creating sustainable value from customer centricity – what does it take?

Creating sustainable value from customer centricity –

what does it take?

© 2016 Willis Towers Watson. All rights reserved.

Michael Murphy

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 2

Customer journey

Data Mining

Customer RevenueCustomer segmentation

Customer engagementData management

C u s t o m e r E x p e r i e n c eCustomer loyalty

management

External data sourcesCustomer life

event targeting

Customer x-sell / up-sell Customer mx / dashboard

Customer Communications

Customer voice / feedback

Customer lifetime value Customer

Convenience

New world needs

Employee experience Product DesignPricing ExcellenceData collection

Digital & interactive modellingClaims

Tailoring

Data

analytics

CX, CI,

CSAT etcClaims Excellence Social media management

Advanced

Analytics

Integrated content platformsUnderwriter

ExcellenceSingle customer view

Culture TransformationBig Data

Customer journey

Data Mining

Customer RevenueCustomer segmentation

Customer engagementData management

C u s t o m e r E x p e r i e n c eCustomer loyalty

management

External data sourcesCustomer life

event targeting

Customer x-sell / up-sell Customer mx / dashboard

Customer Communications

Customer voice / feedback

Customer lifetime value Customer

Convenience

New world needs

Employee experience Product DesignPricing ExcellenceData collection

Digital & interactive modellingClaims

Tailoring

Data

analytics

CX, CI,

CSAT etcClaims Excellence Social media management

Advanced

Analytics

Integrated content platformsUnderwriter

ExcellenceSingle customer view

Culture TransformationBig Data

Customer voice / feedback

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

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 5

Customer journey

Data Mining

Customer RevenueCustomer segmentation

Customer engagementData management

C u s t o m e r E x p e r i e n c eCustomer loyalty

management

External data sourcesCustomer life

event targeting

Customer x-sell / up-sell Customer mx / dashboard

Customer Communications

Customer voice / feedback

Customer lifetime value Customer

Convenience

New world needs

Employee experience Product DesignPricing ExcellenceData collection

Digital & interactive modellingClaims

Tailoring

Data

analytics

CX, CI,

CSAT etcClaims Excellence Social media management

Advanced

Analytics

Integrated content platformsUnderwriter

ExcellenceSingle customer view

Culture TransformationBig Data

Customer journey

Data Mining

Customer RevenueCustomer segmentation

Customer engagementData management

C u s t o m e r E x p e r i e n c eCustomer loyalty

management

External data sourcesCustomer life

event targeting

Customer x-sell / up-sell Customer mx / dashboard

Customer Communications

Customer voice / feedback

Customer lifetime value Customer

Convenience

New world needs

Employee experience Product DesignPricing ExcellenceData collection

Digital & interactive modellingClaims

Tailoring

Data

analytics

CX, CI,

CSAT etcClaims Excellence Social media management

Advanced

Analytics

Integrated content platformsUnderwriter

ExcellenceSingle customer view

Culture TransformationBig Data

Customer voice / feedback

Is this really new, haven’t we been talking about many of these things for years!

Customer Centricity – ambiguous and diverse

Customer Centricity – how have we done as an industry?

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More compensation paid for PPI customers....

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Why have we struggled so badly? What are the key challenge to address this time?

Highly intermediated

business with limited

end-customer

engagement

Regulatory environment

has constrained

innovation

Nature of insurance

purchase and products

have resulted

in limited

customer

interactions

The needs of

customers have been

fairly static over time

Significant

barriers to entry have

meant limited penalties/

competitive

disadvantage for slow

adoption

High cost per

acquisition due to

customer inertia

Complex products,

systems and limited

customer understanding

has made a customer

centric approach difficult

Risk averse

culture

How much of this is real – do we make it too

complicated?”Is the Insurance Industry ripe for the taking?

…but the rules to the game are changing

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 8

The world of our customers is changing at an

exponential pace!

Social Media Sharing economy

Drones

Block Chain

Wearables Driverless cars Augmented reality

Artificial

Intelligence

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!

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

12

In 100 years, Hilton has built less room capacity

than Airbnb did within 6 years

700,000

rooms

1,000,000 rooms

12

Is the insurance industry ripe for the same

disruption?

We have made some progress – is health insurance leading the way?

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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”

…some good things are happening – Health and life insurance that rewards you for being

healthy

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Customer Centricity touches all aspects of the consumer experience

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 15

“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.”

Getting it right – the benefits of action can be significant

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 16

Royal London’s continued growth fuelled by digitally enabled capabilities, delivering

improved customer service and supporting the launch of new innovative products

Innovative behaviour-based model

drives global Discovery growth

…Vitality is winning new customers and

boosting sales by making people healthier

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!

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 19

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

Keep it simple

Be agile and adapt quickly

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 20

Is this the biggest change that we have to make?

Customer Centricity – no limits to who or what it can change!

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 21

“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

Customer Centricity – no limits to who or what it can change!

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 23

“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