finding & engaging today's insurance customer
DESCRIPTION
Who are today's most attractive insurance customers? Insurance communicators and marketers have an ever-growing range of tools at their disposal. What works for one target segment may repel the next. Even the same customer may need to be managed differently depending on the nature of the insurance product and the customer's immediate situation. A look at how insurance marketers can combine a better understanding of today’s customer attitude profiles with data, technology, branding and diverse communications channels to build compelling and consistent brand engagement with customers and prospects.TRANSCRIPT
© 2013 IBM Corporation
Finding & Engaging
Today’s Insurance Customer
Moments matter.
@LynnKesterson twitter.com/LynnKesterson
Lynn Kesterson-Townes
Worldwide Smarter Commerce Marketing Leader for Insurance
© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
Insurers’ customer strategies no longer work
Source: IBM Institute for Business Value. "Digital reinvention - Trust, transparency, and technology in the insurance world of tomorrow," January 2014
In the past two years, 37% of customers have switched their insurers
at least once
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© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
Insurers are being pressured by connected customers to change
Customers are more connected and empowered
Drivers of Change
Source: 2011 IBM Digital Transformation Study, IBV Analysis
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Cloud
Big Data & Analytics
Mobile
Social
© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
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Today’s insurance customers are demanding customer-centric interactions
50% of consumers seeking insurance begin on a mobile device
Source: The Nielsen Company, Mobile Path to Purchase, 2013
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© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
Millennials expect personalization, responsiveness and seamless experiences
Source: [1] IBM Student Study: Connected Generation Q5. “To what extent should organizations change to meet consumer expectations?”; [CEO Q9][2} “Winning Strategies for Insurers” IBV Study
New technologies enable consumers to expect and obtain more then ever before…
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© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
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Who is the insurance customer of today?
Source: IBM Institute for Business Value survey data 2013. n=7,921
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Today’s insurance customer is …
… looking for advice and interacting with others while shopping for insurance
… more concerned about price for value than price alone
... living omni-channel
... open to new products and ideas
© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
77
Psychographic segmentation improves customer interactions
Security-
oriented
individualist
Loyal quality-
seeker
Price-oriented
minimalist
Support-
seeking
skeptic
Demanding
support-
seeker
Informed
optimizer
“I get the right
insurance from the
right insurer”
“I need personal
advice”
“Peers help me
decide”
“I trust my insurer
and remain a loyal
customer”
“I do not like insurers
– make it cheap and
stay away”
“I will figure out what
I want myself”
Psychographic Profiles
© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
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Susan Johnson -- “Demanding Support-Seeker”
Profile:
Needs hand-holding
Low technology affinity
Likes individualized attention
Quality is more important than price
Wants comprehensive coverage
Likes trying new insurance products
Most likely to give up data privacy
“I need personal advice.”
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Preferred interaction points:
When searching – personal
When purchasing – personal
© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
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John and Ann Cook -- “Support-Seeking Skeptics”
Profile:
Social – rely on advice from friends
Don’t feel well informed about insurance
Medium technology affinity
Don‘t trust insurers
Don‘t switch products easily
“We need advice but prefer to keep our distance from insurers"
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Preferred interaction points:
When searching – peers
When purchasing – personal
© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
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Dan Torres -- “Informed Optimizer”
Profile:
Highly self-sufficient, but will listen to others
High technology affinity
Highly informed about insurance offerings through own research
Has positive view of insurance industry
Seeks optimal price/value ratio
Likes trying new products and services
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“I get the right insurance from the right insurer"
Preferred interaction points:
When searching – flexible with new technology bias
When purchasing – flexible with new technology bias
© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
1111
Affinity Channel
Agent/Broker
SMS
Web
SocialMedia
Apps
Voice
Chat
Customer
Ecosystem Partners
Consumers‘ search for insurance has become “omni-channel”
@LynnKesterson twitter.com/LynnKesterson
© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
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Insurers must engage customers in “moments of truth”
Understand Engage
Manage
Make useful recommendations about products and services
Give customers a means to share ideas
and opinions
Intervene when customers are struggling
Provide relevant content that informs the buying
decision
Send offers when customers are most likely to buy
Understand and respect customers’ preferences
Identify, develop, and reward brand advocates
Match service levels with expectations
Serve and sell to customers in their preferred channels
Rescue at-risk customers before they churn
© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
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Most insurers are only just beginning to prepare
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of insurance CEOs do not think their mobile strategy facilitates conducting business regardless of location
67%of insurance CEOs say they do not have a cohesive social strategy
66%of insurance CEOs do not have an integrated physical and mobile strategy
62%
© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
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Where should insurers start?
1Customer Insight
2 Personalized Marketing
3Seamless Brand Engagement
Affinity Channel
Agent/Broker
SMS
Web
SocialMedia
Apps
Voice
Partners
Chat
Customer
© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
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Seamless Brand Engagement delivers!
250%increase in
conversion rates
2x-5x enhanced
resource efficiency
2x-4x improved
cross-sell success rates
15%-30% increased campaign ROI
5%-15% improved customer
value, loyalty & retention
10%-50% enhanced response
rates
© 2013 IBM Corporation@LynnKesterson twitter.com/LynnKesterson
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Thank you.
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@LynnKesterson
twitter.com/LynnKesterson
Lynn Kesterson-Townes
Worldwide Smarter Commerce
Marketing Leader for Insurance