how to determine the right channel for the right customer
DESCRIPTION
How to Determine the right Channel for the Right Customer. Trond Bergestuen VP Commercial Marketing, Gjensidige (Norwegian Mutual) Vienna, 17 September 2009. Agenda. Determine who are the decision makers in the purchase of insurance in the SMEs. - PowerPoint PPT PresentationTRANSCRIPT
How to Determine the right Channel for the Right Customer
Trond Bergestuen
VP Commercial Marketing, Gjensidige (Norwegian Mutual)
Vienna, 17 September 2009
21.04.23 How to Determine the Right Channel for the Right Customer2
Agenda
Determine who are the decision makers in the purchase of insurance in
the SMEs
Assess how customer channel preference varies according to the situation
Understand what factors affect their decision process
How to create the optimal customer journey
21.04.23 How to Determine the Right Channel for the Right Customer3
New BusinessAreas in Norway
General Insurance Norway2,040
New Businesses753
General Insurance
Nordic/Baltic892
Total: 3,685
Customers
Leading Market
Position in Norway
Market Shares1)
• Total number of customers 992,000 (30 June, 2009)– 897,000 in the private segment– 95,000 in the commercial segment
Headcount 30 June 2009 New Businesses
• Pension and savings (Gjensidige Pensjon og Sparing)
• Online retail bank (Gjensidige Bank)
• Health care services provider (Hjelp24 NIMI)
1) The Norwegian Financial Services Association (“FNH”), general insurance per 30 June 2009. Segments are based on company definitions, but drawn directly from FNH report. Gjensidige market shares include Tennant
2) Products sold to private and agricultural customers. Product groups include: motor, property, personal accident, agriculture and other (travel insurance, leisure boats and animals)
3) Products sold to SME and corporate customers. Product groups include: motor, property, personal accident, liability and marine
Diversification into
Nordic/Baltic Region
• LF’s Baltic operations (2H-2009, contingent upon regulatory approvals)
• RESO Europa (Baltics, May-2008)
• Fair and KommuneForsikring (Denmark, Mar-2006, Jan-2007)
• Parekss (Baltics, Sep-2006)
• Tennant (Norway and Sweden, Aug-2007)
Nordic/Baltic OperationsFY2006 (GWP) 6M2009 (GWP)
Nordic/Baltic2.6%
Norway97.4%
Nordic/Baltic22.3%MNOK 2,239
Norway77.7%
MNOK 7,780
Snapshot Gjensidige
• Total Market 29.1% (#1)
– Private2)
27.7% (#1)– Commercial3)
32.5% (#1) (Same market share as If.. within Commercial)
21.04.23 How to Determine the Right Channel for the Right Customer4
Key Figures (MNOK)
(259)
2.820
3.711
1.079
(432)
2006 2007 2008 1H 2008 1H 2009
860
669553
417347
2006 2007 2008 1H 2008 1H 2009
15.482
7.525 7.712
14.84813.189
2006 2007 2008 1H 2008 1H 2009
Earned premiums general insurance, net of reinsurance
Underwriting result general insurance
Net income from investmentsCombined ratio
75,9 78,6 78 76,977,4
18,9 17,5 17,4 17,717,0
94,695,496,194,8 94,4
2006 2007 2008 1H 2008 1H 2009
Loss Ratio Cost Ratio
*
*
* The 2006 and 2007 figures include net financial items in Pension and savings and Online Retail Banking. As from 2008 only financial items that relates to the return on the company portfolios in Pension and savings and Online Retail Banking are included in net income from investments (i.e operating items are included in Operating income and Claims, loss etc)
21.04.23 How to Determine the Right Channel for the Right Customer5
6000
8000
10000
12000
14000
16000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*
MN
OK
Gross Written Premiums
Cost Discipline Continuous Improvements
1400
1600
1800
2000
2200
2400
2600
2800
3000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Nu
mb
er o
f E
mp
loye
es
15
20
25
30
35
Co
st R
atio
(%
)
Employees Cost Ratio
A continuous focus on efficiency in the Norwegian general insurance operations has yielded results
• Reduction of employees in the Norwegian general insurance operations from approx. 2,750 in 1999 to 2,040 at the end of Q2 2009
• Number of branch offices in Norway reduced from 151 in 2005 to 54 at the end of Q2 2009
• Cost Ratio improvement in the Norwegian
general insurance operations in the same period; starting at 30.6% in 1999 improved to 16.4% in 2008 (16.8% as of Q2 2009)
• GWP growth from MNOK 7,000 in 1999 to 13,131 MNOK in 2008
A.D. Little: Gjensidige is among the top ten most efficient non-life players in Europe
21.04.23 How to Determine the Right Channel for the Right Customer6
Agenda
Determine who are the decision makers in the purchase of insurance in
the SMEs
Assess how customer channel preference varies according to the situation
Understand what factors affect the decision process
How to create the optimal customer journey
21.04.23 How to Determine the Right Channel for the Right Customer7
Decision makers in the purchase of insurance
Who is the main decision maker in the purchase of insurance in SMEs?
CEO/Owner
CFO/Business controller
HR
Other
Source: Market study SMEs, Norway, 2008
n=400
21.04.23 How to Determine the Right Channel for the Right Customer8
Agenda
Determine who are the decision makers in the purchase of insurance in
the SMEs
Assess how customer channel preference varies according to the situation
Understand what factors affect the decision process
How to create the optimal customer journey
21.04.23 How to Determine the Right Channel for the Right Customer9
What factors affect the decision process?
Brand
Price
Providers
industry
insight
Risk
management
advice
Key account
manager
Local branchInternet
services
21.04.23 How to Determine the Right Channel for the Right Customer10
What factors affect the decision process
Source:Conjoint analysis, SME segment, NorwayPA Consulting Group, 2006n = 409
Attribute importance when purchasing insurance
0 5 10 15 20 25
Internet services
Local branch
Industry insight
Risk mgmt. advice
Brand
Key account mgr.
Price
21.04.23 How to Determine the Right Channel for the Right Customer11
n= 409
Rela
tive im
port
an
ce (
sum
= 1
00
)
There are small differences in the preferences when we segment based on geography
Segmentation by geography
0
5
10
15
20
25
30P
rice
Bra
nd
Inte
rne
t se
rvic
es
Lo
cal b
ranc
h
Key
Acc
ou
nt
mg
r.
Ind
ustr
y in
sig
ht
Ris
k m
gmt.
ad
vice
East
Inland
South
West
North
21.04.23 How to Determine the Right Channel for the Right Customer12
Rela
tive im
port
an
ce (
sum
= 1
00
)
The difference in preferences is noticeble when we segment based on industry
n= 409
Segmentation by industry
0
5
10
15
20
25
30
Pric
e
Bra
nd
Inte
rne
t se
rvic
es
Lo
cal b
ranc
h
Key
Acc
ou
nt
mg
r.
Ind
ustr
y in
sig
ht
Ris
k m
gmt.
ad
vice
Financial services
Healthcare services
Manufacturing Industry
Construction, transportation,communcation
Retail, hotels and restaurants
Public services and education
Primary industries
21.04.23 How to Determine the Right Channel for the Right Customer13
n= 370
The differences are also noticable when we segment based on size (premium paid)
Rela
tive im
port
an
ce (
sum
= 1
00
)
Segmentation by size
0
5
10
15
20
25
30
35P
rice
Bra
nd
Inte
rne
t se
rvic
es
Lo
cal b
ranc
h
Key
Acc
ou
t m
gr.
Ind
ustr
y in
sig
ht
Ris
k m
gmt.
ad
vice
Micro
Small
Medium
Corporate
21.04.23 How to Determine the Right Channel for the Right Customer14
The average decision maker does not exist!
Five needs based
segments:
Price Segment: 16%
Competence Segment: 29%
Local Relation Segment: 25%
Internet Segment: 9%
Key Account Segment: 22%
Rela
tive Im
port
an
ce (
sum
= 1
00
)
Needs based segments
0
5
10
15
20
25
30
35
Pric
e
Bra
nd
Inte
rnet
ser
vice
s
Loca
l bra
nch
Key
Acc
ount
mgr
.
Inud
stry
insi
ght
Ris
k m
gmt.
adv
ice
Price
Competence
Local relation
Internet
Key account
Source:Conjoint analysis, SME segment, NorwayPA Consulting 2006
21.04.23 How to Determine the Right Channel for the Right Customer15
The Price Segment selects almost entirely based on price
Rela
tive im
port
an
ce (
sum
= 1
00
)
Price (16% of sample)Segment 1: 16% in sample
0
5
10
15
20
25
30
35
Pric
e
Bra
nd
Inte
rne
t se
rv.
Lo
cal b
ran
ch
Ke
yA
cco
un
t m
gr.
Ind
ust
ry in
sig
ht
Ris
k m
gm
t. a
dvi
ce
Source:Conjoint analysis, SME segment, NorwayPA Consulting 2006
21.04.23 How to Determine the Right Channel for the Right Customer16
For the Competence Segment it is important to have a contact person that
knows the customer’s industryR
ela
tive im
port
an
ce (
sum
= 1
00
)
0
5
10
15
20
25
30
35
Pric
e
Bra
nd
Inte
rnet
ser
v.
Loca
l bra
nch
Key
Acc
ount
mgr
Indu
stry
insi
ght
Ris
k m
gmt.
adv
ice
Segment 2: 29% in sample
Source:Conjoint analysis, SME segment, NorwayPA Consulting 2006
21.04.23 How to Determine the Right Channel for the Right Customer17
The Local Relation Segment prefers a contact person locally and a brand they
trustR
ela
tive im
port
an
ce (
sum
= 1
00
)
Segment 3: 25% in sample
0
5
10
15
20
25
30
35P
rice
Bra
nd
Inte
rnet
. S
erv.
Loca
l bra
nch
Key
Acc
ount
mgr
Indu
stry
insi
ght
Ris
k m
gmt.
adv
ice
Source:Conjoint analysis, SME segment, NorwayPA Consulting 2006
21.04.23 How to Determine the Right Channel for the Right Customer18
For the Internet Segment price is an importance factor but internet services
are also important (self service)R
ela
tive im
port
an
ce (
sum
= 1
00
)
Source:Conjoint analysis, SME segment, NorwayPA Consulting 2006
Segment 4: 9% in sample
0
5
10
15
20
25
30
35P
rice
Bra
nd
Inte
rne
t se
rv.
Lo
cal b
ran
ch
Ke
yA
cco
un
t m
gr
Ind
ust
ry in
sig
ht
Ris
k m
gm
t. a
dvi
ce
21.04.23 How to Determine the Right Channel for the Right Customer19
The Contact Person Segment would like a key account manager that can handle any
issue/situationR
ela
tiv v
ikti
gh
et
(su
m =
10
0)
Source:Conjoint analysis, SME segment, NorwayPA Consulting 2006
Segment 5: 22% in sample
0
5
10
15
20
25
30
35P
rice
Bra
nd
Inte
rnet
ser
v.
Loca
l bra
nch
Key
Acc
ount
mgr
.
Indu
stry
insi
ght
Ris
k m
gmt.
adv
ice
21.04.23 How to Determine the Right Channel for the Right Customer20
Segment composition varies by population density
Needs based segments by population density
0 %
20 %
40 %
60 %
80 %
100 %
Rural Smalltown
Mediumtown
Largetown
Key account
Internet
Local relation
Competence
Price
21.04.23 How to Determine the Right Channel for the Right Customer21
Agenda
Determine who are the decision makers in the purchase of insurance in
the SMEs
Assess how customer channel preference varies according to the situation
Understand what factors affect the decision process
How to create the optimal customer journey
21.04.23 How to Determine the Right Channel for the Right Customer22
In order develop an effective service model we need to understand in what situations the
customer wants to use the different channels
• Up to this point we have focused on attributes when the decision maker selects a provider of insurance
• It is also important to understand the customers’ preference related to service in different situations
Situations with need for contact
Service channel
Branch Internet Phone
BuyProposal ComplaintUpdate ClaimSeek
info.
21.04.23 How to Determine the Right Channel for the Right Customer23
Choice of channel depends on the situation, but calling a contact person is most often the
preferred channel
Ønske om kontakt via telefon
0 % 20 % 40 % 60 % 80 % 100 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
Klage
0 % 20 % 40 % 60 % 80 % 100 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
KlageBedriftssenter
Fast kontaktperson
Forsikringsmegler
0 % 20 % 40 % 60 % 80 % 100 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
KlageInternett
E-post
Brev/fax
0 % 20 % 40 % 60 % 80 % 100 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
Klage Kontor i nærheten
Representantbesøk
0 % 20 % 40 % 60 % 80 % 100 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
KlageBedriftssenter
Fast kontaktperson
Forsikringsmegler
0 % 20 % 40 % 60 % 80 % 100 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
KlageInternett
E-post
Brev/fax
Ønske om besøk
0 % 20 % 40 % 60 % 80 % 100 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
Klage
0 % 20 % 40 % 60 % 80 % 100 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
Klage Kontor i nærheten
Representantbesøk
Total sample
Internet/e-mail/mail Branch/Visit Phone
Complaint
Complex claim
Simple claim
Report claim
Update
Purchase
Proposal
Risk mgmt. advice
Seek information
Internet
Letter/fax
Local branch
KAM visit
Call center
Contact person
Broker
Respondent could indicate several channels for each situation, therefore sum > 100
21.04.23 How to Determine the Right Channel for the Right Customer24
Local relation and Internet segments have very different servicing preferences
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
KlageInternett
E-post
Brev/fax
0 % 20 % 40 % 60 % 80 % 100 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
Klage
Kontor i nærheten
Representantbesøk
0 % 20 % 40 % 60 % 80 % 100 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
Klage
0 % 20 % 40 % 60 % 80 % 100 % 120 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
KlageKundesentertelefon
Fast kontaktperson
Forsikringsmegler
Lokal relation segment
0 % 20 % 40 % 60 % 80 % 100 % 120 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
KlageInternett
E-post
Brev/fax
0 % 20 % 40 % 60 % 80 % 100 % 120 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
KlageKontor i nærheten
Representantbesøk
0 % 20 % 40 % 60 % 80 % 100 % 120 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
Klage
0 % 20 % 40 % 60 % 80 % 100 % 120 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
KlageKundesentertelefon
Fast kontaktperson
Forsikringsmegler
Internet Segment
Ønske om kontakt via telefon
0 % 20 % 40 % 60 % 80 % 100 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
Klage
Ønske om besøk
0 % 20 % 40 % 60 % 80 % 100 %
Søke info
Skadeforebyggende
Tilbud
Kjøpe
Oppdatere
Melde skade
Enkelt oppgjør
Omfattende oppgjør
Klage
Internet/e-mail/mail Branch/Visit Phone
Complaint
Complex claim
Simple claim
Report claim
Update
Purchase
Proposal
Risk mgmt. advice
Seek information
Complaint
Complex claim
Simple claim
Report claim
Update
Purchase
Proposal
Risk mgmt. advice
Seek information
21.04.23 How to Determine the Right Channel for the Right Customer25
Agenda
Determine who are the decision makers in the purchase of insurance in
the SMEs
Assess how customer channel preference varies according to the situation
Understand what factors affect the decision process
How to create the optimal customer journey
21.04.23 How to Determine the Right Channel for the Right Customer26
The use of field sales, the phone and the internet as direct sales tools
Segment Micro Small Medium Corporate
Premium/complexity
21.04.23 How to Determine the Right Channel for the Right Customer27
The use of field sales, the phone and the internet as direct sales tools
Segment Micro Small Medium Corporate
Premium/complexity
Sales/
service
Call center Corporate unitField sales
Effective sales and service channel for micro and small segment (phone, e-mail)
Tailored personal service to larger customers by local sales force
Specialist service to Corporate customers
21.04.23 How to Determine the Right Channel for the Right Customer28
The use of field sales, the phone and the internet as direct sales tools
Segment Micro Small Medium Corporate
Premium/complexity
Sales/
service
Call center Corporate unitField sales
Effective sales and service channel for micro and small segment (phone, e-mail)
Tailored personal service to larger customers by local sales force
Specialist service to Corporate customers
Roles Inbound
Outbound Service consultants
Key Acc.Mgr.
Brokered customers
Key Acc.Mgr.
Service consulants
Service of indirect customers (through) brokerage houses
21.04.23 How to Determine the Right Channel for the Right Customer29
The use of field sales, the phone and the internet as direct sales tools
Segment Micro Small Medium Corporate
Premium/complexity
Sales/
service
Call center Corporate unitField sales
Effective sales and service channel for micro and small segment (phone, e-mail)
Tailored personal service to larger customers by local sales force
Specialist service to Corporate customers
Roles Inbound
Outbound Service consultants
Key Acc.Mgr.
Brokered customers
Key Acc.Mgr.
Service consulants
Service of indirect customers (through) brokerage houses
Internet and Log in services
21.04.23 How to Determine the Right Channel for the Right Customer30
How to create the optimal ”customer journey”
Tlf og post
Ansikt til ansikt
Nett
Kundetilfredshet nye kunder
bredde levetid
Contact: Purchase Servicing Renewal
The customer ”travels through” different channels
Face to face
Phone/mail
Internet
Customer lifetime
Customer satisfaction
Loyalty
Profitability
Example
Segment x
21.04.23 How to Determine the Right Channel for the Right Customer31
Tusen takk!(A thousand thanks!)