Bupa’s ‘health partner’ focus drives customer growth

Bupa’s strategy to be a health partner to its members rather than an insurance company is delivering results as the brand tops trust ratings and drives growth.

The Bupa Health Insurance advertising campaign was created by Thinkerbell with production by Good Oil, Puffin and Rumble. Media was by Atomic 212.

Bupa’s strategy to reposition as a healthcare partner, rather than an insurance company, is delivering results with the business reporting seven consecutive quarters of growth.

The expansion has been supported by a major customer endorsement, with the brand recognised as the most trusted private health insurance brand in the country in the Roy Morgan Brand Trust awards.

It’s the first time the British-owned brand has received the title, and Bupa Health Insurance general manager of marketing Naomi Driver says the win is an endorsement of its customer-centric focus.

Naomi Driver is the general manager of marketing at Bupa Health Insurance

“When you’re talking about people’s health, building trust is a guiding principle in all that we do,” Driver says. “We’re focused on how we keep improving to make sure that we can continue to maintain that trust.” The private health insurance market is notoriously competitive and has historically been driven by price-based promotional offers that have led to high churn and reduced brand loyalty.

In a bid to distance the brand from this approach and differentiate Bupa has been focused on “making sure that we’re seen as a health partner”, she says.

“(Private health insurance) is a category of same-same and trying to differentiate is really challenging. We’ve tried to do that through the products and the propositions that we’ve brought to market this year.

“We have been really focused on making sure that members understand how to get value from their health insurance.

“Cost of living challenges have obviously been playing out this year.

However, we’re still seeing increased numbers of people choosing health insurance, which I think speaks to the focus on health at the moment.”

More than half (54.6 per cent) of Australians hold some form of health insurance.

The market is dominated by Medibank and Bupa, which together hold 52.2 per cent of the market, according to figures from the Australian Prudential Regulation Authority.

Bupa currently boasts a 25.4 per cent share of the overall market with 3.85 million customers, according to figures from June. This was up from 24.9 per cent share and 3.74 million customers in June 2023.

Bupa hopes to attract new customers through its member benefits such as free dental fillings and online mental health support.

Ms Driver said the new positioning and the rollout of a significant campaign, ‘‘Good Health is Contagious’’, has played an important role in ensuring high awareness in the market.

However, she says Bupa’s member benefits, such as free dental fillings, free telehealth services, online mental health support and chemist deliveries – all of which launched this year – are key factors in attracting new customers.

“We have seen some really great growth and I do think how we’ve portrayed the brand in the market is part of that, but it’s really been the propositions that we’re talking about that has created that connection to new segments for us,” she says.

Driver says the brand’s new customers are a combination of young people entering the health insurance market for the first time, as well as customers shifting from other funds to join Bupa. The cultural focus on health after the pandemic also continues to benefit the category in general as more people take up private healthcare policies.

Bupa is a sponsor of the Nike Melbourne Marathon.

“They’re experiencing record numbers of people wanting to participate in those types of activities, which speaks, again, to the focus that people have on proactively thinking about their health,” says Driver.

The booming interest in health and fitness was a key insight behind the current campaign, which launched in April, and will continue running into next year.

Bupa Health Insurance’s ‘Good Health is Contagious’ campaign aims to positively inspire Aussies to think about their healthcare.

“The human truth that’s kind of behind this healthy behaviour catching on is very much our whole campaign.

“The idea came from a running club that a guy from finance started and half of the marketing team joined it, and then half of the creative agency joined as well.

“It was this human truth of how to spread this positivity.

“We wanted to show what could happen for our members and spread that positivity around Australia.”

Following the launch of the campaign, Bupa underwent a creative review and adopted a new model to consolidate its marketing approach.

The brand ended its 3.5 year relationship with Thinkerbell and appointed CHEP Network as its lead marketing agency.

The new model will see CHEP Network supported by specialist agencies 2045, Six Black Pens and Scooter as it works to navigate the category challenges.

“We’re focused on capitalising on this health moment and we’re creating and launching a lot of propositions next year,” she says.

“But making sure that our members feel like they have value with us is really paramount.

“We’ve got to be careful that through the offers and promotions that it’s not a race to the bottom, but more about focus on helping our customer realise value and benefit,” says Driver.