Using Big Data to Manage Customer Expectations

1. Great Expectations
October 2013
Derek Martin
www.derekfmartin.com
All Rights Reserved

2. AGENDA
• Expectation Based Loyalty
• The Great Awakening
• Life Insurance Industry
• MetLife Direct Business
• Using Big Data to Set and Achieve Customer Expectations
2

3. Loyalty on the Customer Engagement Journey
Loyalty
Customer
Expectations
Thrill Me
Make it Beautiful
Make it Easy
Get it Right
Give Me Value
Time

4. Customer Expectations
While Insurance providers are middle of the road in meeting customer expectations, their performance is not
keeping up with accelerating expectations and other industries ability to meet them.
2010
2008
4

5. The Great Awakening: Customer Revolution
Self- Service
Special
Educated
Global
Connected
Social

6. Life Insurance in the USA is in decline
% USA Citizens with Life Insurance
2012, total = 100%
None, 30%
Individual
&
Employer
44%
Employer
only, 26%
Source: LIMRA
6

7. MetLife Direct Distribution
Our Mission
Enable everyone to protect family and loved ones
Provide affordable Life Insurance alternatives with
great customer experience

8. How to Sell Life Insurance?
Traditional Life Insurance Sales Process = 50 – 100 Days
~ $750 / App
Research
1. Highly Regulated
2. Emotional Product
Payment
Quote
Agent
3. Long & Complex
Purchase Process
Application

9. Life Insurance Sales Process Evolution
Traditional Term Life
5 min
Lead
1-2 weeks 0.5 hours 2 hours 2-4 weeks 2-4 weeks 2-4 Weeks
Agent
Quote
Applic
ation
Medical
Under
writing
Approve ~100 Days
$750/app
& Pay
Direct Term Life
1 min
Lead
5 min
Quote
1 hour
1-2 weeks 1-2 weeks 1-2 weeks
Applic
ation
Medical
Under
writing
Approve
& Pay
~40 Days
$500/App
Direct Simplified Issued Term
1 min
Lead
5 min
Quote
20 minutes
Applic
ation
1minute
Approve 27 minutes
$200/App
& Pay

10. Direct Life Insurance Sales Process
Direct Term Life Product :
5 min
Lead
5 min
Quote
1 hour
1-4 weeks
Application
CUSTOMER
Easy
to find &
understand
1-4 weeks
Medical
Underwriting
1-3 Weeks
Approve &
Pay
EXPECTATIONS
Painless,
Transparent,
Competent,
Expedient
Competitive
Self Service

11. Simple to Research
Research:
Products and Benefits
Calculator: How
Much Insurance do I
need?
Walmart:
Insurance in a box

12. Generic Application
Ask what we MIGHT need to know for the most complicated
Product
Questions
All health
questions
Brief health
exam
Afflictions, Recent Hospital, History
Hight, Weight, BPS, Blood, Urine
Risk
questions
Driving Record, Skydiving, Intl Travel
Database
checks
Name
Age
State
Traditional
Term
Criminal, Driving, Other
Name, DOB, Address, Soc Sec

13. Big Data Application
What do we know that would suggest the right product?
Low
Med
High
None
Age
Full Term
Simplified
Term
Health
Affordability
Seg 1
Seg 2
Seg 3
TV
Lead
Web
Final

14. Smart and Simple Application
Ask only what we need to know
All health
questions
Risk
questions
All health
questions
Database
checks
Database
checks
Brief health
exam
Risk
questions
Some health
questions
Some health
questions
Some health
questions
Some health
questions
Database
checks
Name
Age
State
Name
Age
State
Name
Age
State
Name
Age
State
Name
Age
State
Name
Age
State
Guaranteed
Simplified
Simplified
Plus
Simplified
Premium
No UW
Simplified Underwriting
Simplified
Premium
Plus
Rapid
Brief health
exam
Risk
questions
Database
checks
Name
Age
State
Traditional
Fully Underwritten

15. Time To Complete an Application: Generic
% Completed
100
ATC
Customer 3 Weeks
50
0
1
2
3
Weeks to Complete
4
5
15

16. Time To Complete: Segment
ATC
Seg 1 2 Weeks
Seg 2 3 Weeks
Seg 3 4 Weeks
% Completed
100
80
60
40
20
0
1
2
3
4
Weeks to Complete
5
16

17. Time To Complete: Individual
ILLUSTRATIVE
% Completed
100
90
80
70
60
50
40
30
20
10
0
ATC
<40 East Fit
2 Weeks
<40 East Norm 3 Weeks
<40 West Fit
2 Weeks
<40 West Norm 3 Weeks
>40 East Fit
4 Weeks
>40 East Norm 5 Weeks
>40 West Fit
1
3 Weeks
>40 West Norm 5 Weeks
6 Weeks
HI Risk
2
3
4
Weeks to Complete
5
17

18. Direct Life Insurance Sales Process
Direct Term Life Product :
5 min
Lead
5 min
Quote
1 hour
1-4 weeks
Application
CUSTOMER
Easy
to find &
understand
1-4 weeks
Medical
Underwriting
1-3 Weeks
Approve &
Pay
EXPECTATIONS
Painless,
Transparent,
Competent,
Expedient
Competitive
Self Service

19. Net promoter scores tell it all
Direct +46
Agent -4

20. Q&A
Visit me at:
www.derekfmartin.com
#derekfmartin
http://betterbusinessbanter.blogspot.com

21. We Know Simplicity Pays
2012 Global Brand Simplicity Index, Siegel+Gale, October 2012
21

22. Simple Leads:
Connect with customers across digital channels
Online
Email
Social
Mobile
• Gather Behavior
• Define Customer Segment
• Customize message & channel
• Reduce cost/ application
Outdoor

23. Simple to Pay
1. Bank Draft or Check
2. Set Pay Date
3. Multiple Payors
4. Credit & Debit Card
5. Gift
6. SMS Payment Alerts
7. Mobile Landing Page
to Accept
You are
approved!
Mobile
acceptance