presentation to the worksite benefits mania conference in las vegas 29-30 july 2015

Becoming #1 in WorksiteBecoming #1 in Worksite

Creating & Sustaining Customer Creating & Sustaining Customer EngagementEngagement

Becoming #1 in WorksiteBecoming #1 in Worksite

It’s 2015It’s 2015

What’s the problem?What’s the problem?

Becoming #1 in WorksiteBecoming #1 in Worksite• 1920’s: Avg. lifespan of S&P 500 company—67 years• Today: 15 years• 2020: 75% of the S&P 500 will be companies we haven’t

heard of yet• 2025: 40% of today’s top companies will no longer exist• 2020-2025: Google, Walmart

Source: Bold Diamandis and Kotler, Simon & Schuster 2015

Becoming #1 in WorksiteBecoming #1 in Worksite1. Problem: The traditional means of doing business

and why it’s vulnerable2. Solution: Customer centric marketing/sales;

recognizing and adapting to changing demographics3. Implementation: Using technology/tools to power

explosive growth

Becoming #1 in WorksiteBecoming #1 in Worksite

• Business evolution• No idea what’s going to happen• Extraordinary tools/capabilities technology provides

(Customer? Broker?)

Becoming #1 in WorksiteBecoming #1 in WorksiteSupposed you were asked whether your

company is Customer Centric?

Becoming #1 in WorksiteBecoming #1 in Worksite“Some people think football is a matter of life and death. I assure you, it’s much more serious than that.” Bill Shankley

If we, as an industry, are going to move to a 21st century marketing model, we must be able to implement customer centric marketing and sales strategies.

Product Centric MarketingProduct Centric Marketing

Product Centric MarketingProduct Centric Marketing

Product Centric Marketing Model•Product•Price•Promotion•Placement

Product Centric MarketingProduct Centric Marketing

Product Centric Marketing Model•Strategic Advantage•Divisions, Teams, Silos•Strengthening & Expanding Portfolio

Product Centric MarketingProduct Centric Marketing

Product Centric Marketing Model•Pursue the same customers with similar offerings•Use essentially undifferentiated capabilities & processes

Customer Centric MarketingCustomer Centric Marketing

Customer Centric MarketingCustomer Centric MarketingCommon Denominator: A better customer experience through innovation

Where is that better customer experience going to come from in our business—and what is going to make it unique?

Product Centric MarketingProduct Centric Marketing

• Inward vs Outward• Stifles innovation• Cannot sustain profitability/growth industry needs• Marketplace: Deep understanding of customer

Customer Centric MarketingCustomer Centric Marketing

“Business would be well served to know absolutely everything about their best customers.” Lester Wunderman

Customer Centric MarketingCustomer Centric MarketingFour Building Blocks of Customer Centricity:

4) Customer Profitability3) Customer Segmentation2) Value proposition1) Engaging Customer Interface

◦ Understanding individual needs / product set◦ Educating◦ Empowering Larry Seldon

Columbia University

Customer Centric MarketingCustomer Centric MarketingSignificant Drivers of Customer Satisfaction:

Smart/appealing engagement processCommitment to customer Product assortmentEase of transaction MIT Sloan Management Review

Customer Centric MarketingCustomer Centric MarketingWhere are we as an industry?

“Expect significant to massive changes in the industry in the next 5 years—with the most immediate challenges and opportunities stemming from changing customer behavior, and streamlining, personalizing and improving the customer experience.” Economist Intelligence Unit

Customer Centric MarketingCustomer Centric Marketing

How can these goals be achieved?

By implementing customer centric marketing and sales strategies in the enrollment process through technology.

Customer Centric MarketingCustomer Centric MarketingGather and manage large amounts of customer data.

Analyze and convert that data into insights to create—for their distribution partners— a unique, streamlined, highly personalized customer experience—an experience that manages all activity around the customer

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Diversity

Becoming #1 in WorksiteBecoming #1 in WorksiteMillennials:•Far different from previous generations•Want to have a sense that a company knows who they are will deliver an experience that reflects that knowledge • Willing to share personal information

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In 4 states (Texas, California, Hawaii, New Mexico) and the District of Columbia, minorities account for more than 50% of the population.

Source: New U.S. Census to reveal major shift:No more Joe consumer: Ad Age, Oct. 12, 2009

Becoming #1 in WorksiteBecoming #1 in Worksite

In 10 states (Texas, California, Hawaii, New Mexico, Mississippi, Georgia, Maryland, Florida, Arizona, Nevada) the share of children who are minorities has already passed 50%.

Source: New U.S. Census to reveal major shift:No more Joe Consumer. Ad Age, Oct. 12, 2009

Becoming #1 in WorksiteBecoming #1 in WorksiteAcross every major market in the United States, the majority of the child population is non-white.

Whites will be the minority in the country by 2041.

Source: Crafting the Customer Experience for People Not Like You, Kelly McDonald, John Wiley & Sons

Becoming #1 in WorksiteBecoming #1 in Worksite

Countries with the largest Latino populations?

Becoming #1 in WorksiteBecoming #1 in WorksiteCountries with the largest Latino populations:

1.Mexico 108.7MM2.United States 50.5MM3.Colombia 44.4MM4.Spain 40.4MM5.Argentina 40.3MM 6.Peru 28.7MM7.Venezuela 26.0MM8.Chile 16.3MM Source: Synovate CAI World Factbook 2010 Census

Becoming #1 in WorksiteBecoming #1 in WorksiteDiversity comes in many forms:

Gender Religion LBGT Age/Generation Rural/Metro Military/Civilian Life stage Racial Ethnic/Linguistic Foreign born or US born Physical Abilities Lifestyle/Affluence (Working poor, Middle class, Wealthy)Core Values (Environmentalists, Vegetarians, etc.) Source: McDonald Marketing

How do you connect with them? How do you get, and leverage, consumer insights?

Becoming #1 in WorksiteBecoming #1 in WorksiteWomen—

Want professional supportTrust what other women say

African American—Humor in marketing enjoyed & appreciated

Asian—Performance & dependability over costPositive marketing message‘American Dream’ is retirement success

Hispanic—Want a relationship, not a transactionGreat customer service Source: McDonald

Marketing

Becoming #1 in WorksiteBecoming #1 in WorksiteBiggest Concerns for:

Boomers (50-56)Unpaid mortgageCollege tuitions(s)Weddings

Source: McDonald Marketing

Becoming #1 in WorksiteBecoming #1 in Worksite Boomers (50-56)

◦ Unpaid mortgage◦ College tuitions(s)◦ Weddings

Boomers (57-66)◦ Retirement, positioned as ‘long-term security”◦ Aging parents

Source: McDonald Marketing

Becoming #1 in WorksiteBecoming #1 in Worksite• Boomers (50-56)

• Unpaid mortgage College tuitions(s)• Weddings • Aging parents

• Boomers (57-66)• Retirement, positioned as ‘long-term security• Aging parents

• Boomers (67+)• Debt• Their health, their aging Source:

McDonald Marketing

Becoming #1 in WorksiteBecoming #1 in Worksite

Trends affecting the customer experience:

•The iconic American family—married couple with children—accounts for a mere 20% of households•We don’t need information, we need advice

Source: Think Advisor, Online, July 7, 2015

Becoming #1 in WorksiteBecoming #1 in Worksite How do you connect with them?

How do you acquire and leverage consumer insights across a diverse

population?

How do you create an innovative customer experience?

Becoming #1 in WorksiteBecoming #1 in Worksite What are the objectives of your enrollment platform? •Gather, analyze and sort customer data in real-time?•Recognize and adapt to each demographic, customer group, and individual employee in real-time?•Instantly and dynamically personalize and adjust the tone and content based on the individual being enrolled?

Becoming #1 in WorksiteBecoming #1 in Worksite What are the objectives of your enrollment platform?•Does it create a personalized customer experience? •Make it easier for the customer to purchase products?•Business partner to help you win and retain business?•Does it support automated sales & marketing?•Engage employees on their terms and identify each employee’s needs and behavioral tendencies?

Dynamic, Customer Centric,Dynamic, Customer Centric,Data-driven Enrollment PlatformsData-driven Enrollment Platforms

•Better customer experience through innovation •Streamlining, personalizing, improving customer engagement•Technology

Data-driven vs Static EnrollmentData-driven vs Static Enrollment

The difference between static and data-driven enrollment is like the difference between having a great black box recorder and an outstanding pilot.

“Only marketers who are customer obsessed and adapt to consumer’s changing behaviors in real-time will succeed.” Shar VanBoskirk, Analyst, Forrester Research

•

Dynamic data-driven Enrollment—Dynamic data-driven Enrollment—the Differentiatorthe Differentiator

It’s not rocket science…is it? • Technology is valuable• People are priceless• TECHNOLOGY + HUMAN CAPITAL = SUCCESSWith today’s evolution of technology, WE, as an industry are EXPECTED to deliver a more sophisticated engagement process

Dynamic data-driven Enrollment—Dynamic data-driven Enrollment—the Differentiatorthe Differentiator

The industry’s BIG BANG!

Dynamic data-driven Enrollment—Dynamic data-driven Enrollment—the Differentiatorthe Differentiator

It’s about getting to know your customers in the right way, and relating to them in the right way, to generate the right results.

As insurers and brokers, it’s about leveraging the single most valuable asset you have: your customers.

QUESTIONSAfinium LTD83 Cambridge StreetLondonSW1V 4PS UKwww.afinium.com

403 Greenwich CtNew Hope, Pennsylvania 18938 USAO: 2215 862 3080M: 7038625715