GoHealth, Inc. (GOCO): Marketing Mix Analysis [11-2024 Updated]

In 2024, GoHealth, Inc. (GOCO) continues to innovate within the competitive landscape of health insurance. The company’s marketing mix, encompassing Product, Place, Promotion, and Price, is meticulously crafted to enhance consumer engagement and streamline the enrollment process. Discover how GoHealth leverages advanced technology, strategic partnerships, and targeted marketing efforts to provide tailored health insurance solutions across the United States. Read on to explore the intricacies of GoHealth's business strategies and their impact on the market.

GoHealth, Inc. (GOCO) - Marketing Mix: Product

Offers Medicare Advantage, Supplement, and prescription drug plans

GoHealth, Inc. provides a range of health insurance products, including Medicare Advantage plans, Medicare Supplement plans, and prescription drug plans. As of September 30, 2024, the company generated $77.9 million in commission revenue from agency revenue related to Medicare products.

Utilizes a proprietary technology platform for consumer matching

The company leverages its proprietary technology platform to improve consumer matching and enhance the overall enrollment experience. This technology facilitates the connection between consumers and suitable health insurance products, streamlining the application process.

Provides a comprehensive marketplace for health insurance products

GoHealth operates a comprehensive marketplace that allows consumers to compare various health insurance products from multiple carriers. This marketplace is designed to simplify the decision-making process for consumers, ensuring they find the best plans to meet their needs.

Focuses on high-quality enrollments and consumer experience

The company's strategy emphasizes high-quality enrollments, aiming to enhance the consumer experience throughout the enrollment process. GoHealth's focus on improving consumer satisfaction is reflected in their increased marketing and advertising expenses, which rose to $136.0 million for the nine months ended September 30, 2024.

Partners with various health plans across the U.S.

GoHealth partners with several major health plans across the United States. Notable partners include Humana, United, and Elevance Health, which contributed significantly to their revenue streams. Humana accounted for 31.7% of revenues for the three months ended September 30, 2024.

Incorporates machine-learning algorithms to enhance service delivery

The incorporation of machine-learning algorithms into GoHealth's technology platform enhances service delivery by providing personalized recommendations and improving the efficiency of consumer interactions.

Features a consumer-centric Encompass operating model

GoHealth's Encompass operating model is designed to be consumer-centric, focusing on delivering tailored services that meet individual consumer needs. This model has resulted in a steady increase in submissions, reaching 166,195 for the three months ended September 30, 2024, reflecting a 2.9% increase compared to the previous year.

Metric	Value
Commission Revenue (Agency Revenue)	$77.9 million
Marketing and Advertising Expense (9 months 2024)	$136.0 million
Humana Revenue Contribution (3 months 2024)	31.7%
Total Submissions (3 months 2024)	166,195

GoHealth, Inc. (GOCO) - Marketing Mix: Place

Operates predominantly online through its digital health platform

GoHealth, Inc. primarily functions through its digital health platform, which allows consumers to access a wide range of health insurance products and services online. The platform is designed to facilitate user-friendly interactions, enabling consumers to compare plans and enroll in health insurance conveniently.

Services available across all 50 states and D.C.

As of 2024, GoHealth's services are accessible to consumers in all 50 states and the District of Columbia, ensuring a nationwide reach. This extensive coverage allows the company to cater to a diverse demographic, enhancing its market presence.

Engages with consumers directly via online and telephonic channels

GoHealth engages with customers through multiple channels, including:

• Online platform for self-service enrollment and plan comparisons.
• Telephonic support, where licensed agents assist consumers with inquiries and enrollment.

This multi-channel approach maximizes customer convenience and accessibility.

Collaborates with external agents and health plan partners

GoHealth collaborates with external agents and health plan partners to expand its service offerings. This collaboration allows GoHealth to leverage the expertise of external agents in the enrollment process, enhancing the consumer experience while maximizing the enrollment efficiency.

Uses a network of licensed agents for consumer enrollment support

To support consumer enrollment, GoHealth employs a network of licensed agents. These agents are crucial in guiding consumers through the enrollment process, ensuring that they understand their options and make informed decisions.

Offers services through both agency and non-agency models

GoHealth operates under two distinct models:

• Agency Model: In this model, GoHealth earns commission revenue when its agents enroll consumers and submit policy applications to health plan partners.
• Non-Agency Model: This includes services where GoHealth provides enrollment and engagement activities without being the agent of record. Revenue is collected in advance or close to the point of service.

Model	Description	Revenue Type
Agency Model	GoHealth agents enroll consumers and submit applications.	Commission Revenue
Non-Agency Model	Enrollment and engagement services without being the agent of record.	Service Fees

In the three months ended September 30, 2024, GoHealth reported net revenues of $118.3 million, down from $132.0 million in the same period in 2023, reflecting a shift in focus from non-agency to agency revenue due to changing carrier mixes within the non-agency channel.

GoHealth, Inc. (GOCO) - Marketing Mix: Promotion

Increased marketing and advertising spend to attract qualified leads

In 2024, GoHealth, Inc. reported a marketing and advertising expense of $45.3 million for the three months ended September 30, 2024, compared to $39.4 million for the same period in 2023, reflecting a 14.9% increase year-over-year. For the nine months ended September 30, 2024, the total marketing and advertising expenditure rose to $136.0 million, an increase of 9.3% from $124.4 million in the previous year.

Utilizes digital, television, and direct mail advertising strategies

GoHealth employs a multi-channel advertising strategy that includes digital marketing, television commercials, and direct mail campaigns to reach potential customers effectively. This diversified approach aims to maximize the reach and engagement with target audiences, particularly within the Medicare demographic.

Focus on generating submissions through internal agents

The number of submissions generated by GoHealth's internal agents increased to 166,195 for the three months ended September 30, 2024, representing a 2.9% increase from 161,550 in the prior year. However, for the nine months, submissions slightly decreased to 534,737 from 538,032 in 2023, indicating a 0.6% decline.

Engages in partner marketing with health plan companies

GoHealth collaborates with various health plan partners to enhance its marketing efforts. In 2024, partner marketing and other revenue accounted for $14.4 million in the three months ended September 30, down from $21.3 million year-over-year. This reflects a strategic focus on optimizing partnerships to drive submissions.

Enhanced consumer care initiatives to build long-term relationships

Consumer care and enrollment expenses for GoHealth reached $45.6 million for the three months ended September 30, 2024, slightly decreasing from $46.5 million in 2023. This reflects a focus on maintaining strong relationships with customers through improved service and support.

Focus on educational content to simplify enrollment processes

GoHealth emphasizes educational content aimed at simplifying the enrollment process for consumers. This includes providing resources that help potential customers understand their options and navigate the enrollment process effectively, thereby increasing conversion rates and customer satisfaction.

Metric	2024 Q3	2023 Q3	Change (%)
Marketing and Advertising Expense	$45.3 million	$39.4 million	14.9%
Submissions Generated	166,195	161,550	2.9%
Partner Marketing Revenue	$14.4 million	$21.3 million	-32.3%
Consumer Care and Enrollment Expense	$45.6 million	$46.5 million	-2.0%

GoHealth, Inc. (GOCO) - Marketing Mix: Price

Revenue generated primarily through commissions from health plan partners.

For the nine months ended September 30, 2024, GoHealth, Inc. reported net revenues of $409.8 million, a decrease of 10.5% from $458.0 million in the same period of 2023. The revenue is predominantly generated through agency commissions from health plan partners, which accounted for 78.2% of total revenues in 2024.

Pricing model includes both agency and non-agency revenue streams.

The company operates under two primary revenue models: agency revenue, which includes commissions from health plans, and non-agency revenue, which consists of engagement and enrollment services. For the nine months ended September 30, 2024, agency revenue was $318.7 million, while non-agency revenue reached $91.1 million.

Revenue share expenses decreased due to strategic shifts in agent utilization.

Revenue share expenses decreased significantly to $78.4 million for the nine months ended September 30, 2024, down from $117.9 million in the prior year, reflecting a 33.5% decline. This reduction was attributed to a strategic shift in agent utilization and a decline in submissions generated by external agents.

Marketing expenses increased to boost lead generation.

Marketing and advertising expenses increased to $136.0 million for the nine months ended September 30, 2024, compared to $124.4 million in the prior year, marking a 9.3% increase. This increase is aimed at enhancing lead generation and improving submission rates through targeted marketing strategies.

Adjusted pricing strategies based on changes in consumer behavior and market dynamics.

GoHealth has adjusted its pricing strategies in response to shifts in consumer behavior and market trends. The average Sales per Submission decreased to $761 for the nine months ended September 30, 2024, down from $817 in the prior year, a decline of 6.9%. This change reflects the impact of lower persistency rates and a shift towards agency revenue.

Focus on optimizing direct operating costs per submission to enhance profitability.

Direct Operating Cost per Submission for the three months ended September 30, 2024, was $1,034, compared to $1,013 in the same period of 2023. The company is focused on optimizing these costs to improve profitability, with adjustments made to operational efficiencies and marketing expenditures.

Metrics	2024 (Nine Months)	2023 (Nine Months)	% Change
Net Revenues	$409,762,000	$457,974,000	-10.5%
Agency Revenue	$318,700,000	Not Disclosed	Not Applicable
Non-Agency Revenue	$91,062,000	Not Disclosed	Not Applicable
Revenue Share Expenses	$78,376,000	$117,876,000	-33.5%
Marketing and Advertising Expenses	$136,049,000	$124,428,000	+9.3%
Sales per Submission	$761	$817	-6.9%
Direct Operating Cost per Submission	$1,034	$1,013	+2.1%

In conclusion, GoHealth, Inc. (GOCO) demonstrates a robust marketing mix that effectively addresses the evolving needs of consumers in the health insurance landscape. With a strong emphasis on product quality through comprehensive offerings and a consumer-centric approach, coupled with a wide-reaching digital presence, GoHealth is well-positioned for growth. Their strategic promotional efforts and adaptive pricing strategies further enhance their competitive edge, ensuring they remain a trusted partner for individuals seeking health insurance solutions.

Updated on 16 Nov 2024

Resources:

1. GoHealth, Inc. (GOCO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of GoHealth, Inc. (GOCO)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View GoHealth, Inc. (GOCO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.