Segmentation. Customer Strategy Done Right

Transcription

1 Segmentation Customer Strategy Done Right

2 Welcome: Customer Strategy Breakout Sanjay Mehra Vice President of Analytics and Customer Management Direct Business MetLife Leah van Zelm Principal Consultant Management Consulting Group Merkle 2

3 Objective Demonstrate elements of ccrm Customer Strategy from the general session MetLife s segmentation solution Translation of the segmentation solution into strategy Share examples of segment strategy driving marketing, sales, service 3

4 Background MetLife developed a new direct-to-consumer life insurance channel to address the underserved Middle Market. Agents / Brokers Underserved Market Direct Business MetLife traditionally sold life insurance via agents and brokers, who tend to focus on a more affluent audience The company recognized an underserved middle market, broadly defined as years old and $150K income or less MetLife developed a new channel direct to consumer to serve the middle market * Online * * Call Center * 4

5 Challenges with Original Targeting Strategy The Middle Market consisted of individuals years old with a household income under $100k, but MetLife needed more insights than what was available at launch. Go-to-Market Segments Challenges Not rich enough to inform customer engagement Not actionable enough to drive execution e.g., not demographically distinct Too many segments to actively manage Individuals outside of the Middle Market were becoming customers, but weren t assigned a segment 5

6 What Segmentation Solution Did MetLife Need? MetLife engaged Merkle to develop Enterprise segmentation it had to be strategic AND tactical in nature. Strategy Segment Prioritization Customer Engagement Value Proposition Media Budget Allocation Product Planning Brand Strategy Competitive Strategy Tactics Customized Treatment Messaging & Creative Media Offline Buying Offer Presentation Positioning Solution Richness: attitudes, needs, behaviors, brand relationships, media usage Attributable at the individual level Universal view of insurance market Monetary view of value 6

7 The Solution After extensive requirements gathering, we used a combination of primary research, advanced analytics, and strategy development to deliver the solution. Approach Value Analysis Primary Research Clustering & Mapping Customer Strategy Build value analysis based on policy revenue, acquisition cost, survival model + Develop predicted value model to assign to prospects Deeply understand attitudes tied to life insurance + Needs, purchasing behavior, brand relationships, brand imagery, psychographics Cluster on motivations + Link survey response to national file and develop segment assignment model + Robust profiling Overall portfolio strategy + Segment specific strategies 7

8 The Segments The resulting five segments proved attitudinally differentiated and demographically distinct. Young Achievers Concerned Moms Financially Mature Ho Hum Solo Content Demographics Younger Young, Middle Age Mature Middle Age Mature Skews male Mostly female Skews male Mostly female Male and Female Attitudes Early adopters, technical Driven, Risk taker Price sensitive Use social media, but not otherwise technical Don t know where to begin Price sensitive Recognize value of insurance Confident about financial matters Least price sensitive Late adopters Risk averse Not primary decision makers and not thinking about LI Use social media Mistrustful of financial inst. Least interest in LI 8

9 Developing the Portfolio Strategy Two segments are primary targets for the Direct Business. Young Achievers Concerned Moms Financially Mature Ho Hum Solo Content % of US 20% 20% 30% 20% 10% % of MetLife 50% 30% 10% 5% 5% Lapse Rate Low High Low Medium Medium Value High Medium Medium Low Low 9 Target Large portion of market Right for business model Minimize Cost to Serve Prefer face to face Low conversion Lower value

10 Young Achievers Strategy and Journey Segment Strategy Objective: Fill the funnel Positioning: Like your parents before you Programs: Heavy digital focus Segment Specific Experience Better Faster Cheaper 10

11 Implementing Segment Strategy 2013 Roadmap Segment Q1 Q2 Q3 Q General Workshop LTV update Case mgmt experience Quote tool enhancements Seg Website MMO by segment Non Buyer program Segment performance evaluation Process improvement edelivery Young Achiever Call Cnt Trng DRTV spot Ratings and Reviews Display Landing page Prod Roadmap Online App Redesign Concerned Mom Call Cnt Trng DRTV spot Display Landing page Prod Roadmap Onboarding Call routing test Online App Redesign 11

12 Example: Concerned Mom s landing page This Concerned Mom s specific landing page will be used in conjunction with a display campaign targeting this segment. Relevant tips Family focus Simplicity Affordability 12

13 Anonymous Digital Targeting Prospecting Purchase Pixel Modeling Anonymous Browsing Visitor Becomes a Lead Back End Matching / Identify Most Attractive Leads Anonymous user with similar characteristics is served an ad 13

14 Example: CSR Training Awareness of segments How to engage them 14

15 Example: DRTV spot Real People Concerned Mom Young Achiever 15

16 Example: Media Planning Integrated segments into agency s media planning tool Did this by assigning MRI responders to segments Agency changed network and programs purchased Led to CPL being cut in ½ 16

17 Product Research Segment Motivations Link existing motivations, beliefs, and decision maps to product features through laddering Identify resonant communication approaches to promote it once ready Product Features & Benefits Product Roadmap Unlike more traditional research techniques, the laddering approach allows organic ideation and provides a rich framework in which to develop product elements and positioning. Focus on target segments 17

18 Outcome Strategic and Strategy Segment Prioritization Customer Engagement Value Proposition Media Budget Allocation Product Planning Brand Strategy Competitive Strategy Tactics Customized Treatment Messaging & Creative Media Offline Buying Offer Presentation Positioning Solution Invest primarily in two segments Anonymous digital targeting EM/DM by segment 18

19 Outcome Personalization Strategy Segment Prioritization Customer Engagement Value Proposition Media Budget Allocation Product Planning Brand Strategy Competitive Strategy Tactics Customized Treatment Messaging & Creative Media Offline Buying Offer Presentation Positioning Solution Segment engagement strategies Website personalization Call center personalization and scripting Online tools 19

20 Outcome Messaging and Creative Strategy Segment Prioritization Customer Engagement Value Proposition Media Budget Allocation Product Planning Brand Strategy Competitive Strategy Tactics Customized Treatment Messaging & Creative Media Offline Buying Offer Presentation Positioning Solution DRTV spots Digital creative, custom landing pages Social campaign 20

21 Outcome Media Budgeting, Planning, Buying Strategy Tactics Solution Segment Prioritization Customer Engagement Value Proposition Media Budget Allocation Product Planning Brand Strategy Competitive Strategy Customized Treatment Messaging & Creative Media Offline Buying Offer Presentation Positioning Media mix optimization by segment Segments integrated into media planning tool DRTV buys 21

22 Outcome Offer Strategy Strategy Segment Prioritization Customer Engagement Value Proposition Media Budget Allocation Product Planning Brand Strategy Competitive Strategy Tactics Customized Treatment Messaging & Creative Media Offline Buying Offer Presentation Positioning Solution Product development Product positioning Bundling considerations Next best offer 22

23 Outcome Positioning Strategy Segment Prioritization Customer Engagement Value Proposition Media Budget Allocation Product Planning Brand Strategy Competitive Strategy Tactics Customized Treatment Messaging & Creative Media Offline Buying Offer Presentation Positioning Solution Segment attitudes drive positioning Brand measurement by segment 23

24 Thank You! Q & A Sanjay Mehra smehra1@metlife.com Vice President of Analytics and Customer Management Direct Business MetLife Leah van Zelm lvanzelm@merkleinc.com Principal Consultant Management Consulting Group Merkle 24