Rebranding Protection Using Research To Develop The Proposition

1. Rebranding ProtectionUsing Research To Develop The Proposition Protect Association Members Meeting 15th May 2015 Matthew Powell

2. Agenda • Introduction • The impact of behavioural economics on decision making • What this means for protection • How research can help

3. Introduction

4. Background To B2B International Aim: To provide world-class market intelligence to the world’s leading B2B companies 8 International Offices

5. Services We Offer – An Overview Methods We Use: Telephone interviewing Face-to-face interviewing Postal surveys E-surveys Focus groups Online focus groups Online panels Desk research Mystery shopping Ethnographic

6. The Impact Of Behavioural Economics On Decision Making

7. Associations With Cardiff City

8. Where Did Behavioural Economics Come From? Whilst economics and psychology have worked in tandem for a long time, behavioural economics in its modern and popularised form can be attributed to Daniel Kahneman and his academic partner Amos Tversky. • Israeli-American psychologist, • Won the Nobel prize in economics in 2012 • Released this book in 2011, summarizing the majority of his research Other notable authors on the subject include; Dan Ariely, Paul Dolan, Richard Thaler, Cass Sunstein and Malcolm Gladwell.

9. System 1 & System 2 Thinking In ‘Thinking Fast & Slow’, Kahneman introduces the idea of two different types of thinking Left brain – ‘System 2’ thinking Right brain – ‘System 1’ thinking E.G. Uncommon tasks such as choosing a mortgage. E.G. Common tasks such as driving a car.

10. System 1 Decision Making And Heuristics “Heuristics are strategies using readily accessible, though loosely applicable, information to control problem solving in human beings and machines”

11. System 1 Decision Making And Heuristics “Heuristics are strategies using readily accessible, though loosely applicable, information to control problem solving in human beings and machines”

12. Examples Of Heuristic Decision Making

13. If People Often Use Pre-Existing Associations To Bypass Rational Decision Making, What Impact Does It Have For Protection?

14. What Does This Mean For Protection?

15. What Do People Associate With Payment Protection? Bank fines Annoying phone calls Am I being tricked? Big refunds Scandals “Have you been miss-sold” Scams PPI claim adverts If someone is deciding whether to take payment protection, they have a wealth of heuristic associations that might influence them

16. These Are The Current Associations The People Have On The Surface • Negative top-of-mind associations • We need to understand what ‘protection’ actually means to the end customer. • What are the positive associations that end-customers have? • How can these be used to develop the proposition? Banks fines Scandals Protection Am I being tricked • This is where research can help

17. How Can Research Help Do This?

18. The Usage Of Qualitative And Quantitative Research Tools & Techniques Focus groups In depth interviews Ethnography Telephone surveys Online surveys Behavioural data Quantitative Qualitative Measurement Quantifying the views of the market Exploration Understanding the how and the why?

19. When Developing A Proposition, We Look At The Overlay Of Three Areas

20. When Developing A Proposition, We Look At The Overlay Of Three Areas YOUR UNIQUE POINTS What do they like and value about the offer Customers want these and you provide them. This is your “uniqueness” which increases the appeal of your concept COMPETITOR’S UNIQUE POINTS Who are the competitors? What are the alternatives? How do they decrease the likelihood of your concepts success YOUR IRRELEVANT POINTS What are the elements that the market does not value? Can these be left out? Can they be communicated in a different way? REQUIRED POINTS What are the required features for all customers who are looking for this type of proposition? Customers want these and everyone provides them. You need to offer these to be in the market.

21. What Do We Need To Do To Understand This? • Listen to the customer • What do they see as the benefits of protection? • What are the emotional ties they have to it? • What are the positive & negative connotations of protection? • How can this knowledge be used to inform messaging & proposition?

22. Where Research Fits In: Qualitative research Exploration of attitudes and needs Quantitative research Measuring preference Segmentation of needs • Qualitative & Quantitative • Explore and measure attitudes towards developed propositions • Internal workshops • What can we really offer • How would we sell our solutions in our own words • What would our ideal offering be to our customers Qualitative Research Attitudes to substitutes, alternatives, and what drives preference towards these

23. Needs Using Segmentation To Dig Deeper • Behaviour There are three main approaches to segmentation – each with their own strengths and weaknesses: • Firmographics Hard to do, but hard to copy Easier to do, but easier to copy by the competition.

24. Example Of Three Needs Based Segments • Key Features of Segment: • Want reassurance • Need detailed advice • Prefer a personal touch • More likely to buy if fully informed Peace of Mind (50% of the market) • Key Features of Segment: • Focus on getting the best price possible • More resistant to purchasing protection insurance • More likely to be small customers Price Fighters (30% of respondents) • Key Features of Segment: • Strongly favour high quality products and services at the expense of cost • Most likely to spend more • Value trust and honesty • Prefer big brand names Quality Seekers (20% of respondents) • Build messaging around the needs of the segments • Choose which segments to focus on

25. In Summary: The Research Steps Which positive heuristic associations can be used?

26. Remember: Always Keep The Customers’ Needs At The Core

27. Thank you for listening. B2B International Euston Tower – Floor 33 286 Euston Road, London, NW1 3DP Tel: +44 (0) 203 463 8750 • Fax: +44 (0) 203 463 8753 E-mail: info@b2binternational.com Website: www.b2binternational.com