Financial management of integrated marketing programs
Download
1 / 43

FINANCIAL MANAGEMENT OF INTEGRATED MARKETING PROGRAMS - PowerPoint PPT Presentation


  • 250 Views
  • Updated On :

FINANCIAL MANAGEMENT OF INTEGRATED MARKETING PROGRAMS Jay Jaffe President Actuarial Enterprises, Ltd. Chicago, IL 312-397-0099 [email protected] September, 2009 Integrated Marketing

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'FINANCIAL MANAGEMENT OF INTEGRATED MARKETING PROGRAMS' - Audrey


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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Financial management of integrated marketing programs l.jpg

FINANCIAL MANAGEMENT OF INTEGRATED MARKETING PROGRAMS

Jay Jaffe

President

Actuarial Enterprises, Ltd.

Chicago, IL

312-397-0099

[email protected]

September, 2009


Integrated marketing l.jpg

Integrated Marketing

A marketing process which uses coordinated distribution channels, media and messages to improve profitability


The 5 risk elements of any insurance marketing program l.jpg
The 5 Risk Elements of any Insurance Marketing Program

  • Claims

  • Persistency

  • Administrative Expenses

  • Investment returns

  • Marketing costs


The 5 risk elements of any direct marketing program in order l.jpg
The 5 Risk Elements of any Direct Marketing Program (in order)

  • Marketing costs

  • Persistency

  • Claims

  • Administrative Expenses

  • Investment returns



Why marketing costs are the 1 risk element l.jpg
Why Marketing Costs are the order)#1 RISK ELEMENT


Why marketing costs are the 1 risk element7 l.jpg
Why Marketing Costs are the order)#1 RISK ELEMENT

  • $$$ are spent < any policy is sold

  • When marketing costs > marketing allowances, it is unlikely that:

    • The costs will be recovered; and

    • The product will be profitable


Slide9 l.jpg
Integrated Marketing order)Introduces Complicationsas a Result of Multiple Distribution Channels, Media and Messages


Slide10 l.jpg

(Agents) order)

(Internet)

(Worksite)

(Telemarketing)


Slide11 l.jpg

(Mail) order)

(PDA)

(TV)

(Radio)


Slide12 l.jpg

(Fear) order)

(Family)

(Free)

(Action)



Slide14 l.jpg

& order)


And we tend to create a l.jpg

And, We Tend to Create a order)

Mentality at Our Companies


The odd couple l.jpg

The Odd Couple order)

Jack Klugman (Oscar) and Tony Randall (Felix)


Some examples of silos l.jpg
Some Examples of Silos order)

  • Distribution systems within a company operate that independently

  • Media managers each having their own plans, budgets and bonuses

  • Underwriters only worrying about claims


Slide19 l.jpg

The result is that very few insurers have a recognizable and consistent message --- which may mean they don’t have a picture of where they are going.


The secret to financially managing integrated marketing is l.jpg
The Secret consistent message --- which may mean they don’t have a picture of where they are going.to Financially Managing Integrated Marketingis ????


The answer integrating marketing l.jpg
The Answer: consistent message --- which may mean they don’t have a picture of where they are going.Integrating Marketing


Integrated marketing jig saw puzzle l.jpg

INTEGRATED MARKETING = consistent message --- which may mean they don’t have a picture of where they are going.JIG SAW PUZZLE

You need to look at both the

BIG PICTURE

and

all the LITTLE PIECES

in order to get everything to fit together


Lead cost an example of non integrated marketing in an integrated marketing program l.jpg
Lead Cost: consistent message --- which may mean they don’t have a picture of where they are going.An Example of Non-Integrated Marketing in an Integrated Marketing Program


Lead program facets l.jpg
Lead Program Facets consistent message --- which may mean they don’t have a picture of where they are going.

  • Multiple lead sources

  • Cost of leads varies dramatically by source

  • Paid policies (conversion) results are not uniform

  • Value of a “name” for “after sales” is not easily determined

  • Which area owns the leads?


Developing a lead program an investment strategy l.jpg

Developing a Lead Program = An Investment Strategy consistent message --- which may mean they don’t have a picture of where they are going.

The problem: All leads are not equal in cost --- so how do you chose which leads to acquire?


1 lead selection criteria theoretically l.jpg

#1 consistent message --- which may mean they don’t have a picture of where they are going.LEAD SELECTION CRITERIA (theoretically)

The leads that produce the lowest cost per paid policy!


But what about l.jpg
But What About? consistent message --- which may mean they don’t have a picture of where they are going.

  • The cost of leads given to agents who don’t even use the leads?

  • Leads that can be recycled and produce other business?

  • The value of revenue from products marketed by other companies that are sold to your customers?


And other questions l.jpg
AND consistent message --- which may mean they don’t have a picture of where they are going.OTHER QUESTIONS


Modeling integrated marketing activities is very complicated l.jpg
Modeling Integrated Marketing Activities is Very Complicated consistent message --- which may mean they don’t have a picture of where they are going.

(Live Oak Tree)


Decision making for integrated marketing systems l.jpg
Decision Making for Integrated Marketing Systems consistent message --- which may mean they don’t have a picture of where they are going.

  • Requires complicated analytic models

  • Calls for acquiring additional data but only when it will improve the quality of a decision and at an affordable cost

  • Is partly a scientific and partly a gut reaction process but decisions should be made using more than an “I think” basis


Some things you need to do if you want to make quantitative decisions l.jpg
Some Things You Need to do if You Want to Make Quantitative Decisions

  • Create comprehensive data bases

  • Identify the key metrics that need to be tracked and understood

  • Start with simple models

  • Increase the complexity of models as you gain knowledge

  • Recognize the team aspects of Integrated Marketing


The team l.jpg
The Team Decisions

  • Multiple marketing types

  • Underwriters

  • Actuaries

  • Lawyers

  • IT people

  • Claim processors

  • Etc.


Remember ruler 1 if you can t measure it don t do it l.jpg
REMEMBER RULER #1: DecisionsIF YOU CAN’T MEASURE IT, DON’T DO IT.


Slide36 l.jpg

SET TARGETS Decisions


Examples of targets l.jpg
EXAMPLES OF TARGETS Decisions

  • Profit

  • Claims (mortality, morbidity, etc.)

  • Lapses

  • Conversion rates

  • Expenses:

    • Marketing

    • Administrative


Actual to expected ratios l.jpg
Actual to Expected Ratios Decisions

  • A/E rations are helpful because they give you an instant picture

  • If conversion rate A/E = 105%, then good

  • If lapse rate A/E = 105%, then bad


Slide39 l.jpg

The new direct marketing is an information-driven marketing process, made possible by database technology, that enables marketers to develop, test, implement, measure, and appropriately modify customized marketing programs and strategies.From The New Direct Marketing, David Sheppard Associates, p. 3


New insurance program assessment formula l.jpg
NEW INSURANCE PROGRAM ASSESSMENT FORMULA process, made possible by database technology, that enables marketers to develop, test, implement, measure, and appropriately modify customized marketing programs and strategies.

  • Excellent

  • Good

  • Average

  • Poor


The ultimate test of a product l.jpg

THE ULTIMATE TEST OF A PRODUCT process, made possible by database technology, that enables marketers to develop, test, implement, measure, and appropriately modify customized marketing programs and strategies.

WILL THE

EAT THE ???


The insurance direct marketing forum 2009 l.jpg
THE INSURANCE DIRECT MARKETING FORUM 2009 process, made possible by database technology, that enables marketers to develop, test, implement, measure, and appropriately modify customized marketing programs and strategies.


ad