization to reach these vital few with a personal report outlining lower-cost options and associated prices — and the next steps of how to switch to the recommended lower-cost options while saving significant costs throughout that year.


The Return

$11MM in Total Savings

This campaign’s success of saving over $11 million was due to the extreme personalization and client branding detail included in each report provided to each member.

This level of personalization created high credibility with the member and helped them easily navigate their health insurance’s pharmacy plan, which is notoriously difficult to understand.

The use of direct mail also allowed for the most accurate and safest channel to communicate sensitive health information. Combining direct mail with personalization provided that connection with the audience and built trust.


Results Summary

  • $7.2M in client savings, $3.9M for members
  • 17% Behavior Change Rate
  • Average 1.7 behavior changes per PSR recipient
  • Average PSR-influenced behavior change carries $609 in average total savings per switch
  • Q1 PSR 2.9% conversion rate to CP
  • 2021 DMN (direct mail notification) 1.1% average CP (certified pharmacy) rate
  • $11 million in total savings
  • 31,260 total number of behavior changes

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