Roberto Hortal Dynamic Distribution And Cross Selling Strategies For Insurance
Expanding direct distribution
through Internet initiatives
Head of eBusiness
> Uncovering effective use of the Internet to
issue policies on the spot
> Discovering opportunities in online self-build
> Uncovering how to target consumers most
likely to use each channel
> Discovering a powerful new cadre of Internet
Uncovering effective use of the
Internet to issue policies on the
> The Instant Gratification noughties
– 24h, real-time customer expectation
– See, buy, drive away
– I want it NOW
> Integration with main purchase
– Integral to transaction
> Travel Insurance leads the way
Top 100 keywords over all time
Engaging green social network
Averge time on site
flooding summer 2007 summer 2007 floods
0 1 2 3 4 5 6 7 8
Average pages per visit
– Different premiums = customer segments
– Different product ranges
– Different propositions (price/value/platform)
• Peak Agg?
– Mature market - 65%+
– Share battles - £1M giveaway, win a Boxster
– Cashbacks threaten revenue
– Consolidation, regulation may
• Could kill the Golden Goose
– Long-term sustainability of insurers
– Race to the bottom may leave consumers
– Shrinking competitive landscape?
• Or make it stronger
– Back to basics of direct model
• Lower cost at all stages
• It’s the Customer Experience, stupid
– Customer at the core: reinventing
insurance for today’s customer
Who are these people?
• Consumers get rewards every
time they use a cashback site
– Up to 100% of site’s commission
– Down to £0 joining fee
• Cashbacks offer forums, blogs for
members to discuss merchants
– Payment terms/speed most popular
– Service/product review/recommendation growing
• Spreading like wildifire thanks to excellent MGM programs
Cashbacks and retailers
• Taxing access to consumers - parasytes of the online
– Not really a demand generation tool
– You still have to do all the hard Marketing work, and spend
all the money
• Large volume cashbacks can
drive high bounty
• Purely an added cost
• They are spreading!
Cashbacks and retailers
• High additional CPS across the board
• Selection, profitability impact
– Bounties for Insurance products tend to be flat
• Disproportionate benefit for low premium policies
• Will Aggregators bear the brunt of the cashback
– Not completing the sale?
– Having to offer cashback?
• Commercial value doubtful
Cashbacks are great social media!!
> WOM fuels growth – social media marketing working at
And rather good at it...
> Very large audience of committed users
– No shortage of enthusiasts of your brand
> Huge collection of user-generated content
> Finely tuned WOM program
> A social Marketer’s dream!
Cashbacks: Dive in
> Enhanced mobile
– Differential pricing
> Your brand,
to where most relevant
All photos: Flickr users via FlickrStorm
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