Who are today’s most attractive insurance customers? What turns them on? What does this mean for your own marketing and communications activities? Insurance marketers have an ever-growing range of tools at their disposal. But, what works for one target segment may repel the next. Even the same customer may need to be managed differently depending on the customer’s immediate situation. This presentation will provide a look at how marketers can combine a better understanding of today’s insurance customers with data, branding and a comprehensive system of engagement to build compelling and consistent brand experiences with customers and prospects.

1. Finding & Engaging
Today’s Insurance Customer
Moments matter.
@LynnKesterson
Lynn Kesterson-Townes
Worldwide IBM Commerce Marketing Leader for Insurance
@IMCAnet

2. @LynnKesterson
Insurers’ customer strategies no longer work
Source: IBM Institute for Business Value. "Digital reinvention - Trust, transparency, and technology in the insurance world of tomorrow," January 2014
In the past two years, 37% of customers have switched their
insurers at least once
2

3. @LynnKesterson
Insurers are being pressured by customers to change
Customers are more connected and empowered
Drivers of Change
Source: 2011 IBM Digital Transformation Study, IBV Analysis
3
Cloud
Big Data &
Analytics
Mobile
Social

4. 4
Today’s insurance customers demand customer-centricity
50% of consumers seeking insurance begin on a mobile device
Source: The Nielsen Company, Mobile Path to Purchase, 2013
4
@LynnKesterson

5. @LynnKesterson
Millennials expect personal, responsive, seamless experiences
Source: [1] IBM Student Study: Connected Generation Q5. “To what extent should organizations change to meet consumer expectations?”;
[CEO Q9] [2} “Winning Strategies for Insurers” IBV Study
New technologies enable consumers to expect and obtain more
then ever before
5

6. 6
Who is the insurance customer of today?
Source: IBM Institute for Business Value survey data 2013. n=7,921
6
Today’s insurance customer is …
… looking for advice
and interacting with
others while shopping
for insurance
… more concerned
about price for value
than price alone
... living omni-channel
... open to new products
and ideas
@LynnKesterson

7. 7
7
Psychographic segmentation improves customer interactions
Security-
oriented
individualist
Loyal
quality-
seeker
Price-
oriented
minimalist
Support-
seeking
skeptic
Demanding
support-
seeker
Informed
optimizer
“I get the right
insurance from the
right insurer”
“I need personal
advice”
“Peers help me
decide”
“I trust my insurer
and remain a loyal
customer”
“I do not like insurers
– make it cheap and
stay away”
“I will figure out
what I want myself”
Psychographic Profiles
@LynnKesterson

8. 8
Susan Johnson -- “Demanding Support-Seeker”
Profile:
 Needs hand-holding
 Low technology affinity
 Likes individualized attention
 Quality is more important than price
 Wants comprehensive coverage
 Likes trying new insurance products
 Most likely to give up data privacy
“I need personal advice.”
8
Preferred interaction points:
 When searching – personal
 When purchasing – personal
@LynnKesterson

9. 9
John and Ann Cook -- “Support-Seeking Skeptics”
Profile:
 Social – rely on advice from friends
 Don’t feel well informed about
insurance
 Medium technology affinity
 Don‘t trust insurers
 Don‘t switch products easily
“We need advice but prefer to keep our distance from insurers"
9
Preferred interaction points:
 When searching – peers
 When purchasing – personal
@LynnKesterson

10. 10
Dan Torres -- “Informed Optimizer”
Profile:
 Highly self-sufficient, but will listen to others
 High technology affinity
 Highly informed about insurance offerings
through own research
 Has positive view of insurance industry
 Seeks optimal price/value ratio
 Likes trying new products and services
10
“I get the right insurance from the right insurer"
Preferred interaction points:
 When searching – flexible with new technology bias
 When purchasing – flexible with new technology bias
@LynnKesterson

11. 11
11
Affinity Channel
Agent/
Broker
SMS
Web
Social
Media
Apps
Email
Voice
Chat
Customer
Ecosystem
Partners
Consumers‘ search for insurance has become “omni-channel”
@LynnKesterson

12. 12
Insurers must engage customers in “moments of truth”
Understand Engage
Manage
Make useful
recommendations about
products and services
Give customers a
means to share
ideas and opinions
Intervene when
customers are struggling
Provide relevant content
that informs the buying
decision
Send offers when
customers are most likely
to buy
Understand and respect
customers’ preferences
Identify, develop, and
reward brand advocates
Match service levels
with expectations
Serve and sell to
customers in their
preferred channels
Rescue at-risk
customers before
they churn
@LynnKesterson12

13. 13
Most insurers are only just beginning to prepare
13
of insurance
CEOs do not
think their
mobile strategy
facilitates
conducting
business
regardless of
location
67%
of insurance
CEOs say
they do not
have a
cohesive
social
strategy
66%
of insurance
CEOs do not
have an
integrated
physical and
mobile
strategy
62%
@LynnKesterson

14. 14
Where should insurers start?
1
Customer
Insight
2 Personalized
Marketing3
Seamless
Brand
Engagement
Affinity Channel
Agent/
Broker
SMS
Web
Social
Media
Apps
Email
Voice
Partners
Chat
Customer
@LynnKesterson14

15. 15
Seamless Brand Engagement delivers!
250%
increase in
conversion rates
2x-5x
enhanced resource
efficiency
2x-4x
improved cross-sell
success rates
15%-30%
increased campaign
ROI
5%-15%
improved customer
value, loyalty &
retention
10%-50%
enhanced response
rates
@LynnKesterson15

16. 16
@LynnKesterson
twitter.com/LynnKesterson
Lynn Kesterson-Townes
Worldwide IBM Commerce
Marketing Leader for Insurance
LKT@us.ibm.com
Thank you.