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Turning policyholders into customersColin Forrest, Susie Nursaw and Kiran Sandhu
11 November 2013
Policyholders vs. customers
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Maturity of customer analytics
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Customer centricity in the insurance industry
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Why do we need to become more customer centric?
Retail distribution
Need for customer centricity
distribution review
Direct-to-consumer
market
ChangingNo margin
Social media -potential
brand damage
Changing customer behaviour
Increased competition
in the market
No margin to compete
on price
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Why is this hard in our industry?
Li it d di lNo single definition of a
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Limited dialogue
Limited and inconsistent measures of customer value
g‘customer’
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What can we learn from other industries
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Other industries are shifting the focus from product to customer
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Using data and analytics to determine the most relevant next best action
RelevantRetention
Interaction Inputs
Decision Engine Present NBA Customer Input / LearnIdentify
Customer
RelevantChannels
Capture Response
Mortgage offer
Savings account
Up-sell / Cross-sellUpgrade account
Credit card
ServiceSelf service
Act now alerts
EducateAre you aware?
Better ways to pay
Data CaptureMobile number
Accept
Decline
Maybe later
Real Time Interaction
Context
Activity
Q&A response
Propensity
Strategy
Triggers
Value
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Mobile number
Family size
Self-learning
Customer lifecycle management
Confirmation of ‘Concierge’ call
Early LifeMonth1
Potential< Month 0
Direct debitFirst newsletter
Customer calls with fault
Call to confirm
Early LifeMonth 2
Early LifeMonth 3
Exposure to Marketing materials
Word of mouth
Analysis of products and providers
Quality call
Quality letter and first steps guide
Confirmation of installation visit
Initial contact with product
Bill 0 and Marketing communication
Direct debit payment 0
Customer calls with a query, receives reactive welcome call
Second level faults team calls customer
Concierge call
Sale
Installation – Welcome kit and first ONO magazine
Conformity call
Bill 1 and Marketing communication
Direct debit payment 1
Billing
Bank transfer or corrected bill received
Contact with online channel
Unpaid bill – letter 2
Call to confirm ‘opportunity window’ for change of service
Technician visit (service transfer)
Customer calls retentions
Technician visit (fault)
Upgrade or upsell
Bill 2 and Marketing communication
Direct debit payment 2
Bill 3 and Marketing communication
Direct debit payment 3
Val
ue to
the
busi
ness
(€)
(5)
(3)(3)
(2)
(1)
Sales (3)
Service usage (2)
Marketing (5)
Installation (3)
Online (1)
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Credit scoringContact made by recuperations department
Sales backlog
Complaint with the installation
Installation backlog
Commercial support platform
Billing complaint
Unpaid bill – letter 1
Unpaid bill – call 1
Unpaid bill – call 2
Contact with the customer (with debt)
Customer calls SAC for payment information
Service transfer (2)
Billing complaints (2)
Exceptions (12)
Change of service (2)
Faults (3)
Billing / Collections (8)
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Multichannel personalisation
Context Multichannel
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Strategic
Benefits of analyticsImproved Retention
Te
Increased Revenues
Confirmation of installation visit
‘Concierge’ call
Early LifeMonth1
Potential< Month 0
Direct debit payment 1
First newsletter
Contact with online channel
Customer calls with fault
Call to confirm ‘opportunity window’ for change of service
Early LifeMonth 2
Early LifeMonth 3
Better Customer Experience More Agile
Insight
Customer
Text
Shareholder
Customer
Value
Exposure to Market ing materials
Word of mouth
Analysis of products and providers
Quality call
Quality letter and first steps guide
Initial contact with product
Bill 0 and Marketing communicat ion
Direct debit payment 0
Customer calls with a query, receives reactive welcome call
Second level faults team calls customer
Credit scoring
Sale
Contact made by recuperat ions department
Installation – Welcome kit and first ONO magazine
Conformity call
Bill 1 and Marketing communication
Sales backlog
Complaint with the installation
Installation backlog
Commercial support platform
Billing complaint
Bank t ransfer or corrected bill received
channel
Unpaid bill – letter 1
Unpaid bill – call 1
Unpaid bill – call 2
Unpaid bill – let ter 2
of service
Technician visit (service t ransfer)
Customer calls retentions
Contact with the customer (with debt)
Technician visit (fault )
Upgrade or upsell
Customer calls SAC for payment information
Bill 2 and Marketing communication
Direct debit payment 2
Bill 3 and Marketing communication
Direct debit payment 3
Val
ue to
the
busi
ness
(€)
(5)
(3)(3)
(2)
(1)
Sales (3)
Service usage (2)
Marketing (5)
Installation (3)
Online (1)
Service transfer (2)
Billing complaints (2)
Exceptions (12)
Change of service (2)
Faults (3)
Billing / Collections (8)
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Shareholder
Value Zero time to market
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How can we apply these learnings to our industry?
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Vision of a great customer experience
Ben gets a call offering a 20% discount on his term assurance policy. He is pleased
with the offer and accepts.
2During the call Ben is reminded about
GreenDot’s pension app. Shortly afterwards he downloads the app and is impressed with
the way it lets him model his retirement needs. He updates his change of address.
31Ben is 35 and has a term assurance and small pension pot with GreenDot.
Ben receives an email from GreenDot congratulating him on his new home and offering him home insurance. He never
knew they offered home insurance – he lets them know when it’s up for renewal.
4Ben is so impressed with GreenDot’s service and the app that he decides to
consolidate all his assets with them. They send an advisor to see Ben at home to
help him do this.
5Following this, GreenDot ask Ben to complete a short satisfaction survey online. He rates his experience as
excellent and recommends them to a friend.
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Customer t h i t
1 3 5 72 4 6 8
Ben is 35 and has a term assurance and Ben gets a call
During the call the salesman reminds Ben
Ben receives an email from GD congratulating
hi hi h
Ben’s wants to consolidate his Be ates GD’s se vice
How does this work?
touch points
Communication channel
CRM System
App
small pension pot with GreenDot. The
customer segmentation model shows that Ben
is an affluent customer with potential to buy more from GD
offering a 20% discount on his term assurance as he’s a valuable customer.
Ben is pleased with the offer and accepts.
about GD’s pension app. Shortly afterwards Ben downloads the app and is impressed with the way it lets him model his retirement needs
him on his new home and offering him home
insurance. He never new GD offered home
insurance – he lets GD know it’s up for renewal
on 14 Jan.
consolidate his investments and
savings to make them easier to manage. He’s so impressed with GD’s service he consolidates
all his assets with them
Ben rates GD’s service as excellent and
recommends them to a friend
Emailemail app
Data captured from app & fed
into CRM
Call centre
Contextual data, such as call reason captured in CRM system NBAs
presented through CRM
Data captured from app & fed
into CRM
NBA engine
Data & Analytics
Outbound prompts NBA
recommendation
Propensity models and data inform decisioning
to identify the most relevant NBA
Channel usage, transactional data and
preferences inform recommendations
Service prioritised based on Ben’s
needs and value
Contextual real time data informs real time decision
engine which pushes recommendations to CRM
Ben’s preferences for online
communications captured
Propensity models and data used to identify the
most relevant NBA
Personalised web experience based
on NBA recommendations
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Insights on customer profile and proposition
to be offered
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Given the knowledge and skills that exist within the actuarial profession, this is an exciting time for the industry.
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Questions?
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