Roberto Hortal The Future Of Insurance Digital Marketing

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Roberto Hortal The Future Of Insurance Digital Marketing

  1. 1. Insurance Marketing Online Roberto’s views Roberto Hortal Head of eBusiness
  2. 2. A promising start • Direct insurance brands launch sales sites between 1999 and 2002 • Online discounts reflect absence of commissions • No separate marketing: TV, outdoor main product marketing channels • Motivation: lower total costs + don’t get left behind
  3. 3. A promising start Source: E-Commerce Inquiry to Business 2000 – Office for National Statistics
  4. 4. Penny-pinching Secondary, cost-reducing, simple sales channel Online able, not online ce
  5. 5. Built on Legacy Systems and Products
  6. 6. Insurance so far Just one online-only company 2004 - 2007
  7. 7. The Financial Services Marketing mix • We love TV! • DR traditionally from BUY! direct mail • Online Marketing getting attention – Over 60% sales online, just 15-25% spend – Saturation in other channels – Supporting/replacing offline DR channels – Measurability, flexibility, reach Sources: eBenchmarkers October 2007 report / Internal research
  8. 8. Making the tills ring Online Motor Insurance May-Oct 07 • 2.1M online sales • Double-digit increase YoY • Majority of all sales – share of online sales up 20% YoY Source: eBenchmarkers October 2007 report
  9. 9. Big online spenders • >£110M spend YR to Oct 07 – 40% increase YoY • Traditional business model supported large CPS (£34 - $165 across peer group) but customer behaviour is changing fast!
  10. 10. Updating insurance Products and services
  11. 11. Getting it right • Online extensions to product – Green wheel • Online mastery – Back to basics: user experience • Engaging with customers – Living • Leveraging the brand – Nodding dog – Aviva/NU preparing an aggregator?
  12. 12. Getting it right • Online extensions to product – Green wheel • Online mastery – Back to basics: user experience • Engaging with customers – Living • Leveraging the brand – Nodding dog – Aviva/NU preparing an aggregator?
  13. 13. Updating insurance Engaging with our customers
  14. 14. Popular Source: iCrossing
  15. 15. 900 Top 100 keywords over all time 800 700 Engaging green social network 600 Averge time on site 500 morethan living 400 flood advice flooding summer 2007 summer 2007 floods 300 green motoring 200 long egg 100 morethan 0 0 1 2 3 4 5 6 7 8 Source: iCrossing Average pages per visit
  16. 16. Every piece counts • Products designed for loyalty – Multicar makes it difficult to leave – 2 months free when you renew • Fighting commoditisation • Opportunity keeps growing – 32M Britons online (75% more than 2001’s 18M) • The world is bigger than your site
  17. 17. The new Intermediaries
  18. 18. Aggregators
  19. 19. Eroding customer loyalty Price transparency, commoditisation cashback incentives
  20. 20. Aggregators and consumers • Save lots of time • Save money every year • Expand reach • I’m in control
  21. 21. Aggregators and insurers • Changing the game – From brand list to price shortlist – Commoditisation – Pricing transparency – Adverse selection risks • Significantly affecting loyalty • A race to the bottom – Agg-centric no-frills products
  22. 22. Source: eBenchmarkers October 2007 report
  23. 23. Resistance is futile?
  24. 24. The Aggregator effect Saturated market: always growing spend to maintain share of voice Aggregators + new branded entries increase competition for attention
  25. 25. 2008 2006 Coming soon to a business near you
  26. 26. Everyone wants in
  27. 27. • Specialisation/positioning – Different premiums = customer segments – Different product ranges – Different propositions (price/value/platform) Aggregators: what next?
  28. 28. • Peak Agg? – Mature market - 65%+ – Share battles - £1M giveaway, win a Boxster – Cashbacks threaten revenue – Consolidation, regulation may be imminent Aggregators: what next?
  29. 29. • Could kill the Golden Goose – Long-term sustainability of insurers at risk – Race to the bottom may leave consumers unprotected – Shrinking competitive landscape? Aggregators: what next?
  30. 30. • 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 Aggregators: what next?
  31. 31. Cashback sites
  32. 32. Cashbacks and consumers • 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
  33. 33. Cashbacks and retailers • Taxing access to consumers - la famiglia of the online Marketing world? – 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!
  34. 34. 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 revolution – Not completing the sale? – Having to offer cashback? • Commercial value doubtful
  35. 35. Who are these people? Source: MoneySavingExpert
  36. 36. • Immature • Massive recent growth – Basic category lists – Quidco: 3x traffic in 9 – Evolving, eroding months model (100%, no fee) – Up to 30% affiliate sales • Inefficient • Media darling – Operating through – BBC, GMTV, Five, Radio 4 (expensive) affiliate • Bandwagon networks – MS Search to offer cashback in US
  37. 37. Social Media • The biggest opportunity in online marketing • Participate in conversations – Listen – Change – Communicate • Your customers on the driver’s seat
  38. 38. Popular
  39. 39. 900 Top 100 keywords over all time 800 700 Engaging green social network 600 Averge time on site 500 morethan living 400 flood advice flooding summer 2007 summer 2007 floods 300 green motoring 200 long egg 100 morethan 0 0 1 2 3 4 5 6 7 8 Average pages per visit
  40. 40. Not bad for £0 marketing but...
  41. 41. Cashbacks are better social media!! • WOM fuels growth – social media marketing working at last! And rather good at it...
  42. 42. • 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
  43. 43. 3 final thoughts • Mastery – Back to basics: the user experience – Get the best people available • Where will your brand take you? • Mobile. It’ll happen, just not as we’ve been told
  44. 44. Thanks! Roberto Hortal roberto.hortalmunoz@uk.rsagroup.com www.morethan.com www.hortal.com All photos: Flickr users via FlickrStorm

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