(direct) marketing as a service, a way to strengthen the distribution channel
DESCRIPTION
Presentation held at the prestigious Data Quality Summit Event (Eindhoven, November 2008). This presentation highlights the added value and possibilities of setting up a Marketing service program to enable your distribution channel to maximize the customer value. With an example of such a program in the (independent) insurance market.TRANSCRIPT
VMCVMC && IIVrins Marketing Consultancy & Interim management
A way to strengthen the Distribution Channel
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IntroductionThe importance of the distribution
channel Introducing (D)MaasBenefits (D)MAASExamples + resultsLessons learned
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Various marketing & sales positions;
Marketing manager Essilor Benelux;
Program manager “Campaign Management” Meetingpoint;
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Company founded by insurance companies serving the independent insurance agents;
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Mission
To make the market of independent insurance brokers more competitive by creating low cost,
easy to use Online services which create;
More efficiency and;More customer focus;
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mass communication
B to B to C
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A set of professional (Direct) Marketing activities
To enable distribution partners to market their services better in order to optimize the (life time) consumer value;
As A Service from A (group of) supplier(s);
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Set of campaigns
Set of campaigns
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Reseller Profile(s)Reseller Profile(s)
Central consumer DB
Central consumer DB
Instore legacy system
Consumer response
Data CleaningData
EnrichmentData Selection
Campaign Execution
On / Off line response HandlingReporting
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High quality data is an important foundation for success;
Two step approach Data Cleaning Data Enrichment
A (fixed) data model with consumer and transactional data is a necessity;
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Why Data are incomplete & incorrect; Data contains a lot of duplicates The right address and personalization
shows that the retailer really cares about the end customer;
Data cleaning and address optimization is the first step to boost effectiveness;
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Why Provides better understanding of needs; Makes insights available for local retailers; Makes better targeting possible;
Sources External data (e.g. Experian) The customer self (through dialogue
campaigns)
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Most retailers consider their customer base as the most valuable asset;
But….
Most suppliers/ sponsors of these concepts have high interest in owning rich customer data;
Being transparent on this point is essential, data belongs to the retailer;
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To be effective, DM needs to be continuous;
But…… Making the right selection(s) is complicated; Producing/handling campaigns is expensive; Handling response is often forgotten;
By providing services to execute campaigns, continuity is guaranteed;
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FCDP Online SMS
DataCampaign Profiles
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Using these tools is a choice;
Retailers need to be (financialy) involved;
Long term, these kind of programs can only survive if results are proven;
Dashboards with results, benchmarking and action points involve and convince retailers;
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win- win - winFor retailer, consumer and supplier
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Becoming pro-active in stead of reactive; Continuous dialogue with his consumer; A way to differentiate & promote added
value;
Increasing customer loyalty is first step to growth; Direct pay back
▪ through using cross- & up sell possibilities; Long term pay back:
▪ Higher loyalty Higher customer value higher value of business;
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Experiences the added value of “his” retailer;
Is better informed about the services and other products of the retailer;
Has less reason to “shop”;
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Gets more grip on the retailer;
Strengthens a added value distribution channel;
Differentiation from other suppliers
Gain more consumer insights;
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Insurance market
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0%
20%
40%
60%
80%
100%
1996 2002 2005
Overig Bank Direct Intermediair
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Insurance company broker consumer
mp4office
mp4all mp4u
An on line transaction platform offering 1 dialogue with various insurance companies
An on line application to enable brokers to sell insurances through their website
The first fully integrated, web based legacy/ crm system for independent brokers
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Many different legacy systems exist;
but
All based on local software Hard to maintain; Hard to integrate in (web based)
applications; Product oriented in stead of customer
oriented;31
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MP4office
Legacy systemLegacy system
(D)maas(D)maas
Complete Integrated
Web Based
Efficiency Customer
Value
3 foundation blocks2 strategic pillars
1 integrated solution
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Middle ware
Sage CRM
Customer admin
Extranet insurance companies
Advise softwar
tools
Exact online
MS Office applicatio
ns
DWHDWH
CCSInsurance
admin
Marketing
factory
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Cleaning Daily check with imported data on HI; Daily advise correct addresses and de-
duplication;
Enrichment Monthly advise on customers moving &
deseased; Quarterly enrichment with Finergy; Continous enrichment through dialogue;
Alerts Deals have been made with listbroker of
“houses for sale” and “Prenatal”35
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Two types of segmentation Attitude Tone of voice Life stage Type of visual
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delegators
ValidatorsDIY
avoiders
Relationship orientedProduct oriented
Detail in
foG
lob
al info
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8
119
32
21
53
22
6
926
1728
Finergy Types
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General No known family situation
Emty nesters > 45 no kids at home Families Kids at home Starters < 45 no kids home
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Klantbehoud campagnes
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Retention campaigns
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Marketresarch Over 80% of the recipients has opened
an read the mailing; The appreciation is a 7,5;
Pilot test results Reactivation Campaign: 11,5% respons; (from 5 -18%); 3% is interested in a full service package;
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Cross & upsell campaigns
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Event triggered
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Keep it simple Invest in data quality;Keep the business persective Involve the retailer (also financially)Respect the identify of the retailer;Respect the way a retailer works;Be clear on data ownership;Support the program with
consultancy;45
Hein Vrins
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VMCVMC && IIVrins Marketing Consultancy & Interim management
Melvill van Carnbeelaan 743971 BG Driebergen
06 22601602