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  • 1. Driving forAdvanced Analyticswith Joe Brandenburg
    Operational
    and
    Market
    Data Analytics
  • 2. The First Step in “Solving” is “Knowing” what the issues Are!!! Then Finding way to Improve
    Long-Term
    Profitability
    Advanced Analytics Tracking and Targeting
    Operational Tracking and Scoring
    YOU ARE HERE
  • 3. Building the “Knowing”
    Background and Capabilities
  • 4. Background
  • 5. Technical Capabilities
    Programming SAS Mainframe and PC SAS for 12 years hands-on, JCL, JES2, Sync sort
    Excel complex from Pivot tables to the Solver
    MS Access, Word, PowerPoint
    SQL Server, Oracle, Sybase 12 years
    Database design, normalization, stored procedures, DTS, analysis services
    Indexes, and optimization
  • 6. Ability to Sell the Right Mix of Support, Analytics, Research, and Analysis
    • Typical Tactic is to offer support and provide request fulfillment and then go beyond to show additional opportunity and insight through Analytics, Research and Analysis in a teaching and partnership fashion
    • 7. Ability to speak to and work with all areas from spending time in and with all areas front to back in financial services organizations
  • Analytic Capability Framework
    Marketing
    Financial
    • Customer and Product Profitability(CLV, Persistency, and Activity Based Costing)
    • 8. Pricing (Risk, Market Based, Elasticity)
    • 9. Acquisition Costs and Retention Costs
    • 10. NPV, IRR, ROI, Payback Period
    • 11. Underwriting performance and results tracking
    • 12. Custom Research
    • 13. Concept Tests (Quant or Qual)
    • 14. Key Driver Analysis
    • 15. Conjoint Analysis and Consumer Preference
    • 16. (Product Design, Ad Copy, pricing, segmentation, forecasting)
    • 17. Customer Satisfaction (Loyalty, Defection, Net Promoter)
    • 18. Simulated Test Markets
    • 19. Brand Equity and Brand Assessment
    • 20. Uniqueness, Attractiveness, Relevance, Credibility
    • 21. Promotion, Channel, Web Metrics
  • Analytic and Research
    Objectives (Examples)
    Where is there opportunity for me to expand?
    Increase P&C Sales by market expansion, channel development 25%
    How Do I improve my Customer Satisfaction?
    Improve Customer Satisfaction to 95%
    When should I contact customers and what message to get them to stay?
    Reduce Churn by 18%
    What Products and Combinations do people want?
    Develop product packages, up-sell and cross-sell tactics
  • 22. How can we get there?
    Building a Strategy of Attack
  • 23. Building a Strategy of Attack
    Phase I: Development of Baseline
    Determine low hanging fruit: Easy low cost changes that will have big impact to the business
    Phase II: Integration of Baseline, Outside Data and New Collection Methods
    Phase III: Building tools to influence market expansion, automation, product design and pricing changes
    Phase IV: Measure results of company efforts through reporting, dashboards and developed algorithms
  • 24. Phase I: Development of Baseline
    Evaluating the Business
    Development and Potential
  • 25. Phase I: Development of Baseline
    Current Reporting Capability, Models, Data and SWOT
    Operational Analytics Reviews
    Underwriting, Accounting (Statutory and GAAP), Pricing, Reserving (Case and IBNR)
    Development of automation and key profitability driver models
    Evaluation of demographics and geo-demographic factors that impact retention, messaging and best customers (High Value/Low carrying cost)
    Marketing Analytic Reviews
    Competitor Pricing, Product Designs, Placement, and Promotion
    Key Purchase Drivers of customers (price, deductible, ect)
    Broker Network - What do we know? / What do we believe?
    Product Expansion and Market Expansion Opportunities
    Expansion through acquisition or evaluation
  • 26. Process Review and Documentation
    Short-Term Automation
    Manual Process
  • 27. Process Automation
  • 28. Example of Evaluating the Business Potentials
  • 29. Market Assessment and Potential
    16
    300
    Million
    People In The US
  • 30. Market Assessment and Potential
    US Market
    XXX
    Million
    Potential Buyers of Auto Insurance and Businesses buying PNC
    Current States
    Low Potential
    Medium Potential
    High Potential
  • 31. Market Penetration – Where We Have Won!
    18
    Different Penetration For Different Markets
  • 32. Phase II: Integration of Baseline and Outside Data
    Building Reports
    and
    Business Intelligence
  • 33. Integrating Business Intelligence Tools into the Mix and Working with IT to develop new tracking tools and finding data
    20
  • 34. Examples of Analytics, Reporting and Forecast
  • 35. Reporting and Tracking
    Building Reporting and Outside Forces
    (Dunn and Bradstreet, Equifax, Experian 4 digit Zip Code data, Retention History, Claims Patterns
    Lifetime Value
    Persistency
    High Value Customers - Products
  • 36. Phase III: Building tools to influence market expansion, product design and pricing changes
    Examples
  • 37. Underwriting Automation
    Establish baseline of underwriting standards
    If exists, take underwriting answers and compare to claims and persistency
    Use of standardizations, skip patterns and question piping to populate underwriting database and decision engine
  • 38. Sphere
    Of
    Influence
    Customer
    Independent Broker
    Build Profiles
    Build Profiles
    Penetration
    Potential
    Fair Share
    Claims experience
    Net Promoter
    Attitude / Awareness / Net Promoter
    Receptivity
    Carrier Reputation
    Retention Renewal Tactics
    Demographics
    Socioeconomic
    Perception
    High Value Customer Evaluation
    CRM and Quote Profiling Tools Online and Offline
  • 39. CRM Agent Recruitment Tracking Quoting tool tracking using Coremetrics, XML and SQL Server for both Online and Offline Tools
    Manage Agents by Sales Stage(ARMS)
    Future: Enhance Agent Profiling(ARMS)
    Qualifying Does lead meet standards
    Certified (Trained) Current on product
    Committed Specific volume commitment to contract production
    Engaged Merits our active support and enrollment into our programs
    Reach
    How big of a geographic circle does this agent reach?
    Customers
    General, Auto Targets, PNC Targets
    Partnership
    Differing depths measures of ‘engaged’; beyond ‘charter’ designation
    Other
    ARMS is a tool for lots of coordination opportunities. Links to D2C and Wholesalers
    26
    B2B Recruitment
    Note: Initial ARMS “Status” designation has been established. This will “roll-up” in both Field Sales
    reporting and on the Operational “Dashboard”.
  • 40. Phase IV: Measure results of company efforts through reporting, dashboards and developed algorithms
  • 41. Results and Action Plan Follow-up
    Campaign Segmentation
    New Sales Development
    Campaign Follow-up
    Customer Retention Development