EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy •...
Transcript of EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy •...
![Page 1: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/1.jpg)
EVOLVING INTO A CUSTOMER-CENTRIC
CULTURE
3rd Annual African Insurance Forum Johannesburg 10 March 2017
![Page 2: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/2.jpg)
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
![Page 3: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/3.jpg)
Preamble– Evolution
![Page 4: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/4.jpg)
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.
![Page 5: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/5.jpg)
BUSINESSENVIRONMENTANALYSIS
![Page 6: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/6.jpg)
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
![Page 7: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/7.jpg)
CUSTOMERCENTRICITY
![Page 8: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/8.jpg)
CUSTOMERCENTRICITY
![Page 9: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/9.jpg)
CustomerCentricity
![Page 10: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/10.jpg)
TheNeedforaCustomer-centricStrategy
A satisfied customer tells three friends whilst a dissatisfiedcustomer tells the world – Pete Blackshaw
![Page 11: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/11.jpg)
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.
![Page 12: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/12.jpg)
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.
![Page 13: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/13.jpg)
![Page 14: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/14.jpg)
WHATSHOULDBUSINESSESDO?
![Page 15: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/15.jpg)
“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
![Page 16: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/16.jpg)
Whatshouldbusinessesdo?
![Page 17: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/17.jpg)
Havea360-DegreeViewofCustomer• Thinkbeyond insurance—migratefromatransactional
mentalitytoarelationshipmentality.
![Page 18: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/18.jpg)
Customise/PersonaliseService
![Page 19: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/19.jpg)
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.
![Page 20: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/20.jpg)
Classical and digital touchpointsthroughout the customer journey
![Page 21: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/21.jpg)
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.
![Page 22: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/22.jpg)
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.
![Page 23: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/23.jpg)
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
![Page 24: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/24.jpg)
TESTIMONIALS–Benefitsofacustomercentricapproach
1.TheM-Pesa Story2.TheEcocashStory3.FuneralCashPlans4.Thee-FML Story5.TheFirstMutualStory
![Page 25: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/25.jpg)
The M-Pesa Story
üUnderstanding Customer Needs
üDriving Growth and Innovation
üFinancial Inclusion
![Page 26: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/26.jpg)
The e-FML Story
ü Launched – 2015
üUnique Selling Point – Convenience
![Page 27: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/27.jpg)
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
![Page 28: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/28.jpg)
THECONSEQUENCES
1.TheNOKIA Story2.TheKODAK Story
![Page 29: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/29.jpg)
![Page 30: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/30.jpg)
The KODAK Story
![Page 31: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/31.jpg)
DISCUSSIONQUESTIONS&ANSWERS
![Page 32: EVOLVING INTO A CUSTOMER-CENTRIC CULTURE Douglas... · The Need for a Customer-centric Strategy • Customer acquisition costs are high. • It is much more difficult to get a customer](https://reader035.fdocuments.us/reader035/viewer/2022071503/612360de27d15a76a410dfaa/html5/thumbnails/32.jpg)