finding & engaging today's insurance customer

© 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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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

3

Cloud

Big Data & Analytics

Mobile

Social


4

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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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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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


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


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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


9

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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When searching – peers

When purchasing – personal


10

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

10

“I get the right insurance from the right insurer"


When searching – flexible with new technology bias

When purchasing – flexible with new technology bias


1111

Affinity Channel

Agent/Broker

SMS

Web

SocialMedia

Apps

Email

Voice

Chat

Customer

Ecosystem Partners

Consumers‘ search for insurance has become “omni-channel”

@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


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Most insurers are only just beginning to prepare

13

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?

1Customer Insight

2 Personalized Marketing

3Seamless Brand Engagement

Affinity Channel

Agent/Broker

SMS

Web

SocialMedia

Apps

Email

Voice

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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Thank you.

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@LynnKesterson

twitter.com/LynnKesterson

Lynn Kesterson-Townes

Worldwide Smarter Commerce

Marketing Leader for Insurance

[email protected]