1 / 31

How to Determine the right Channel for the Right Customer

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.

lorne
Download Presentation

How to Determine the right Channel for the Right Customer

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. How to Determine the right Channel for the Right Customer Trond Bergestuen VP Commercial Marketing, Gjensidige (Norwegian Mutual) Vienna, 17 September 2009

  2. Agenda Determine who are the decision makers in the purchase of insurance in the SMEs Understand what factors affect their decision process Assess how customer channel preference varies according to the situation How to create the optimal customer journey How to Determine the Right Channel for the Right Customer

  3. 6M2009 (GWP) Nordic/Baltic Operations FY2006 (GWP) New Businesses Customers Market Shares1) • 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) Snapshot Gjensidige Leading Market Position in Norway • Total Market 29.1% (#1) • Private2) 27.7% (#1) • Commercial3) 32.5% (#1) • (Same market share as If.. within Commercial) • Total number of customers 992,000 (30 June, 2009) • 897,000 in the private segment • 95,000 in the commercial segment Diversification into Nordic/Baltic Region Nordic/Baltic2.6% Nordic/Baltic22.3% MNOK 2,239 Norway77.7% MNOK 7,780 Norway97.4% Headcount 30 June 2009 New Business Areas in Norway New Businesses753 • Pension and savings (Gjensidige Pensjon og Sparing) • Online retail bank (Gjensidige Bank) • Health care services provider (Hjelp24 NIMI) General Insurance Norway2,040 General Insurance Nordic/Baltic892 Total: 3,685 • 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 • Products sold to private and agricultural customers. Product groups include: motor, property, personal accident, agriculture and other (travel insurance, leisure boats and animals) • Products sold to SME and corporate customers. Product groups include: motor, property, personal accident, liability and marine How to Determine the Right Channel for the Right Customer

  4. Earned premiums general insurance, net of reinsurance Underwriting result general insurance Key Figures (MNOK) Combined ratio Net income from investments * * * 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 Bankingare included in net income from investments (i.e operating items are included in Operating income and Claims, loss etc) How to Determine the Right Channel for the Right Customer

  5. Cost Discipline Continuous Improvements • 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 operationsin 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 How to Determine the Right Channel for the Right Customer

  6. Agenda Determine who are the decision makers in the purchase of insurance in the SMEs Understand what factors affect the decision process Assess how customer channel preference varies according to the situation How to create the optimal customer journey How to Determine the Right Channel for the Right Customer

  7. Decision makers in the purchase of insurance Source: Market study SMEs, Norway, 2008 n=400 How to Determine the Right Channel for the Right Customer

  8. Agenda Determine who are the decision makers in the purchase of insurance in the SMEs Understand what factors affect the decision process Assess how customer channel preference varies according to the situation How to create the optimal customer journey How to Determine the Right Channel for the Right Customer

  9. What factors affect the decision process? Local branch Internet services Price Risk management advice Providers industry insight Brand Key account manager How to Determine the Right Channel for the Right Customer

  10. Attribute importance when purchasing insurance Price Key account mgr. Brand Risk mgmt. advice Industry insight Local branch Internet services 0 5 10 15 20 25 What factors affect the decision process Source: Conjoint analysis, SME segment, Norway PA Consulting Group, 2006 n = 409 How to Determine the Right Channel for the Right Customer

  11. There are small differences in the preferences when we segment based on geography Segmentation by geography 30 East Inland 25 South West 20 North Relative importance (sum = 100) 15 10 5 0 Price Brand Local branch Account mgr. Key Internet services Industry insight Risk mgmt. advice n= 409 How to Determine the Right Channel for the Right Customer

  12. The difference in preferences is noticeble when we segment based on industry Segmentation by industry Financial services 30 Healthcare services 25 Manufacturing Industry 20 Relative importance (sum = 100) Construction, transportation, 15 communcation Retail, hotels and restaurants 10 Public services and education 5 Primary industries 0 Price Brand Local branch Key Account mgr. Internet services Industry insight Risk mgmt. advice n= 409 How to Determine the Right Channel for the Right Customer

  13. The differences are also noticable when we segment based on size (premium paid) Segmentation by size 35 Micro Small 30 Medium 25 Corporate Relative importance (sum = 100) 20 15 10 5 0 Price Brand Local branch Key Accout mgr. Internet services Industry insight Risk mgmt. advice n= 370 How to Determine the Right Channel for the Right Customer

  14. 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% Needs based segments Price Competence 35 Local relation 30 Internet 25 Key account 20 Relative Importance (sum = 100) 15 10 5 0 Price Brand Local branch Key Account mgr. Internet services Inudstry insight Risk mgmt. advice Source: Conjoint analysis, SME segment, Norway PA Consulting 2006 How to Determine the Right Channel for the Right Customer

  15. Segment 1: 16% in sample 35 30 25 20 15 10 5 0 Price Brand Local branch Key Account mgr. Internet serv. Industry insight Risk mgmt. advice The Price Segment selects almost entirely based on price Price (16% of sample) Relative importance (sum = 100) Source: Conjoint analysis, SME segment, Norway PA Consulting 2006 How to Determine the Right Channel for the Right Customer

  16. 35 30 25 20 15 10 5 0 Price Brand Local branch Account mgr Key Internet serv. Industry insight Risk mgmt. advice For the Competence Segment it is important to have a contact person that knows the customer’s industry Segment 2: 29% in sample Relative importance (sum = 100) Source: Conjoint analysis, SME segment, Norway PA Consulting 2006 How to Determine the Right Channel for the Right Customer

  17. Segment 3: 25% in sample 35 30 25 20 15 10 5 0 Price Brand Local branch Account mgr Key Internet. Serv. Industry insight Risk mgmt. advice The Local Relation Segment prefers a contact person locally and a brand they trust Relative importance (sum = 100) Source: Conjoint analysis, SME segment, Norway PA Consulting 2006 How to Determine the Right Channel for the Right Customer

  18. Segment 4: 9% in sample 35 30 25 20 15 10 5 0 Price Brand Local branch Account mgr Key Internet serv. Industry insight Risk mgmt. advice For the Internet Segment price is an importance factor but internet services are also important (self service) Relative importance (sum = 100) Source: Conjoint analysis, SME segment, Norway PA Consulting 2006 How to Determine the Right Channel for the Right Customer

  19. Segment 5: 22% in sample 35 30 25 20 15 10 5 0 Price Local branch Brand Account mgr. Key Internet serv. Industry insight Risk mgmt. advice The Contact Person Segment would like a key account manager that can handle any issue/situation Relativ viktighet (sum = 100) Source: Conjoint analysis, SME segment, Norway PA Consulting 2006 How to Determine the Right Channel for the Right Customer

  20. Needs based segments by population density 100 % Key account 80 % Internet 60 % Local relation 40 % Competence Price 20 % 0 % Rural Small town Medium town Large town Segment composition varies by population density How to Determine the Right Channel for the Right Customer

  21. Agenda Determine who are the decision makers in the purchase of insurance in the SMEs Understand what factors affect the decision process Assess how customer channel preference varies according to the situation How to create the optimal customer journey How to Determine the Right Channel for the Right Customer

  22. 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 Seek info. Buy Proposal Update Claim Complaint Service channel Branch Internet Phone How to Determine the Right Channel for the Right Customer

  23. Choice of channel depends on the situation, but calling a contact person is most often the preferred channel Total sample Internet/e-mail/mail Branch/Visit Phone Call center Contact person Broker Internet E-mail Letter/fax Local branch KAM visit Complaint Complex claim Simple claim Report claim Update Purchase Proposal Risk mgmt. advice Seek information Respondent could indicate several channels for each situation, therefore sum > 100 How to Determine the Right Channel for the Right Customer

  24. Local relation and Internet segments have very different servicing preferences Branch/Visit Phone Internet/e-mail/mail Internet Segment Complaint Complex claim Simple claim Report claim Update Purchase Proposal Risk mgmt. advice Seek information Lokal relation segment Complaint Complex claim Simple claim Report claim Update Purchase Proposal Risk mgmt. advice Seek information How to Determine the Right Channel for the Right Customer

  25. Agenda Determine who are the decision makers in the purchase of insurance in the SMEs Understand what factors affect the decision process Assess how customer channel preference varies according to the situation How to create the optimal customer journey How to Determine the Right Channel for the Right Customer

  26. The use of field sales, the phone and the internet as direct sales tools How to Determine the Right Channel for the Right Customer

  27. Sales/ service Call center Field sales Corporate unit 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 The use of field sales, the phone and the internet as direct sales tools How to Determine the Right Channel for the Right Customer

  28. Sales/ service Call center Field sales Corporate unit 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 Key Acc.Mgr. Key Acc.Mgr. Service consultants Service consulants Outbound Brokered customers Service of indirect customers (through) brokerage houses The use of field sales, the phone and the internet as direct sales tools How to Determine the Right Channel for the Right Customer

  29. Sales/ service Call center Field sales Corporate unit 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 Key Acc.Mgr. Key Acc.Mgr. Service consultants Service consulants Outbound Brokered customers Service of indirect customers (through) brokerage houses Internet and Log in services The use of field sales, the phone and the internet as direct sales tools How to Determine the Right Channel for the Right Customer

  30. How to create the optimal ”customer journey” The customer ”travels through” different channels Example Segment x Contact: Purchase Servicing Renewal Face to face Customer satisfaction Loyalty Profitability Phone/mail Internet Customer lifetime How to Determine the Right Channel for the Right Customer

  31. Tusen takk! (A thousand thanks!) How to Determine the Right Channel for the Right Customer

More Related