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Segmentation Customer Strategy Done Right
Welcome: Customer Strategy Breakout
Sanjay Mehra Vice President of Analytics and Customer Management Direct Business MetLife Leah van Zelm Principal Consultant Management Consulting Group Merkle
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Objective
• Demonstrate elements of cCRM Customer Strategy from the general session
– MetLife’s segmentation solution
– Translation of the segmentation solution into strategy
• Share examples of segment strategy driving marketing, sales, service
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Background
MetLife developed a new direct-to-consumer life insurance channel to address the underserved Middle Market.
MetLife traditionally sold life insurance via agents
and brokers, who tend to focus on a more affluent
audience
The company recognized an underserved middle market, broadly defined as 25-45 years old and $150K income or less
MetLife developed a new channel – direct to
consumer – to serve the middle market
* Online * * Call Center *
Agents / Brokers Underserved Market Direct Business
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Challenges with Original Targeting Strategy
The Middle Market consisted of individuals 25 -45 years old with a household income under $100k, but MetLife needed more insights than what was available at launch.
Go-to-Market Segments
• Not rich enough to inform customer engagement
• Not actionable enough to drive execution – e.g., not
demographically distinct
• Too many segments to actively manage
• Individuals outside of the “Middle Market” were
becoming customers, but weren’t assigned a segment
Challenges
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What Segmentation Solution Did MetLife Need?
MetLife engaged Merkle to develop Enterprise segmentation – it had to be strategic AND tactical in nature.
Strategy Tactics
Brand Strategy
Segment Prioritization
Customer Engagement
Value Proposition
Media Budget Allocation
Product Planning
Customized Treatment
Media Offline Buying
Offer Presentation
Messaging & Creative
Tactical Targeting
Tactical Targeting
Competitive Strategy Positioning
Solution
• Richness: attitudes,
needs, behaviors, brand
relationships, media
usage
• Attributable at the
individual level
• Universal view of
insurance market
• Monetary view of value
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The Solution
Approach
Build value
analysis based on policy revenue, acquisition cost, survival model
+ Develop predicted
value model to assign to prospects
Deeply
understand attitudes tied to
life insurance +
Needs, purchasing
behavior, brand relationships,
brand imagery, psychographics
Cluster on motivations
+ Link survey response to
national file and develop segment
assignment model +
Robust profiling
Value Analysis Primary Research
Clustering & Mapping
Customer Strategy
Overall portfolio
strategy +
Segment specific strategies
After extensive requirements gathering, we used a combination of primary research, advanced analytics, and strategy development to deliver the solution.
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The Segments
Young Achievers
Concerned Moms
Financially Mature
Ho Hum
Solo Content
Demographics Younger
Skews male
Young, Middle Age
Mostly female
Mature
Skews male
Middle Age
Mostly female
Mature
Male and Female
Attitudes Early adopters, technical
Driven, Risk taker
Price sensitive
Use social media, but not otherwise
technical
Don’t know where to begin
Price sensitive
Recognize value of insurance
Confident about financial matters
Least price sensitive
Late adopters
Risk averse
Not primary decision makers and not thinking
about LI
Use social media
Mistrustful of financial inst.
Least interest in LI
The resulting five segments proved attitudinally differentiated and demographically distinct.
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Developing the Portfolio Strategy
Young Achievers
Concerned Moms
Financially Mature
Ho Hum
Solo Content
% of US 20% 20% 30% 20% 10%
% of MetLife 50% 30% 10% 5% 5%
Lapse Rate Low High Low Medium Medium
Value High Medium Medium Low Low
Target • Large portion of market • Right for business model
Minimize Cost to Serve •Prefer face to face •Low conversion •Lower value
Two segments are primary targets for the Direct Business.
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Young Achievers Strategy and Journey
Objective: Fill the funnel Positioning: Like your parents before you Programs: Heavy digital focus
Better Faster
Cheaper
Segment Strategy
Segment Specific Experience
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Implementing Segment Strategy
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Segment Q1 Q2 Q3 Q4 2014
General • Workshop • LTV update • Case mgmt
experience • Quote tool
enhancements • Seg Website
• MMO by segment • Non Buyer
program
• Segment performance evaluation
• Process improvement
• eDelivery
Young Achiever
• Call Cnt Trng • DRTV spot • Ratings and
Reviews
• Display • Landing page • Prod Roadmap
• Online App Redesign
Concerned Mom • Call Cnt Trng • DRTV spot
• Display • Landing page • Prod Roadmap • Onboarding • Call routing test
• Online App Redesign
2013 Roadmap
Example: Concerned Mom’s landing page
This Concerned Mom’s specific landing page will be used in conjunction with a display campaign targeting this segment.
Family focus
Affordability
Relevant tips
Simplicity
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Anonymous Digital Targeting
Purchase Pixel
Prospecting
Back End Matching / Identify Most Attractive Leads
Anonymous user with similar characteristics is served an ad
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Anonymous Browsing
Visitor Becomes a Lead
Modeling
Example: CSR Training
Awareness of segments
How to engage them
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Example: DRTV spot “Real People”
Concerned Mom
Young Achiever
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Example: Media Planning
• Integrated segments into agency’s
media planning tool
• Did this by assigning MRI
responders to segments
• Agency changed network and
programs purchased
• Led to CPL being cut in ½
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Product Research
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Segment Motivations
Product Features & Benefits
Product Roadmap
• Link existing motivations, beliefs, and decision maps to product features through “laddering”
• Identify resonant communication approaches to promote it once ready
• Unlike more traditional research techniques, the laddering approach allows organic ideation and provides a rich framework in which to develop product elements and positioning.
• Focus on target segments
Outcome
Strategic and Tactical Targeting
Strategy Tactics
Brand Strategy
Segment Prioritization
Customer Engagement
Value Proposition
Media Budget Allocation
Product Planning
Customized Treatment
Media Offline Buying
Offer Presentation
Messaging & Creative
Tactical Targeting
Tactical Targeting
Competitive Strategy Positioning
Solution
• Invest primarily in two
segments
• Anonymous digital
targeting
• EM/DM by segment
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Outcome
Personalization
Strategy Tactics
Brand Strategy
Segment Prioritization
Customer Engagement
Value Proposition
Media Budget Allocation
Product Planning
Customized Treatment
Media Offline Buying
Offer Presentation
Messaging & Creative
Tactical Targeting
Tactical Targeting
Competitive Strategy Positioning
Solution
• Segment engagement
strategies
• Website personalization
• Call center personalization
and “scripting”
• Online tools
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Outcome
Messaging and Creative
Strategy Tactics
Brand Strategy
Segment Prioritization
Customer Engagement
Value Proposition
Media Budget Allocation
Product Planning
Customized Treatment
Media Offline Buying
Offer Presentation
Messaging & Creative
Tactical Targeting
Tactical Targeting
Competitive Strategy Positioning
Solution
• DRTV spots
• Digital creative, custom
landing pages
• Social campaign
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Outcome
Media Budgeting, Planning, Buying
Strategy Tactics
Brand Strategy
Segment Prioritization
Customer Engagement
Value Proposition
Media Budget Allocation
Product Planning
Customized Treatment
Media Offline Buying
Offer Presentation
Messaging & Creative
Tactical Targeting
Tactical Targeting
Competitive Strategy Positioning
Solution
• Media mix optimization by
segment
• Segments integrated into
media planning tool
• DRTV buys
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Outcome
Offer Strategy
Strategy Tactics
Brand Strategy
Segment Prioritization
Customer Engagement
Value Proposition
Media Budget Allocation
Product Planning
Customized Treatment
Media Offline Buying
Offer Presentation
Messaging & Creative
Tactical Targeting
Tactical Targeting
Competitive Strategy Positioning
Solution
• Product development
• Product positioning
• Bundling considerations
• Next best offer
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Outcome
Positioning
Strategy Tactics
Brand Strategy
Segment Prioritization
Customer Engagement
Value Proposition
Media Budget Allocation
Product Planning
Customized Treatment
Media Offline Buying
Offer Presentation
Messaging & Creative
Tactical Targeting
Tactical Targeting
Competitive Strategy Positioning
Solution
• Segment attitudes drive
positioning
• Brand measurement by
segment
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Thank You!
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Sanjay Mehra –[email protected] Vice President of Analytics and Customer Management Direct Business MetLife Leah van Zelm – [email protected] Principal Consultant Management Consulting Group Merkle
Q & A
