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Why Pricing, data & customer segmentation are relevant for insurance (partly Dutch)
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Why Pricing, data & customer segmentation are relevant for insurance (partly Dutch)

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Why Pricing, data & customer segmentation are relevant for insurance (partly Dutch). Lessons shared from retailers and how insurers would benefit if they applied (some of) them

Why Pricing, data & customer segmentation are relevant for insurance (partly Dutch). Lessons shared from retailers and how insurers would benefit if they applied (some of) them

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Why Pricing, data & customer segmentation are relevant for insurance (partly Dutch) Presentation Transcript

  • 1. © 2014 IBM Corporation1 © 2014 IBM Corporation© 2014 IBM Corporation Verzekeringen / Insurance Pricing, data & customer segmentation
  • 2. © 2014 IBM Corporation2 32 jaar geleden:
  • 3. © 2014 IBM Corporation3 Maar eigenlijk heeft iedereen een beetje verstand van verzekeringen ...
  • 4. © 2014 IBM Corporation4 Uitspraken van klanten waarvoor ik werk De meest gewaardeerde omnichannel ... retailer van Nederland, en daarbuiten… Het aanbieden van een naadloze, gepersonaliseerde gebruikerservaring bij elke interactie om een vertrouwensrelatie op te bouwen "Omnichannel is gewoon de klant goed bedienen“
  • 5. © 2014 IBM Corporation5
  • 6. © 2014 IBM Corporation6
  • 7. © 2014 IBM Corporation7 Why retailers are an interesting breed At the forefront: • Interacting daily with clients • Feel impact from internet, mobile and social • Other trends such as P2P, global • Pressure on prices & offerings • Increased pace Trying to find solutions • Especially in non-food • Omnichannel solutions • Customer focus • Use of data • Personalization • Mobile
  • 8. © 2014 IBM Corporation8 © 2014 Forrester Research, Inc. Reproduction Prohibited 8 Source: March 10, 2014, “The Future Of Business Is Digital” Forrester report and Forrester/Russell Reynolds 2014 Digital Business Online Survey
  • 9. © 2014 IBM Corporation9 Todays topics PriceTrends (Big) Data
  • 10. © 2014 IBM Corporation10 EMPOWERED CUSTOMERS ARE CHANGING THE RULES
  • 11. © 2014 IBM Corporation11 Marlies Dekkers, Block Electrostore, Schoenenreus, Free Record Shop, OAD Reizen, Icentre, Piet Kerkhof, EXPO, De Harense Smid, House of Shoes, Polare, Siebel Store closures
  • 12. © 2014 IBM Corporation1212 IPHONE 1: 2007 IPAD 1: 2010 Mobile
  • 13. © 2014 IBM Corporation13 Every day 1.3 million visitors, 300.000 new ads 8+ million ads on marktplaats.nl C2C
  • 14. © 2014 IBM Corporation14 P2P
  • 15. © 2014 IBM Corporation15 http://bussumnatuurlijkbeter.wordpress.com/page/6/ Real estate
  • 16. © 2014 IBM Corporation16 €$ £ Run Better €$ £ Sell More Stuff €$ £ Buy Better, Turn It Faster
  • 17. © 2014 IBM Corporation17
  • 18. © 2014 IBM Corporation18 Community Commerce Content Context CustomerCustomer It’s not what you want to sell, but what/when/where/how consumers want to buy
  • 19. © 2014 IBM Corporation19 19
  • 20. © 2014 IBM Corporation20
  • 21. © 2014 IBM Corporation21 https://www.youtube.com/watch?v=D5G7xDrVT5Y
  • 22. © 2014 IBM Corporation22
  • 23. © 2014 IBM Corporation23
  • 24. © 2014 IBM Corporation24
  • 25. © 2014 IBM Corporation25
  • 26. © 2014 IBM Corporation26
  • 27. © 2014 IBM Corporation27
  • 28. © 2014 IBM Corporation28 Todays topics PriceTrends (Big) Data
  • 29. © 2014 IBM Corporation29 Type Volume Value Volunteered Observed Inferred Source: Personal Data: The Emergence of a New Asset Class” World Economic Forum 2011
  • 30. © 2014 IBM Corporation30 Purchase History / Product Affinity Attitudes & Preferences Credit & Loyalty Accounts Geographics & Demographics Channel Interactions The challenge is to integrate the “right” customer information to create a holistic customer view
  • 31. © 2014 IBM Corporation31
  • 32. © 2014 IBM Corporation32 Age + Income + Geography Preferred Product Categories Modeled time to next purchase CTP Customer Use of In-House Credit Card Facebook Page Engagement Return / Exchange Behavior Breadth of Categories Shopped Length of Time as Customer Recency + Frequency + Value Response to Media Gift Registry User Annual Spend Level Annual Transactions Econometric: Real-estate & Unemployment Most segmentation approaches only focus here:
  • 33. © 2014 IBM Corporation33 Preferred Product Categories Preferred Channel Participation in Loyalty Program Use of Credit Card Use of Service Programs Return/Exchange Behavior Breadth of Categories Shopped Length of Time as Customer Recency + Frequency + Value Response to Media Time until Repurchase in Key Categories 33
  • 34. © 2014 IBM Corporation34 Example: “Brand Fanatics” 34 Marketing Call to Action – RMI 37:1 EMOTIONAL BENEFIT: Sports enthusiast BRAND PROMISE: Latest & Greatest, Multiple Sports Category Breadth and Depth CUSTOMER AWARENESS: Loyalty promo, new product releases, direct mail and email TOUCH POINTS: Multi-Channel, In-store and on web UNIQUE IDEA: ‘Co-Branded Credit Card Promotion’ PRE-STORE: Mobile, Blogs, Social Networks IN-STORE: Mobile applications and shopping aids, services merchandise together POST-STORE: Online, loyalty program mailings and emails Strongest Loyalty: Over 85% are part of loyalty program 89% have shopped over 5 categories 91% have been customers for 7+ years Almost no new customers in <3 years 70% are due to purchase within 60 days 60% are using a private label credit card, 30% exclusively for all purchases Highest Return on Marketing scores 9% of customers 30% revenue
  • 35. © 2014 IBM Corporation35
  • 36. © 2014 IBM Corporation36
  • 37. © 2014 IBM Corporation37 Increase response rates10-50% increase Improve customer retention, loyalty & value 5-15% increase Lower customer acquisition costs Reduce marketing cycle time & increase efficiency 40-80% reduction 20-40% reduction Increase productivity/ campaign volume 50-300% increase Implementing personalization analytics delivers improved results 37 •® 113% lift in email open rates 285% lift in banner response rates Increased number of campaigns 30x Reward Zone membership doubled in 3 months Campaign prep time reduced from 3 weeks to 1 week Cost-per-conversion decreased nearly 80% Marketing staff costs reduced 35% 20-75% reduction Reduce campaign & marketing costs
  • 38. © 2014 IBM Corporation38 Todays topics PriceTrends (Big) Data
  • 39. © 2014 IBM Corporation39 Five most important things to shoppers The five most important things to shoppers making purchases both in-store and online, in order, are: • Price consistency across shopping channels, • The ability to ship out-of-stock items directly to home, • The option to track the status of an order, • Consistent product assortment across channels, and • The ability to return online purchases to the store. http://www.cnbc.com/id/101320824
  • 40. © 2014 IBM Corporation40 "An insurer provides high value to us as customers when they • Anticipate changes • One step ahead • Plan well ahead • Better foresight • New solutions • Modify their products and services • Pick up clues to changes • Unflustered or unstressed by changes • Look forward to some of the changes Source: IBM Institute for Business Value 2012 Insurance survey
  • 41. © 2014 IBM Corporation41
  • 42. © 2014 IBM Corporation42
  • 43. © 2014 IBM Corporation43 43
  • 44. © 2014 IBM Corporation44 44 04/04/2012 Competitive positioning through comparison model: Price Zones model Hyper Channel Competitor 1 CPI=100 Store North Competitor 2 CPI=99 Superstore North Competitor 2 CPI=97 Store South Competitor 3 CPI=98 Superstore South Competitor 4 CPI=98 The structure of comparison will be adapted dynamically to the competitive landscape changes The structure of comparison will be adapted dynamically to the competitive landscape changes Category Roles Competitive Price Index Prize Zones
  • 45. © 2014 IBM Corporation45
  • 46. © 2014 IBM Corporation46 4
  • 47. © 2014 IBM Corporation47 Retailers Are Learning That They Can’t Compete Solely On Price 35% 44% 41% 38% 40% 28% 48% 52% 8% 23% 25% 28% 31% 42% 44% 48% 53% Raise the barriers to entry for competitors Develop better products and services through more… Switch our company from primarily traditional… Become more focused on our company's brand… New marketing channels enable us to truly… Turn customers into brand advocates through social… Use digital channels to drive traffic to stores A greater focus on customer experience, less on product Top 3 Marketing Opportunities 2013 2012 N/A Source: RSR Research, August 2013
  • 48. © 2014 IBM Corporation48 “The last best experience that a customer has today will become the baseline expectation for everyone going forward” Paul Papas
  • 49. © 2014 IBM Corporation49
  • 50. © 2014 IBM Corporation50
  • 51. © 2014 IBM Corporation51 IBM Confidential © 2014 IBM Corporation© 2014 IBM Corporation51 IBM Confidential PUT YOUR CUSTOMERS AT THE HEART OF EVERYTHING YOU DO Keep a close eye on prices, but focus on data and data analytics
  • 52. © 2014 IBM Corporation52
  • 53. © 2014 IBM Corporation53 cor@cormolenaar.nl - © Shopping 2020
  • 54. © 2014 IBM Corporation54 IBM Confidential © 2014 IBM Corporation54 Thank you! Jerry J. Stam MBA MsC LLM Senior Managing Consultant Jerry.Stam@nl.ibm.com +31651285639 @ibm_retail_nl nl.linkedin.com/in/jerrystam
  • 55. © 2014 IBM Corporation55
  • 56. © 2014 IBM Corporation56 56
  • 57. © 2014 IBM Corporation57 "Amazon's Retail Revolution - Business Boomers - BBC “ http://youtu.be/6UhrIEUjtwI