Take Insurance Loyalty to Next Level Epsilon_Forrester

1. ©2014 Epsilon. Private & Confidential Take insurance loyalty to the next level with telematics G u e s t s p e a k e r : E m i l y C o l l i n s , S e n i o r A n a l y s t , F o r r e s t e r H o s t e d b y : D a v e E d i n g t o n , S V P, I n d u s t r y S t r a t e g i s t , E p s i l o n

4. 4 4 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. © 2015 Forrester Research, Inc. Reproduction Prohibited Agenda › Why does loyalty matter? › How do companies currently tackle customer loyalty? › What should insurance companies do about it?

14. 14 14 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. © 2015 Forrester Research, Inc. Reproduction Prohibited Many companies think they’ve handled loyalty by implementing a program.

15. 15 15 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. © 2015 Forrester Research, Inc. Reproduction Prohibited Programs influence customer behavior Save me money83% Loyalty programs drive purchase Influence where I make purchases67% Influence what I buy56% Base: 3,1976 US online adults (18+) who belong to any loyalty programs Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey, 2 2014

17. 17 17 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. © 2015 Forrester Research, Inc. Reproduction Prohibited But programs only cover part of the life cycle. The customer enrolls in a program during or after the initial purchase has been made. Offers and discounts incentivize repurchase. Top tier customers in a program may receive direct access to customer support. Some programs encourage or incentivize engagement (e.g., reviews and rating, social shares, etc.).

18. 18 18 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. © 2015 Forrester Research, Inc. Reproduction Prohibited The market place is crowded On average, consumers belong to nine programs 71% of US online adults belong to a loyalty program Source: Forrester’s North American Consumer Technographics Customer Lifecycle Survey 2, 2014

19. 19 19 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. © 2015 Forrester Research, Inc. Reproduction Prohibited Marketers aren’t happy with their current approach Completely Satisfied Very Satisfied Satisfied Somewhat satisfied Not at all satisfied Base: 127 Loyalty Marketers Source: Forrester/DMA Global Loyalty Benchmark Survey, Q2 2015 56% dissatisfied

20. 20 20 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. © 2015 Forrester Research, Inc. Reproduction Prohibited They face real challenges 47% Understanding customers across touch- points 29% Aligning our loyalty strategy with the overarching business strategy Personalizing offers, content, and experiences based on behavior 25% Base: 127 Loyalty Marketers Source: Forrester/DMA Global Loyalty Benchmark Survey, Q2 2015 25% Managing data from a variety of sources

21. 21 21 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. © 2015 Forrester Research, Inc. Reproduction Prohibited Marketers collect lots of data, but struggle to apply it Base: 120 loyalty program marketers Source: Forrester/ DMA Global Loyalty Benchmark Survey, Q2 2015 78% 66% 60% 56% 50% 41% 39% 36% Campaign response data (e.g. open, click, redemption, etc.) Voice of customer data (e.g. customer surveys, feedback, etc.) Customer preference data (e.g. contacted preferences, opt-ins, opt-outs) Customer behavior data (e.g. loyalty data, identifiable customer data) Collect data Apply insight

23. 23 23 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. © 2015 Forrester Research, Inc. Reproduction Prohibited Customer understanding guides execution What types of benefits and offers will they value? What will motivate them and make them feel valued? What are their expectations? What makes our customers loyal?

24. 24 24 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. © 2015 Forrester Research, Inc. Reproduction Prohibited Loyalty insights have a far-reaching impact Loyalty program Customer service Product development Branding Customer experience Mobile strategy eCommerce Advertising

27. 27 27 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. © 2015 Forrester Research, Inc. Reproduction Prohibited Source: Forrester’s North American Consumer Technographics Customer Lifecycle Survey 2, 2015 Walk the walk, don’t just talk the talk 82% 78% 81% 81% 74% 77% 77% 79% 79% 79% Increase market share Improve competitive advantage Improve customer loyalty Improve customer acquisition Increase organization's use of data and analytics for customer insight “Which of the following are likely to be your organization's top marketing priorities over the next 12 months?” Insurance All other Industries Base: 103 Global marketing decision-makers from the insurance industry 3234 Global marketing decision-makers from all other industries

28. 28 28 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. © 2015 Forrester Research, Inc. Reproduction Prohibited Map customer journeys to uncover benefits Impact “moments of truth” Alleviate “pain points”

29. 29 29 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. © 2015 Forrester Research, Inc. Reproduction Prohibited Reward for interactions, not transactions Source: Forrester’s North American Consumer Technographics Customer Lifecycle Survey 2, 2015 19% 15% 28% 29% 49% 51% All other industries Insurance “What are your firm's plans to adopt M2M/Internet of Things solutions or applications?” Implemented and/or expanding Planning to implement Not interested or no plans Base: 103 Global marketing decision-makers from the insurance industry 3234 Global marketing decision-makers from all other industries

31. A global leader in turning data-driven marketing into lasting relationships.

34. Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. 34 In 2016, 5.5 million new things will get connected every day. 34 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved.

38. ©2014EpsilonDataManagement,LLC.Private&Confidential 38 With Plenti, Nationwide puts members first Nationwide is the exclusive insurance partner of Plenti, the rewards program that lets Plenti members earn Plenti points at Nationwide and use them for savings at certain Plenti partners, all with a single card. Earn 1 Plenti point for every $3 you spend on your eligible auto and home insurance. Start earning points by linking your Nationwide account to Plenti. Earn 1 pt for every $3 on auto and property insurance premiums Boost your points balance with offers to complete an eligible insurance quote

41. 41 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. Data normalization & event analysis Cellular and wireless networks Insurance telematic ecosystem Consumer interface Loyalty solution architecture External feeds & services Firewall / Security, load balancing layer Internet Web services Business processing Data managementMarketing database Behavior score Data storage & analytics

42. Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. 42 Online, white card concept test, national poll survey 500 Responses 250 Responses Assuming there would be no changes to your current auto insurance policy, how interested would you be in enrolling in an auto insurance program where you enable a device in your car to track your driving behavior? If you demonstrate good driving habits, you would be able to qualify for good driver savings averaging around 15% off your car insurance premium. Would you be interested? 9.8% 18.0% Very Somewhat Source: Epsilon Research Study

43. Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. 43 Earn Reward Points Assuming there would be no changes to your current auto insurance policy, how interested would you be in enrolling in an auto insurance program where you enable a device in your car to track your driving behavior? Each month you demonstrate good driving habits, you would earn reward points. You can use your reward points for retail gift cards, electronics, music, video downloads, gasoline, movie tickets, restaurants and more. Would you be interested? 9.3% 15.8% Very Somewhat250 Responses Source: Epsilon Research Study

44. Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. 44 500 responses Combined savings and rewards If you demonstrate good driving habits, you would be able to quality for good driver savings averaging around 15% off your car insurance premium and/or earn rewards points. You can use your reward points for retail gifts cards, electronics, music, video downloads, gasoline, movie tickets, restaurants and more. Would you be interested? Source: Epsilon Research Study 23.1% 34.3% Very Somewhat Interest up 13.3pts vs. savings alone Interest up 16.3pts vs. savings alone

50. Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. 50 Gains in brand association (healthy habits / healthy lifestyle) 3years 140 milmembers in Balanced Rewards significant positive Buzz and PR continual improvement in NPS scores All ties back to telematics and the goal of ‘Frictionless CX’ 2years 30 milmembers in Balanced Rewards for Healthy Choices Benefits/lift in transactions and engagement at store

52. 52 52 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. Favorable UBI economics 15-2-1 • 15% average UBI Premium Discount • -2%, to a 13% average premium discount • 1% to fund the ‘rewards’ program • 1% pocket to lower UBI costs Discount & Rewards…net higher perceived value

57. Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. We see what others don’t 71MM U.S. customers Largest single-sourced custom survey. 256MM U.S. customers 1,900 Points of data #1 U.S. demographic marketing data 109MM Consumers 78 Transactions per HH Powerful and predictive retail transactional data 131MM Cross-Device ID’s Unmatched online browsing and transactional data

58. 58 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. Geography Income Home value Net worth Active credit cards Discretionary income Favorite activities Age Marital status Presence/ number of children Age of children Education level Homeowner or renter Dwelling type Life stage / recent life events Category purchase activities Channel preferences

59. Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. 59 Who they are: age of total adult population (individual) 2% 12% 20% 24% 22% 14% 8% 49 87 105 107 96 85 63 0 20 40 60 80 100 120 0% 5% 10% 15% 20% 25% 30% 18-24 25-34 35-44 45-54 55-64 65-74 75+ Telematics Telematics Index Discount Rewards 4% 39% 26% 30% 24% 5% 3% 117 280 137 131 105 32 22 0 50 100 150 200 250 300 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 18-24 25-34 35-44 45-54 55-64 65-74 75+ Telematics Telematics Index

60. Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. 60 Their financial strength: income 20% 28% 33% 17% 2% 65 74 142 226 288 0 50 100 150 200 250 300 350 0% 5% 10% 15% 20% 25% 30% 35% $0 - $29 $30 - $74 $75 - $149 $150 - $249 $250+ Telematics Telematics Index Discount 28% 45% 21% 5% 1% 91 119 92 68 92 0 20 40 60 80 100 120 140 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% $0 - $29 $30 - $74 $75 - $149 $150 - $249 $250+ Telematics Telematics Index Rewards

61. Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. 61 8.08% 205 Favor discounts Chic society Loyal online subscribers that are likely to use a web portal such as AOL, Yahoo or MSN. 54Avg. age of head 16 Average length or residence $168,592 Avg. household income 12% with kids 8.24% 480 Favor loyalty gifts Oodles of offspring 33Avg. age of head 7 Average length or residence $48,881 Avg. household income 65% with kids Highly reachable via cookie-based web display advertising; uses a PC to access the internet.

65. Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. 65 Millennials are most likely to modify their shopping behavior on the basis of loyalty program benefits 65 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. Source: OMA 6in10would switch the brands they buy and… millennial respondents Would change when and where they shop if it meant getting 2/3rdsmore benefits.

68. 68 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. Data normalization & event analysis Cellular and wireless networks Insurance telematic ecosystem Consumer interface Loyalty solution architecture External feeds & services Firewall / Security, load balancing layer Internet Web services Business processing Data managementMarketing database Behavior score Data storage & analytics + Large scale 1st, 2nd, 3rd party data

69. Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. 69 Online purchase data • 7.9x more likely to purchase photos and prints • 6.7x more likely to purchase wedding related products BROWSING BEHAVIOR • 2.1x more likely to visit baking sites • 2.3x more likely to visit entertainment sites Social • 30% have recent Facebook activity in the last 7 days W H A T I B U Y W H A T I C A R E A B O U T W H A T I S H A R E Life events • 8% recently moved • 13% recently had a baby W H O I A M H O W I C O N N E C T Millennials…Online Offline data • 72% have some college or higher • 15% live in multifamily dwelling/apartment App usage • 11.0x more likely to download baby care apps • 6.0x more likely to download news apps Reaching 10.1M Consumers (2.5 average devices) 12,353,685 desktop 9,877,850 mobile 3,381,779 tablet Device data • 2.0x more likely to own a Mac desktop • 1.8x more likely to prefer iOS devices to Android devices *Consumers seen in the last 30 days

71. 71 71 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. DEMOGRAPHIC: • Male, 33 • Married • 2 Children in household, 1 school age, 1 baby Income: $84k • Chicago, IL DEMOGRAPHIC: • Male, 33 • Married • 2 Children in household, 1 school age, 1 baby Income: $84k • Chicago, IL 71 Recent Browsing: • Life Insurance Historical Purchase: • Auto and Home Dominant Categories: • Social Causes • Cooking Key Attributes: • Wine & gourmet foods • Online full price shopper • Shops retail stores Historical Browsing: • Home Insurance Historical Purchase: • Renters Dominant Categories: • Sailing • Running Key Attributes: • Outdoor enthusiast • Online value shopper • Likes sale pricing

76. 76 76 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. Loyalty Highlights Epsilon was named a leader in The Forrester Wave(TM): Loyalty Program Service Providers, Q4 2013". Running the world’s largest, most complex loyalty programs: 43 clients 500+ brands/ programs 500 dedicated loyalty specialists 8 year average client tenure 380+ partner integrations 500MM members in explicit loyalty Epsilon connects to real-time systems with responses less than 250ms 175MM campaign messages and 600MM transactions per month

77. 77 77 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. How to get started… determine which model(s) to deploy Many strategies exist for building relationships and stimulating customer loyalty, but they aren’t all correct for every organization Service providing services that enhance product Information/Advice creating a better user experience Personalization creating a 1-to-1 experience Discounts making loyalty more affordable Access providing access to information, people & events Progress making customers smarter, successful, wealthy Status/Exclusivity making customers feel more importantEngagement open dialogue across all channels Points rewards based on transactions Partnerships broaden the experience Customer Engagement Models

79. ©2014EpsilonDataManagement,LLC.Private&Confidential 79 ++Outcomes - - engagement & ret ent ion - - cross - sell & upsell - - higher LTV scores f or in f orce book - - loss rat io ( 12 - 24 mont hs) - - combined rat io ( 24 - 3 6 mont hs )

80. 80 80 Copyright©Epsilon2015EpsilonDataManagement,LLC.Allrightsreserved. Take Insurance Loyalty To the Next Level with Telematics E m i l y C o l l i n s , S e n i o r A n a l y s t , F o r r e s t e r D a v e E d i n g t o n , S V P, I n d u s t r y S t r a t e g i s t , E p s i l o n E m i l y C o l l i n s , S e n i o r A n a l y s t , F o r r e s t e r D a v e E d i n g t o n , S V P, I n d u s t r y S t r a t e g i s t , E p s i l o n Q&A

Take Insurance Loyalty to Next Level Epsilon_Forrester

Esté a ler uma amostra.

Confira estes a seguir

Take Insurance Loyalty to Next Level Epsilon_Forrester

Mais Conteúdo rRelacionado

Diapositivos para si (18)

Semelhante a Take Insurance Loyalty to Next Level Epsilon_Forrester (20)