Ciljani Direktni Marketing

8/16/2019 Ciljani Direktni Marketing

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JakMar: Targeted Direct Marketing

Croatian Insurance Days 2011Bogomil Marn – Partner, JakMar

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Established markets

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Main Aims - focus on risk

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add a new and profitable distribution channel: Direct Marketing

increase the level of client’s…

Premium

Per

Customer

Percentage

Risk

Premium Profit


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Direct Marketing: complementary

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Targeted, personalized Direct Marketing

Complementary to other marketing channels, without being invasive

Agent Broker BancassuranceDirect

Marketing


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Feasibility Study

Insightful, confidential, no cost and no obligation

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Partner:

Information

gathering

JakMar:

analysis and

consideration

JakMar:

Report and

Presentation

Questionnaires

Phone and email

follow-up

Data extract

Interviews

(if necessary)

Business

objectives

Regulations

Customer base

SWOT analysis

Marketplace

Database extract

Offers

Segment Targeting

Direct Marketing

Campaign

recommendation

Financial projections


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Project overview

FeasibilityStudy

Campaign:Testing

Campaign:Rollout

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Flexible Financial Structure

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JakMar

Swiss Re

Insurer

50%

50% 50%

25% Allowance of Cession in Year 1 - Agents


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Direct Marketing of Risk Products

Generate additional business in cost effective manner

Up-sell / cross-sell commodity insurance products to non-life, health,

pension, bank

Some clients simply prefer to buy direct (10-20% growing)

Generate leads for agents

Improve persistency and client loyalty

Allow agents to concentrate on acquisition of new clients and on sizable

sales

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Economic crisis creates imbalance

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Economic crisis has

caused a reduction in

cash value of Investment

products

An increase in revenue

from your Risk portfolio

can help to level out this

imbalance

Revenue from Risk

portfolio less vulnerable

to changes in the market


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The psychology of Direct Marketing

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The affinity that the customer has with the institution plays an important role

The customer is more likely to respond favourably to Direct Marketing if the

institution is held in high esteem


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The psychology of Direct Marketing

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The quality of the communication will also effect the customer’s response

Expectation

Understanding Affinity

Recognition


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The key to successful Direct Marketing

Personalization + Relevance

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Direct Marketing can only be successful with the following:


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The key to successful Direct Marketing

Targeting + Segmentation

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Direct Marketing can only be successful with the following:


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Core Risk Product Strategy

ampaign Month

1 1

2 7

3 14

4+ New Products/New Services

Target Population

100,000

Initial Product

10,000 (10%)

Initial Product

90,000 (90%)

Re-mail 1

Initial Product

5,400 (6%)

Re-mail 1

Initial Product

84,600 (94%)

Re-mail 2

Initial Product

2,538 (3%)

Increase Offer

3,000 (30%)

Increase Offer

7,000 (70%)

Further Product

600 (20%)

Re-mail 1

Increase Offer

1,260 (18%)

Re-mail 1

Increase Offer

5,740 (82%)

Re-mail 2

Initial Product

82,062 (97%)

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Cultivation of the YES customer

High volume, commodity Risk products

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Tested strategy to educate customer into buying ever more sophisticated products

Accidental Death

Critical illness

Term Assurance

Health Insurance

Hospital Expenses

Personal Accident


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Post economic crisis strategy

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Build in another entry level, of high value, low cost products

Term Assurance

Critical illness

Hospital Expenses

Health Insurance

Accidental Death

Personal Accident

HIGH VALUE, LOW COST ENTRY LEVEL


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High Value, Low Cost Products

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Designed as a preliminary stage in the overall marketing process, in order

to maximize DM responders whilst being profitable in of itself

Products can be sold before traditional risk, or combined to form value

added packages

Products may include: (Life and Non Life portfolios)

• Accidental Critical Conditions; Hospital cash• International Medical Second Opinion


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Accidental Critical Condition (ACC)

Covers critical conditions resulting from an accident

Lump sum payment of sum insured at end of survival period – 30 days

Sum insured is limited to EUR 100,000 per life

Covered conditions:

• Major burns; Blindness; Deafness; Coma; Major Organ Transplant;

Paralysis ;Loss of Limbs

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Medical Second Opinion (MSO)

Remote Medical Second Opinion Program

Partnered with a wide group of World Leading Medical Centers (WLMC).

• E.g. Harvard M.S; John Hopkins; London’s Royal Marsden

Creates additional new clients with details (phone, address, etc.)

• Spouse, Children, Parents

All claim administration handled by Third Party Administrator (TPA)

No age, gender or occupation restrictions; no underwriting

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Long term value & customer loyalty

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Direct Marketing can

create a positive dialogue

with customers


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Juggling short-term with long-term goals

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“ he crisis of short

-

termism”

“ h

problem is that the narrow focus of

short termism

does not maximize profits by

thoroughly tapping customer loyalty and

satisfaction opportunities but instead leads to

customer churn which destroys loyalty and

strengthens competitors

…”

- Peppers & Rogers


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Juggling short-term with long-term goals

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Immediate portfolio benefits

Profitable long–

term distribution channel


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Skip the learning curve

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Partners get the benefits of JakMar expertise from day 1

Resources

Missed opportunities

Ineffectiveness

Inefficiency

Time


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Our Projects in Croatia

First Campaign in Croatia done by JakMar in year 2004

Since then we have been successfully cooperating with 5 insurance

companies

11 campaigns implemented to date

Total premium generated amounts to greater than 1.3 million since 2004

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JakMar: Targeted Direct Marketing

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www.jakmar.com

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