SVETLANA YONCHEVA Evolution of digital marketing.pdf
First Time Life Insurance Buyers
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2. Market Size 46% of all life insurance sales come from first time insurance buyers (FTIBs). According to LIMRA, there are approximately 4.12M households annually who buy life insurance for the first time Insurance Sources: 2005 LIMRA Trends in Life Insurance Ownership Among US HH's/ 2004 LIMRA US Buyers/Non-Buyers of Life Insurance US HH's (114mm) Source: U.S. Census Bureau, Current Population Survey, 2006 Annual Social and Economic Supplement * Shopping for life insurance defined as meeting with agent/submitting and application 20% Feel they need life Insurance 23M 12% Likely to Buy 14M 5% Shop 6M 4% Buy 4M 114,000,000 US HH’s
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5. Product, Price Preferences Term Life Insurance was the most popular among buyers who could recall what they purchased. Consistent among buyers and prospects, the top 3 coverage amount levels are $500k+, $100-$199k and $200-$299k Prospects and Buyers plan to pay/do pay about $50 a month Here’s what they want - Term insurance, high face amounts, and they’re expecting to pay about $360 - $600 annually.
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12. The usually easy to understand (mostly unbiased) Wikipedia, offers a lengthy and confusing article on life insurance. Researching life insurance online is confusing and it isn’t easy. Purchase Barrier
13. FTIBs want anonymity but the aggregators like this top paid search link have other ideas Aggregators hit you right off with asking for a lot of personal information. Purchase Barrier
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15. MetLife home page has a lot of products and information. So much that it is overwhelming. Also – question of objectivity. Am I getting good advice? Insurance companies web sites are developed to capture the lead and then have the agent contact the prospect. Purchase Barrier
21. Introducing the Policy Builder * A remarkable interactive experience that gives consumers the path to purchase life insurance. TurboTax comes to Life Insurance. * Policy Builder is a working title and may change as we move forward Determine Need Health Status Plan Recom- mendation Complete App & ParaMed Coverage In Force
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28. The Policy Builder Sales Process Lead (web visit) Recom- mendation Apply 1 st Pymt. Cond. Cov. ParaMed Exam U/W Coverage Policy Builder Abandon process Shop, decide, delay No payment No exam Denied/Lapse Capture Email Purpose of email so recommendation can be saved for later. Live chat/800# to get questions answered Use conditional coverage as a way to be protected during health screen. Provide endorsements/ testimonials to instill trust in buying now Save/print recommendation and return later Reminder emails – focused on insurance need - you’re not protected yet Payment is required for conditional coverage. Exam is positioned as a positive – free health screening, lower rates, more coverage. Improve ParaMed convenience – go to location. Reminder emails about making/keeping appointment. Pre-screen in health status module to limit denials. Multiple tiers to issue more. Timely communication of U/W decision with explanation. Immediate e-fulfillment of policy. On-going payment via CC or PAC. Typical fall-off points in moving from a lead to a sale Solutions Policy Builder process addresses key lead abandon points and drives to a sale.
33. Creative Approaches Tested 1. 4. 3. 2. ‘ Personalized for you,’ ‘customized,’ ‘in control,’ ‘no pressure,’ ‘build your own policy’ resonated I like the idea of being able to build my own customized product Don’t scare me! I like the message! Show me future milestones but stay clear of Hallmark Moments
40. Make Consumers Aware of a Unique New Way of Learning About And Buying Life Insurance Tease Consumers With Strong and Unique Messaging Delivered via Both Traditional AND Guerilla Media Channels Insert the Stonebridge FTIB Solution Into Consumer Dialogue - Known as the place to go when you need life insurance Drive Consumers to a Central Hub Web Site With the Policy Builder tool at its Core Convert Consumers by Offering Them a New Level of Simplicity, Understanding, and Personalized Solution to Life Insurance Deliver on the Simplicity and Understanding Platforms with Strong, Simple Messaging, Fully-Integrated Communications Elements, Fully-Trained Telemarketing Staffers, and Ongoing Retention Efforts The Integrated Sales Solution – Media Strategy AIR COVER – awareness via traditional media and PR GROUND SUPPORT – action via word of mouth
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45. What if we integrated our distribution approach into our product offer? An Alternative Marketing Approach
54. Implementation Process Phase 1 Create Detailed Blueprint & Budget 6 weeks Final testing & adjusting of all parts/systems includes final design elements (PB, web, internal systems, coordination thru out) Marketing strategy - Place media and PR Phase 2 Build Elements 16 weeks PB&WEB =$731,500 Production & Media = $2.8M Phase 3 Test and Execute (4-6 weeks) Launch Work with experts to develop the Policy Builder logic and recommendations. Construct the policy builder and web site – includes IT and creative elements - Test design and prototype against consumer “super panel” Product Development - File in group & individual states and get approvals – load on internal systems Begin internal system projects to integrate insurance and application with the Policy Builder including customer communication touch points. Finalize marketing launch strategy and develop creative elements Policy Builder & Web Site – Research and obtain technology resources and financial/insurance expertise Determine external creative resources to create consistent image for PB tool, web site and marketing communications Product development – finalize product design requirements including re-insurer and Para Med partner, admin support details and system integration scope Develop detailed scope of work and budget. Present to Executive Team for approval
55. Preliminary Policy Builder Development Budget Preliminary examination of costs for Policy Builder and Web site estimated at $700K. In Phase I, we will nail down resources, development costs and budget.
Editor's Notes
First Time Life Insurance Buyers (FTIBs) were identified as a high potential customer segment representing strong future value and a good strategic fit for DSO The Consumer Segment team has been charged with developing an innovative marketing plan to successfully capture this segment
Our secondary research provided us with an estimate of the market size 114,000,000 total US Households 8% buy life insurance annually (9M) 46% of life insurance buyers are FTIBS (4.14M) Buyers and non-buyers and Trillion Dollar Baby
We conducted primary market research (both quantitative and qualitative) in order to develop a holistic view of our target and spur growth through customer-driven insights. Objectives: 1. Validate DSO’s FTIBs target segment hypothesis against real-life insurance prospects 2. Understand life-event triggers, motivations, selection criteria, shopping process, influencers, pricing threshold, category perceptions, existing brand affinity, and other factors that affect purchase 3. Identify products, services, marketing channels, messages and tactics that are most compelling to FTIBs
Buyers have term life insurance While more than 30% (can’t recall+general) couldn’t identify the specific type of policy they had. Prospects don’t know which type of life policy they would buy.
Highly motivated to buy life insurance Plan to buy in next 6-12 months Attractive target segment Younger than existing Stonebridge customers – longer potential customer lifespan Likely in better health & better educated Higher HHI Higher coverage value and premium levels Here’s count of Term Policies currently in force in Ingenium broken down by coverage amounts. Please let me know if you need additional information. (Total Term Life policies in Force: 116,467 Under 100,000 115,823 >100,000 and <300,000 644 >300,000 0) Count Of Active PBLIC Policies Coverage Amount 61896 $100,000 to $299,999 31 $300,000 to $499,999 48 $500,000+ 485959 0-$99,999
Arrival of a child About a fourth of all respondents decided to buy life insurance because they “simply realized that they needed it” but data showed that a majority of these respondents have children 0-5 Arrival of a child was the leading life event that triggered life insurance purchase They become “Planners and Protectors” Highly motivated to buy in the next 6-12 months triggered by parenthood Want to “prepare for the unexpected”, “allow family to maintain std. of living”, “have peace of mind” They envision future milestones (e.g. graduations, weddings, buying a home) They expect changes in their lives They are not motivated by aging, getting sick or dying “ Now that I have a child and another child coming, and we’re talking about college already and their weddings, I don’t want my wife to ever have to tell them that we can’t afford this because Daddy didn’t plan well. I’m determined that they will have they need. I’ve seen people who had passed and had life insurance. To me, their family’s life was so much easier. The house was paid off and the burial. It wasn’t a struggle.” - Ryan, 28, father of a young child
About a fourth of all respondents decided to buy life insurance because they “simply realized that they needed it”. Data showed that a majority of these respondents had children 0-5 - The implication is that while this subset did not report the arrival of their child as directly related to their insurance purchase, it is still considered a factor. Arrival of a child was the leading life event that triggered life insurance purchase Parenthood, far outpaced other life events like engagement, marriage, buying a home “ When you have a family, you want them to be comfortable even if you’re not around. Actually especially if you are not around, you don’t want them to suffer any more than they had to.” Tom, M, 34, father of young child “ If my husband who works were to die, who’s going to keep us in the house, who’s going to cover the education? You'll need money to buy you time to figure out what to do before you go on with the rest of your life.” Marilyn, F, 35, mother of 2 young kids
Life event triggers interest to buy Parenthood, engagement/marriage, other dependents Rising mortgage, debts, news of an expected death, sense of personal and financial vulnerability In a M/F joint-decision household where the male takes home a majority of the household income, FTIBs tend to pursue one policy for the male but the female often initiates the need for his life policy – she is the key instigator and influencer
Believing life insurance companies aren’t targeting them, they turn to trusted resources.
Prospects have a more negative attitude toward agents than recent buyers. More prospects feel agents care more about commission while buyers feel most agents are informed and helpful. More prospects prefer to apply online compared to the buyers who used an agent to purchase. Prospects go into the insurance buying process thinking they can control the process, but find it too confusing. As a result they need to find an insurance expert to help. 63% of FTIBs prospects think agents are biased, limit their options, create undue pressure and are more interested in their own commission than the buyer’s needs
We need to establish credibility early on as the go-to resource and cultivate affinity, create rapport and action opportunities to hook them along the continuum. “ After doing a lot of research and even sitting down with an agent, I still think my level of knowledge is at a 2 out of 5. I’ve only become more confused and frustrated. The agent is just trying to press me and said she is telling me everything I need to know. But I’m not sure. I’d rather do more looking around online without the pressure.” Rochelle, F, 30, single with no children
Change the way people buy life insurance by… Helping consumers understand if/why they need life insurance Providing them with a personalized insurance recommendation Demonstrating how their recommendation satisfies their needs Presenting options to keep costs affordable Putting the consumer in control so there is never any pressure Making the consumer feel smart and savvy, not lost and confused Making the life insurance buying process enjoyable
Understanding that we need to be different. We need to show empathy and consideration to the fact that these people are stepping into unknown territory. They want to feel like others like them have been there before. The images and lifestyles chosen MUST represent who they are and what they need. Let them know this is for them and them alone, not for their parents. This is life insurance for the next generation of consumers – they are the next generation; make sure the images clearly indicate this. The photography must be of real people in real situations. It’s not about glossy, overly happy people living the perfect dream. It’s about being quietly confident you are in complete control of your life. Yes there are stresses, but Stonebridge can help you overcome then by delivering the security blanket you need.
Understanding that we need to be different. We need to show empathy and consideration to the fact that these people are stepping into unknown territory. They want to feel like others like them have been there before. The images and lifestyles chosen MUST represent who they are and what they need. Let them know this is for them and them alone, not for their parents. This is life insurance for the next generation of consumers – they are the next generation; make sure the images clearly indicate this. The photography must be of real people in real situations. It’s not about glossy, overly happy people living the perfect dream. It’s about being quietly confident you are in complete control of your life. Yes there are stresses, but Stonebridge can help you overcome then by delivering the security blanket you need.