loyalty usa v6

October 2013 Derek Martin

Great Expectations

www.derekfmartin.com

All Rights Reserved

AGENDA

• Expectation Based Loyalty

• The Great Awakening

• Life Insurance Industry

• MetLife Direct Business

• Using Big Data to Set and Achieve Customer Expectations

2

Customer Expectations

Time

Get it Right

Make it Easy

Make it Beautiful

Give Me Value

Thrill Me

Loyalty on the Customer Engagement Journey

Loyalty

Customer Expectations

While Insurance providers are middle of the road in meeting customer expectations, their performance is not keeping up with accelerating expectations and other industries ability to meet them.

4

20102008

Global

Social

Connected

Special Educated

Self- Service

The Great Awakening: Customer Revolution

6

Life Insurance in the USA is in decline

Source: LIMRA

Indi-vidual

& Em-

ployer 44%

Em-ployer only, 26%

None; 30%

% USA Citizens with Life Insurance2012, total = 100%

MetLife Direct Distribution

Provide affordable Life Insurance alternatives with

great customer experience

Enable everyone to protect family and loved ones

Our Mission

1. Highly Regulated

Research

Quote

Application

Payment

Agent

How to Sell Life Insurance?

Traditional Life Insurance Sales Process

2. Emotional Product

3. Long & Complex

Purchase Process

= 50 – 100 Days ~ $750 / App

Life Insurance Sales Process Evolution

Lead Quote Underwriting

Approve & Pay

1 min 5 min 1 hour 1-2 weeks 1-2 weeks 1-2 weeks

Application

Direct Term Life

Lead Quote Approve & Pay

1 min 5 min 20 minutes 1minute

Application

Direct Simplified Issued Term

~100 Days$750/app

~40 Days$500/App

27 minutes$200/App

Lead Agent Quote Underwriting

Approve & Pay

5 min 1-2 weeks 0.5 hours 2 hours 2-4 weeks 2-4 weeks 2-4 Weeks

Application

Traditional Term Life

Medical

Medical

Direct Life Insurance Sales Process

Lead Quote Under-writing

Approve & Pay

5 min 5 min 1 hour 1-4 weeks 1-4 weeks 1-3 Weeks

App-lication

Direct Term Life Product :

Medical

Painless,

Expedient

Easy to find &

understand

Competent,

Self Service

Transparent,

Competitive

C U S T O M E R E X P E C T A T I O N S

Simple to Research

Research: Products and Benefits

Calculator: How Much Insurance do I need?

Walmart: Insurance in a

box

Generic Application

Ask what we MIGHT need to know for the most complicated Product

NameAge

State

Database checks

Risk questions

Brief health exam

All health questions

TraditionalTerm

Questions

Afflictions, Recent Hospital, History

Hight, Weight, BPS, Blood, Urine

Driving Record, Skydiving, Intl Travel

Criminal, Driving, Other

Name, DOB, Address, Soc Sec

Big Data Application

What do we know that would suggest the right product?

Age

Health

Affordability

Seg 1 Seg 2 Seg 3

Low Med High

TVLead

Web

None

Full Term

Final

Simplified Term

Smart and Simple Application

NameAge

State

NameAge

State

Some health questions

NameAge

State

Some health questions

Database checks

NameAge

State

Some health questions

Database checks

Risk questions

NameAge

State

Some health questions

Brief health exam

NameAge

State

Database checks

Risk questions

All health questions

Guaranteed Simplified Simplified Plus

Simplified Premium

Simplified Premium

Plus

Rapid

No UW Simplified Underwriting Fully Underwritten

Ask only what we need to know

NameAge

State

Database checks

Risk questions

Brief health exam

All health questions

Traditional

Time To Complete an Application: Generic

15

12

34

5

0

10

20

30

40

50

60

70

80

90

100

Customer

% Completed

Weeks to Complete

ATC3 Weeks

Time To Complete: Segment

16

12

34

5

0

10

20

30

40

50

60

70

80

90

100Seg 1Seg 2Seg 3

% Completed

Weeks to Complete

ATC

2 Weeks

3 Weeks

4 Weeks

Time To Complete: Individual

17

12

34

5

0

10

20

30

40

50

60

70

80

90

100

<40 East Fit

<40 East Norm

<40 West Fit

<40 West Norm

>40 East Fit

>40 East Norm

>40 West Fit

>40 West Norm

HI Risk

% Completed

Weeks to Complete

ATC

2 Weeks

3 Weeks

2 Weeks

3 Weeks

4 Weeks

5 Weeks

3 Weeks

5 Weeks

6 Weeks

ILLUSTRATIVE

Direct Life Insurance Sales Process

Lead Quote Under-writing

Approve & Pay

5 min 5 min 1 hour 1-4 weeks 1-4 weeks 1-3 Weeks

App-lication

Direct Term Life Product :

Medical

Painless,

Expedient

Easy to find &

understand

Competent,

Self Service

Transparent,

Competitive

C U S T O M E R E X P E C T A T I O N S

Net promoter scores tell it all

Direct +46

Agent - 4

Q & A

Visit me at: www.derekfmartin.com

#derekfmartin http://betterbusinessbanter.blogspot.com

We Know Simplicity Pays

212012 Global Brand Simplicity Index, Siegel+Gale, October 2012

Social

Email

Online

Outdoor

Mobile

Simple Leads: Connect with customers across digital channels

• Gather Behavior • Define Customer Segment• Customize message & channel• Reduce cost/ application

1. Bank Draft or Check

Simple to Pay

2. Set Pay Date

3. Multiple Payors

4. Credit & Debit Card5. Gift

6. SMS Payment Alerts

You are

approved!

Mobile acceptan

ce

7. Mobile Landing Page to Accept