CUSTOMER EXPERIENCE MARKETING: LIFE INSURANCE

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1 CUSTOMER EXPERIENCE MARKETING: LIFE INSURANCE Multichannel Marketing August 1, 2011

2 Today s Panelists Deb Gustafson Vice President Market Management Epsilon Targeting Edgar Rodriguez Executive Vice President Sales Marketing and Alliances Distribion, Inc Jill Simme Account Supervisor SKM Group Bill Tyson CEO Strategic Marketing Plus

3 Define Multichannel Marketing Marketing methodology using two or more different media approaches, both inbound and outbound, to reach and influence a target audience in a single campaign. Supported by one or more inbound response channels, that, when combined, produces a single, return-on-marketing investment result.

4 Why is Multichannel Marketing Important? Multichannel buyers generate more revenue, purchase more items, purchase in more categories and all of this more frequently than single channel buyers. (1) According to a 2009 study by McKinsey & Company, Consumers who shop across multiple channels will spend on average 4 times more annually on purchases than those who shop via a single channel. Multichannel drives higher customer satisfaction levels, higher cross sells and retention levels. (2) Heavy users have demonstrated greater preference for shopping in multiple channels. (3) (1) Managing Marketing Communications, Journal of Marketing, October (2), (3) Multichannel Shopping: Causes and Consequences, Journal of Marketing, April 2007.

5 Marketing Channels Outbound Direct mail Tradeshows/seminars/events Web sites, Microsites, PURLS Contact Centers (Telemarketing) DRTV and Radio Mobile/SMS/Chat/Apps Brick and mortar stores Other (newspaper, out-of-home ads, etc.) Facebook Twitter MySpace YouTube RSS Blogs TV Radio Newspaper Direct Mail Company Website Friends/Family Inbound Paid search/pay per click Search Engine optimization Blogs and social media Word-Of-Mouth (WOM) Viral video Online Forums Customer Service Mobile Retail Location

6 Multichannel Dimensions Managing the allocation of Marketing spend to two or more channels. Channel-specific promotional events can vary by: Sequencing, Timing, Testing: targeting, product positioning, offer, format, messaging and pricing. Channel Adoption Duration time it takes for customer to adopt a channel. RFM analysis: Recency - Time between transactions Frequency - # of Transactions (i.e. per campaign, per year, etc.) Monetary value - basket size and cumulative share of wallet. Customer view of operational performance via multichannels: Time between order and fulfillment Accessibility and convenience Richness of information presented Customer interactions: customer relationships grow, develop, deteriorate and dissolve based upon the Customer Experience with 2 or more channels. Post acquisition behavior - withdrawals, cancellations, cross sells, upsells and addons. R.O.M.I. analysis and insights, by channel and channel combinations.

7 Common Multichannel Pain Points Channel Silos: online/offline, inbound/outbound. Complexity - Proliferation of New Channels. Determining the ROI of some of the channels. Synchronization the managing multi channels, simultaneously. Costs of Resources to support the efforts. Tracking and reporting across multichannel campaigns to arrive at a single ROI.

8 1 Direct Mail/Web Mark receives a direct mail offer from Hawkeye Family Life to buy guaranteed tem life insurance. The cost seems affordable and he has considered buying additional coverage for his growing family, beyond the plan his employer provides. Mark visits the PURL (personalized URL) that is referenced in the mail piece, enters his address, and fills out a quote request. 2 Knowing that Mark linked into the PURL, but didn t make an initial purchase, Hawkeye Life sends Mark an the next day that points him to the coverage calculator to help Mark determine the appropriate level of coverage based on his needs. He goes online to further investigate his options using the weblink to the calculator, and also researches the cost of an additional policy for his wife, Molly. Online/WOM 3 Later that evening when online, Mark notices an ad for term insurance from Hawkeye Life. He decides to check to see how rates compare, and when he Googles affordable term life, he sees Hawkeye near the top of the list. Mark clicks on a couple sites to check their rates, and as he surfs the web, another Hawkeye message appears. He visits a few more sites with customer reviews and sees a lot of positive feedback. 4 5 TV/Online/Social About a week later, Mark and Molly see a tv ad for a new car that she is considering buying. Mark mentions that he saw some car buying tips on the Hawkeye website. Molly goes onto the Hawkeye General website to check out the car buying tips. While on the website, she enrolls for the enewsletter that includes gas saving tips and other auto related articles. And since their oldest child will be driving soon, they join Hawkeye s parents blog re: best ways to teach good driving skills to your children Direct Mail/Web/Phone In his mailbox the next day, Mark finds a thank you note from Hawkeye for clicking on the calculator, and offers him a 5% discount if he signs up online. Mark decides to take advantage of the offer and buys a $500k term life policy from Hawkeye. During his purchase, a prompt to add a policy for his spouse at a 20% discount is offered. Mark decides to purchase a policy for her, too. The following day, a Hawkeye agent calls to set up medical exams for both Mark and Molly. 6 Direct Mail/ /Word of Mouth When Mark receives his first bill and policy in the Hawkeye welcome kit through the mail, he finds an insert that offers discounts on bundled car, life, and home insurance. Mark tells Molly, and she looks online to see what car insurance at Hawkeye covers, and what potential savings could be had by bundling. / Direct Mail/Phone An agent calls Mark and Molly to review the final policy, and let s them know they will receive a survey via in the next few days. In return for providing Hawkeye with their feedback on the experience, Molly and Mark will receive 2 Starbucks gift cards in the mail. 7 All information contained herein is confidential and/or proprietary information of Epsilon Data Management, LLC. Any unauthorized use and/or any disclosure is strictly prohibited.

9 SUMMARY MARK Mark s example shows a household s experiences along the life insurance landscape. These unique member experiences are achieved through execution on a targeted multichannel strategy, with technology enabled real-time decisioning and interaction to infuse loyalty across the local branch, parent company and designated partner networks. The end result of this coordinated marketing effort is even greater market share across the lifespan of a consumer and the household.

10 Key takeaways Sales Funnel to Lifecycle Interactivity that drives engagement The 3 C s choice, consistency and continuity Leverage Channel Synergies How are you speaking to your customers/prospect, what channels are you using? Can you utilize more? Measure all interactions Campaigns, segmenting internal and external data Targeting, frequency, multiple channel consistent messaging Performance indicators help to optimize channels

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