Accolade - Key Business Drivers
Six key drivers for Accolade's business are its personal advocacy solutions (technologies), customer relationship/satisfaction, increased membership, financing/investment, clinical expertise, and cost of health for employers.
We began our research by looking for sources with pre-compiled information on the key drivers for Accolade's success. After thoroughly reviewing Accolade's website, news reports, press releases, and industry reports, we could not find pre-compiled information.
As a result, we opted to leverage information obtained through the above strategy to attempt to determine the factors that make Accolade successful, by drawing inferences from information that point to the company's growth over time as a measure for success. Below are six key drivers for Accolade's business, as deduced from available information about the company.
KEY DRIVERS FOR ACCOLADE'S BUSINESS
#1: PERSONALIZED ADVOCACY SOLUTION (ACCOLADE TECHNOLOGIES):
According to GeekWire, technology is the reason for Accolade's growth and success. By recognizing that healthcare is a complex industry without much technology at the core of it, Accolade is committed to using technology to change the healthcare system. The company's success through technology is due to its efforts in "building an open, accessible technology platform" that addresses the concerns of healthcare professionals and providers, as well as their clients through applications and online dashboards.
Accolade's cloud-based platform integrates and personalizes employer health and benefits programs, offering a simplified experience thereby increasing engagement. The platform holds a wide range of client data which includes lab results, biometrics, medical and Rx claims, point solution data, risk scoring, among others. These sets of data offer personalized healthcare recommendations by health assistants.
Accolade's technologies include Maya Intelligence Engine, Accolade Mobile, Accolade Ecosystem, Accolade Online, Accolade IQ, and Accolade InView.
#2: CUSTOMER RELATIONSHIP/SATISFACTION:
Accolade takes pride in "building long-term, one-to-one relationships" with its members, and addressing all of their needs and concerns. For the company, compassion is the foundation for establishing trust with members, while providing seamless, personalized support that influences healthcare decisions. The company's customer service helps and guides its members through the intricacies of the healthcare system. Its health assistants support members, addressing concerns such as inquiry and any issues related to benefits, eligibility, claims, and billings.
According to Crunchbase, Accolade consistently achieves Net Promoter Scores of 70 and higher, with 98% consumer satisfaction ratings.
#3: INCREASED MEMBERSHIP (NUMBER OF CUSTOMERS/MEMBERS):
According to a GeekWire article, as of 2016, Accolade had been serving more than 800,000 members. However, in a March 2018 press release by Accolade, the number of members reached 1.1 million. In another press release on August 29, 2018, Accolade reported that its total membership increased to more than 1.5 million.
In 2016, Accolade received $70 million in funding from Andreessen Horowitz and Seattle-based Madrona Venture Group, bringing the total funding raised as of that time to $90 million. The fund was to be used to improve the Accolade technology platform, sales & marketing initiatives, and research & development for the company's drive in innovation. Then, in 2018, Accolade announced that it had received an additional $50 million in funding, to be used to expand the company's workforce, entrance to new market opportunities, and expand its Personalized Advocacy solution offerings for its members. According to Crunchbase, Accolade has raised a total of $217.3 million funding from eight rounds.
#5: CLINICAL EXPERTISE:
Accolade takes pride in the clinical model which it provides its members with. The Accolade clinical team has multiple and advanced degrees, with vast experience and specialization, which includes oncology, pediatrics, and behavioral health, among others. This team comprises nurses, doctors, and clinical specialists utilizing evidence-based support for any condition.
Among several activities, the Accolade clinical team coordinates and communicates with healthcare providers to close the gaps in care and guarantee continuity across care settings. Additionally, Accolade offers integrated clinical services and programs to provide consistent support, which includes case management, high-cost claimants, nurse triage, disease management, Rx support, maternity, behavioral health, pre-admission & post-discharge support. With this, Accolade is assured of better engagement among members, recording 90% high-cost claimants annually and a 6.1% reduction in ER visits.
#6: COST OF HEALTH FOR EMPLOYERS:
According to PR Newswire, a study was conducted by the global professional firm, Aon, comparing medical utilization and financial results among some of the largest and most competitive benefits programs in the United States using IBM MarketScan Research Database. Based on the study, Accolade personalized advocacy achieved "substantial and sustainable healthcare cost savings" — between $527 and $782 per employee per year — across entire employee population of all ages, conditions, spend categories, and health profiles. It confirmed that to reduce healthcare cost, it needs to engage the whole population, and provide a deeply personalized experience through people and technology. According to Accolade, its programs allow for 4.4% cost savings in the first year, reaching 15% savings in the fifth year.