Post on 05-Jul-2018
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JakMar: Targeted Direct Marketing
Croatian Insurance Days 2011Bogomil Marn – Partner, JakMar
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Established markets
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Main Aims - focus on risk
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add a new and profitable distribution channel: Direct Marketing
increase the level of client’s…
Premium
Per
Customer
Percentage
Risk
Premium Profit
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Direct Marketing: complementary
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Targeted, personalized Direct Marketing
Complementary to other marketing channels, without being invasive
Agent Broker BancassuranceDirect
Marketing
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Feasibility Study
Insightful, confidential, no cost and no obligation
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Partner:
Information
gathering
JakMar:
analysis and
consideration
JakMar:
Report and
Presentation
Questionnaires
Phone and email
follow-up
Data extract
Interviews
(if necessary)
Business
objectives
Regulations
Customer base
SWOT analysis
Marketplace
Database extract
Offers
Segment Targeting
Direct Marketing
Campaign
recommendation
Financial projections
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Project overview
FeasibilityStudy
Campaign:Testing
Campaign:Rollout
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Flexible Financial Structure
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JakMar
Swiss Re
Insurer
50%
50% 50%
25% Allowance of Cession in Year 1 - Agents
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Direct Marketing of Risk Products
Generate additional business in cost effective manner
Up-sell / cross-sell commodity insurance products to non-life, health,
pension, bank
Some clients simply prefer to buy direct (10-20% growing)
Generate leads for agents
Improve persistency and client loyalty
Allow agents to concentrate on acquisition of new clients and on sizable
sales
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Economic crisis creates imbalance
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Economic crisis has
caused a reduction in
cash value of Investment
products
An increase in revenue
from your Risk portfolio
can help to level out this
imbalance
Revenue from Risk
portfolio less vulnerable
to changes in the market
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The psychology of Direct Marketing
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The affinity that the customer has with the institution plays an important role
The customer is more likely to respond favourably to Direct Marketing if the
institution is held in high esteem
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The psychology of Direct Marketing
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The quality of the communication will also effect the customer’s response
Expectation
Understanding Affinity
Recognition
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The key to successful Direct Marketing
Personalization + Relevance
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Direct Marketing can only be successful with the following:
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The key to successful Direct Marketing
Targeting + Segmentation
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Direct Marketing can only be successful with the following:
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Core Risk Product Strategy
ampaign Month
1 1
2 7
3 14
4+ New Products/New Services
Target Population
100,000
Initial Product
10,000 (10%)
Initial Product
90,000 (90%)
Re-mail 1
Initial Product
5,400 (6%)
Re-mail 1
Initial Product
84,600 (94%)
Re-mail 2
Initial Product
2,538 (3%)
Increase Offer
3,000 (30%)
Increase Offer
7,000 (70%)
Further Product
600 (20%)
Re-mail 1
Increase Offer
1,260 (18%)
Re-mail 1
Increase Offer
5,740 (82%)
Re-mail 2
Initial Product
82,062 (97%)
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Cultivation of the YES customer
High volume, commodity Risk products
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Tested strategy to educate customer into buying ever more sophisticated products
Accidental Death
Critical illness
Term Assurance
Health Insurance
Hospital Expenses
Personal Accident
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Post economic crisis strategy
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Build in another entry level, of high value, low cost products
Term Assurance
Critical illness
Hospital Expenses
Health Insurance
Accidental Death
Personal Accident
HIGH VALUE, LOW COST ENTRY LEVEL
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High Value, Low Cost Products
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Designed as a preliminary stage in the overall marketing process, in order
to maximize DM responders whilst being profitable in of itself
Products can be sold before traditional risk, or combined to form value
added packages
Products may include: (Life and Non Life portfolios)
• Accidental Critical Conditions; Hospital cash• International Medical Second Opinion
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Accidental Critical Condition (ACC)
Covers critical conditions resulting from an accident
Lump sum payment of sum insured at end of survival period – 30 days
Sum insured is limited to EUR 100,000 per life
Covered conditions:
• Major burns; Blindness; Deafness; Coma; Major Organ Transplant;
Paralysis ;Loss of Limbs
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Medical Second Opinion (MSO)
Remote Medical Second Opinion Program
Partnered with a wide group of World Leading Medical Centers (WLMC).
• E.g. Harvard M.S; John Hopkins; London’s Royal Marsden
Creates additional new clients with details (phone, address, etc.)
• Spouse, Children, Parents
All claim administration handled by Third Party Administrator (TPA)
No age, gender or occupation restrictions; no underwriting
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Long term value & customer loyalty
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Direct Marketing can
create a positive dialogue
with customers
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Juggling short-term with long-term goals
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“ he crisis of short
-
termism”
“ h
problem is that the narrow focus of
short termism
does not maximize profits by
thoroughly tapping customer loyalty and
satisfaction opportunities but instead leads to
customer churn which destroys loyalty and
strengthens competitors
…”
- Peppers & Rogers
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Juggling short-term with long-term goals
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Immediate portfolio benefits
Profitable long–
term distribution channel
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Skip the learning curve
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Partners get the benefits of JakMar expertise from day 1
Resources
Missed opportunities
Ineffectiveness
Inefficiency
Time
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Our Projects in Croatia
First Campaign in Croatia done by JakMar in year 2004
Since then we have been successfully cooperating with 5 insurance
companies
11 campaigns implemented to date
Total premium generated amounts to greater than 1.3 million since 2004
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JakMar: Targeted Direct Marketing
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www.jakmar.com
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