The wellness prescription

Abstract

Purpose

The purpose of this paper is to explore how loyalty marketers are inspiring and incentivizing consumers to stay healthy in the wake of sky‐rocketing health care costs and a new US health care bill.

Design/methodology/approach

The paper's approach is to tap into well‐known wellness program providers, like Virgin HealthMiles, CIGNA and CVS Caremark, to provide insight into how marketers are looking to utilize the “carrot” (positive incentives) to inspire consumers to stay healthy rather than the stick (punishment).

Findings

The new health care legislation signed by President Obama in March, the Patient Protection and Affordable Care Act, has put a firm stamp of approval and support behind the use of incentives and rewards by health and wellness programs. In effect, loyalty marketing tactics are becoming a more important tool than ever in health care reform. Most noticeably, beginning in 2014, employers will be able to offer their workers an increased amount of rewards, worth up to 30‐50 percent of their health coverage costs, for participating in a wellness program and meeting health benchmarks. In addition, health insurance companies will be required to implement health and wellness promotion activities.

Practical implications

Deploying loyalty tactics by the “carrot” contingent has put into practice the growing disciplines of “behavioral economics” and “choice architecture” that have become hot topics over the past couple of years within various industries, including government and finance. Best‐selling books such as Freakonomics and Predictably Irrational have focused on behavioral economics, defined as the use of social, cognitive and emotional factors in understanding and influencing the decisions of individuals. Digital tools are being used to create a handy consumer‐direct link and motivational boost to the consumer‐pharmacy relationship. WellQ – a wellness behavior‐change program developed by LoyaltyOne in partnership with the American Pharmacists Association – seeks to help patients shift their own behavior around their medications and health care, with the help of their retail pharmacy, where consumers sign up and provide a profile of medications and current health habits. Through WellQ, they then begin to receive mobile text‐based reminders as well as bite‐size educational and motivational content around self‐care delivered to their cell phones.

Originality/value

The paper provides exclusive interviews with representatives from some of the largest wellness program providers in the industry today. It also gives tangible tips and tools to utilize in real‐world marketing plans.

Citation

Goldman, S.M. (2011), "The wellness prescription", Journal of Consumer Marketing, Vol. 28 No. 1, pp. 87-91. https://doi.org/10.1108/07363761111101985