Nuts & Bolts - Case Study: eHealth Finds Fulfillment With 'Personal Trainer'
Not only did the switch to automation increase efficiency, Matalucci says it reduced production and fulfillment costs. In 2011, eHealth paid 46 cents per unit to send out applications. As of presstime, the company reports spending 26 cents a unit, saving 20 cents. Follow-up letters, once priced at 12 cents, now cost a dime. Iron Mountain's bulk mailings also save eHealth an average of 28 cents per application and 4 cents on each follow-up letter.
"So we'll continue to expand the relationship there," Matalucci says, "and then maybe define ways to improve the customer experience—working with Iron Mountain—by possibly regionalizing where that mail is being shipped from, which might shorten the mail delivery time."
As for eHealth hiring Iron Mountain so the agent and broker could concentrate on its core strengths, 50 percent more consumers submitted applications to enroll in individual and family plan insurance in Q4 2013 than the 113,600 who did in Q4 2012. And CEO Gary Lauer only expects that number to grow in 2014 and beyond, which may mean more work for eHealth's personal trainer.