The Insurance Direct Marketing Forum 2009 Increase Performance Amid Shrinking Budgets A Multi-Channel Success Story Phil C...
Plenty of Channels
There will be responses flying to and fro.
Budgets Rising Budgets Falling
A Marketing Prince.
An Evil Wizard. Left Page:  “Evil Wizard”
A Data Ogre.
Merlin the Analytics Magician.
A Technology Dragon.
Marketing Heros.
But Phil knew that his secret weapon Was his knowledge of how to use the power Of sophisticated selling techniques in his ...
Strategic Promotional Disciplines Methodologies and Approaches Media The Strategic Marketing Pyramid* Company Objectives M...
 
Phil, you  Prince of Marketing and wunderkind I’ve been sent here for you to find It’s your marketing magic that others do...
So off to Massachusetts; Woburn to be exact To Head up marketing and get them on track So Abra ca dabra, ala-ka-zam,  With...
 
The castle seemed friendly enough, So Phil approached its massive doors. On the door there was an old bronze Plaque with a...
Well, where I come from I do not normally hear or see Men or women cast in bronze Talking or staring back at me.
Be that as it may You should still recognize me I’m the once famous jurist  and United States justice supreme I’m the hono...
Well, my name is Phil but  please tell me your story? And tell me what goes, Really, Louis, I’d like to know.
Louis replied with his stony face, This is the story of this ancient place. For in 1907 an idea came in my sleep To offer ...
So we created and sold policies Through all the local banks To insure our neighbors lives For this we received much thanks.
And we’ve been very successful With millions of customers galore Satisfied with our products and service We want them to c...
Things have changed  and times are tough We need more customers Our profits are not enough So we called on the old wizard ...
Oh, our marketing team has plenty of talent But no control over what they do They don’t have access to customer data Only ...
When marketing wants to know something About our customers  or to get counts They make a request  of the vendors or IT In ...
Why, in fact we have a vendor That provides a prospect list But when we execute and mail it It’s really… Well, hit or miss
And lastly, we have a vendor That blasts emails far and wide But we can’t tell if it’s working Or if it  makes our custome...
Savings Bank Life Insurance,  I think it has a nice ring,  I’m ready for the challenge  To do my marketing thing.
Introducing Phil Crampe Director, Email Marketing Savings Bank Life Insurance
Captured  the Data Ogre. Applied Merlin’s  Magical Analytics Slain the Technology Dragon
Capturing  the Data Ogre.
“ BEFORE” Capturing the Data Ogre BI Reports List Vendor Campaign Reports Email Provider Email Campaign Reports Email Anal...
“ AFTER”  Capturing the Data Ogre Marketing Dept Customer  Service Finance Other  Data Prospect Data Customer  Data Analys...
What Data is SBLI Trying to Capture? Purchases Response Optimism about the future  Social interactions Likely to. . . Why ...
The Foundation:  Who and Where are my Customers? AbiliTec TM Consistent and Persistent Links Email Append * Acxiom is a no...
Augment with Demographics and Psychographics <ul><li>Household </li></ul><ul><li>Marital status </li></ul><ul><li>Credit c...
Why SBLI Updates the DB? Source: D&B, US Census Bureau, US Department of Health and Human Services,  Administrative Office...
IF we Didn’t Update Often? Ripple Effects of Poor Data Quality Competitive Disadvantage  Bad Strategy Lost Productivity Cu...
“ AFTER” Capturing the Data Ogre Data Quality – Recognition – Single View  Data Owner Finance Services Sales Marketing Fi...
Harnessing Merlin’s Magical analytics
Putting Merlin’s Magical Analytics to Work 1. Existing    Customers 2. Identify Best    Customers 3. Find Others    Like T...
Quick Wins Using Descriptive Analytics
Customers Are Unique Individually and as Households <ul><li>Dual Income Household </li></ul><ul><li>1 Kid </li></ul><ul><l...
SBLI –  6 Clusters and 4 Life Stage Groups Cluster #1 Group 11B Boomer Barons Summit Estates Cluster #2 Group 15M Mature W...
Step 1 – Use SBLI Customer Data to find Opportunities HH Portrait Ranked by Index of Likelihood to buy SBLI Products Clust...
Step 2 – Organize into Actionable Target Groups Best Targets Overall to market for SBLI  Suburban dwellers with no kids …....
Step 3 – Learn Group Behaviors and Preferences SBLI “Best Target” Lifestyle characteristics can impact strategy, tactics, ...
Step 4 – Find Concentration of Each Target Group SBLI has specific geographical areas of interest.  What Target Groups dom...
Step 5 – Clusters Help Execute Marketing Strategy Cluster #13 Cluster #37 Cluster #12 <ul><li>Same Product </li></ul><ul><...
Step 6: Use Cluster Response Analysis   Response Cost per Thousand helps determine which HHs cost the most to market to. W...
Predictive Intelligence – Prospect Model Flexibility to select wider or deeper deciles Likely to Respond Likely to Purchas...
Slaying the  Technology Dragon.
What Technology Did We have “Before”?
What Technology Do We have “After”? SBLI MarketEdge-X Prospect Data  Source #1 Source #3 Infobase  Enhancement SBLI Market...
Technology at our Fingertips “The Home Page” High level insights of customers and prospects at the individual and househol...
Change in number of Customers and Prospects during the DB update. Technology at our Fingertips “What New with your Data?” ...
Technology at our Fingertips “Seeing All Your Data?” The entire marketing database is available see and explore. Selecting...
Technology at our Fingertips I can see the MTA, a Teacher’s group to which SBLI markets, and the count with the click of a...
A list of all unique prospect sources and the counts that have been used to populate our database. We developed a model to...
Technology at our Fingertips “Analyzing our Customers” Using any of the attributes we can easily perform analysis to gain ...
Technology at our Fingertips “Strategic Selection” Using advance logic and rules we are able to easily create a targeted l...
We’ve now generated a waterfall of counts based on the selection logic.  We can fine tune the logic “on the fly” to get th...
Technology at our Fingertips “Best Customer Analysis” We can drag and drop any data element of interest in a  train-of-tho...
Technology at our Fingertips “Best Customer Analysis”
Technology at our Fingertips “Best Customer Analysis”
Technology at our Fingertips “Best Customer Analysis”
SBLI Benefits Recap <ul><li>Data is robust and kept current…..automatically! </li></ul><ul><li>Customer profiles…….first t...
SBLI Results <ul><li>Response...1% or 10%... That’s the Question </li></ul><ul><li>Conversion Rate….17% ahead of plan </li...
SBLI has captured its data And the Data Ogre is gone Used Merlin’s analytics  To make their campaigns strong  The y’ve sla...
Questions and Answers
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Insurance Forum Fairy Tale SBLI

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Insurance Forum Fairy Tale SBLI

  1. 1. The Insurance Direct Marketing Forum 2009 Increase Performance Amid Shrinking Budgets A Multi-Channel Success Story Phil Crampe Director, Multi-Channel Marketing Strategy Savings Bank Life Insurance © 2009 Acxiom Corporation. All Rights Reserved.
  2. 2. Plenty of Channels
  3. 3. There will be responses flying to and fro.
  4. 4. Budgets Rising Budgets Falling
  5. 5. A Marketing Prince.
  6. 6. An Evil Wizard. Left Page: “Evil Wizard”
  7. 7. A Data Ogre.
  8. 8. Merlin the Analytics Magician.
  9. 9. A Technology Dragon.
  10. 10. Marketing Heros.
  11. 11. But Phil knew that his secret weapon Was his knowledge of how to use the power Of sophisticated selling techniques in his Direct marketing programs using all channels. Once upon a time in land far away there lived a prince of marketing named Phil. Phil was known as a clever marketer; Some said he was possessed of marketing magic. Nevertheless, throughout the land and beyond the sea All thought he possessed some kind of marketing magic. Phil was working for a very innovative company. This was no ordinary company. This company Enabled Phil to stand atop the ……… strategic marketing pyramid.
  12. 12. Strategic Promotional Disciplines Methodologies and Approaches Media The Strategic Marketing Pyramid* Company Objectives Marketing Objectives Marketing Goals *Chet Meisner, “The Complete Guide to Direct Marketing”, Kaplan Books, 2006
  13. 14. Phil, you Prince of Marketing and wunderkind I’ve been sent here for you to find It’s your marketing magic that others do seek So prepare to be delivered right to their feet.
  14. 15. So off to Massachusetts; Woburn to be exact To Head up marketing and get them on track So Abra ca dabra, ala-ka-zam, With this spell I do command! Abra-ca-dabra, ala-ka-zam I’m sending Phil to a far away land, A place without data or a 360 degree vew Of customers or prospects too. No more budgets with lots of fat No large staff or anything like that. No integrated marketing; no muti-channel mix Just vendors performing their usual tricks.
  15. 17. The castle seemed friendly enough, So Phil approached its massive doors. On the door there was an old bronze Plaque with a relief of an ancient face. Phil thought out loud, “I’ve seen this Face somewhere and sometime before.”
  16. 18. Well, where I come from I do not normally hear or see Men or women cast in bronze Talking or staring back at me.
  17. 19. Be that as it may You should still recognize me I’m the once famous jurist and United States justice supreme I’m the honorable Louis Brandies. And what might your name be?
  18. 20. Well, my name is Phil but please tell me your story? And tell me what goes, Really, Louis, I’d like to know.
  19. 21. Louis replied with his stony face, This is the story of this ancient place. For in 1907 an idea came in my sleep To offer all citizens insurance cheap.
  20. 22. So we created and sold policies Through all the local banks To insure our neighbors lives For this we received much thanks.
  21. 23. And we’ve been very successful With millions of customers galore Satisfied with our products and service We want them to come back for more. The eyes of the Brandeis plaque squinted real hard and said, “B e cause we paid the Evil Wizard to bring you here?”
  22. 24. Things have changed and times are tough We need more customers Our profits are not enough So we called on the old wizard to perform his magic tricks And send you here to apply your multi-channel marketing fix.
  23. 25. Oh, our marketing team has plenty of talent But no control over what they do They don’t have access to customer data Only the vendors can tell them what’s true.
  24. 26. When marketing wants to know something About our customers or to get counts They make a request of the vendors or IT In triplicate or in larger amounts
  25. 27. Why, in fact we have a vendor That provides a prospect list But when we execute and mail it It’s really… Well, hit or miss
  26. 28. And lastly, we have a vendor That blasts emails far and wide But we can’t tell if it’s working Or if it makes our customers hide
  27. 29. Savings Bank Life Insurance, I think it has a nice ring, I’m ready for the challenge To do my marketing thing.
  28. 30. Introducing Phil Crampe Director, Email Marketing Savings Bank Life Insurance
  29. 31. Captured the Data Ogre. Applied Merlin’s Magical Analytics Slain the Technology Dragon
  30. 32. Capturing the Data Ogre.
  31. 33. “ BEFORE” Capturing the Data Ogre BI Reports List Vendor Campaign Reports Email Provider Email Campaign Reports Email Analytic Reports Marketing Dept INTERTASK Customer Data INGENIUM Customer Contracts BULL Customer Data Customer Service Finance Prospect Data Customer Data
  32. 34. “ AFTER” Capturing the Data Ogre Marketing Dept Customer Service Finance Other Data Prospect Data Customer Data Analysis & Segmentation Reporting Email Selection & Execution Campaign Selection & Execution SBLI Data Warehouse & Datamart
  33. 35. What Data is SBLI Trying to Capture? Purchases Response Optimism about the future Social interactions Likely to. . . Why How When What Ready to buy Where Contact points READY WILLING ABLE Descriptive and Predictive Consumer Dimensions Who Demographics Clustering/Segmentation Lifestyles Name Postal/Email Address Attitudes Propensities Behaviors In Market Age Occupation Interests Habits Household level Geo-demographic level
  34. 36. The Foundation: Who and Where are my Customers? AbiliTec TM Consistent and Persistent Links Email Append * Acxiom is a non-exclusive Full Service Provider Licensee of the United States Postal Service ® . The following trademarks are owned by the United States Postal Service ® : NCOA Link® , DSF 2 ™, USPS ® , ZIP ® , ZIP + 4 ® Clean, standardized, updated, CASS Creates 360 0 view of customers On Demand Telephone Append Descriptive Information Fills the Data Gap AddressAbility ® DSF 2 ™ NCOA Link® * Demographics Psychographics Lifestyles HH Level Segmentation
  35. 37. Augment with Demographics and Psychographics <ul><li>Household </li></ul><ul><li>Marital status </li></ul><ul><li>Credit card indicator </li></ul><ul><li>Presence of children </li></ul><ul><li>Children’s age ranges </li></ul><ul><li>Household size </li></ul><ul><li>Income </li></ul><ul><li>Buying Activity </li></ul><ul><li>Apparel </li></ul><ul><li>Food/Wine </li></ul><ul><li>Online Purchasers/Mail Order </li></ul><ul><li>Electronics </li></ul><ul><li>Cultural </li></ul><ul><li>Sports </li></ul><ul><li>Music- Avid </li></ul><ul><li>>700 attributes </li></ul><ul><li>Interests </li></ul><ul><li>Gourmet </li></ul><ul><li>Boating/Sailing </li></ul><ul><li>Golf </li></ul><ul><li>Exercise/Health Enthusiast </li></ul><ul><li>Ski </li></ul><ul><li>Upscale Living </li></ul><ul><li>Spa </li></ul><ul><li>>100 attributes </li></ul><ul><li>Wealth Indicators </li></ul><ul><li>Highly likely investor </li></ul><ul><li>Net worth indicator </li></ul><ul><li>Real estate investor </li></ul><ul><li>Income producing assets </li></ul><ul><li>Discretionary Spending </li></ul><ul><li>index </li></ul><ul><li>Consumer Prominence Indicator </li></ul><ul><li>PersonicX ® </li></ul><ul><li>Household-level segments </li></ul><ul><li>100% U.S. coverage </li></ul><ul><li>70 unique clusters </li></ul><ul><li>Product purchase propensity </li></ul><ul><li>Monthly updates </li></ul><ul><li>Includes Net Worth </li></ul><ul><li>Individual </li></ul><ul><li>Age </li></ul><ul><li>Education </li></ul><ul><li>Occupation </li></ul><ul><li>Gender </li></ul><ul><li>Ethnicity variables </li></ul><ul><li>(rollup and country codes, country of origin, language, religion, etc.) </li></ul><ul><li>Real Property </li></ul><ul><li>Dwelling size </li></ul><ul><li>Purchase date </li></ul><ul><li>Home market value </li></ul><ul><li>Available home equity </li></ul><ul><li>Loan detail, type and date </li></ul><ul><li>- Interest rate type </li></ul><ul><li>- Lender name </li></ul><ul><li>- Up to three lien positions </li></ul><ul><li>Life Events </li></ul><ul><li>New Parent </li></ul><ul><li>New Mover </li></ul><ul><li>Recent Divorce </li></ul><ul><li>Newlywed </li></ul><ul><li>Entering Adulthood </li></ul><ul><li>Empty Nester </li></ul><ul><li>Intend to Purchase Vehicle </li></ul>
  36. 38. Why SBLI Updates the DB? Source: D&B, US Census Bureau, US Department of Health and Human Services, Administrative Office of the US Courts, Bureau of Labor Statistics, Gartner, A.T Kearney, GMA Invoice Accuracy Study As well as the interactions we have with our customers and prospects from campaigns and channel activity <ul><li>800,000 people will move </li></ul><ul><li>90,000 people will get married </li></ul><ul><li>30,000 people will become first-time parents </li></ul><ul><li>40,000 people will buy their first home </li></ul><ul><li>21,000 people will retire from work </li></ul>Because every week …
  37. 39. IF we Didn’t Update Often? Ripple Effects of Poor Data Quality Competitive Disadvantage Bad Strategy Lost Productivity Customer Relationship Financial Loss Poor customer insights and missed market opportunities Inaccurate view of customer value and behavior leads to the wrong strategy or business and marketing decisions Misguided initiatives, wasted labor reacting to customer complaints, sales complaints, etc. Irrelevant offers, multiple offers going to same customer, misuse of channel preferences Lost sales and customers; possible fines
  38. 40. “ AFTER” Capturing the Data Ogre Data Quality – Recognition – Single View  Data Owner Finance Services Sales Marketing First Mary Mary Lizzie Elizabeth MI E S M M Last Smith Green Smith Smith Address 314 Purple Sage 234 S. Apt 436 Oak St 893 3 rd Apt 22 Hightower 1504 Elm Street, Ap 342 City, State Providence, RI Woburn, MA Boston, MA Woburn, MA ZIP ™ 66106-5678 53201 63110 53204-3425  Mrs. Mary S Green 2345 Oak St, Apt. 436 Woburn, MA 53201-1234 Persistent : 2998374650 <ul><li>SBLI data is complete, standardized, consolidated, accurate, and up-to-date </li></ul><ul><li>SBLI now has the amount of data needed for analytics and better decisions </li></ul><ul><li>SBLI recognizes this customer and her value immediately for up sell or cross sell </li></ul><ul><li>SBLI is taking to take control of our most precious asset and govern its usage </li></ul>3
  39. 41. Harnessing Merlin’s Magical analytics
  40. 42. Putting Merlin’s Magical Analytics to Work 1. Existing Customers 2. Identify Best Customers 3. Find Others Like Them 4. Understand Them and Predict Behavior 5. Accelerate Revenue & Profit Predict Customer Buying Patterns Maximize Marketing ROI Increase Media Productivity Align Offers to the Optimal Audience / Market / Channel Increase Revenue and Profitability Accelerate Sales Productivity Fuel Product Management Goals Maximize Channel Productivity SBLI Best Customers SBLI Customers
  41. 43. Quick Wins Using Descriptive Analytics
  42. 44. Customers Are Unique Individually and as Households <ul><li>Dual Income Household </li></ul><ul><li>1 Kid </li></ul><ul><li>Juggle work and personal </li></ul><ul><li>Extended family abroad </li></ul><ul><li>Friday night dinner – out at a local casual establishment </li></ul>My House <ul><li>Single Income Household </li></ul><ul><li>4 Kids </li></ul><ul><li>Live by kid’s schedules </li></ul><ul><li>Family lives locally </li></ul><ul><li>Friday night dinner – pizza delivery </li></ul>Across The Street <ul><li>Semi retired </li></ul><ul><li>No children </li></ul><ul><li>Live half the year in Florida </li></ul><ul><li>Extended family local and abroad </li></ul><ul><li>Friday night dinner – depends on where they are </li></ul>Next Door
  43. 45. SBLI – 6 Clusters and 4 Life Stage Groups Cluster #1 Group 11B Boomer Barons Summit Estates Cluster #2 Group 15M Mature Wealth Established Elite Cluster #17 Group 12B Flush Families Apple Pie Families Cluster #11 Group 8X Jumbo Families Kids & Clout Cluster #7 Group 11B Boomer Barons Leverage Lifestyles Cluster #4 Group 11B Boomer Barons Skyboxes/Suburbans
  44. 46. Step 1 – Use SBLI Customer Data to find Opportunities HH Portrait Ranked by Index of Likelihood to buy SBLI Products Cluster 10 HHs are 5.03 times more likely to be a Premier Product customer Cluster 24 HHs are 80% less likely to be a Premier Product customer
  45. 47. Step 2 – Organize into Actionable Target Groups Best Targets Overall to market for SBLI Suburban dwellers with no kids …..start insurance nurturing program Homeowners with kids have specific insurance needs
  46. 48. Step 3 – Learn Group Behaviors and Preferences SBLI “Best Target” Lifestyle characteristics can impact strategy, tactics, message and creative.
  47. 49. Step 4 – Find Concentration of Each Target Group SBLI has specific geographical areas of interest. What Target Groups dominate those geographies? How many are there?
  48. 50. Step 5 – Clusters Help Execute Marketing Strategy Cluster #13 Cluster #37 Cluster #12 <ul><li>Same Product </li></ul><ul><li>Different Targets </li></ul><ul><li>Different Creative </li></ul><ul><li>Different Messages </li></ul><ul><li>Preferred Channels </li></ul>Offer in Spanish
  49. 51. Step 6: Use Cluster Response Analysis Response Cost per Thousand helps determine which HHs cost the most to market to. With an Index of 294 this cluster responded nearly 3X more than any other cluster Response per thousand cost are very high for these clusters.
  50. 52. Predictive Intelligence – Prospect Model Flexibility to select wider or deeper deciles Likely to Respond Likely to Purchase Flexibility to select wider or deeper deciles Flexibility to select wider or deeper deciles
  51. 53. Slaying the Technology Dragon.
  52. 54. What Technology Did We have “Before”?
  53. 55. What Technology Do We have “After”? SBLI MarketEdge-X Prospect Data Source #1 Source #3 Infobase Enhancement SBLI MarketEdge-X DB Real-time E-Mail Click Through Response Tracking List #3 Data Sources List #2 List #1 Source #2 Infobase List Customer Data Analytics Targeting Campaigns Execute Results Data Integration Cleanse Identify Enrich
  54. 56. Technology at our Fingertips “The Home Page” High level insights of customers and prospects at the individual and household level
  55. 57. Change in number of Customers and Prospects during the DB update. Technology at our Fingertips “What New with your Data?” Number of individuals promoted across multiple channels and their responses.
  56. 58. Technology at our Fingertips “Seeing All Your Data?” The entire marketing database is available see and explore. Selecting the Account Table to explore all the SBLI customer data.
  57. 59. Technology at our Fingertips I can see the MTA, a Teacher’s group to which SBLI markets, and the count with the click of a mouse. List of all unique sources that have been used to populate our customer database
  58. 60. A list of all unique prospect sources and the counts that have been used to populate our database. We developed a model to help us select only the best prospects. Technology at our Fingertips
  59. 61. Technology at our Fingertips “Analyzing our Customers” Using any of the attributes we can easily perform analysis to gain marketing insights. This simple example resulted from an analysis of geographical regions, then selecting two states to compare customer counts.
  60. 62. Technology at our Fingertips “Strategic Selection” Using advance logic and rules we are able to easily create a targeted list to market or perform more analysis.
  61. 63. We’ve now generated a waterfall of counts based on the selection logic. We can fine tune the logic “on the fly” to get the counts we need. Technology at our Fingertips “Waterfall Report”
  62. 64. Technology at our Fingertips “Best Customer Analysis” We can drag and drop any data element of interest in a train-of-thought analytical approach.
  63. 65. Technology at our Fingertips “Best Customer Analysis”
  64. 66. Technology at our Fingertips “Best Customer Analysis”
  65. 67. Technology at our Fingertips “Best Customer Analysis”
  66. 68. SBLI Benefits Recap <ul><li>Data is robust and kept current…..automatically! </li></ul><ul><li>Customer profiles…….first time ever! </li></ul><ul><li>Campaigns from desktop……analytically driven! </li></ul><ul><li>Measurable results…..closed loop marketing! </li></ul><ul><li>Efficiency…..what took 2 weeks is now 1 hour! </li></ul><ul><li>Improved internal relations…..IT comes to us! </li></ul>
  67. 69. SBLI Results <ul><li>Response...1% or 10%... That’s the Question </li></ul><ul><li>Conversion Rate….17% ahead of plan </li></ul><ul><li>Value Per Policy….3% avg premium @ contract </li></ul><ul><li>Budget…..15%.....Same Aggressive goals </li></ul><ul><li>Sales Force…..5%.... </li></ul>In the Worst Recession in History
  68. 70. SBLI has captured its data And the Data Ogre is gone Used Merlin’s analytics To make their campaigns strong The y’ve slain the Technology Dragon And his carcass is buried out back Now the marketers are heroes and Direct marketing is totally on track So we end this fairy tale Like all fairy tales do With a Happy every after And good marketing to you.
  69. 71. Questions and Answers

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