Segmentation - Merkle · PDF file– MetLife’s segmentation solution ... Young...

transcript

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

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

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

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

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

Competitive Strategy Positioning

Solution

• Richness: attitudes,

needs, behaviors, brand

relationships, media

• Attributable at the

individual level

• Universal view of

insurance market

• Monetary view of value

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.

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.

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.

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

Implementing Segment Strategy

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

Anonymous Digital Targeting

Purchase Pixel

Prospecting

Back End Matching / Identify Most Attractive Leads

Anonymous user with similar characteristics is served an ad

Anonymous Browsing

Visitor Becomes a Lead

Modeling

Example: CSR Training

Awareness of segments

How to engage them

Example: DRTV spot “Real People”

Concerned Mom

Young Achiever

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

Product Research

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

Customer Engagement

Value Proposition

Product Planning

Offer Presentation

Tactical Targeting

Solution

• Invest primarily in two

segments

• Anonymous digital

targeting

• EM/DM by segment

Outcome

Personalization

Strategy Tactics

Brand Strategy

Customer Engagement

Value Proposition

Product Planning

Offer Presentation

Tactical Targeting

Solution

• Segment engagement

strategies

• Website personalization

• Call center personalization

and “scripting”

• Online tools

Outcome

Messaging and Creative

Strategy Tactics

Brand Strategy

Customer Engagement

Value Proposition

Product Planning

Offer Presentation

Tactical Targeting

Solution

• DRTV spots

• Digital creative, custom

landing pages

• Social campaign

Outcome

Media Budgeting, Planning, Buying

Strategy Tactics

Brand Strategy

Customer Engagement

Value Proposition

Product Planning

Offer Presentation

Tactical Targeting

Solution

• Media mix optimization by

segment

• Segments integrated into

media planning tool

• DRTV buys

Outcome

Offer Strategy

Strategy Tactics

Brand Strategy

Customer Engagement

Value Proposition

Product Planning

Offer Presentation

Tactical Targeting

Solution

• Product development

• Product positioning

• Bundling considerations

• Next best offer

Outcome

Positioning

Strategy Tactics

Brand Strategy

Customer Engagement

Value Proposition

Product Planning

Offer Presentation

Tactical Targeting

Solution

• Segment attitudes drive

positioning

• Brand measurement by

segment

Thank You!

Sanjay Mehra –smehra1@metlife.com Vice President of Analytics and Customer Management Direct Business MetLife Leah van Zelm – lvanzelm@merkleinc.com Principal Consultant Management Consulting Group Merkle

Segmentation - Merkle · PDF file– MetLife’s segmentation solution ... Young...

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