Insurance Marketing for Good GrowthEd Walker

Executive Vice President & Chief Marketing Officer, ADMS N.A.September 2009

What business are we in?

Every customer…has a name, a story, a need….

kidsDadsfriends

uncles

widowersgrandparentssingle moms

neighbors co-workers

Moms

What do we really sell?

What we sell is…simply, a PROMISEPROMISE, as evidenced by a piece of PAPERPAPER

What matters is our CREDIBILITY and the TRUST customers place in us.

The Premise of Insurance

Insurance History – Important Dates Insurance History – Important Dates

First Life Insurance Policy: 3000 BC First Legal Code: 2100 BC (Code of Hammurabi) First Written Policy: 1347 (Genoa) First Underwritten Policies: 17th Cent. First Insurance Company: 1688 (Lloyd’s Coffee House) First Mortality Table: 1693 First Revised Mortality Table: 1756 First US Life Insurance Company: 1759 (The Presbyterian Synod of Phila.)

Life Insurance Boom: 1840’s First Direct Response Campaign: 1960’s Expanded Marketing: 1970’s Major Changes in Players/Products/Distribution/Marketing: 1980’s

The Value of Customer Focus

Financial Returns– Grows the business– Retains the business

□ “Companies can boost profits by almost 100% by retaining just 5% more of their customers” – Harvard Business Review

□ “It costs 5-10 times more to acquire a new customer than it does to retain an existing one.” – eMarketer

Establishes & Maintains Loyal Relationships

Geico - 62% of customers (32% more than the industry average) plan to use the firm the next time they shop for P&C insurance.

ING Direct - Cross-sell success comes from the bank actively asking its customers what matters to them and scoring the firms performance. Survey results are available on ING’s web site for all.

Best Buy - 60 customer-centric stores customizing products/service to meet each individual customer need.

Wal-Mart - Set Business Rules- (#8) “Let them (your customer) know you appreciate them. Uses 1-1 Tactics (Wal-Mart greeters)

Value of Customer Focus

There When They Need Us

“…The way that you handled my mother’s claim with such compassion and understanding showed that you were really a friend….

- Dr. Joan L., Southfield, MI

“It’s wonderful to know that the money I’ve paid in in premiums can actually help me out so much when an unexpected accident happens...” - Deborah B., St. Petersburg, FL

Long-Term Focus

• Developing a successful new approach to sales of products that customers want and need creates a revenue stream that increases over time

• Example: Coffee Industry• Enter Starbucks…

•Brewed a great cup of coffee•Gave consumers choices and made access easy•Charged a premium price•Created massive coffee addicts

The Empathy Factor

Making Empathy Part of the Equation

• Map the Customer ExperienceEvery touch pointEvery communication

• Meet the Customer Real Virtual

• Continually Reinforce Good GrowthTestimonials, anecdotesActivitiesRecognition

• Listen to the Customer Mandatory Monitoring “Everyone’s a Mystery Shopper”

• Colleague Advisory Board The “voice of the customer”

What Disaster Looks Like

Reaction to ‘Good Growth’ Strategy

““We will achieve good growth by doing what’s right for our We will achieve good growth by doing what’s right for our customers, every day, in everything that we do.”customers, every day, in everything that we do.”

“To hear during the presentation today, the company’s desire to get back to the number one reason we are here … the customers … was very satisfying.”

“Looking at what we do from the perspective [of the presenters] made me realize what an important part of someone’s life we can be.”

“Knowing that I am part of something that “Makes a Difference” makes me appreciate my job and the company I work for even more.”

Deliver the best Customer Experience

from beginning to end and grow customer equity.

Business Begins and Ends with the Customer

Summary