UK update for the Vitality Group Webinar - 14th May 2020
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Purpose The purpose of this paper is to provide a summary update on the recently launched “Vitality at Home” initiative, looking at: 1. Benefits 2. Early engagement analysis 3. Covid-19 behavioural change. 2
UK Vitality’s response to Covid-19 Keep every staff member safe Ensure business continuity Shared-value model as an Maintain connectivity Ensure products are fit-for-purpose antidote to some of the potential Maintain productivity Keep people healthy and active shifts to our world Protect and Protect and Support support our support our clients society people and advisers Maintain financial strength and resilience
We have had to recalibrate our programme with relevant benefits to allow our members to be active and rewarded at home. Key focus areas Fitness and staying active Healthy eating Rewards at home 4 months 12 months 50% off selected 25% cashback Earn up to 2 Monthly coffee access access devices on healthy food movies a week to your home Points automatically Regardless of activity One movie for 12 points, two Ground coffee or capsules, plus awarded for home workouts points earned movies for 40 points 50% off other items on order Status Protection: For plans renewing in the next 3 months, we apply the higher of the previous or current year’s status, on the next plan year 4
Virtual Vitality Healthchecks Branded Home Testing Kits Automated booking platform for appointments with our Vitality Coaches and Nurses Last updated 23rd April 2020. 9 6
VitalityHealth’s benefits have been adapted to continue offering excellent value to members despite the pandemic Launched Covid-19 Cash benefit which pays £250 per night Increased availability of virtual GP services by 20%, and for the first 8 nights, plus £500 for each night in hospital extended our GP Advice Line to VitalityLife and thereafter, up to a maximum of £5,000 VitalityInvest members Vitality GP GP Advice Line 292% increase in utilisation Launched Launched 20 March 9 March Fast-tracked launch of Member Care Hub, which gives Reimbursing specialists for initial and follow-up members access anytime, anywhere through consultations performed remotely, with the majority now a digital platform to search, find and book care offering virtual consultations Launched 23 March
We have introduced options to help members in financial difficulty VitalityHealth Premium Saver Launched VitalityLife Cover Buy Back Option Launched 14 April 3 April Members can choose to reduce Clients can choose to reduce premiums by premium and cover by 25%, 50% 50% for 3 months. Cover reverts to normal or 75% for 3 months 3 months 3 months 3 months When they resume payments in full, they will Cover and premiums be subject to a 3-month waiting period on automatically revert to prior level hospital authorisations for anything other w/o UW at end of 3 month period than cancer
Since the start of the lockdown, we have been engaging members with relevant content delivered via social channels by Vitality’s Ambassadors Vitality at Home Instagram series Launched 28 March
This healthy and active ‘stay at home’ content is now being amplified to the entire UK via the new Vitality at Home brand ad • In the advert, Vitality ambassadors At Home invite the UK over to their homes • For a 2 week period, this will run on ITV, Channel 4 and Sky, reaching in excess of 8.1m viewers • The campaign aims to maintain Vitality’s strong brand awareness at a time at which most of our out of home advertising and sponsorships are paused
Section 2: early engagement analysis 5
Summary Engagement Summary engagement Fitness and staying active Healthy eating Rewards at home 4 months 12 months Up to 50% off 25% cashback Earn up to 2 Monthly coffee access access selected devices on healthy food movies a week to your home 15,000 sign-ups 100,000 home workouts 25% growth in 41,000 sign-ups 51,000 registrations 8,000 sign-ups benefit take-up 215,000 movie (c44k eligible) 17,000 registrations vouchers issued 5x increase in daily run rate 8,000 devices Points automatically Regardless of activity One movie for 12 points, two Ground coffee or capsules, plus awarded for home workouts points earned movies for 40 points 50% off other items on order Status Protection: For plans renewing in the next 3 months, we apply the higher of the previous or current year’s status, on the next plan year 10
Cross-sectional view of take-up Benefit Distribution DEVICE ONLY 12.1% Number of Vitality PELOTON ONLY 16.4% Distribution at Home Benefits RAKUTEN ONLY 54.2% 1 82.7% PELOTON AND DEVICE 0.4% 17.4% have 2 16.8% taken-up PELOTON AND RAKUTEN 15.0% 3 more than 0.6% 1 benefit RAKUTEN AND DEVICE 1.3% TOTAL 100.0% PELOTON AND RAKUTEN AND DEVICE 0.6% TOTAL 100.0% (accurate to mid April) 11
Cross-sectional view AGE BAND GENDER TOP 5 REGIONS STAFF VITALITY STATUS Female Male 24% Yes 01… 0% 19% 10… 0% 4% Bronze 14% 20… 10% 10% 9% 8% 30… 38% Silver 16% 42% 40… 37% 50… 12% 58% Gold 22% 60… 2% 70… 0% 96% Platinum 48% 80+ 0% FAMILY DESCR. FAMILY SIZE BOOK PRODUCT GROUP PLAN LEVEL 44% Health 36% Plus 5+ 4% 27% 21% 1% 24% 24% 16% 4 15% 36% 9% 3 10% 2 27% 64% 1 44% 99% Last updated 23rd April 2020. 12 14
Cross-sectional view AGE BAND GENDER TOP 5 REGIONS STAFF VITALITY STATUS Female 23% Yes No 01-09 1% 20% 2% 10-19 1% Bronze 44% 20-29 22% 9% 8% 8% 30-39 40% 41% Silver 17% 40-49 25% 50-59 9% 59% Gold 16% 60-69 1% 70-79 1% 98% Platinum 23% 80+ 0% FAMILY DESCR. FAMILY SIZE BOOK PRODUCT GROUP PLAN LEVEL Health 43% Plus 53% 5… 3% 27% 14% 23% 4 11% 16% 14% 18% 6% 43% 3 8% 57% 2 25% 1 53% 86% Last updated 23rd April 2020. 14 15
Section 3: CV-19 behavioural change 15
Covid-19 – activity behavioural change The analysis (until mid April) demonstrates that initially during lock-down we saw Coronavirus was having an impact on top of the usual seasonality we see of decreasing physical activity from Jan/Feb through into March. Where members do drop activity, the magnitude is typically one activity band i.e. 10 points or less. Gym members have been more likely to drop a points-band than non-gym members. Members that only use Cinema + Starbucks appear to be slightly more impacted than other members. Apple Watch members appear to be less impacted than non-Apple watch members. Amazon members appear to be less impacted than non-Amazon members. Members with lower engagement levels have been more likely to drop to ‘zero’ points. This is particularly strong for: Gym members and members that only use Cinema + Starbucks Single parents Lower ages Larger family sizes Very interestingly, we are witnessing previously unengaged members now engaging: 9%, 5% and 28% of all Peloton, Rakuten and Device members, respectively have never used a benefit over the past 12 months. 25% of all Rakuten members have never been awarded cinema codes over the past 12 months 31% of all new Device members have never earned a physical activity point over the past 12 months All of the above has been cut by demographic (age, geography, family structure – single, couple, family, single parent – product and plan type, gym members, cinema & Starbucks users, AW users, Amazon users etc). 16
Impact on Physical Activity Over 1 in every 6 physically active members had a drop in their average physical activity band per week from ‘Jan/Feb’ to ‘mid April’ 2020 (above and beyond normal seasonality). COHORT 2019 PERIOD 2020 PERIOD IMPACT DECREASED 22.8% 37.5% 14.7% NO MOVEMENT 58.7% 49.3% -9.3% INCREASED 18.5% 13.2% -5.3% TOTAL 100% 100% 0% Members at higher engagement levels were more likely to see a drop in points-band. PRE-COVID 2019 PERIOD 2020 PERIOD IMPACT 1-10 26.4% 36.0% 9.6% 11-20 24.8% 36.5% 11.7% Proportion of total entities that DECREASED in 21-30 25.9% 44.4% 18.5% each band of physical activity points: 31+ 16.9% 33.9% 17.0% TOTAL 22.8% 37.5% 14.7% 17
Impact by Demographic Lower ages were more likely to see a drop in points-band. The Members in London were most likely to see a impact was statistically insignificant for the 80+ age band. drop in points-band. Proportion of total entities that DECREASED in each AGE BAND: Proportion of total entities that DECREASED in each REGION: AGE 2019 2020 2019 2020 IMPACT REGION IMPACT BAND PERIOD PERIOD PERIOD PERIOD 10-19 29.4% 47.0% 17.7% East Midlands 21.8% 32.9% 11.1% 20-29 28.5% 44.8% 16.3% East of England 22.5% 36.8% 14.3% 30-39 23.6% 39.9% 16.3% London 23.3% 45.7% 22.4% 40-49 19.9% 34.5% 14.5% North East England 22.7% 34.2% 11.5% 50-59 20.1% 31.2% 11.1% North West England 23.8% 33.2% 9.3% 60-69 19.6% 26.7% 7.2% Northern Ireland 22.7% 31.2% 8.5% 70-79 17.1% 26.5% 9.4% Scotland 22.8% 34.0% 11.2% 80+ 25.9% 36.9% 11.0% South East England 22.0% 35.5% 13.5% South West 22.4% 33.0% 10.6% England Wales 23.4% 33.6% 10.2% West Midlands 23.3% 33.3% 10.0% Yorkshire and the 22.7% 32.6% 10.0% Humber 19
Impact by Demographic (cont’d) Couples saw a slightly smaller impact compared to other family structures. Proportion of total entities that DECREASED in each type of FAMILY STRUCTURE: FAMILY 2019 PERIOD 2020 PERIOD IMPACT STRUCTURE Single 24.0% 39.3% 15.2% Couple 22.6% 35.4% 12.8% Family 21.1% 36.1% 14.9% Single Parent 20.6% 36.0% 15.4% Health members were more likely to drop in points-band than Life members. The biggest impact has been on singles for Health and larger family sizes for Life. Proportion of total HEALTH entities that DECREASED in each FAMILY SIZE: Proportion of total LIFE entities that DECREASED in each FAMILY SIZE: FAMILY 2019 2020 FAMILY 2019 2020 IMPACT IMPACT SIZE PERIOD PERIOD SIZE PERIOD PERIOD 1 24.3% 41.4% 17.1% 1 23.6% 35.7% 12.0% 2 23.0% 37.4% 14.4% 2 22.1% 34.2% 12.1% 3 22.4% 37.7% 15.3% 3 19.1% 32.7% 13.6% 4 21.5% 36.3% 14.7% 4 17.3% 33.0% 15.7% 5+ 22.6% 37.0% 14.4% 5+ 18.7% 37.2% 18.6% TOTAL 23.4% 39.3% 16.0% TOTAL 22.1% 34.7% 12.6% 20
With more recent data we can see that some activity levels are normalising once again Members with 40 activity points in week to date Members with 12 activity Members points with 12+ inpoints activity week to date week to date 70,000 250,000 60,000 200,000 50,000 150,000 40,000 30,000 100,000 20,000 50,000 10,000 0 0 Mon Tues Wed Thurs Fri Sat Sun Thurs Fri Sat Sun Pre Cov19 Ave 30 Mar Pre Cov19 Ave 30 Mar 06 Apr 13 Apr 06 Apr 13 Apr 20 Apr 27 Apr 20 Apr 27 Apr It appears with our most engaged members that For our moderately engaged members activity is activity is normalising to pre-Covid levels at c75% of pre-Covid levels 21
UK update for the Vitality Group Webinar 14th May 2020
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