Novu Creates Healthy Customer Engagement

Novu bills itself as the health care industry’s marketing platform that provides intuitive consumer health tools, incentives, and a customer experience that builds long-term engagement via desktop, mobile, or tablet.
Loyalty360 caught up with Jordan Mauer, Executive Vice President of Marketing and Engagement, to find out more about this exciting new company.

How did Novu come up with the idea for loyalty in the health care industry?

Mauer: Our founders have a background in direct marketing and many of our original employees come from a loyalty marketing background. When the ACA (Affordable Care Act known as Obamacare) passed in 2010, it brought a wave of disruption to the health care industry. One of the core changes was the empowerment of the consumer. The consumer was given choice and, with this new empowerment, health plans identified a need to create an improved customer experience.

What was the thought process/goals behind Novu’s creation?

Mauer: Like many startups, the Novu of today is a different version of Novu four years ago. We saw a market opportunity as the health care industry began investing more in preventative care or treating the member before they become a patient. Our approach of using data science, a technology platform, and incentives to drive engagement is a solution health plans found attractive. 

How different is the concept of loyalty in the health care industry, opposed to consumer brands?

Mauer: It is very different in health care. To understand effective loyalty in health care, we need to flip the model. Traditional consumer loyalty rewards customers which are the most valuable or which generate the most revenue or profit. Think road warrior business traveler to Marriott or technology enthusiast for Best Buy. In health care, the most valuable customer is, for example, the Medicare member who is effectively controlling a disease – a diabetic who is eating right, exercising, and going to check-ups. The Plan is being paid more for this member while the member is managing their health effectively and is working in concert with the health care system in cost effective ways. 

Our solution incents plan members to engage in high-value behaviors such as Diabetic eye exams, check-ups, and screenings. Loyalty is created between the member and the plan as the member is more engaged in managing their health. The advent of managed care is about a member taking their health management personally. Higher engagement and loyalty to their plan, provider, and person drives a loyalty to the system. 

Is it more difficult to create awareness/customer engagement in the health care industry?

Mauer: One of the toughest challenges is that most people do not hold their health insurance companies in the highest regard. Research shows only 7% trust their health plan – only slightly better than the 6% that trust social media companies. Only tobacco (3%) and oil (4%) companies were trusted less. Of course, the more a plan utilizes companies like Novu, the higher the trust level will become. 

How is technology leveraged at Novu?

Mauer: In several ways. We leverage data science and behavioral analytics to determine who in a plan has the greatest propensity to engage, how they would like to engage, and on what health improvements they should focus. Our engine is our technology platform. The platform delivers a personalized user experience based on a member’s profile and needs. It will dynamically manage the member based on their decisions and choices. Delivered via a broad array of communication channels (such as online, email, SMS, mobile, direct mail, live agent call centers, and IVR that we characterized as Omni-channel), the member chooses when and how to engage. 

How do you glean customer insights?

Mauer: Really a two-staged approach. We use the insights from our data science and then, more importantly, as members make decisions on how, when, and where to take health actions. Our ultimate goal is to have plan members take actions to drive high-value behaviors. The more a member engages with us, the more we learn about them and the better we are able to serve them in the future. 

What metrics do you use to measure customer engagement/CX?

Mauer: We use a broad range of metrics to gauge member experience, member behavior, utilization, visits, navigation, healthy outcomes, channel, education, and redemption value. One of our important value components is the ability to provide health plans with member engagement data on the plan population. Plans manage risk and the more data they have the better they are able to manage that risk. 

An indication of the value our members have for our programs is member participation rates. Novu’s typical participation rates by member type are as follows:
o     Commercial: typical range 70%-90%
o     Medicare Advantage: typical range 75%-85%
o     Medicaid: typical range 55%-65%

These are very high figures for a health care plan. Especially when you consider that 45% of consumers maintained a consistent level of loyalty to the top 100 CPG brands in the U.S. from 2014-15.

What is involved in population health management and what role does it play in Novu’s business model?

Mauer: Population health management (PHM) is a very broad industry term. And one that is very popular today as technological disruption hits the health care industry. An easy way to explain PHM is using data to improve both clinical and financial outcomes on the behalf of members. Novu leverages data from multiple sources to optimize member engagement, and personalize communications to deliver a positive health outcome. This benefits both the plan and the member and society overall. Once a member is taking action, we can intelligently learn their preferences and behaviors which we dynamically incorporate into the experience. 

Recent Content

Membership and Pricing

Videos and podcasts

Membership and Pricing