For personal lines carriers, defensive marketing strategies are no longer enough to win and retain customers. Given the industry's questionable returns from past marketing efforts, insurance companies will have to invest wisely and work smarter to take advantage of today's advanced marketing analytics capabilities.
This document discusses the rise of customer-centric marketing in the auto insurance industry. It notes that while marketing spending by insurers has increased significantly in recent years, this has not translated to growth in market share for many carriers. The document advocates for insurers shifting to a more segmented approach to marketing that considers different customer needs and behaviors throughout the purchasing process. It also emphasizes the growing importance of digital channels and the need for insurers to strengthen their use of social media and targeted digital tactics.
The document summarizes key findings from a healthcare marketers trends report. It finds that while overall marketing budgets are flat, there has been significant movement between channels. Digital spend is increasing at the expense of traditional channels, and branded communication budgets are increasing while unbranded budgets decrease. Physicians remain the audience with the largest budget increase. The report indicates marketers are shifting tactics in response to industry changes like healthcare reform.
The survey of auto executives found that over 90% viewed the state of the U.S. automotive industry as better than the previous year due to a return to fundamentals. While projected auto sales of 13.7 million for 2012 are below pre-crisis levels, executives are optimistic that restructuring has improved profitability even at lower volumes. The survey also showed uncertainty around emerging technologies and the need to strengthen global supply chains to prepare for potential disruptions.
Mergers & Acquisitions: What Winners Do to Beat the OddsL.E.K. Consulting
Activity in M&A often comes in bursts. As of the second quarter of 2013, the scent is in the air. Company management is flush with cash, bolstered by buoyant share prices, and face slow prospects for organic growth.
But capturing value by creating a whole that is greater than the sum of its parts is risky. Recently, L.E.K. Consulting analyzed the performance of more than 2,500 M&As between 1993 and 2010 – a period that included two boom and bust economic cycles. L.E.K. found that nearly 60% of companies destroyed shareholder value after the deal closed.
In this new Executive Insights, L.E.K. shares how management can overcome common pitfalls to beat the long odds of creating value through mergers and acquisitions. From identifying the right target to synergy valuation to post-merger integration, winners have shown that with the right approach, value through M&A can be found and captured.
Market Intelligence Report: Online Personal Injury 2013 John McCambley
Stickyeyes' market report reveals that the abolition of referral fees is dramatically reshaping the search marketing landscape within the online personal injury sector.
1) CPG companies are focusing more on improving promotion effectiveness rather than increasing trade spending or improving deduction reconciliation in 2011.
2) While some CPG companies plan to decrease trade budgets in 2011, most will keep budgets flat or increase spending slightly.
3) Rising costs are forcing most CPG companies to plan price increases in 2011, but most believe retailers will pass these costs directly to consumers rather than help absorb any of the increases.
This presentation by AtmanCo discusses the company's current position and future plans. It contains forward-looking statements that involve risks and uncertainties. The company has historically not been profitable. It aims to grow through acquisitions of companies like VuduMobile and PlusMobile to expand into new markets and cross-sell products. Financial forecasts project increasing revenues and earnings through 2018 by leveraging synergies across the combined businesses.
The past five years have been good to the auto industry. Following a cyclical downturn and a series of bankruptcies and harsh restructurings in the wake of the 2008–09 financial crisis, U.S. vehicle sales have been strong, especially for highly profitable trucks and SUVs. Globally, automobiles have grown more attractive than ever, with all kinds of exciting new technologies — impressive powertrain systems, mobile connectivity, advanced driver-assistance systems, maintenance monitoring, and the like — further exciting car buyers.
In the eyes of many in the industry, the future looks equally bright. Oil and gas prices appear likely to remain reasonably low for some time, encouraging big-margin SUV sales. The technology inside autos will continue to grow more sophisticated and affordable.
Automakers feel confident investing large sums of money in developing new features for their cars, particularly advanced safety and navigation options. Many suspect that they can make fully autonomous vehicles (AVs), machines that can drive themselves anywhere, under any traffic and weather conditions, without a human ever having to take the wheel, a reality within a relatively short time, as little as five or 10 years. That, in turn, would open huge new markets, it is hoped, as buyers — large fleets as well as individuals — flock to driverless vehicles and associated services.
There is much truth in the vision of fully autonomous vehicles. Certainly, there will come a time when commuters can relax, eat breakfast, and write emails on the way to work as their robotic taxis transport them on algorithmically chosen routes in perfect safety. But as the recent fatal crash of a Tesla in semi-autonomous mode sadly made clear, it will probably take decades, not years, for this vision to become a common reality.
This document discusses the rise of customer-centric marketing in the auto insurance industry. It notes that while marketing spending by insurers has increased significantly in recent years, this has not translated to growth in market share for many carriers. The document advocates for insurers shifting to a more segmented approach to marketing that considers different customer needs and behaviors throughout the purchasing process. It also emphasizes the growing importance of digital channels and the need for insurers to strengthen their use of social media and targeted digital tactics.
The document summarizes key findings from a healthcare marketers trends report. It finds that while overall marketing budgets are flat, there has been significant movement between channels. Digital spend is increasing at the expense of traditional channels, and branded communication budgets are increasing while unbranded budgets decrease. Physicians remain the audience with the largest budget increase. The report indicates marketers are shifting tactics in response to industry changes like healthcare reform.
The survey of auto executives found that over 90% viewed the state of the U.S. automotive industry as better than the previous year due to a return to fundamentals. While projected auto sales of 13.7 million for 2012 are below pre-crisis levels, executives are optimistic that restructuring has improved profitability even at lower volumes. The survey also showed uncertainty around emerging technologies and the need to strengthen global supply chains to prepare for potential disruptions.
Mergers & Acquisitions: What Winners Do to Beat the OddsL.E.K. Consulting
Activity in M&A often comes in bursts. As of the second quarter of 2013, the scent is in the air. Company management is flush with cash, bolstered by buoyant share prices, and face slow prospects for organic growth.
But capturing value by creating a whole that is greater than the sum of its parts is risky. Recently, L.E.K. Consulting analyzed the performance of more than 2,500 M&As between 1993 and 2010 – a period that included two boom and bust economic cycles. L.E.K. found that nearly 60% of companies destroyed shareholder value after the deal closed.
In this new Executive Insights, L.E.K. shares how management can overcome common pitfalls to beat the long odds of creating value through mergers and acquisitions. From identifying the right target to synergy valuation to post-merger integration, winners have shown that with the right approach, value through M&A can be found and captured.
Market Intelligence Report: Online Personal Injury 2013 John McCambley
Stickyeyes' market report reveals that the abolition of referral fees is dramatically reshaping the search marketing landscape within the online personal injury sector.
1) CPG companies are focusing more on improving promotion effectiveness rather than increasing trade spending or improving deduction reconciliation in 2011.
2) While some CPG companies plan to decrease trade budgets in 2011, most will keep budgets flat or increase spending slightly.
3) Rising costs are forcing most CPG companies to plan price increases in 2011, but most believe retailers will pass these costs directly to consumers rather than help absorb any of the increases.
This presentation by AtmanCo discusses the company's current position and future plans. It contains forward-looking statements that involve risks and uncertainties. The company has historically not been profitable. It aims to grow through acquisitions of companies like VuduMobile and PlusMobile to expand into new markets and cross-sell products. Financial forecasts project increasing revenues and earnings through 2018 by leveraging synergies across the combined businesses.
The past five years have been good to the auto industry. Following a cyclical downturn and a series of bankruptcies and harsh restructurings in the wake of the 2008–09 financial crisis, U.S. vehicle sales have been strong, especially for highly profitable trucks and SUVs. Globally, automobiles have grown more attractive than ever, with all kinds of exciting new technologies — impressive powertrain systems, mobile connectivity, advanced driver-assistance systems, maintenance monitoring, and the like — further exciting car buyers.
In the eyes of many in the industry, the future looks equally bright. Oil and gas prices appear likely to remain reasonably low for some time, encouraging big-margin SUV sales. The technology inside autos will continue to grow more sophisticated and affordable.
Automakers feel confident investing large sums of money in developing new features for their cars, particularly advanced safety and navigation options. Many suspect that they can make fully autonomous vehicles (AVs), machines that can drive themselves anywhere, under any traffic and weather conditions, without a human ever having to take the wheel, a reality within a relatively short time, as little as five or 10 years. That, in turn, would open huge new markets, it is hoped, as buyers — large fleets as well as individuals — flock to driverless vehicles and associated services.
There is much truth in the vision of fully autonomous vehicles. Certainly, there will come a time when commuters can relax, eat breakfast, and write emails on the way to work as their robotic taxis transport them on algorithmically chosen routes in perfect safety. But as the recent fatal crash of a Tesla in semi-autonomous mode sadly made clear, it will probably take decades, not years, for this vision to become a common reality.
How B2B companies talk past their customersAdfactors B2B
The document summarizes research that found a gap between the messages that B2B companies use to promote their brands and what characteristics customers actually value. The research examined the branding of 90 large B2B companies and surveyed over 700 customers. It found that themes like social responsibility and sustainability, which companies emphasize, have little influence on customer perceptions of brand strength. In contrast, themes important to customers like specialist expertise and supply chain management were rarely mentioned by companies. The document concludes by offering three questions for companies to evaluate how well their branding aligns with customer needs.
This document summarizes the key drivers and benefits of consolidation in the US banking industry. It notes that the industry remains fragmented compared to other nations and mid-tier banks face profitability challenges due to regulatory pressures and competition from fintech firms. Consolidation can help mid-tier banks gain necessary scale through cost reductions from branch consolidation and spreading of fixed costs. Mergers allow banks to invest in growing areas like digital services. The document predicts a wave of M&A activity among mid-tier banks seeking scale through consolidation.
The document discusses the role of CFOs in helping companies prepare for an uncertain future. It argues that CFOs must partner with CEOs and boards to develop future-proof strategies focused on innovation, understanding customer and market trends, managing regulatory risks, embracing digital transformation, reengineering processes to cut costs, and more. By taking on these expanded responsibilities, CFOs can help ensure their companies' long-term sustainability and competitiveness in a rapidly changing business environment.
Lincoln National Corporation's 2004 annual report summarizes the company's strong financial performance in 2004. The company reached record levels of gross deposits and net flows, demonstrating the company's ability to attract new business and retain existing customers. The company benefited from an economic upturn as well as its focus on product excellence, distribution reach, and brand strength. Looking ahead, the company is optimistic about its future prospects due to the large retirement savings needs of aging baby boomers and its product offerings that are well-positioned to meet those needs.
The economist intelligence unit: Voice of the customer, whose job is it, anywayAidelisa Gutierrez
In what areas should marketing focus investments in order to contribute most to your business in 3 years?
#1 Customer Analytic
#2 Customer Relationship Management
#3 Social Media
The Rapidly Evolving Landscape of Meal Kits and E-commerce in Food & BeverageL.E.K. Consulting
Consumers are increasingly strapped for time, and when they’re shopping for and preparing fresh, healthy food, every extra minute counts. Here’s where meal kits and e-commerce come in: they give consumers control and the ability to personalize their meals, while saving them valuable time otherwise spent on shopping and food prep.
In this webinar, Rob Wilson, Managing Director at L.E.K. Consulting, and The Food Institute will explore the $150 billion land grab of e-commerce sales in food & beverage and the role of meal kits in this rapidly evolving landscape.
AMCON Distributing Co. is undervalued based on various valuation methodologies. It has reduced debt significantly over the past four years through paying down its credit facility. AMCON has a strong market presence distributing products to over 4,300 retail outlets across 18 states. The company is led by an experienced management team that has improved operations and financial position. However, AMCON operates on thin margins in a competitive industry and remains dependent on its credit facility.
This report provides a hold recommendation and $25.11 price target for GameStop (GME) stock. While GameStop dominates the used video game market, the shift to digital gaming threatens its business model. GameStop must acquire more digital companies to meet sales targets in this growing segment. However, its debt-free balance sheet positions it well to make additional acquisitions. Intensifying competition, particularly from retailers like Best Buy expanding their used game offerings, also poses a risk to GameStop's market share. The report uses discounted cash flow and comparable company/transaction analyses to arrive at the $25.11 price target.
Duff & Phelps and the Financial Executives Research Foundation (“FERF”) first published the results of their comprehensive Goodwill Impairment Study in 2009. This inaugural study examined U.S. publicly-traded companies’ recognition of goodwill impairment at the height of the financial crisis (the end of 2008 and the beginning of 2009), and featured a comparative analysis of the goodwill impairments of over 5,000 companies (by industry), as well as the findings of a survey of Financial Executives International (“FEI”) members.
Our attempt was to pitch and acquisition of Nordstrom to Macy's to form a retail conglomerate. Emphasizing consumer trends and synergies between the two companies. Data provided from multiple sources mainly Deloitte's, "The Great Retail Bifurcation".
This document provides a summary and analysis of Target's strategy and opportunities for growth. It discusses Target's current strategy of investing in guest service, digital fulfillment, store remodels, supply chain, and owned brands. It then provides recommendations to enhance Target's growth and durability, including: 1) Leaning into Target's style and fun brand equity by increasing new brands, limited releases, and in-store experiences. 2) Recharging Target's REDcard program by offering a premium tier with fuel discounts and Shipt membership. 3) Leveraging Target's owned grocery brands like Simply Balanced, Archer Farms, and Market Pantry to drive loyalty and competitive differentiation. The document analyzes these opportunities and recommendations in more detail
Jeovany Zelaya - UNO Investment Research ReportJeovany Zelaya
We initiate coverage of Cabela's Inc. with a buy recommendation based on the company's continued new store openings and strong customer satisfaction and loyalty. Cabela's operates 64 retail stores in the US and Canada selling hunting, fishing, and outdoor gear. It also engages in direct marketing and issues the Cabela's Club Visa credit card. We estimate 10% revenue growth in 2015 and 10-13% growth in 2016-2017 as Cabela's opens 14 new stores annually over the next few years. Our $64 target price values Cabela's at a 17-18x P/E multiple on 2015 EPS. Key risks include increased competition from retailers like Dick's Sporting Goods and potential new
Die C-Level Linienfunktion CMO (Cief Marketing Officer) wir immer wichtiger. Hier ist ein White Paper zu den Anforderungen denen sich CMOs aktuell stellen müssen.
Vielen Dank für das White Paper an Sheryl Pattekwith, David M. Cooperstein und Alexandra Hayes von Heidrick & Struggles.
Contribution to panel discussion of the key changes to be expected in the insurance industry over the next five years from technology to product development.
This document summarizes a report from NADA on used vehicle prices by age level. It finds that from 2007-2012, prices grew 18% for vehicles 1-3 years old but even more, 21.5% on average, for vehicles 4-10 years old. Recently, prices have softened 1.2% for vehicles under 4 years as new vehicle demand and incentives increase, drawing customers from used vehicles. However, older vehicle prices have remained steady as quality improvements make them more desirable and supply declines. NADA predicts prices will continue to diverge, with newer used vehicles softening 1.5% in 2013 while older models see 1.5% growth or remain flat.
The document discusses strategies used by mobile operators called "frontrunners" to achieve profitable growth. It identifies six common traits, or "Growth Codes", shared by frontrunners: market performance leadership, measure and manage user experience, create innovative offerings, create strategic partnerships for innovation, embrace innovation, and create a performance gap to competitors. The document analyzes three strategies used by frontrunners - quality-led progression, market-led adaptation, and offering-led transformation - and how they relate to the six Growth Codes. Frontrunners have achieved an average annual revenue growth of 12.4% compared to 7.3% for their peers, proving that operators can prosper in a data
The document discusses strategies for different players in the connected home market to succeed by focusing on the customer experience. It describes three emerging business models: 1) point solutions which are individual devices/services, 2) hubs which connect and control multiple solutions, and 3) connectivity providers which enable communication. To grow, point solutions must partner with hubs to offer more value, while hubs need to aggregate solutions and refine the user experience. Overall, the player that can deliver the best seamless customer experience across the connected home will dominate the market.
The document analyzes how advertising impacts the Romanian economy. It finds that advertising has a significant positive impact on the FMCG industry, where increases in TV advertising expenditure correlate with increased turnover. However, in more mature mass-market industries, only minor variations in TV exposure have little impact on turnover. Overall, the advertising industry represents 3% of management positions but impacts a consumer market worth 50 billion Euros, or 33% of Romania's GDP.
GEICO's brand marketing plan focuses on increasing its market share through new customer acquisition. It recommends GEICO increase its marketing budget and allocate more funds towards advertising. Additionally, GEICO should focus its messaging on customer service and financial strength to appeal to consumers in the current economy. GEICO needs to target new customer segments and cross-sell existing customers to drive continued growth.
GEICO (geico.com), one of the leading auto insurance companies in the United States. GEICO operates nationally and primary marketing goals for auto insurance (in order of priority) are to increase the number of leads and strengthen the customer retention rate.
The auto insurance industry is price-centric and highly competitive. GEICO’s key competitors are Progressive, State Farm, Farmers and Allstate. GEICO’s competitive position in the industry is dependent on a range of factors including premium charges, geographic strength, types of products offered and claims service.
Have developed a research presentation to achieve the following objectives:
• Provide an overview of the auto insurance market in the US, focusing on the brands mentioned above
• Auto insurance industry customer trends (current)
• SWOT analysis of GEICO’s auto insurance business, and marketing efforts
• Current marketing efforts of GEICO and key competitors (mentioned above) .
How B2B companies talk past their customersAdfactors B2B
The document summarizes research that found a gap between the messages that B2B companies use to promote their brands and what characteristics customers actually value. The research examined the branding of 90 large B2B companies and surveyed over 700 customers. It found that themes like social responsibility and sustainability, which companies emphasize, have little influence on customer perceptions of brand strength. In contrast, themes important to customers like specialist expertise and supply chain management were rarely mentioned by companies. The document concludes by offering three questions for companies to evaluate how well their branding aligns with customer needs.
This document summarizes the key drivers and benefits of consolidation in the US banking industry. It notes that the industry remains fragmented compared to other nations and mid-tier banks face profitability challenges due to regulatory pressures and competition from fintech firms. Consolidation can help mid-tier banks gain necessary scale through cost reductions from branch consolidation and spreading of fixed costs. Mergers allow banks to invest in growing areas like digital services. The document predicts a wave of M&A activity among mid-tier banks seeking scale through consolidation.
The document discusses the role of CFOs in helping companies prepare for an uncertain future. It argues that CFOs must partner with CEOs and boards to develop future-proof strategies focused on innovation, understanding customer and market trends, managing regulatory risks, embracing digital transformation, reengineering processes to cut costs, and more. By taking on these expanded responsibilities, CFOs can help ensure their companies' long-term sustainability and competitiveness in a rapidly changing business environment.
Lincoln National Corporation's 2004 annual report summarizes the company's strong financial performance in 2004. The company reached record levels of gross deposits and net flows, demonstrating the company's ability to attract new business and retain existing customers. The company benefited from an economic upturn as well as its focus on product excellence, distribution reach, and brand strength. Looking ahead, the company is optimistic about its future prospects due to the large retirement savings needs of aging baby boomers and its product offerings that are well-positioned to meet those needs.
The economist intelligence unit: Voice of the customer, whose job is it, anywayAidelisa Gutierrez
In what areas should marketing focus investments in order to contribute most to your business in 3 years?
#1 Customer Analytic
#2 Customer Relationship Management
#3 Social Media
The Rapidly Evolving Landscape of Meal Kits and E-commerce in Food & BeverageL.E.K. Consulting
Consumers are increasingly strapped for time, and when they’re shopping for and preparing fresh, healthy food, every extra minute counts. Here’s where meal kits and e-commerce come in: they give consumers control and the ability to personalize their meals, while saving them valuable time otherwise spent on shopping and food prep.
In this webinar, Rob Wilson, Managing Director at L.E.K. Consulting, and The Food Institute will explore the $150 billion land grab of e-commerce sales in food & beverage and the role of meal kits in this rapidly evolving landscape.
AMCON Distributing Co. is undervalued based on various valuation methodologies. It has reduced debt significantly over the past four years through paying down its credit facility. AMCON has a strong market presence distributing products to over 4,300 retail outlets across 18 states. The company is led by an experienced management team that has improved operations and financial position. However, AMCON operates on thin margins in a competitive industry and remains dependent on its credit facility.
This report provides a hold recommendation and $25.11 price target for GameStop (GME) stock. While GameStop dominates the used video game market, the shift to digital gaming threatens its business model. GameStop must acquire more digital companies to meet sales targets in this growing segment. However, its debt-free balance sheet positions it well to make additional acquisitions. Intensifying competition, particularly from retailers like Best Buy expanding their used game offerings, also poses a risk to GameStop's market share. The report uses discounted cash flow and comparable company/transaction analyses to arrive at the $25.11 price target.
Duff & Phelps and the Financial Executives Research Foundation (“FERF”) first published the results of their comprehensive Goodwill Impairment Study in 2009. This inaugural study examined U.S. publicly-traded companies’ recognition of goodwill impairment at the height of the financial crisis (the end of 2008 and the beginning of 2009), and featured a comparative analysis of the goodwill impairments of over 5,000 companies (by industry), as well as the findings of a survey of Financial Executives International (“FEI”) members.
Our attempt was to pitch and acquisition of Nordstrom to Macy's to form a retail conglomerate. Emphasizing consumer trends and synergies between the two companies. Data provided from multiple sources mainly Deloitte's, "The Great Retail Bifurcation".
This document provides a summary and analysis of Target's strategy and opportunities for growth. It discusses Target's current strategy of investing in guest service, digital fulfillment, store remodels, supply chain, and owned brands. It then provides recommendations to enhance Target's growth and durability, including: 1) Leaning into Target's style and fun brand equity by increasing new brands, limited releases, and in-store experiences. 2) Recharging Target's REDcard program by offering a premium tier with fuel discounts and Shipt membership. 3) Leveraging Target's owned grocery brands like Simply Balanced, Archer Farms, and Market Pantry to drive loyalty and competitive differentiation. The document analyzes these opportunities and recommendations in more detail
Jeovany Zelaya - UNO Investment Research ReportJeovany Zelaya
We initiate coverage of Cabela's Inc. with a buy recommendation based on the company's continued new store openings and strong customer satisfaction and loyalty. Cabela's operates 64 retail stores in the US and Canada selling hunting, fishing, and outdoor gear. It also engages in direct marketing and issues the Cabela's Club Visa credit card. We estimate 10% revenue growth in 2015 and 10-13% growth in 2016-2017 as Cabela's opens 14 new stores annually over the next few years. Our $64 target price values Cabela's at a 17-18x P/E multiple on 2015 EPS. Key risks include increased competition from retailers like Dick's Sporting Goods and potential new
Die C-Level Linienfunktion CMO (Cief Marketing Officer) wir immer wichtiger. Hier ist ein White Paper zu den Anforderungen denen sich CMOs aktuell stellen müssen.
Vielen Dank für das White Paper an Sheryl Pattekwith, David M. Cooperstein und Alexandra Hayes von Heidrick & Struggles.
Contribution to panel discussion of the key changes to be expected in the insurance industry over the next five years from technology to product development.
This document summarizes a report from NADA on used vehicle prices by age level. It finds that from 2007-2012, prices grew 18% for vehicles 1-3 years old but even more, 21.5% on average, for vehicles 4-10 years old. Recently, prices have softened 1.2% for vehicles under 4 years as new vehicle demand and incentives increase, drawing customers from used vehicles. However, older vehicle prices have remained steady as quality improvements make them more desirable and supply declines. NADA predicts prices will continue to diverge, with newer used vehicles softening 1.5% in 2013 while older models see 1.5% growth or remain flat.
The document discusses strategies used by mobile operators called "frontrunners" to achieve profitable growth. It identifies six common traits, or "Growth Codes", shared by frontrunners: market performance leadership, measure and manage user experience, create innovative offerings, create strategic partnerships for innovation, embrace innovation, and create a performance gap to competitors. The document analyzes three strategies used by frontrunners - quality-led progression, market-led adaptation, and offering-led transformation - and how they relate to the six Growth Codes. Frontrunners have achieved an average annual revenue growth of 12.4% compared to 7.3% for their peers, proving that operators can prosper in a data
The document discusses strategies for different players in the connected home market to succeed by focusing on the customer experience. It describes three emerging business models: 1) point solutions which are individual devices/services, 2) hubs which connect and control multiple solutions, and 3) connectivity providers which enable communication. To grow, point solutions must partner with hubs to offer more value, while hubs need to aggregate solutions and refine the user experience. Overall, the player that can deliver the best seamless customer experience across the connected home will dominate the market.
The document analyzes how advertising impacts the Romanian economy. It finds that advertising has a significant positive impact on the FMCG industry, where increases in TV advertising expenditure correlate with increased turnover. However, in more mature mass-market industries, only minor variations in TV exposure have little impact on turnover. Overall, the advertising industry represents 3% of management positions but impacts a consumer market worth 50 billion Euros, or 33% of Romania's GDP.
GEICO's brand marketing plan focuses on increasing its market share through new customer acquisition. It recommends GEICO increase its marketing budget and allocate more funds towards advertising. Additionally, GEICO should focus its messaging on customer service and financial strength to appeal to consumers in the current economy. GEICO needs to target new customer segments and cross-sell existing customers to drive continued growth.
GEICO (geico.com), one of the leading auto insurance companies in the United States. GEICO operates nationally and primary marketing goals for auto insurance (in order of priority) are to increase the number of leads and strengthen the customer retention rate.
The auto insurance industry is price-centric and highly competitive. GEICO’s key competitors are Progressive, State Farm, Farmers and Allstate. GEICO’s competitive position in the industry is dependent on a range of factors including premium charges, geographic strength, types of products offered and claims service.
Have developed a research presentation to achieve the following objectives:
• Provide an overview of the auto insurance market in the US, focusing on the brands mentioned above
• Auto insurance industry customer trends (current)
• SWOT analysis of GEICO’s auto insurance business, and marketing efforts
• Current marketing efforts of GEICO and key competitors (mentioned above) .
This document discusses how Accenture has developed proprietary econometric modeling techniques to determine the incremental sales impact of each component of an automaker's marketing mix. By analyzing over 150 companies, Accenture has found on average 14% of marketing budgets are ineffectively spent. Accenture piloted this approach with an automaker in South America and was able to determine which factors like advertising, pricing incentives, and product innovations most directly drove sales. This allows automakers to optimize their marketing spending. Accenture argues their approach provides a scientific, data-driven method to improve automotive marketing performance.
This document discusses how Accenture has developed proprietary econometric modeling techniques to determine the incremental sales impact of each component of an automaker's marketing mix. By analyzing over 150 companies, Accenture has found on average 14% of marketing budgets are ineffectively spent. Accenture piloted this approach with an automaker in South America and was able to determine which factors like advertising, pricing incentives, and product innovations most directly drove sales. This allows automakers to optimize their marketing spending. Accenture argues their approach provides a scientific, data-driven method to improve marketing ROI compared to traditional subjective methods.
This document discusses how Accenture applied scientific marketing techniques to help automakers maximize the effectiveness of their marketing spending. It found that on average 14% of marketing budgets were ineffective. Through econometric modeling, Accenture was able to determine the incremental impact of different marketing components like advertising, pricing incentives, and product innovations on sales. For one automaker client, the analysis found that brand advertising delivered the best return and some pricing tactics and incentives had only short term impacts. Armed with this data, automakers can optimize their marketing mix and improve performance.
1) The document discusses applying scientific marketing techniques to determine the incremental impact and effectiveness of different components of an automotive marketer's budget, such as advertising, incentives, and product innovations.
2) It provides an example analysis of an automaker in South America, finding that brand positioning, new models, and advertising at different tiers can significantly impact sales, while price promotions and minor annual refreshes do not provide long term benefits.
3) The analysis allows the automaker to optimize spending and identify marketing activities that produce the greatest returns.
TATA AIG can become the market leader in the motor insurance segment in India by focusing on customer centricity through a 3i strategy of innovating, improving, and increasing. TATA AIG should innovate using emerging technologies, improve business processes through data analytics and a focus on direct sales channels, and increase brand awareness through targeted marketing and segmentation. This approach will enhance the customer experience and increase TATA AIG's market share in the growing Indian motor insurance industry.
Optimizing Voluntary Strategy via Realigned TPA Engagement and Targeted Inves...Cognizant
For group insurers with voluntary offerings, working with third-party administrators (TPAs) is a double edged sword, one fraught with problems of costs, up- and cross-selling, inadequate data, decoupling challenges and more; IT modernization programs are problematic as well. We offer a framework that enables companies to align their voluntary and TPA strategies.
2014 Property & Casualty Insurance Industry Outlook: Innovation leading the wayDeloitte United States
On the surface the property and casualty sector appears to be doing quite well, but running an insurance carrier is rarely smooth sailing. The last few years have been particularly difficult for those occupying C-Suite positions, as more fundamental issues are threatening not only short-term results on their balance sheets, but challenging the long-term viability of their operating models as well.
For example, a growing number of insurers are facing significant organizational disruption. Many have made large-scale investments in technology, replacing core systems for claims, policy administration and finance. Their chief challenge now is how to effectively leverage the new systems they’ve put in place and maintain their momentum with additional innovations in personnel, products and culture.
Additionally, ongoing political gridlock in Washington could undermine an already unsteady economic recovery. Not to mention regulatory uncertainty that makes it difficult for carriers to plan ahead and determine operational priorities.
Innovation may ultimately be the key to keep insurers growing regardless of shifting economic and insurance market conditions, as they devise ways to thwart ongoing and emerging competitive threats as well as capitalize on new opportunities.
For more - visit http://www.deloitte.com/view/en_US/us/Industries/Insurance-Financial-Services/039bdd0819e23410VgnVCM3000003456f70aRCRD.htm
Automobile Insurance Companies in the USAtul Yadav
Auto insurance is important because it not only covers any physical damage that may occur in an
accident, but also any damage or injury that might be caused because of a automobile accident
or which may be done upon oneself or one’s vehicle by another vehicle or accident
The document provides an overview of recent trends in the advertising industry, focusing on the growth of programmatic, mobile, and video advertising. It notes that digital advertising spending is expected to surpass television spending by 2017. Programmatic advertising now represents over 50% of digital ad spending and is focused growth areas of mobile and video. Mobile accounts for the majority of time spent with digital media and over 50% of digital ad spending. Scale has become important, with the top 10 ad selling companies representing over 70% of digital ad money and Google and Facebook dominating their segments.
Post Coronavirus Marketing Plan Guide For Tire & Auto Repair ShopsConceptual Minds
This marketing plan guide offers a step by step guide on what tire & auto service businesses can do in order to thrive through the current coronavirus pandemic. The guidance is based on in-depth research and curation of various content pieces that highlight the current state of the automotive industry and the factors that could impact demand for tire & auto service.
The U.S. insurance industry is facing unprecedented change driven by new technologies that are reducing losses and costs while increasing risks. To thrive, insurance companies must understand how these changes will impact them and develop strategies to adapt. The document outlines several forecasts that predict major changes such as reduced auto insurance premiums of up to 60% due to self-driving cars and decreased home losses of 40-60% due to technology. It recommends five actions for insurance companies, including developing their own view of technology impacts, leveraging new technologies, and deciding their role in industry consolidation.
The document discusses findings from Accenture's survey of US personal lines insurance consumers. Key findings include:
1) While online channels are important for information gathering, agents remain the most popular choice for obtaining quotes and purchasing policies, showing consumers prefer a multi-channel approach.
2) Price is the most important factor but not the only one - consumers also value advice, quality, and variety of policies. Over a third are willing to pay for personalized advice.
3) Younger consumers place higher value on advice, though age alone does not determine channel preferences.
4) The survey identified five main customer segments that require tailored marketing, sales, and service strategies to meet their distinct needs and preferences.
5
Doing more with less a point of view on marketing in a recessionWael Zekri
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See the Roland Berger Strategy Consultants (http://www.rolandberger.us/) 2014 study on The Next Challenge Of The US Auto Industry.
http://tinyurl.com/NPAutomotive
http://www.linkedin.com/in/TonyLy
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Marketing Analytics: A Smarter Way for Auto and Home Insurers to Gain Competitive Advantage
1. Marketing Analytics:
A Smarter Way for Auto
and Home Insurers to Gain
Competitive Advantage
Given their enormous advertising spend and stagnant
growth, P&C personal lines carriers need to work
smarter to generate better quality leads, improve sales
effectiveness and efficiency, and design innovative
products and services.
| FUTURE OF WORK
2. Executive Summary
The numbers are staggering. Almost US$6 billion in
advertising was spent last year by personal lines carriers.
GEICO alone spent almost a billion dollars. And if you thought
that independent agency-based insurers don’t advertise,
think again.
Yet for all the marketing dollars expended, what has the
industry achieved? Not much, in our view. The majority
of leading companies have posted annual growth rates of
between -1% and 1% over the last 10 years. In comparison to
the industry’s average annual growth rate of 0.9%,1
this begs
the obvious question: Did the personal lines carriers spend
their marketing dollars smartly? Thankfully, in this business,
most customers don’t switch. In fact, despite the proliferation
of ads, 30% of customers simply renew with their current
insurer without getting a quote from another insurer — a silver
lining to the industry’s profit tailspin.
Nonetheless, from billboards, to television, radio and the
Internet, promotions for car and home insurance seem to
be everywhere, and are now among the most prevalent.
(Consider the popularity of GEICO’s green lizard compared to
that of other brand icons, such as the Coca-Cola polar bear,
for example).
Yet what is striking are the similarities in insurers’ messaging:
“Call us and we’ll save you $300 by switching from the same
company that just told you 30 minutes ago that it can save
you $300 by switching to them.” Using this equation, a
customer who switches insurers three or four times would get
car insurance for free!
In our view, these types of defensive marketing strategies
cannot last long, although over the last ten years they have
clearly shaken the industry and separated the winners and
losers. We believe that the next decade will see even more
dramatic moves on the marketing stage as personal lines
2 FUTURE OF WORK September 2013
3. MARKETING ANALYTICS: A SMARTER WAY FOR AUTO AND HOME INSURERS TO GAIN COMPETITIVE ADVANTAGE 3
carriers deepen their efforts to win and retain customers,
pursue distinct identities and shift to more offensive
strategies. Given the industry’s questionable return on
investment (ROI) from past marketing spend, insurance
companies need to advance their marketing analytics
capabilities to remain competitive. As we see it, the marketing
spend battle will escalate before it slows down. Further,
winners will be defined not only by how much they spend on
marketing, but also by how smartly they spend it.
This is where marketing analytics comes into play: Having
the right data, the right tools and the right skills to help
make better marketing-spend decisions and better customer
predictions. Building this capability isn’t easy, but the benefits
are indisputable — spanning beyond marketing ROI to include
better product and service designs.
This white paper describes our views on current marketing
spend challenges in the personal lines industry; why we believe
these challenges will persist; how marketing analytics can help
insurers address this issue; why the time is now to adopt this
function, and the benefits that can be expected from building a
robust marketing analytics capability.
4. 4 FUTURE OF WORK September 2013
Exponential Growth in Marketing Spend Delivers
Questionable Returns
The P&C personal lines industry — particularly auto insurance — has experienced
ever-increasing product and service commoditization during the last decade,
primarily due to customers’ preference for well recognized insurance providers.
Today, personal lines carriers dominate the airwaves and other media channels
— aggressively promoting their brands, products and services. You don’t have to
look far to see marketing icons such as GEICO’s “Gecko,” Progressive’s “Flo” and
Allstate’s “Mayhem.” The avalanche of advertising by top personal lines carriers
has contributed mightily to the industry‘s phenomenal spend on marketing. For
example, in 2011 the top personal lines carriers spent US$5.2 billion in marketing,
compared with US$1.6 billion expended in 2004 (see Figure 1).
Similarly, if we look at advertising expenditures across industries, insurers exhib-
ited the highest growth in 2011 year-over-year spend (see Figure 2).
Top 20 P&C Personal Lines Carriers’ Marketing Spend
0
1
2
3
4
5
6
2004 2011
Marketing
Spend
in
US$
Billion
US$1.6B
US$5.2B
Source: National Association of Insurance Commissioners (NAIC) Reports1
Figure 1
Advertising Spend Growth Across Key Industries
3.6%
4.4%
5.6%
6.3%
13.5%
0% 2% 4% 6% 8% 10% 12% 14% 16%
Financial Services
Restaurants
Personal Care Products
Automotive
Insurance
Percentage change in advertising spend (2010-2011)
Source: Kantar Media 20112
Figure 2
5. Marketingspendinthepersonallinesindustryhasgrownexponentiallyovertheyears,
despite economic recession, persistently low profitability (caused in part by the high
frequency and severity of weather-related catastrophes) and limited growth in expo-
sures in areas such as new automobile and home sales. Also, recent trends indicate
that carriers expect to spend their way through these challenges, with no signs of
abatement.
The question remains whether carriers have achieved reasonable returns on their
huge marketing expenditures. If we look at the return on investment from adver-
tising spend across industry leaders, top insurance carriers have achieved lower
returns compared with other industry leaders. For example, GEICO had a revenue-
to-advertisement ratio of 16, which was significantly lower than retail giant Walmart
(see Figure 3).
Revenue to Advertisement Spend Ratio
of Key Industry Leaders
3.6%
4.4%
5.6%
6.3%
16
41
53
65
237
0 50 100 150 200 250
GEICO
J.P. Morgan Chase
AT&T
Ford
Walmart
Revenue to advertisement index (2011)
Source: National Association of Insurance Commissioners (NAIC) Reports,3
Ad Age 20114
Figure 3
MARKETING ANALYTICS: A SMARTER WAY FOR AUTO AND HOME INSURERS TO GAIN COMPETITIVE ADVANTAGE 5
6. 6 FUTURE OF WORK September 2013
But not everyone in the insurance industry is over-spending without achieving
meaningful returns on their investments. Carriers such as GEICO and Chubb (see
Figure 4) have done well by driving net written premiums growth — above and
beyond their marketing spend. However, for many other carriers, their net written
premiums trailed their marketing spend. Given this analysis, we believe that 80%
(approximately US$4.13 billion) of the total marketing spend of the top 20 personal
lines carriers in 2011 delivered questionable ROI.
Despite the questionable ROI, we expect marketing spend to rise as the following
key macro trends persist in auto insurance and extend further into the homeown-
ers business:
• Increase in product commoditization.
• Lack of service differentiation.
• Shifting customer preferences toward visible brands.
• Increase in self-directed purchase decisions by customers.
Key Macro Trends Driving Marketing
Spend Increases
Increase In Product Commoditization
P&C personal lines products, especially in the auto insurance space, are becoming
commoditized in the following ways:
• Price is the most important buying criteria.
• New product features are easy to replicate.
• Switching behavior among customers is increasing as a result of price commod-
itization.
Top Personal Lines Carriers Growth in Net Written
Premiums vs. Marketing Spend
2004 - 2011 Marketing spend growth (expressed as logarithm function of growth %).
Data for Liberty Mutual and Safeco have been combined for analysis.
2004
-
2011
NWP
Growth
(%)
US$800M and above
US$500M - US$799M
US$100M - US$499M
US$99M and lower
Size of the bubble is an approximate
indication of the 2011 advertisement budget:
-10%
3
20%
0%
40%
60%
80%
GEICO
State Farm
Farmers
Progressive
Allstate
Liberty Mutual
USAA
Travelers
Auto Owners
Auto Club
Enterprises
Erie
MAPFRE
MetLife Auto & Home
Chubb
Mercury Nationwide American Family
CSAA
Hartford
1.5 4.5 (100%) 6 7.5+ (2000%+)
0
Auto Club
MetLife Auto & Home
Mercury
Merc Nationwide American Family
H
Ha
ar
rt
tf
fo
or
rd
d
Source: National Association of Insurance Commissioners (NAIC) Reports5
Figure 4
7. MARKETING ANALYTICS: A SMARTER WAY FOR AUTO AND HOME INSURERS TO GAIN COMPETITIVE ADVANTAGE 7
According to a 2013 Insure.com6
customer satisfaction survey, price was cited as
the top (41% of survey respondents) most important factor in the auto insurance
buying process. In the same survey, 62% of survey respondents who did not plan to
renew their auto policies with the incumbent carrier indicated price as the primary
reason for switching insurers. Today, most auto insurance carriers broadcast adver-
tisements that emphasize low price points and savings that customers can avail
themselves of by switching — providing additional evidence of why price is the most
important criteria influencing auto insurance purchases.
The key components of auto insurance products (i.e., coverages, limits and pack-
aging) do not vary much across carriers. While some carriers try to differentiate
their products by adding “bells and whistles” such as vanishing deductible, zero
price increase, zero deductible for total collision, accident forgiveness and new car
replacement, these product features can easily be replicated by competitors. Also,
since the frequency of insurance purchases is typically low, there is usually no first-
mover advantage in rolling out new product features or product lines.
According to the 2013 J.D. Power U.S. Insurance Shopping Study7
(see Figure 5), the
switching rate among auto insurance shoppers increased from 33% in 2010 to 45%
in 2012 — the highest since the researcher began measuring customer retention
data in 2008.
33%
45%
0%
10%
20%
30%
40%
50%
2010 2012
Source: 2013 J.D. Power U.S. Insurance Shopping Study8
Figure 5
Auto Insurance Shopper Switching Trends
Lack of Service Differentiation
In addition to coping with product commoditization, insurance shoppers are having
a hard time differentiating carriers for services provided. Historically, carriers dis-
tinguished their services, particularly claims (e.g., quality of service), to support
their higher prices. However, most carriers have improved their claims services to
a point where their customers are satisfied with the services their carrier provides.
For example, according to the 2013 Insure.com insurance customer satisfaction
survey conducted among P&C personal auto insurance customers, only 10% and
8% of those customers who were not satisfied with their incumbent carrier and
were willing to switch cited dissatisfaction with customer service and claims service,
respectively, as the reason for non-renewal.
8. 8 FUTURE OF WORK September 2013
In addition, according to a 2012 J.D. Power U.S. auto claims satisfaction study, the
average industry satisfaction score has risen to 852 from 818 in 2008 (see Figure
6), indicating higher claims satisfaction across all carriers. More important, claims
satisfaction scores among the top five carriers are similar enough to suggest that
there is no perceptible difference in claims services. Price has become the most
important factor influencing purchasing decisions, particularly in the auto insur-
ance mass market space.
The lack of differentiation in claims services throughout the industry is now a selling
point in itself. For example, 21st Century’s ad campaign captures this sentiment.
The advertisement portrays two cars, two collisions, two great coverages and two
great claims services, but emphasizes how 21st Century saved the driver hundreds
of dollars in premiums.
Shift in Customer Preferences Toward Visible Brands
The third industry trend is customers’ shift toward more visible brands. This has
resulted in 10 top carriers — those with the most prominent brands gaining market
share at the expense of lesser known carriers (see Figure 7).
Even among the top 10 carriers, competition for customer acquisition is greater than
ever before. The reason? The average customer recalls only three to four brands
from a particular industry sector when contemplating buying a product or service.
Top personal lines carriers such as GEICO, State Farm and Allstate are conducting
micro segmentation of customers and creating multiple brand icons and messages
to ensure greater resonance across various customer segments.
Increase in Self-directed Purchase Decisions
Finally, an undercurrent trend has emerged. Customers are becoming more self-
directed and are comfortable making their own purchasing decisions. Direct
channels such as the Internet, the call center, mobile devices and social media have
become mainstream ways of selling and servicing P&C personal lines products.
As more and more customers research personal lines products on their own, read
product and service reviews on blogs and social media, and conduct comparison
Top Five Auto Insurance Carriers’ Claims Satisfaction Scores
2012 Industry Average: 852
838
842
842
863
868
0 100 200 300 400 500 600 700 800 900 1000
Farmers
GEICO
Progressive
Allstate
State Farm
Source: J.D. Power, 2012 U.S. Auto Claims Satisfaction Study9
Figure 6
9. MARKETING ANALYTICS: A SMARTER WAY FOR AUTO AND HOME INSURERS TO GAIN COMPETITIVE ADVANTAGE 9
shopping, carriers must educate customers about what to buy, and create brand
recall to lure prospective customers to their Web sites and call centers, or have
them reach out to agents.
A comScore survey on personal auto insurance customer purchase methods
revealed a marked interest in shopping through direct channels (see Figure 8). Fur-
thermore, the 2011 Google Moment of Truth Study for Insurance indicates that more
P&C Personal Lines Net Written Premiums
63%
37%
Net Written Premiums 2004
Top 10 Carriers Remaining Carriers
67%
33%
Net Written Premiums 2011
Source: National Association of Insurance Commissioners (NAIC) Reports10
Figure 7
Source: 2011 comScore Auto Insurance Servicing Report11
Figure 8
Personal Auto Insurance Purchase Methods
15%
13%
5%
Local agent Online Call center Work/Other
2009 2011
20%
15%
4%
61%
67%
10. 10 FUTURE OF WORK September 2013
customers are shifting to the Internet as their primary source of information for
making insurance purchase decisions (see Figure 9).
The J.D. Power and Associates 2012 U.S. Insurance Shopping Study13
also noted that
73% of customers who are willing to switch carriers visited at least one insurer’s
Web site during the shopping process. There is an evident shift from traditional
marketing methods of agents pushing products to customers, to pull marketing
methods, where customers seek information and buy products using different
direct channels. As a result, carriers will have to continue spending on marketing
to increase their brand’s visibility and improve customer awareness of their online
channels such as Web sites, Facebook, YouTube and Twitter.
These trends suggest that P&C personal lines industry players will continue to
increase marketing spend for the foreseeable future to acquire and retain custom-
ers. So the question emerges: How can carriers improve their ROI on marketing
spend? We believe the answer lies in marketing analytics.
Leveraging Marketing Analytics
We define marketing analytics as a business function that provides a holistic and
predictive view of the effectiveness and efficiency of marketing spend. Market-
ing analytics can also serve to improve product and service design to heighten
customer loyalty.
The research findings suggest that 86% of respondents believe that marketing
analytics will be “significantly more important or somewhat more important” (see
Information Sources to Help Make Insurance Purchase Decisions
36%
40%
53%
60%
53%
64%
75%
0% 20% 40% 60% 80% 100%
Talked to a customer
service rep online
Read reviews about the
policy/company online
Sought info from an insurance
company Web site
Talked with friends/family
Comparison shopped rates online
Searched online with a
search engine
Source: Google/Shopper Sciences, Zero Moment of Truth Study – Insurance, April 201112
Figure 9
How can carriers improve their ROI on
marketing spend? We believe the answer
lies in marketing analytics.
11. MARKETING ANALYTICS: A SMARTER WAY FOR AUTO AND HOME INSURERS TO GAIN COMPETITIVE ADVANTAGE 11
Figure 10) in the next five years, indicating that this is on the top of the list of stra-
tegic initiatives for most personal lines carriers.
Key components of a successful marketing analytics business function are depicted
in Figure 11.
• Key Performance Indicators: To build and operate a successful marketing
analytics business function, organizations need to first define the key perfor-
mance indicators (KPIs) to measure and monitor the effectiveness and efficiency
of their marketing spend. Our research (see methodology, page 13) indicates that
lack of organizational appetite to define and measure KPIs is one of the top three
Marketing Analytics: Key Building Blocks
Key
Performance
Indicators
Skilled
Resources
Marketing
Analytics
Platform
Data-driven
Decision
Making
Linkages with
Other Business
Functions
Figure 11
Marketing Analytics’ Importance Over the Next Five Years
4%
0%
0%
10%
35%
51%
0% 10% 20% 30% 40% 50% 60%
Don’t know
Much less important
Somewhat less important
About the same
Somewhat more important
Significantly more important
Response base: 144 insurance industry professionals
Source: InformationWeek Financial Services — Cognizant 2013 Insurance Analytics Survey14
Figure 10
12. 12 FUTURE OF WORK September 2013
barriers P&C personal lines carriers face with regard to implementing marketing
analytics (see Figure 12). To address this challenge, organizations should define
the KPIs and map them to the marketing organization’s goals.
Typically, marketing analytics KPIs are grouped into two categories:
>
> Effectiveness defines how to get better returns from the same marketing
spend.
>
> Efficiency defines how to get the same returns with less marketing spend.
These KPIs should be segmented by line of business, products, channels and adver-
tising campaigns to gain deeper insights for better decision making. The KPIs should
also be benchmarked against competitors, industry best practices, and trended over
Key Challenges with Marketing Analytics Implementations
53%
4%
13%
13%
17%
20%
33%
0% 10% 20% 30% 40%
Others
Lack of funding
Lack of structured data
Lack of good-quality data
Lack of well-defined strategy
Lack of organizational appetite
to define and measure KPIs
Response base: 144 insurance industry professionals
Source: InformationWeek Financial Services - Cognizant, 2013 Insurance Analytics Survey15
Figure 12
Sample Marketing Analytics KPIs
Figure 13
Sample Key Performance Indicators (KPIs)
Effectiveness Efficiency
• Number of leads generated per campaign.
• Number of prospects for every 100 leads.
• Number of quotes generated for every 100
prospects.
• Number of policies issued for every 100
quotes (close ratio).
• Number of referrals generated per
campaign.
• Cross-sell uptick per campaign.
• Net promoter score.
• Average marketing spend for each new lead.
• Average marketing spend for each new
customer.
• Average marketing spend for each new referral.
• Marketing leakage costs.
• Ratio of new business premiums to marketing
cost.
• Average time from campaign launch to lead
generation.
• Ratio of number of qualified leads to number of
leads.
13. MARKETING ANALYTICS: A SMARTER WAY FOR AUTO AND HOME INSURERS TO GAIN COMPETITIVE ADVANTAGE 13
time to compare performance. Dashboards that encapsulate the KPIs in a meaning-
ful format should be developed and delivered to senior marketing executives and
other key marketing personnel to measure, monitor and track marketing spend and
its performance at frequent intervals.
Figure 13 (previous page) shows sample marketing KPIs that should be segmented
by line of business, products, channels and advertising campaigns.
• Skilled resources: In addition to defining KPIs, having the right talent is critical
to ensuring the success of a company’s marketing analytics function. Our
research (see methodology, above) indicates lack of well-defined strategy as
the top challenge (see Figure 12, previous page) that carriers face with respect
to marketing analytics. To overcome this issue, carriers need proven, skilled
analytics resources with the ability to interpret data in the context of insurance,
such as improving customer retention and referrals, and applying insights
gleaned to develop actionable tasks for marketing purposes.
Carriers with a shortage of these skills should consider sourcing from other
industries, such as retail, financial services and hospitality, which have made
greater strides in successfully leveraging marketing analytics to design
marketing campaigns and loyalty programs. In addition to filling the skills gap,
this approach can bring a broad and fresh perceptive, and enable carriers to
learn from the best practices and success achieved by others — all while allowing
carriers to customize their marketing analytics capabilities to address their
business requirements. Finally, the marketing analytics function should be led by
a marketing executive responsible for engaging both the chief marketing officer
and the chief information officer to ensure that marketing analytics remains a
high-priority strategic initiative.
• Marketing analytics platform: While the KPIs defined earlier will determine the
data to be collected and analyzed, a key step is to finalize the most efficient way
of acquiring and storing data to provide a holistic view of the carrier’s marketing
expenditures across different media channels, such as television, radio, billboard,
online portals and event banners. These decisions address whether to source
some data internally, or acquire data from external sources.
Hence, the marketing and campaign management data from internal and
external data sources needs to be supplemented with data from social media
Quick Take
In April and May of 2013, InformationWeek Finan-
cial Services conducted an online survey on
behalf of Cognizant. The goal was to explore the
state of marketing analytics among insurance
carriers. InformationWeek Financial Services
collected data from 144 survey respondents,
primarily business and technology professionals
from within insurance carriers in the U.S.
Approximately six in ten respondents worked in
their company’s IT department, while the others
represented their organization’s business or
business intelligence/analytics departments.
Twenty-four percent of the survey respon-
dents held C-level, senior vice president or vice
president titles. The majority of respondents
worked at carriers with more than US$1 bil-
lion in annual revenues, while approxi-
mately 40% of those surveyed were
employed by carriers with US$5
billion or more in revenues.
Research Methodology
14. 14 FUTURE OF WORK September 2013
channels, such as Facebook, Twitter and YouTube, to track leads and customer
sentiment. Also, the marketing analytics platform should have data feeds from
other business platforms — such as new business, policy administration, claims
and billing — to obtain a complete view of each customer, encompassing demo-
graphics, shopping behavior, credit history and life events.
Equally important is to ensure high-data quality, since data is acquired from
different sources. Roughly 20% of survey respondents from our research (see
methodology, page 13) indicated lack of good quality data (see Figure 12) as a
primary challenge for successfully implementing marketing analytics. Carriers
should cleanse the data being brought onto the marketing analytics platform,
and standardize definitions and values to drive consistency and reliability for
better decision making.
• Data-driven decision making: Gaining organizational consensus on using
insights from analytics to make marketing decisions is a key aspect of a
successful marketing analytics function. If we look across other industry sectors,
some market leaders have clearly benefited from this strategy. One example
is Amazon, which makes decisions around pricing, supply chain and product
promotions based on analytics. The insurance industry is not far behind. Many P&C
carriers have leveraged analytics to analyze claims — cycle time, aging, severity
and adjuster productivity — to reduce claims leakage and develop an effective,
efficient triage process for handling and resolving claims. Likewise, agency and
distribution channels have used analytics to design incentive programs for top-
performing agents by studying agent productivity and efficiency. To realize
similar benefits in marketing, carriers could mandate that marketing decisions
be made using analytical insights. To drive more discipline in this regard, carriers
should establish a governance structure aimed at making fact-driven — rather
than “gut-feel” — decisions.
• Linkages with other business functions: The power of marketing analytics can
be fully harnessed if it has strong linkages with distribution, product develop-
ment, underwriting, and claims. This will help ensure that the marketing team
works with other business functions, and that whatever decisions are made as a
result of marketing analytics are in sync with other business units. In addition to
developing better marketing campaigns, this will help drive better product and
service design, as well as underwriting and pricing, since decisions will be made
by looking at data from a broader perspective, such as customer lifetime value.
The question remains as to whether P&C personal lines insurance carriers see mar-
keting analytics as a top priority.
Marketing Analytics: A Top Priority
To test the importance of marketing analytics in P&C personal lines over the next
five years, we collaborated with InformationWeek Financial Services to conduct
formal research (see methodology, page 13). As stated earlier, the research findings
suggest that 86% of respondents believe that marketing analytics will be “signifi-
cantly more important or somewhat more important” (see Figure 10, page 11) in the
next five years, indicating that this is on the top of the list of strategic initiatives for
most personal lines carriers.
To drive more discipline in this regard, carriers should
establish a governance structure aimed at making
fact-driven — rather than “gut-feel” — decisions.
15. MARKETING ANALYTICS: A SMARTER WAY FOR AUTO AND HOME INSURERS TO GAIN COMPETITIVE ADVANTAGE 15
1%
17%
43%
30%
5%
0%
10%
20%
30%
40%
50%
Don't know
Not at all
effective
Not very
effective
Average
Somewhat
effective
Very
effective
Don't know
Not at all
effective
Not very
effective
Average
Somewhat
effective
Very
effective
Don't know
Not at all
effective
Not very
effective
Average
Somewhat
effective
Very
effective
0%
21%
44%
32%
3% 0%
0%
10%
20%
30%
40%
50%
5%
33%
43%
12% 1%
6%
0%
10%
20%
30%
40%
50%
Industry’s Effectiveness from Executives’ Perspective
Industry’s Effectiveness from Senior Executives’ Perspective
Insurance Industry’s Effectiveness in Leveraging
Analytics to Improve Marketing
4%
According to a 2012 report from Strategy Meets Action,17
34% of insurers with
revenues of more than US$1 billion and 46% of insurers with revenues of less than
US$1 billion are already investing in marketing analytics. While few personal lines
carriers have actually implemented predictive analytical applications in marketing,
others are actively trying to acquire analytics talent through stepped-up recruit-
ing. This further corroborates our belief that personal lines carriers are prioritizing
marketing analytics as a key initiative, and that now is the time to invest in this
important business function.
Though they believe it is important, the survey respondents were skeptical about
the advances made in insurance marketing analytics to date. Our research indicates
that only 34% (see Figure 14) of respondents believe that the insurance industry is
“very effective or somewhat effective” in leveraging analytics to improve market-
ing. If we analyze this deeper and examine responses only from senior executives
(i.e., vice presidents and above), this view is further reinforced. Only 21% of these
respondents indicated that the insurance industry is “very effective or somewhat
effective” in leveraging marketing analytics.
This clearly establishes that it is time to invest in marketing analytics, and if done
right, this critical function can lead to significant benefits.
Effectiveness in Leveraging Marketing Analytics to Improve Marketing
Response base: 144 insurance industry professionals
Source: InformationWeek Financial Services - Cognizant 2013 Insurance Analytics Survey16
Figure 14
16. 16 FUTURE OF WORK September 2013
Benefits of Marketing Analytics Done Right
Marketing analytics can provide tremendous benefits both inside and outside of the
marketing organization.
Opportunities to Apply Marketing Analytics
Within the Marketing Organization
Within the marketing organization, marketing analytics can help carriers reduce
wasted investments on marketing campaigns, eliminate non-productive spend on
channels, generate more qualified leads and improve sales efficiencies.
• Reduce wasted investment on non-yielding campaigns: Amid ongoing ad
bombardments, some carriers are running multiple campaigns with different
messages in order to grab the attention of various customer segments. State
Farm’s “Born to Assist,” Allstate’s “Mayhem” and GEICO’s “Maxwell the Pig” were
likely designed to resonate with different customer groups. An analytics-driven
approach can enable carriers to measure the performance of such campaigns,
including their impact on customer acquisition, customer retention and other
targeted business outcomes. When practiced properly, this approach can help
carriers avoid bad investments by knowing when to end unproductive campaigns.
Over a period of time, analytics can also help carriers develop the capability to
choose the best messaging strategy for creating high-yielding campaigns.
• Eliminate spend on ineffective media channels in target markets: Customers
nowadays tend to base their brand perceptions on their interactions with brands
across multiple media channels. However, different customer segments use these
channels differently. For example, millennials could be more responsive to online
display advertisements and social platforms, whereas direct mail might be more
effective for baby boomers. Given the increasing media placement options now
available to carriers, marketing analytics enables carriers to gain a better under-
standing of customer preferences and leverage information on customers’ use
of different media channels. In this way, carriers can confirm the best channel
for their marketing initiatives, and target a market placement strategy that
maximizes their return on investment.
• Generate more qualified leads: Carriers often face a situation in which the
marketing team believes they are filling the sales funnel with qualified leads,
while agents and CSRs complain about lack of qualified leads. There could be
several reasons behind this disconnect, such as a lack of understanding of
customers’ propensities to buy, or incorrect or premature lead assignments. Using
marketing analytics, carriers can profile their leads based on their origin, suitabil-
ity and engagement level, and direct them to the appropriate sales channel at
the opportune moment in the buying process. This helps in achieving a higher
percentage of well-qualified leads.
• Improve sales efficiency: Educating the customer represents a significant cost
in the customer-acquisition process. Across the insurance industry, agents and
Using marketing analytics, carriers can profile their
leads based on their origin, suitability and engagement
level, and direct them to the appropriate sales channel
at the opportune moment in the buying process
17. MARKETING ANALYTICS: A SMARTER WAY FOR AUTO AND HOME INSURERS TO GAIN COMPETITIVE ADVANTAGE 17
CSRs must spend time explaining a new product or coverage to their customers,
which significantly undermines their throughput. At the same time, lack of
product knowledge may cause a customer to defect or to be uninterested in the
product. Typically, well-qualified leads require less education and consume less
marketing expense. Analytics-enabled leads and customer profiling can help
carriers improve sales efficiency by reducing marketing costs, and aiding the
design of effective education campaigns for different customer segments.
Opportunities to Apply Marketing Analytics
Beyond the Marketing Organization
Marketing analytics can add value to business activities outside the marketing
organization — from product and services design, to cross-selling and pricing.
• Expedite innovative product design: Through actuarial risk modeling, carriers
have traditionally segmented their customers according to geographic and demo-
graphic factors, leaving room for product innovations based on psychographic
factors. Adopting this approach can help carriers build loyalty programs that
not only improve customer retention, but also increase customer engagement
by rewarding customers for various interactions. Marketing analytics can provide
personal lines carriers with information on what customers want so that innovative
products can be quickly created and offered. Further, carriers can use analytics to
quickly build effective bundling strategies that until now have not been explored.
For instance, a carrier could be reluctant to insure an expensive motorcycle;
however, some customers in this segment could have high-value homes that
would make the home and motorcycle bundling a good opportunity for the carrier.
• Design services more fitting for the target market: Another area where
carriers can leverage analytics is to identify value-added services that customers
might use at different stages of the policy lifecycle. Services could be preemptive
in nature — such as a discounted offer from a partner roof replacement vendor
for a home owner policy — or developed to serve a customer preference such as
integration with PayPal payment services for customers using online payment
methods. Marketing analytics can help identify the target market, the size of
the opportunity, as well as the optimal service level that would exceed customer
expectations while balancing the operational costs of providing the service.
• Improve cross-selling yields: Carriers can segment customers based on differ-
ent products they have bought at different stages of the customer lifecycle. Using
these insights, carriers can approach customers at a time when they are most
likely to buy new products. For example, Target tries to predict customers’ preg-
nancies based on changes in shopping patterns, and accordingly sends coupons
for maternity and child care products.18
Similarly, if carriers can track events that
spawn new insurance needs — such as marriage, childbirth and children turning
16 — they can engage in cross-selling and achieve higher close ratios.
• Enhance customer acquisition and retention via holistic pricing: Currently,
most carriers offer a flat multiline discount to all personal lines customers,
wherein all customers are provided the same discount percentage. This means
that an individual who could potentially become a loyal customer and thus have a
higher lifetime value receives the same discount as a customer with a propensity
for switching carriers. Marketing analytics can provide insights into customer
profiles — confirming those who have historically been more loyal than other
customer segments. Based on these insights, carriers can improve the returns
from discounts by giving greater reductions to customers who belong to the
“loyal” segment, and lower discounts to the rest.
18. 18 FUTURE OF WORK September 2013
Looking Ahead
As discussed, it is evident that not only the marketing organization, but also func-
tions outside of marketing, can benefit significantly from marketing analytics.
Reducing the ineffective marketing spend, getting better quality leads, improving
sales efficiency, and designing innovative products and services are among the
important benefits that can be realized by successfully advancing marketing ana-
lytics capabilities.
To get started, P&C personal lines carriers must think through what they have and
what they do not have to build a successful marketing analytics business function.
As we have seen, few carriers have recognized that marketing analytics is of critical
importance; the industry, overall, has not effectively leveraged these capabilities to
date. However, according to our research, marketing analytics will be significant-
ly more important to personal lines carriers in the next five years. Building this
capability is not easy. The key building blocks include key performance indicators,
skilled resources, a marketing analytics platform, data-driven decision making, and
linkages with other business functions.
As product commoditization and standardization of services continue to increase —
not to mention the shift of customers towards more visible and recognized brands
and the growth of self-directed purchases
— it goes without saying that market-
ing spend will continue its unprecedented rise. This means there is no escaping
the relentless ads on television, the radio, the Internet, social media, billboards and
direct mail. Most carriers have not figured out the best way to get the maximum
benefit from their marketing expenditures, but it is imperative that they do so now
in order to help increase their marketing effectiveness and efficiency, and realize
better returns on their marketing spend.
Simply put, the winners will be defined not only by how much they spend on market-
ing, but how smartly they spend it.
Footnotes
1
National Association of Insurance Commissioners (NAIC) Reports, 2004-2011.
2
Kantar Media report on Advertisement Spending, 2011. http://www.kantarmediana.
com/intelligence/press/us-advertising-expenditures-increased-08-percent-2011?des
tination=node%2F24%2Fpress%3Fpage%3D1.
3
National Association of Insurance Commissioners (NAIC) Reports, 2004-2011.
4
24/7 Wall Street report sourced by Ad Age report on ten largest advertisers in
America advertisement budgets, 2011. http://247wallst.com/2012/07/13/the-ten-
largest-advertisers-in-america/.
5
National Association of Insurance Commissioners (NAIC) Reports, 2004-2011.
6
Insure.com report on Auto Insurance Customer Satisfaction, 2013.
http://www.insure.com/best-insurance-companies.html.
7
J.D. Power U.S. Insurance Shopping Study, 2013. https://pictures.dealer.com/jdpowe
r/47cd911d0a0d02b701fd6f07b990f1d3.pdf.
8
Ibid.
9
J.D. Power U.S. Auto Claims Satisfaction Study, 2012. http://autos.jdpower.com/
content/press-release/qMmYBvg/2012-u-s-auto-claims-satisfaction-study.htm.
10
National Association of Insurance Commissioners (NAIC) Reports, 2004-2011.
11
comScore Online Auto Insurance Servicing Report, 2011. http://www.comscore.
com/Insights/Press_Releases/2011/5/2010_U.S._Online_Auto_Insurance_Policy_
Shopping_and_Quote_Submission.
19. MARKETING ANALYTICS: A SMARTER WAY FOR AUTO AND HOME INSURERS TO GAIN COMPETITIVE ADVANTAGE 19
12
Google/Shopper Sciences, Zero Moment of Truth Study — Insurance, 2011.
http://ssl.gstatic.com/think/docs/zmot-insurance-study_research-studies.pdf.
13
J.D. Power U.S., Insurance Shopping Study, 2012. http://www.jdpower.com/content/
press-release/cObh6yM/2012-u-s-insurance-shopping-study.htm.
14
InformationWeek Financial Services – Cognizant, Insurance Analytics Survey, 2013.
15
Ibid.
16
Ibid.
17
Strategy Meets Action Report on Analytics Pervading P&C Carriers, 2012.
http://www.insurancenetworking.com/news/sma-strategy-meets-action-
analyt¬ics-31010-1.html.
18
Duhigg, Charles. “How Companies Learn Your Secrets.” The New York Times
Magazine, 2012. http://www.nytimes.com/2012/02/19/magazine/shopping-habits.
html?pagewanted=all.
About the Authors
Michael Kim is the Global Head of Cognizant Business Consulting’s Insurance Practice.
He has 25 years of management consulting experience in the insurance, healthcare
and financial services industries. Mike has advised leading insurance companies on
strategy, operations and technology issues across sales/marketing, distribution,
underwriting and claims. He can be reached at Michael.Kim@cognizant.com.
Agil Francis is a Senior Manager with Cognizant Business Consulting’s Insurance
Practice. Agil has 10 years of management consulting experience in the insurance
industry, where he has advised senior client executives on strategy, operations and
technology issues across sales/marketing, distribution, underwriting and claims. Agil
can be reached at Agil.Francis@cognizant.com.
Pushpamitra Khuntia is a Manager with Cognizant Business Consulting’s Insurance
Practice. She has 12 years of business consulting and project management experience
in the insurance and healthcare industries, specializing in P&C insurance. Pushpami-
tra can be reached at KPushpamitra@cognizant.com.
Vishal Shukla is a Senior Consultant with Cognizant Business Consulting’s Insurance
Practice. He has eight years of business consulting and project management
experience in the insurance and high-technology industries. Vishal specializes in
P&C insurance and he can be reached at Vishal.Shukla2@cognizant.com.