Web Analytics E Intelligence

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Web AnalyticsE Intelligence E - CRM

• A very personal view from
• Malcolm Booth
• Internet and Electronic Distribution Manager
• Eagle Star Insurance
• www.eaglestar.co.uk
• malcolm.booth_at_eaglestar.co.uk
• Part of Zurich Financial Services

Part3print.ppt
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Agenda

• What is the problem?
• How do you make money on the net?
• What are customers really looking for
• Is it easier to trade on line or on the phone
• Marketing and Customer Behaviour
• Brand Awareness and Loyalty
• Product and Pricing
• A crystal ball - what does the future hold

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Perception and Reality
Uninformed Optimism
Informed Optimism
perception
truth
Informed Pessimism
Uninformed Pessimism
Time
Ron Kalifa - RBS 2002
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Background and Business Rational

• Three distribution channels
• Significant business pressures
• marketing costs
• distribution costs and length of chain
• nature of product
• speed to market
• pricing and accuracy of product
• Revised business strategies
• opportunity to create new distribution channel

Brokers
Internet
Financial Institutions
Telesales
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The Impact of Pricing
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Is there a role for differential pricing?

• Look at other successful net companies- Dell- Am
  azon- CD Now
• What impact will it have on our profit, customer
  base and distribution channels?
• How can we lever price and service by working
  with suppliers and agents through developing
  business -business net?

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10 off for buying on line
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There has to be more than just price
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People Buy Products Not Insurance
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Standard business models?
From e-metrics white paper - netgen.com
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Direct Line Distribution Mix

• Net used for research
• Multiple quotes on net
• Many visits
• Customers check by phone
• Each Product Different

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What is common about these Insurers?

• Single system AS400
• Used by staff and internet
• One database/quote engine
• Low cost IT
• Henry Engelhardt said in May 2002Admirals 15.3
  expense ratio makes the company one of the most
  efficient in the industry, if not the industry
  leader

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An Internet Insurance Model?
Marketing YR1 YR2
YR3100 33 33
33 Premium500 500 500
500 Profit Loss Breakeven Profit
Premium 500 Marketing 50 Admin 50 Burning
Claims 400
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An Internet Insurance Model?
Marketing YR1 YR2
YR3100 33 33
33 Premium500 500 500
500 Profit Loss Breakeven Profit
PHONE NET
Premium 500 450 Marketing 50
25 Admin 50 25
Burning Claims 400 400
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An Internet Insurance Model?
Marketing YR1 YR2
YR3100 33 33
33 Premium500 500 500
500 Profit Loss Breakeven Profit
Marketing YR1 YR2
YR350 33 17 Premium450 450
450 Profit Loss Breakeven Profit
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Standard Retail business model?
From e-metrics white paper - netgen.com
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Download this Whitepaper
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Follow the links, your own, your competitors
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Analysing the Web using HITWISE
www.yahoo.co.uk
World Wide Web
www.ebay.co.uk
www.looksmart.co.uk
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What do customers actually want?
Source Fletcher Research - www.fletch.co.uk
(part of Forrester)
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Finding their feet
85 earn an income 20k or less
Aged between 17 and 30
Cluster Penetration

• XXX conversion rates for Motor, Home and
  Travel
• Usually make just the one visit to the site
• Average premiums
• Typically looking for Contents only

Young adult group, starting out in town centre
locations or student accommodation often in
shared housing. Are not serious purchases of
financial products over the internet.
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Conversion Rate by Number of Visits
Opportunity to encourage repeat visits via quick
quoting or improved call to actions
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Customer Behaviour
Shall I renew?
Quote 390
Renewal Notice 350
Quote 340
Quote 320
Quote 370
Quote 320
Quote 300
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What customers say about our site?

• Example real emails

This service is fantastic - its so easy ! ...
just one point can you make it easier to enter
user details again next visit to prevent having
to enter info again - a la amazon. Now if only
agents could provide such a service ...
I just completed a motor quote for my new car,
and its a bit scary, its so simple. I am sorry
to move away from my old broker - but he cant
compete on price or instant service. I hope I
don't need to test your claims service is that
good too....
Lovely web site but the service beyond purchase
just does not measure up to the same standard
......
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So, do you have a BIG BUDGET?(or how to make the
best use of what youve got)

• Customer Emails- Read Them, Categorise Them, Fix
  Them
• Phone Calls- Tape your Call Centre, listen to
  them in the car- Avatar (or Search
  requests)
• Is your site working?- Netmechanic.com- Traffic
  Analyser

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Is your site working?
50 to 200 buys you quite a lot. How much did
it cost you to acquire each customer?
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UK Major Comparative Site
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UK Major Comparative Site
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Days of The Week Use
Analysis for Eagle Star through Webtrends. See
www.webtrends.com
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Hours of The Day Use
Analysis for Eagle Star through Webtrends. See
www.webtrends.com
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Are your customers loyal?

• Where did they come from?
• What makes them stay?
• How easy is it for them to move?
• What are the barriers to moving?
• Customer Lifetime modelling- Impact on
  advertising marketing cost- Impact on
  product pricing

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Adding Value for the Customer

• More than just a quote and buy
• Policy Servicing
• Claims Handling
• Customer Club
• Anytime Anyplace Anywhere Anyhow

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Lessons Learnt in Existing Process

• Listen to your customers they know best
• Partnership / Advertising deals
• Claims experience reflects demographics
• Ease of use, quality of service, and price
  affect retention
• Integration into call centres - phone, email and
  screen viewing
• Product pricing is a double edged sword