Tying The Marketing Function To The BusinessA.M. Best Company's 4th Annual Insurance Marketing & Advertising Summit
November 5, 2009
2
Key economic indicators show continued weakness in 2010
New housing starts, Millions unitsGDP growth, Percent
Auto sales, Millions units
General economic indicators
Sector specific indicators
Unemployment rate, Percent
Source: Bureau of Economic Analysis, Bureau of Labor Statistics, Freddie Mac June 2009 Economic and Housing Market Outlook, Chief Economist’s Economic Outlook #22
2.11.5
-2.7
0.4
2.12.73.1
05
06
07
08
09F
10F
11F
0.50.50.9
1.41.8
2.1
05
06
07
08
09F
10F
10.010.510.1
5.84.64.65.1
05
06
07
08
09F
10F
11F
10.510.010.313.0
16.017.017.0
05
06
07
08
09F
10F
11F
3
How Can Marketing Support The Business?
Get The Quote Rate Up, and Win More Quotes
Keep Retention High
Support Product Density
4
MARKETING OVERVIEW
The Goal Of Marketing Is To Create A Stronger Link With Customers As Well As Brokers
Customer
BrokerCarrier
Purchase decision / transactio
n
Integrated marketing influence
Integrated marketing Influence
5
Marketing Overview: We Have Three Main Objectives
Create and maintain a set of well-designed propositions that are the basis of Zurich's competitive advantage
Components:• Implement and maintain a
customer research program over time
• Build and manage a pipeline of propositions under development
• Calculate and maintain the vitality index at target levels
• Build Customer Industry Group views and strategies
Build understanding of the value of the Zurich brand among both customers and brokers
Components:• Optimize the value of
brand advertising• Develop strong, broadly
accessible content and thought leadership in a systematic manner
• Maximize the value of events and sponsorships
Create a universe of motivated buyers and sellers through support and execution of campaigns
Components:• Participate in broad sales
campaigns through selected brokerage locations, supported by Proposition Launch Leaders
• Execute customer-centric digital campaigns, which generate pipelines of prospective buyers
6
Customer Research – The TRI*M System
TRI*M Grid
Detailed diagnosis and identification of actions for improvement based on areas that have the
most impact for the business
TRI*M Grid
Detailed diagnosis and identification of actions for improvement based on areas that have the
most impact for the business
IMPACT ON RETENTION
CL
AIM
ED
IMP
OR
TA
NC
E
HighLow
Motivators
Hidden Opportunities
Potentials/Savers
Hygienics
Low
Hig
h
A01
A04
A6
A05
A10
A02
A09 A03
A08A07
TRI*MIndex
One number score that measures the overall
strength of stakeholder relationships against
industry benchmarks - a KPI for Senior
Management to follow
TRI*MIndex
One number score that measures the overall
strength of stakeholder relationships against
industry benchmarks - a KPI for Senior
Management to follow
Low Retention Year 2Year 1 Year 4
HighRetention
Year 3
90
70
50
30
TRI*M Index 51
48
6575
TRI*M Typology
Description of thecurrent situation in
terms of satisfaction and loyalty, identifying potential threats and
opportunities to market position
TRI*M Typology
Description of thecurrent situation in
terms of satisfaction and loyalty, identifying potential threats and
opportunities to market position
Apostles
Hostages
Rebels
Mercenaries
Overall Overall ratingrating
RecommendRecommendationation
RepurchaseRepurchase
Advantage Advantage versus versus
competitorscompetitors
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TRI*M Action Grid – Strengths And OpportunitiesTRI*M Action Grid – Strengths And Opportunities
Impact on Customer Retention
Sta
ted
Imp
ort
ance
HighLow
Low
Hig
h Motivators
Hidden OpportunitiesPotentials?/Savers?
Hygienics
Communicates Proactively
Impact on Customer Retention
Sta
ted
Imp
ort
ance
HighLow
Low
Hig
h Motivators
Hidden OpportunitiesPotentials?/Savers?
Hygienics
Delivers When it Matters
Impact on Customer Retention
Sta
ted
Imp
ort
ance
HighLow
Low
Hig
h Motivators
Hidden OpportunitiesPotentials?/Savers?
Hygienics
Knowledgeable Underwriters
Far above averageAbove average
Far below average
Below averageAverage
Performance Symbols:
Industry A 88
Industry B 86
Industry C 79
Industry D 95
Industry E 73
Industry F 84
Industry G 87
TRI*M Index
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The Zurich Way (TZW) Of Proposition Development
Identify opportunities
Post-launch review
Develop, evaluate and prioritize propositionconcepts
Prototype and plan
Design/ update proposition
Go to market Custome
r
Grow•Effective launch•UW capacity•Goal and appetite alignment•Marketing excellence•Distribution excellence•Underwriting excellence
Develop•Unique features•Full set of coverages•Likely economics•Distribution demand
Choose•Size of opportunity•Relative priority•Commitment to grow•Unmet customer needs
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Proposition Development Extends Through Launch And Ramp Up To Peak Sales!
Key Elements of Revamped Process:
Concepts based on current economics and direct customer inputPrioritization via steering committee of BU heads
Cross functional team (UW, claims, risk engineering, sales and marketing) develops conceptsTested with brokers and customers
Focus on “bigger bang” launches by using sales campaignsDedicated Product Launch Associates to educate brokersEmerging digital and online capabilities
Focus on ensuring adequate underwriting capacity and consistent application of appetiteJoint accountability for success
Development LaunchConcepts In market
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Developing Zurich’s BrandKey Proposition Features For NAC Customers
Access to a world-class global network
Specialized claims service
• We provide tailored insurance solutions in more than 180 countries
• Zurich MIP ensures compliance globally• Access to a global knowledge base that is
unparalleled in breadth and scale (e.g., centers of expertise, Commercial Markets International Practice, Global loss-cost management expertise, virtual consultant)
• Proven, first-class CAT response• Dedicated customer claims liaison and team
(claims specialists) • Fair claims settlements that meet your
expectations• 24/7 customer service center with 24 hour
call back guarantee• Beyond settlement: access to Zurich Staff
Legal• An easy to use online tool to track claims
more openly and efficiently
Deep understanding of your unique business risks • Dedicated experienced underwriter & claims
handling give you relevant solutions for your most complex issues (includes Underwriting experts dedicated to small and medium sized businesses in P&C and Specialty lines)
• What ever your challenge we can find someone from our global pool of more than 900 risk engineers who has knowledge and insight into your specific industry
• Access to risk insight and benchmarking tools to help you manage your risks (e.g. ZRisk)
• Global insights for Automotive, Construction, and Real Estate
• Customer advisory meetings and industry involvement enhances communication
Tailored solutions to meet customers needs • Our customised products and solutions,
comprehensive and wide product range, and large capacity ensures we can meet the most complex/unique set of needs, e.g.:
−International network for Commercial forms−OPPI - Owners Professional and Protective
Insurance−Subguard - Insurance for surety−Environmental Services package - Fire &
Restoration firms−Middle Market Technology - P&C and
professional−Financial Enterprises - P&C, Crime and
Fidelity−Travel Assist (e.g. Beijing Olympics)
11
Leveraged 360° Marketing To Build Awareness, Consideration And Brand Value
CustomersIntermediaries
InvestorsMedia
Online
Annual ReportAdvertising
Airports/Outdoor
Digital Relationship marketing
Direct Mail &E-mail marketing
Events and Sponsorship
Public Relations/Media Relations
Marketing collateral
12
The Impact Of Zurich’s HelpPoint Campaign Has Been Very Positive
Ran
kin
g
Source: Brand Tracking 2008/2009 Based on cross country analysis total sample
Awareness among Medium Business Decision Makers
Consideration among Medium Business Decision Makers
2008 (Pre-campaign)
2009 (Post-campaign)
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Digital Marketing Overview
Attract initial interest; present an offer
Capture prospect information; screen to identify leads
Maintain dialog as leads approach time to
buyWebcasts
Email blasts
Paid Search
Banner Ads
Organic Search
Industry Group
Underwriting Appetite
Broker
Prospects Ex-dated
Leads
White Papers
Industry News
Sponsored Topics
Sponsored Topics
Hot Leads
Route Leads To SBUs, Regional
Sales
Refer to Broker
Accept Submission
Issue Quote
Win Business
1. Generate Customer Dialogs Through Digital Marketing
2. Convert Leads To Sales
3. Measure and Optimize
•Cost Per Lead•Improvement In Win Rate
•$Revenue/$Expense
Cloud-based CRM Environment
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Can Marketing Support The Business?
Get The Quote Rate Up, and Win More Quotes
Keep Retention High
Support Product Density
YES!