In the final post of the series, e123 President Brendan McLoughlin recaps the detailed 6-step guide on how you can implement Strategic Revenue Management (SRM) framework within your organization.
Over the past few months, the Strategic Revenue Management (SRM) blog series has walked you through the process of how to use data to focus your resources in the markets you can win. It’s the opposite of trying to be everything to everyone…and the opposite of conventional wisdom. The only way to compete against bigger competitors with bigger budgets is to play your game, not theirs, by focusing on where you can win.
In my final SRM blog, we will show you how it all comes together by following the journey of one local carrier's journey from struggling competitor to market leader. The carrier may be fictional, but the lessons learned are both real and applicable.
Let’s use MD-Care in Maryland as our example, with data that we created for illustrative purposes only.
MD-Care had 47,000 members spread across every county in the state, hoping broader coverage would drive growth, but that strategy wasn't working. When they conducted a Local Relative Market Share (LRMS) analysis as part of Step 1: Assess, the results were eye-opening. While MD-Care had just 8% overall state market share, they discovered pockets of strength that unlocked new opportunities.
Let’s take a closer look. In Anne Arundel County, their 22% market share put them second behind a national carrier's 25%, with an LRMS of 88%. In contrast, their 4% share in Montgomery County, the very competitive suburbs of Washington DC, had an LRMS of just 8.5% compared to the leading national carrier at 47%.
MD-Care had been spending heavily trying to compete in affluent suburban markets while ignoring working-class communities where they already had credibility. Their strongest performance came in counties with large veteran populations and higher diabetes rates, where their existing provider relationships, strong agent network, and favorable benefit designs created natural advantages.
So, they stopped chasing Montgomery County and focused on the eight counties where their LRMS exceeded 50%. This concentration strategy became the foundation for everything that followed.
With their target markets identified, MD-Care moved to Step 2: Plan and began aligning their product portfolio with their priority markets. They discovered their Medicare Advantage plan with enhanced diabetes management was driving 73% of their growth in key counties, while their basic commercial plans were unprofitable.
They doubled down on their "hero product," positioning their diabetes-focused Medicare Advantage plan as the choice for seniors managing chronic conditions. They eliminated three underperforming commercial products and reinvested those resources into enhanced diabetes benefits, including continuous glucose monitoring and nutrition counseling.
Geographic focus revealed another opportunity. Veterans represented 18% of the population in their strongest counties versus 12% statewide. MD-Care enhanced its veteran benefits and began targeting the zip codes with the highest veteran density within its priority markets.
The planning phase also identified distribution gaps. While they had strong agent coverage in Anne Arundel County, they were largely absent from two high-opportunity rural counties despite strong LRMS potential. This became their recruitment focus.
Products don't sell themselves. Great agents do. Following Step 3: Push, MD-Care focused on recruiting and motivating the right distribution partners in their priority geographies.
They recruited new FMOs with strong rural networks and existing relationships in their target counties, including agents who were veterans themselves. But recruitment was just the beginning. MD-Care differentiated itself by making agents' jobs easier.
They launched a digital commission platform that accelerated accurate, transparent commission payments. They developed product training specifically focused on diabetes management and veteran benefits so that agents could sell their products with confidence. Most importantly, they introduced performance bonuses tied to their strategic priorities with extra compensation for veteran enrollments and diabetes plan sales in priority counties.
Top-performing agents became strategic partners, not just distributors. Agent satisfaction and productivity increased as they worked smarter, not harder, with access to better technology, tools, and training.
With distribution aligned, MD-Care turned to Step 4: Pull. Instead of statewide generic consumer marketing and advertising, they concentrated their budget on their priority counties and demographics.
They launched a targeted direct mail campaign with messaging that focused on how their benefits, including continuous glucose monitoring, nutrition counseling, and local endocrinologists partnerships, helped manage diabetes.
Outdoor advertising focused on community centers, VFW halls, and senior centers in their target areas. Every piece of marketing included a clear call to action directing prospects to agents who specialized in these products.
The pull strategy also included consumer education. MD-Care created comparison tools showing how their diabetes management benefits stacked up against national competitors. They hosted educational seminars at senior centers, not to sell directly, but to establish credibility and generate qualified leads for their agents.
Customer acquisition cost decreased as agents received better leads who were already familiar with MD-Care's benefits and ready to enroll.
During Open Enrollment, MD-Care implemented Step 5: Optimize by monitoring daily performance. Instead of waiting weeks for enrollment reports, they tracked applications in real-time by county, product, and agent.
When their dashboard revealed that applications in Harford County were lagging, they took immediate action. They contacted agents to understand what was happening in the struggling region and learned that several agents were pushing a competitor’s product over MD-Care’s, as they misunderstood some of the benefits. MD-Care quickly produced a supplemental educational flyer and added an extra commission bonus for Harford County.
By the end of open enrollment, targeted adjustments helped Harford County meet expectations and drive additional agent loyalty. Real-time optimization became their competitive advantage that agents valued.
The moment open enrollment ended, MD-Care focused on Step 6: Repeat. Instead of waiting months for reports to assess performance, they used real-time data to start their next SRM cycle and refined their strategy immediately.
Analysis revealed that their diabetes-focused approach had increased LRMS in priority counties from an average of 52% to 67%. Veterans were enrolling at a higher rate than the general population of seniors. Member satisfaction scores improved, indicating that their targeted approach was creating better member experiences, not just more enrollments.
For the next cycle, MD-Care expanded its veteran focus and began exploring COPD management as a second hero product. They also identified three additional counties where their improved market position created new LRMS opportunities.
With a Strategic Revenue Management mindset, MD-Care no longer felt like it was constantly fighting an uphill battle. By focusing on markets where they could win and aligning resources behind that strategy, they transformed from a regional afterthought into a local powerhouse.
MD-Care's success wasn't about having more products or bigger budgets than national carriers. It was about strategic, data-driven execution. And while the data in this article may be theoretical as we can’t share real client data, we have seen extensive, real-world data that supports Strategic Revenue Management as a winning strategy.
If your organization is ready for predictable, profitable growth through Strategic Revenue Management, e123 provides the technology platform and strategic guidance to make it happen. Schedule a consultation with e123 and discover how SRM can help you dominate in local markets.
To learn more, download our Strategic Revenue Management whitepaper, watch my presentation on SRM, or revisit previous blogs on each step of the process.