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EVOLVING INTO A CUSTOMER-CENTRIC
CULTURE
3rd Annual African Insurance Forum Johannesburg 10 March 2017
PresentationOutlineØ Preamble
• Evolution• Business Unusual – The New Normal• Business Environment Analysis – World Trends
Ø Customer Centricity • Defined
Ø What Should Businesses Do Ø Cases Studies
• Testimonials – Success Stories • The Consequences
Ø Conclusion Ø Discussion
Preamble– Evolution
Preamble§ The business world and operating
environment has evolved drastically from traditional channels to modern and swift solutions.
§ It is imperative to leave the sales and product centric strategy behind.
§ Stop thinking about the channel or product before the customer.
§ It is now business unusual ---The New Normal.
§ The insurance sector has not been spared, a dynamic mindset is required inorder to cope with the changes and for businesses to remain afloat.
§ The customer consumption chain is no longer limited to tangible goods.
BUSINESSENVIRONMENTANALYSIS
q Migration to knowledge & digital economy
q The age of tech & social media as business disruptors
ü Apple, Google, Microsoft in Top 10 Most Valuable Companies
ü The rise of Facebook and WhatsApp
q Removal of geographical limitations
q Low barriers to entry
q Convergence of services across sectors e.g., insurance and banking now
provided by Mobile Network Operators
q Tech savvy consumers-Generation X, Y & Z the new consumers
WorldTrends
CUSTOMERCENTRICITY
CUSTOMERCENTRICITY
CustomerCentricity
TheNeedforaCustomer-centricStrategy
A satisfied customer tells three friends whilst a dissatisfiedcustomer tells the world – Pete Blackshaw
TheNeedforaCustomer-centricStrategy• Customer acquisition costs are high.• It is much more difficult to get a customer than to lose one.• Customer maintenance is crucial in a rapidly changing and
increasingly complex business environment. • Global Village Effect
• Customers now have more options thus affecting their loyalty.• Psychographics
• Understand & master psychographics – e.g. Steve Jobs’ Way.• But crucially, have satisfied employees
• Employee engagement is at the cornerstone of customer-centric strategy.
Howdoyouengagewithcustomers?• Medium of engagement (communication channel-TV, radio, email, IoT,
Social Media e.g. Twitter, FB, WeChat, WhatsApp).
• Today’s customers are tech-savvy, social and mobile.
• Engagement of digital platforms broaden customer power.
• Traditional engagement models may still work but customers need real time communication.
• They need to be engaged everywhere, every time.
• There should be no sunset – move across time zones.
WHATSHOULDBUSINESSESDO?
“Every morning in Africa, a gazelle wakes up, it knows it must outrun the fastest lion or it will be killed. Every morning in Africa, a lion wakes up. It knows it must run faster than the slowest gazelle, or it will starve.
It doesn't matter whether you're the lion or a gazelle-when the sun comes up, you'd better be running.”
Christopher McDougall-Born to Run
Whatshouldbusinessesdo?
Havea360-DegreeViewofCustomer• Thinkbeyond insurance—migratefromatransactional
mentalitytoarelationshipmentality.
Customise/PersonaliseService
Strategy– Respondtocustomerneeds
• According to Ernst & Young, 24% of insurance customers change providers because their needs have changed.
• Closely monitor customer preferences
• With the right data and tools, insurers can bring new offerings to market in a fraction of the time.
• Products must be customer-needs driven.
Classical and digital touchpointsthroughout the customer journey
Classicalanddigitaltouchpointsthroughoutthecustomerjourney
• Engage with customers through the right channel, with the rightmessage, at the right time. Get it RIGHT from the word go.
• Evaluate risk tolerance levels - Predict which customers are at riskof churning and why and take actions to retain them.
• Maximise customer lifetime value through personalised up-sell andcross-sell offers.
• Smoothen consumption throughout all stages of life.
BuildTrust§ According the KPMG Insurance Sector Report (July 2014), other reasons for
low insurance penetration in Africa are:Ø People do not trust financial service providers; Ø Lack of reliable information, making it very difficult to assess people’s creditworthiness;Ø Shallow financial markets make it difficult to raise enough to capitalise insurance/re-
insurance companies;Ø Use of informal forms of insurance prevalent over formal insurer – culture;Ø Lack of human capital and expertise.
§ The Ernst & Young report found that 41% of African insurance executives and regulators surveyed believe GDP growth is the most important driver of future premium growth in the region.
§ Other key drivers of premium growth include product innovation (22%), regulatory changes (15%), competition (11%) and technological changes (10%).
§ Morgan Stanley Research argues that the current dynamics offer Africa the opportunity to develop new products and services anchored in mobile technology.
Buildingtrustthroughdelivery/execution
§ Honour Promises§ Pay claims timeously § Maintain a strong balance sheet to build stakeholder
confidence § Need for actuarial evaluation of businesses§ Know Your Customers § Treat Customers Fairly§ Financial Inclusion – Drive towards gaining trust from the
untapped market § The drive towards financial inclusion will also assist
uptake of insurance products
TESTIMONIALS–Benefitsofacustomercentricapproach
1.TheM-Pesa Story2.TheEcocashStory3.FuneralCashPlans4.Thee-FML Story5.TheFirstMutualStory
The M-Pesa Story
üUnderstanding Customer Needs
üDriving Growth and Innovation
üFinancial Inclusion
The e-FML Story
ü Launched – 2015
üUnique Selling Point – Convenience
The First Mutual StoryüStrategy evolution – Customer Focus
üDeveloped a Customer Service Charter
üDedicated customer service email –[email protected]
üUtilised social media platforms to launch the 2017 campaign. Results, Over 100K reach in one day, high levels of engagement and significant growth in enquiries
THECONSEQUENCES
1.TheNOKIA Story2.TheKODAK Story
The KODAK Story
DISCUSSIONQUESTIONS&ANSWERS
