finding & engaging today's insurance customer
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Finding & Engaging Today’s Insurance CustomerMoments matter.
@LynnKesterson
Lynn Kesterson-TownesWorldwide IBM Commerce Marketing Leader for Insurance
@IMCAnet
@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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@LynnKesterson
Insurers are being pressured by customers to change
Customers are more connected and empoweredDrivers of Change
Source: 2011 IBM Digital Transformation Study, IBV Analysis
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Cloud
Big Data & Analytics
Mobile
Social
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Today’s insurance customers demand customer-centricity
50% of consumers seeking insurance begin on a mobile device
Source: The Nielsen Company, Mobile Path to Purchase, 2013
4 @LynnKesterson
@LynnKesterson
Millennials expect personal, responsive, 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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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
@LynnKesterson
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Psychographic segmentation improves customer interactions
Security-oriented
individualist
Loyal quality-seeker
Price-oriented
minimalist
Support-seekingskeptic
Demandingsupport-seeker
Informedoptimizer
“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
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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
@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
@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
@LynnKesterson
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Affinity Channel
Agent/Broker
SMS
Web
SocialMedia
Apps
Voice
Chat
Customer
Ecosystem Partners
Consumers‘ search for insurance has become “omni-channel”
@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
decisionSend 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
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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%
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Where should insurers start?
1 Customer Insight
2 Personalized Marketing3Seamless
Brand Engagement
Affinity Channel
Agent/Broker
SMS
Web
SocialMedia
Apps
EmailVoice
Partners
Chat
Customer
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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
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@LynnKesterson
twitter.com/LynnKesterson
Lynn Kesterson-TownesWorldwide IBM Commerce Marketing Leader for Insurance
Thank you.