Accessing Hidden Value - Actuaries Institute · Capture empathy data Observe customers Listen to...
Transcript of Accessing Hidden Value - Actuaries Institute · Capture empathy data Observe customers Listen to...
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Accessing Hidden Value
Through Customer Insights
Michael Browne
Swiss Re
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Inforce value levers
MANAGE LIABILITIES &
IMPROVE CUSTOMER
MANAGE ASSETS
OPTIMISE CAPITAL
INCREASE OPERATIONAL
EFFICIENCY
Overall in-force management steering
MANAGE LIABILITIES
MANAGE ASSETS
OPTIMISE CAPITAL
INCREASE OPERATIONAL
EFFICIENCY
IMPROVE CUSTOMER EXPERIENCE
Q’s to
0447 569 173
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The value in retaining customers
Customer acquisition cost is 7 times more than servicing costs.
A 1% improvement in actual lapse rate is
roughly a 5% increase in embedded value/profit
Deepens client relationships for
upsell- cross sell to drive further
growth
Keeps people insured, making
society more resilient and
helping to close the protection
gap
Why this is a priority?
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Lapse Risk
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10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Mar
-00
Oct
-00
May
-01
Dec
-01
Jul-
02
Feb
-03
Sep
-03
Ap
r-0
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No
v-0
4
Jun
-05
Jan
-06
Au
g-0
6
Mar
-07
Oct
-07
May
-08
Dec
-08
Jul-
09
Feb
-10
Sep
-10
Ap
r-1
1
No
v-1
1
Jun
-12
Jan
-13
Au
g-1
3
Mar
-14
Oct
-14
Lump Sum Income
Retail life
discontinuances
GFCDotcom bubble
Source: Plan for Life
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What’s holding us back?
Customer wants to leave, it’s intrusive to stop them
Customer made an informed and rational decision to cancel
Lapses are within the assumptions…..it’s not a problem
The adviser owns the customer, not us
Higher lapses aren’t all bad, we can release reserves!
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We know facts about the experience…….
Products per customer
Take up rates
Customer survey data
Length of call
Service process times
Lapse rates
…….but we don’t understand WHY
Net promoter scores
Data insights for customer
experience
In order to improve the experience, we must understand the WHY behind the WHAT
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Seek holistic
human insights
Capture empathy data
Observe customers
Listen to customers
Targeted interviews
Customer journey
maps
Ethnography UXresearch
Design thinking
Gain qualitative insight to understand customers’ emotions and actions across the full customer journey
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1. The behaviour equation
1.Values
2.Attitudes
3.Behaviours
• Way live and work• Priorities and measures• Alignment feels good
• Result from applying general values
• Attractive or not
• Positive= support, engage and enhance it
• Negative= avoid, oppose or hinder it
So to sustainably change 3...it’s perhaps better to first start revisiting and influencing change with 1 then 2…than to jump and rebut the negative behaviour
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BehaviouralEconomics is the study of the psychological, social, cognitive and emotional effects on the economic decision making of individuals and institutions
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3. The value equation and
mental accounting
Product benefit less Cost = Net value
Cost ≤ Net value then we generally buy/retain
Perceived and actual
Customers
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Leveraging emotional
intelligence
5/23/2018
Listen to customer feedback
Embrace customer pain points
Transform customer journeys and experience
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3 Levels to unlock value
1. Reactive and transactional
2. Pro-active and attentive
3. Differentiating and delighting
$
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1. Reactive and transactional
2. Proactive and attentive 3. Differentiating and delighting
• Perform diagnostic to benchmark against best practice
• Lapse cycle process reengineering
• Guidance on building a Save Team capability
• Optimising customer communications and planning for digital
• Strategy input using global and local insights
• Voice of customer monitoring/feedback design
• End to end customer experience mapping and touchpoint redesign
• Vulnerability point analysis and predictive approaches
• Design of low cost SMS, digital, and pre-recorded voice messaging
• Developing inforce campaigns and customer care programs
• Retention dashboard design and governance advice
• Input into strategy using global and local insights
• Advice on channel management, controls and sanctions
• Integrating lapse risk into the Risk Management Strategy
• Input into strategy using global and local insights
• Call centre consultant training on advanced retention techniques
• Customer experience training for ops team to improve service proposition
• Persistency management training for sales support teams and BDMs
• Data analytics and insights into lapse propensity
• Introducing experiential marketing programs iewellbeing/wearables
HOWSWISS RE
HELPSCLIENTS
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Questions
Accessing Hidden Value Through Customer Insights
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