Creating sustainable value from customer centricity – what does it take? Michael Murphy
© 2016 Willis Towers Watson. All rights reserved.
Customer Centricity – ambiguous and diverse Big Data Data Big Culture Transformation Transformation Culture Single customer customer view view Underwriter Underwriter Single Integrated content content platforms platforms Integrated Excellence Excellence
Advanced Advanced Analytics Analytics
Social media media management management Social
Claims Excellence Claims Claims Tailoring Tailoring
CX, CI, CI, CX, CSAT etc etc CSAT
Data Data Digital & & interactive interactive modelling modelling analytics Digital analytics
Data collection
Pricing Excellence Excellence Pricing
Product Design Design Employee experience Product
Customer lifetime lifetime value value New Customer Customer New world world Customer voice voice // feedback feedback Customer Convenience needs needs Customer Communications Communications Customer Customer mx mx // dashboard dashboard Customer Customer life life Customer event targeting targeting event
Customer x-sell x-sell // up-sell up-sell Customer
External data sources Customer loyalty loyalty Customer journey journey Customer Customer
C uu ss tt oo m m ee rr E E xx pp ee rr ii ee nn cc ee management C management Data management management Data
Customer engagement engagement Customer
Customer segmentation Customer Revenue Revenue Customer Data Mining Mining Data © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
2
Customer Centricity – ambiguous and diverse
© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
4
Customer Centricity – ambiguous and diverse Big Data Data Big Culture Transformation Transformation Culture Single customer customer view view Underwriter Underwriter Single Integrated content content platforms platforms Integrated Excellence Excellence
Advanced Advanced Analytics Analytics
Social media media management management Social
Claims Excellence Claims Claims Tailoring Tailoring
CX, CI, CI, CX, CSAT etc etc CSAT
Data Data Digital & & interactive interactive modelling modelling analytics Digital analytics
Data collection
Pricing Excellence Excellence Pricing
Product Design Design Employee experience Product
Is this really new, haven’tCustomer we been talking lifetime value about lifetime value New Customer Customer New world Customer voice feedback Customer voice // feedback manyworld of these things for years! Convenience needs needs Customer Communications Communications Customer Customer mx mx // dashboard dashboard Customer Customer life life Customer event targeting targeting event
Customer x-sell x-sell // up-sell up-sell Customer
External data sources Customer loyalty loyalty Customer journey journey Customer Customer
C uu ss tt oo m m ee rr E E xx pp ee rr ii ee nn cc ee management C management Data management management Data
Customer engagement engagement Customer
Customer segmentation Customer Revenue Revenue Customer Data Mining Mining Data © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
5
Customer Centricity – how have we done as an industry?
More compensation paid for PPI customers....
© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
6
Why have we struggled so badly? What are the key challenge to address this time? Nature of insurance purchase and products have resulted in limited customer interactions Complex products, systems and limited customer understanding has made a customer centric approach difficult
Regulatory environment has constrained innovation Significant barriers to entry have meant limited penalties/ competitive disadvantage for slow adoption
The needs of customers have been fairly static over time
High cost per acquisition due to customer inertia
Risk averse culture
Highly intermediated business with limited end-customer engagement
How much of this is real – do we make it too Is the Insurancecomplicated?” Industry ripe for the taking? © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
7
…but the rules to the game are changing
Block Chain
Social Media
Artificial
Drones
Intelligence
Wearables
Sharing economy
Driverless cars
Augmented reality
The world of our customers is changing at an exponential pace! © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
8
Customer Centricity – it is time to make it real!
© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
9
© [yyyy] Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
11
Customer Centricity – it is time to make it real!
700,000 rooms 1,000,000 rooms
In 100 years, Hilton has built less room capacity than Airbnb did within 6 years 12
Is the insurance industry ripe for the same disruption? © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
12
We have made some progress – is health insurance leading the way?
Goal is to have the happiest members paying the lowest costs for the healthiest outcomes 145K customers in 2016 with plan to reach 1Mn customers Making data-driven decisions based on large data sets aggregated across providers and care data
“Make health insurance suck less”
© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
13
…some good things are happening – Health and life insurance that rewards you for being healthy
© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
14
Customer Centricity touches all aspects of the consumer experience
“It is not just about digital, data, applications and analytics - we win when we listen to our customers, fulfil our promises to them and make the excellent experience real.”
© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
15
Getting it right – the benefits of action can be significant
Innovative behaviour-based model drives global Discovery growth
…Vitality is winning new customers and boosting sales by making people healthier
Royal London’s continued growth fuelled by digitally enabled capabilities, delivering improved customer service and supporting the launch of new innovative products
© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
16
The art of the possible is closer than you think for insurance ...a change in mindset is crucial!
© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
18
The art of the possible is closer than you think for insurance ...a change in mindset is crucial!
Learn from past mistakes Listen to customers Understand your customers Do something about it Culture of relentless focus on the customer
Embrace rapid change and new developments
© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
Keep it simple 19
Be agile and adapt quickly
Is this the biggest change that we have to make? © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
20
Customer Centricity – no limits to who or what it can change!
“If I’d only known being nice to customers was so good for our business, I’d have done it years ago.” Michael O’Leary, CEO, Ryanair © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
21
Customer Centricity – no limits to who or what it can change!
“If I’d only known being nice to customers was so good for our business, I’d have done it years ago.” Michael O’Leary, CEO, Ryanair © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
23
