Customer Loyalty and Retention Summit 2015 - Dubai

AGAINST ALL ODDS Keeping customers in the blood-red market

Qatar Insurance Company

WHAT’S ON TODAY

AGAINST ALL ODDS Qatar Insurance Company

Qatar Insurance and I The Blood Red Ocean Loyalty in the Middle East How it works Why it works (!) What’s Next?

http://frederikbisbjerg.com

Executive MBA in international strategy and management

Author of books on loyalty and marketing automation

Specialized in business development, management and commercial excellence

Former top-tier management consultant

EVP, Head of Group Retail @Qatar Insurance

KUWAIT

OMAN

UAE

QATAR

Established in Qatar

1964

2015 50th largest reinsurer in the World

QATAR INSURANCE

QIC UAE

QIC Oman QIC Kuwait

Qatar Re

Antares’ Lloyds

Q-Life & Medical

QIC International

QATAR INSURANCE

59% 24%

17% 25%

12%

15% 12%

17%

19%

275 USD million net profit in 2014

4,000 USD million market

capitalization in 2014

21% CAGR in GWP from 2010

to 2014

International

Regional

Domestic

Motor

Health & Life

Property Energy

Marine & Hull

Others

Pric

e le

vel

Cus

tom

er s

ervi

ces

Cov

er ra

nge

Oth

er in

sura

nce

ser

vice

s

Cla

ims

hand

ling

Bran

d re

cogn

ition

Onl

ine

plat

form

Bran

ch n

etw

ork

Better

Worse

IT IS A BLOOD RED OCEAN


No Tech Low Tech Mid Tech High Tech

Mobile phone Internet usage App usage Social media

NO MOBILE

DOES NOT USE INTERNET

DOES NOT USE APPS

DOES NOT USE SOCIAL MEDIA

SIMPLE MOBILE PHONE


DOES NOT USE APPS


SMARTPHONE

INFORMATION SEARCH / SIMPLE

SHOPPING

APPS FOR FUN

BASIC PRESENCE

SMARTPHONE

ALL THINGS INTERNET

ALL THINGS APPS

ACTIVE PRESENCE

SCATTERED CUSTOMER SEGMENTS…


…WITH A COMPLEX CUSTOMER JOURNEY

Average 5 insurers are considered

3 insurers are quoted

33 % will not renew 5 3 33 %

20%

32%

48%

Bad service experience

Life change

Price increases

New customers are 30 % more likely to switch

SWIT

CH

ING

TRI

GG

ERS

…AND A MULTICHANNEL JOURNEY

Direct (online, call center)

Offices / agents

63 %

37 %

31 %

69 %

72 %

28 %

Information seeking / quoting

Final insurance purchase

After-sales service channel


Q: WHY DID YOU CHOOSE TO RENEW WITH US? (OR WHY DID YOU STAY LOYAL?)

19%

58%

23%

Price

Convenience

Services


Pric

e le

vel

Cus

tom

er s

ervi

ces

Cov

er ra

nge

Oth

er in

sura

nce

serv

ices

Cla

ims

hand

ling

Bran

d re

cogn

ition

Onl

ine

plat

form

Bran

ch n

etw

ork

Better

Worse

ALL THINGS CONVENIENCE

Always Here

Always On

Always Easy

All Ways YOU


STRUCTURAL DISLOYALTY

4.5 Average years an expatriate stays in the same country

21 % Percentage of the GCC car

park that is changed annually

25 % Structural loss of customers

New Customer Renewal

Same Product

New Product

Structural Disloyalty

25 % 75 % 100 % = + True Customer Loyalty

‘LOYALTY’ IN QIC


IT’S WORTH IT!

Remaining customers after 4 years

70 % 30 % 50 %

34 %

3 % 12 %

100 %

Annual average customer loyalty

30 %

50 %

70 %

6.7m Difference in NPV net profit

from 30 % to 70 % loyalty for 10,000 customers

NPV Net profit

4,251 850

5,625 1,125

7,599 1,520

This example is based on an average car insurance premium of 3,000:-, a period of four years and a loss-

ratio of 80

Cu

sto

me

r lo

yalty

Right Price

Right Products

Right Promotion

Right Place

Always Here

Always On

Always Easy

All Ways YOU


ALL THINGS PRICE…

Car make and model

Driver’s attributes

Geographic location

Sales channel

Claims history

Customer history

External factors

Internal factors


One Click

Delivery Services

Call Centers

Branches

Outlets

QIC Online

Text messaging

QIC App

Social Media

…AND CONVENIENCE

Always Here

Always On

Always Easy

All Ways YOU

CUSTOMER LIFECYCLE MANAGEMENT M

ARKE

TIN

G /

D

IALO

GU

E AU

TOM

ATIO

N

CO

MPE

LLIN

G C

ON

TEN

T

Delivery services Personal driver services All things online Grievance handling Call center Price and packages U-Club


HOW IT WORKS

Strong data model 360 degree data capture Right channel Right content Flow. Automation. Triggers.


GET YOUR DATA IN ORDER

Call center

Online portals

Mobile apps

Branches

Claims

E-mails Deliveries

Peripherals (external services)

Social media

Outlets

Mobile messaging

Surveyors



Mobile phone Internet usage App usage Social media

NO MOBILE


DOES NOT USE APPS


SIMPLE MOBILE PHONE


DOES NOT USE APPS


SMARTPHONE

INFORMATION SEARCH / SIMPLE

SHOPPING

APPS FOR FUN

BASIC PRESENCE

SMARTPHONE

ALL THINGS INTERNET

ALL THINGS APPS

ACTIVE PRESENCE


Sales channels Convenience Specials

DELIVERY SERVICES

BRANCHES, CALL CENTER

NO-CLAIM BONUS;

FREE DELIVERY

DELIVERY SERVICES

BRANCHES, CALL CENTER

NO-CLAIM BONUS;

FREE DELIVERY,

DELIVERY SERVICES, ONLINE SHOPPING

BRANCHES, CALL CENTER,

WEBSITE

NO-CLAIM BONUS;

FREE DELIVERY, ONLINE DISCOUNT

DELIVERY SERVICES, ONLINE SHOPPING,

APP PURCHASES

BRANCHES, CALL CENTER, WEBSITE, APP

NO-CLAIM BONUS;

FREE DELIVERY, ONLINE DISCOUNT

Content

Value added services

Peripheral services

Covers and products

Online services, call-center, deliveries, claims management, etc Loyalty programs,

personal driver services, etc.


FLOW. AUTOMATION. TRIGGERS.

!

Flow initiation -  New customers -  Renewal

Claim Non-renewal Cancellation Feedback Non-reply TR

IGG

ERS

IFTTT


Content -  History -  Segment

WHY IT WORKS (!)


Correct Consistent Committed Complete Corrected Compensated

INCORRECT DATA IS FATAL


YOU CAN’T JUMP A CHASM IN TWO STEPS


360; HOLISTIC, FULL-CIRCLE, ALL-IN, ETC.

DATA

Delivery Services

Call Centers

Branches

Outlets

QIC Online

Text messaging

QIC App

Social Media

IF IT SEEMS WRONG, IT PROBABLY IS – FIX IT

•  Clicks in mails / on websites

•  Online queries •  Survey responses •  Renewal rate •  Exits of online

flows EARL

Y W

ARN

ING

S AGAINST ALL ODDS Qatar Insurance Company

Thing is, it’s all about people


SYSTEMS VS. PEOPLE

Data structure

Program flow

Early Warnings

Dedication

Data collection

Follow up

Reporting

Reactions

Perseverance

Commitment

MONEY MAKES THE WORLD GO ROUND

$$

$$ Data collection

$$

$$

Data validity

$$ $$

Customer satisfaction

$$ $$ $$

$$ No lost follow-ups $$

$$ Loyalty and retention

$$

$$

$$


THE FUTURE

Granular segmentation Share how you drive… …becomes pay how you drive All things convenience


Brand preference

High Low

Prop

ensi

ty t

o sw

itch

High

4

3 5

6

7

8 9

1

2

APPS, SOCIAL MEDIA, ENGAGEMENT

Share how you drive… …becomes pay how you drive

Fun and engaging… …saves you money too


$$ $$ $$

19%

58%

23%



Are we headed in the right direction? ?

Customer Loyalty and Retention Summit 2015 - Dubai

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