SHOP’s Value Proposition

SHOP Exchange Advisory Group

12/6/2012

Our Objectives Today

• Discuss SHOP’s “Value Proposition”

• Identify SHOP’s Customer Segments

• Map SHOP’s Product/Customer Match

• Create a Potential Customer Questionnaire

• Assign Ourselves Some Homework

What is a “Value Proposition”?

• Why does SHOP need one?

• Can we have multiple Value Propositions?

• Is the Value Proposition about features, benefits or problems?

How does our Value Proposition fit with our Mission?

• Access

• Affordability

• Choice

What about our potential customers?

Where do they fit in this process?

Let’s identify our potential customers?

• Employer Groups 2-50 • Groups 2-9 • Groups 10-50 • BG1s • Tax Credit Eligible Groups • Non Tax Credit Eligible Groups • Groups That Currently Offer Insurance • Groups That Do Not Currently Offer Insurance • Industry Associations-Restaurants and Others • Nonprofits • Multi-State Employers • Partially Self Funded • Fully Insured • Union Groups • PEOs

What about customer “segments”? • Employer Groups 2-50 Groups 2-9 Groups 10-50 BG1s

• Tax Credit Eligible Groups • Non Tax Credit Eligible Groups • Groups That Currently Offer Insurance • Groups That Do Not Currently Offer Insurance • Industry Associations-Restaurants and Others

More customer “segments”

• Industry Associations-Restaurants and Others • Nonprofits • Multi-State Employers • Partially Self Funded • Fully Insured • Union Groups • PEOs

What benefits are we trying to bring to these customers?

• Affordability • Choice • Administrative Efficiency • Simplicity of Access/Experience • Ancillary Products/Wellness • Section 125/HRA/FSA /Premium Payment • COBRA/Colorado Continuation

What problems are we trying to solve for these customers?

• Transparency of Care/Cost/Quality /Network /Providers/ Benefits/Rx

• HR Issues/Payroll • Employee Choice vs. Employer Control or Responsibility • Language Translation • SBC Compliance/Other Compliance/Medicare • Affordability

What are our customer’s frustrations or “pain points”?

• Communicating PPACA rules/compliance • Volatility of rates/Mid-year age changes • Customer Service/Claims issues • Class distinctions • Choosing plans for Employees

What is missing in the current market?

• Reduced Volatility • Improved Portability • Customer Education/Advocacy • Match customer conditions w/plans • Multi-state solutions

Let’s fine tune our value proposition to match various segments?

SHOP’s Customer Product Match

Customer Segments

• Groups 2-9

• Groups 2-10

• Tax credit eligible

• Groups Not currently covered

Benefits or Solutions • Choice/Affordability/HR/Admin/Educ.

• Above +Ancillary Products/Wellness

• Above + TC Calculator

• Affordability/Simplified Exp/Educ.

SHOP’s Customer Product Match (more) Customer Segments

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Benefits or Solutions

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Our top 5 Customer Segments

• Employer Groups 10-50

• Tax Credit Groups

• Groups that do not presently have Insurance

• Industry Associations

• Non profits

Top 5 Customer Segment – Product Matches Customer Segments

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Benefits or Solutions

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Knowledge or Assumptions?

• We know what we think… but what do we actually know about what our customers want?

• What will happen when we test assumptions?

• How can we test our assumptions?

Testing our Assumptions

• Create a test questionnaire for each segment • Get “Out of the Building” and gather feedback

from prospective customers • Test a large enough sample

• How many are enough?

• Compile results • Learn what our potential customers think • Validate (or invalidate) our assumptions • Adjust SHOP’s value creation strategy

Building a Questionnaire

• List a customer segment • List benefits or solutions • Construct a question for each benefit or solution

– Example: • Groups of 2-50 employees

– Benefit: Employee Choice – Question: Would offering your employees the option to choose

a health plan that works best for them (within your budget) be helpful for you?

• Build questionnaires with 5 questions each for our top 5 customer segments.

Homework

You… Select one questionnaire matched to one customer segment

Meet personally with at least one potential customer in that segment and complete the questionnaire.

Extra credit: Record any additional suggestions or comments about how SHOP can meet their needs. (What else might be helpful?)