How Nova Benefits Unlocked Competitive Advantage with Flexible Payment Offerings on GMC Deals

About Nova Benefits

Nova Benefits allows companies to design and manage group health insurance plans for their employees and their families based on their needs and preferences.

Founded in - 2020

Headquarters - Bengaluru, India

Company Size - 172 employees (via LinkedIn)

Total Funding - $11M (via Tracxn)

Customers Want Annual Plan Benefits Without Lumpsum Payments

1. A dip in insurance sales

Nova Benefits serves customers across the mid-market and Enterprise with specific plans for small and large teams. However, customers generally prefer making payments on their terms and avoid upfront payment hassles.

Eventually, Nova Benefits, like their peers in the insurance market, observed a gap in the sales for their group health insurance plans which were sold on an annual premium.

The customers who did sign up for these plans faced a capital crunch issue and increased overhead costs which impacted their experience.

2. Buyers looking for flexibility in payments

All customers wanted was to make payments based on their preferences. They wanted to optimize their capital management efforts without compromising on the insurance benefits and experience for their employees and their families.

Upfront payments in the insurance industry are a big concern for customers. Especially for smaller teams in the mid-market segment, making a lump sum payment with several overhead expenses is a significant hassle.

Nova Benefits Needed a Pivot To Set Them Apart From The Competitive Market

Nova Benefits knew complimenting customers’ demands was imperative and they needed to find a way to navigate the upfront payment hassle that could serve win-win situation for both them and their customers.

They didn’t want to compromise on their ARR from this insurance while the customers shouldn’t have to experience a cash crunch after paying the insurance premium. The pivot was a solution that SaaSPay helped Nova Benefits provide to their customers - Flexible Payments.

1. Offer Zero-Cost Payment Flexibility

Using SaaSPay, Nova Benefits allows its customers to reduce their overhead expenses with its payment flexibility layer.

Their customers leveraged SaaSPay’s Pay Later feature to split the group medical insurance premium over a 12 month period and eliminate upfront payments.

Additionally, Nova Benefits could offer its customers with a quarterly cashback to ensure they don’t just enjoy the GMC benefits but also improve their capital management.

2. Realize 100% TCV for on day 1

While customers would pay SaaSPay in monthly installments, Nova Benefits earns the TCV from these insurance plans on day 1 of the purchase.

This game-changing pivot positioned them in a competitive advantage over its peers in the insurance industry and helped them realize revenue 12x faster instead.