Expanding direct distribution through Internet initiatives Roberto Hortal Head of eBusiness MORE TH>N
Roberto Hortal Dynamic Distribution And Cross Selling Strategies For Insurance
Nov 11, 2014
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Expanding direct distribution through Internet initiatives
Roberto HortalHead of eBusiness
MORE TH>N
Agenda
> Uncovering effective use of the Internet to issue policies on the spot
> Discovering opportunities in online self-build products
> Uncovering how to target consumers most likely to use each channel
> Discovering a powerful new cadre of Internet distribution tools
Uncovering effective use of the Internet to issue policies on the spot
Opportunities
> The Instant Gratification noughties
– 24h, real-time customer expectation
– See, buy, drive away
– I want it NOW
Opportunities
>Integration with main purchase
– Integral to transaction
> Travel Insurance leads the way
Opportunities
>Expanded footprint
– Impulsive shopping: mid/high net worth
– Remote customers
– Complex/custom customer relationships
>Enhanced brand experience
– Frequent visits
– Repeated opportunities for cross/upsell
– Consistent service
Challenges
>Not always acommoditised purchase
>Legislation/regulation
>requirements
>Technology and
>processes
Future – finally paperless?
>Always on/near me
– Mobile
– In-car
– Kiosk
>Easy to use
– Search
– Abstract
– Beam
>Always up to date
– MTAs
– Contact info
– Past contacts
Discovering opportunities in online self-build products
Why self-build?>People want
– Value
– To understand what they’re paying for
– To feel part of the product
>Control
Risks
>Insufficient cover
>Incompatible combinations
>Too many choices?
Addressing risks
>Give customers a head start
Addressing risks
>Protect your profitability
–The Dell approach
–Branded plays
Extending self-build
>Crowdsourcing
>Make me an offer– The intention economy
>Working with Generation C
–Content
–Cash
> Atava
Pre-packaged> The simple flip-side of the coin
Uncovering how to target consumers most likely to use each channel
Social Media
> The biggest opportunity in online marketing
> Participate in conversations
– Listen
– Change
– Communicate
> Your customers on thedriver’s seat
Popular
morethan
long egg
morethan living
summer 2007 floods
flood advice
green social networks
green motoring
flooding summer 2007
0
100
200
300
400
500
600
700
800
900
0 1 2 3 4 5 6 7 8
Ave
rge
tim
e o
n s
ite
Average pages per visit
Top 100 keywords over all time
Engaging
Living and PHC
When niches go mainstream
Discovering a powerful new cadre of Internet distribution tools
The Aggregator effect
Saturated market: always growing spend to maintain share of voice
Aggregators + new branded entries increase competition for
attention
Through the roof
> From 15% of the online market in 2005
to 50% predicted by end 2008
Everyonewants in
• Specialisation/positioning
– Different premiums = customer segments
– Different product ranges
– Different propositions (price/value/platform)
Aggregators:what next?
• Peak Agg?
– Mature market - 65%+
– Share battles - £1M giveaway, win a Boxster
– Cashbacks threaten revenue
– Consolidation, regulation maybe imminent
Aggregators:what next?
• Could kill the Golden Goose
– Long-term sustainability of insurersat risk
– Race to the bottom may leave consumersunprotected
– Shrinking competitive landscape?
Aggregators:what next?
• Or make it stronger
– Back to basics of direct model
• Lower cost at all stages
• It’s the Customer Experience, stupid
– Customer at the core: reinventing insurance for today’s customer
Aggregators:what next?
Cashbacksites
Who are these people?
Source: MoneySavingExpert
Cashbacks and consumers
• Consumers get rewards everytime they use a cashback site
– Up to 100% of site’s commission
– Down to £0 joining fee
• Cashbacks offer forums, blogs formembers to discuss merchants
– Payment terms/speed most popular
– Service/product review/recommendation growing
• Spreading like wildifire thanks to excellent MGM programs
Cashbacks and retailers
• Taxing access to consumers - parasytes of the online Marketing world?
– Not really a demand generation tool
– You still have to do all the hard Marketing work, and spend all the money
• Large volume cashbacks candrive high bounty
• Purely an added cost
• They are spreading!
Cashbacks and retailers
• High additional CPS across the board
• Selection, profitability impact
– Bounties for Insurance products tend to be flat
• Disproportionate benefit for low premium policies
• Will Aggregators bear the brunt of the cashbackrevolution
– Not completing the sale?
– Having to offer cashback?
• Commercial value doubtful
Cashbacks are great social media!!
> WOM fuels growth – social media marketing working at last!
And rather good at it...
Cashbacks: Dive in
> Very large audience of committed users
– No shortage of enthusiasts of your brand
> Huge collection of user-generated content
> Finely tuned WOM program
> A social Marketer’s dream!
Mobile
> Personal
> Trusted
> Always-on
> Location
Car
> Enhanced mobile
> Telematics
– PAYG
– Differential pricing
– Groups
> Your brand,deliveredto where most relevant
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