Using the Appropriate Channel

By Fahmi Mohammed

Confidential

The Customer of the Future

• Connecting to the insurance customer is becoming

more difficult

• Customers prefer interaction point choices

• Consumers don’t want information to be channelled;

they want to interact with their providers

The Customer of the Future is Diverse and Multimodal

How Customers Explore & Purchase

• Slightly more than 20% of consumers use only a single point of interaction for

searching and purchase insurance products.

• Proves that a ‘channel strategy’ (Eg. Agent Network Based only) is less fruitful

Source: Institute for Business Value (IBM)

Mix & Match Interactions

• Takaful providers should segment their customers – based on psychographics and

not just demographics in order to get closer

• By knowing the psychographics of customers, adopt marketing approach that

matches customers’ preference.

Security-oriented

Individualist

I don’t need personal advice

Informed Optimizer

Demanding Support-

seeker

I need personal advice

Support-seeking Skeptio

Loyal Quality-seeker

I trust my insurer & remain a loyal customer

Price-oriented

Minimalist

Need advice but prefer

distance from my insurer

I’m price sensitive & don’t want

to pay for unneeded support

I take time to research to

find the best

Customer Profile Types

Source: Institute of Business Value

Confidential

The Digital Marketing Mix

WEB

Search

Display

Email

Social

Mobile

Affiliates

The Sales Funnel – A User’s Journey

Display / Social

Search

(Paid & Natural)

Affiliates

(Cash back/Voucher Codes)

Brand Search (‘Direct Travel’)

Conversion

Retention

Email &

Social

• High Volume

• High Brand Visibility

• Low Direct Conversion %

• High Click Cost

• Low Click Cost

• Volume influenced by visibility at

start of funnel

• Very High Conversion %

Display and Social Channels

• Disruptive

• High reach & visibility

• Suitable for Branding & Engagement

• Google Display Network, Real Time Bidding, Ad Networks

Brand engaging with

its Fans

Search Channel

• Paid Search

• Instant first page placement

• You only advertise to people who are actively searching for your product/service

• You only pay when they respond – when they click through to your site

• Pricing is determined by an on-going, real-time auction based on true market values

Paid Search

determined by

auction model

Natural Search

determined by relevance

and authority

Confidential

Affiliates Channel

• Cost-effective Customer

Acquisition – seller only pays on

performance/sale.

• Fixed cost due to a CPA model.

• Affiliates can secure high ranking on

search engines giving additional free

brand visibility.

• Affiliate marketing gives

transparency on the return on

investment ROI

Email Marketing Channel

• Allows targeting (Retention)

• Data driven

• Drives direct sales

• Builds relationships, loyalty and trust

• Supports sales through other channels

Tracking Your User’s Journey

Display, Social & Generic Search

• Key Success Metric: Assisted Conversions

Search, RTB & Affiliates

• Key Success Metric: Last Click Conversions

Efficient ROI

• These channels

contribute to sales but

get no recognition for

their role

• Typically this results in

under spending on

these channels

• These channels get all

the glory

• Spend is pumped into

these channels but

volume plateaus are hit

very quickly as Villain

channels are ignored and

no traffic is coming in at

the top of the funnel

Hero Channels Villain Channels

• Key is to track

and report on

the influence

Villain Channels

are playing in

your users

journey

Confidential

Growing Visibility

Channel Best Practice

Maximise Conversion

Maximise Retention

Operate at Higher CPA

CRM Strategy

Channel

Optimisations

PPC, Display & SEO best practice

Confidential

Mobile’s Growing Faster than Anyone Expected

• Search behaviour and motivations differ on Mobile &

Tablets compared to Desktop

• Potential Return is Medium to High

• Mobile traffic will reach 20% to Desktop by End of

2012. (Source: Google)

Confidential

Any Questions?

Fahmi Mohammed

Absorb Digital Ltd

Tel: +44 (0)207 193 3755

Email: fahmi@absorb-digital.com

www.absorb-digital.com

Twitter: @Absorb_Digital