Peter Sinden

Director Sales & Service

A Bit About LV=

2

A Fresh Start

3

TO THISTO THIS

From this From this

Strong results

4

Strong brand

Now offer 5 GI products

Sales & Service Team has grown to be 1,000 strong

Now in 4 sites

Handling about 125,000 calls per week

Now 4th largest UK car insurer, from 12th in 2007!

Sales exceeding plan year on year & among the strongest renewal rates in the industry

and… whilst handling tremendous growth we’ve been award winning along the way!

On A Mission To Be The UK’s Best Loved Insurer

We’re passionate about our new mission, it was voted for by our

people.

We can’t be the best loved insurer without being the best in

customer service!

We have learnt that truly putting our people first has

many benefits to us as a business.

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Developing Employees To Be Fans Of Our Brand

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Under-pinned by our values:Know Your Stuff

Make It Feel Special

Treat People Like Family

Don’t Wait to Be Asked

It’s all about being:

“Sharp with a Heart”

94% of our people believe our values are clear

Our Future Fans Have to Have the LV= Attitude

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87% of our people are proud to be part of LV=

Listening To Our People… a Thousand Consultants!

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Invest time and effort to encourage front-line participation

They are closest to our customer’s experience and know best

Drives management culture: be first to spot a ‘big win’!

WHY ON EARTH?

CALL LISTENINGLEAN REVIEWS

“61% of organisations proactively analyse customer conversations to identify trends and issues with their processes, call handling, etc”

- UK Call Centre Association

Your challenge to take away: SITE VISITSDedicate 1 day a month, to get under the skin of each site

• It’s easy to let it slide – you have to be disciplined and give it a genuine high priority

• BUT - It’s the best investment in time you can make!

Talk to the people at the sharp end:

• Take a group off the phones for an hour and chat about their WOEs.

• What would they do differently if it was their money and their business?

• Tell them which ideas you’ll take away, then keep them in the loop

Step into your agents’ shoes:

• Listen in to calls side-by-side with agents

• Understand what they say and why, and how the system works

• Find out what’s hurting them and what’s hurting the customer

Manage those Light-Bulb moments!

• By the end of the day you’ll have a great big list of ideas

• Delegate these to your management team – and keep pestering them!

• … my managers now find and sort WOEs themselves, just to keep me quiet!

Your challenge to take away: WOEs“Why On Earth do we do that?!”

• You need to know what’s hurting your people and your customers

• WOEs cost you time, money and customers - and damage staff morale

Get your people to tell you their WOEs

• You can’t chat to everyone through site visits – although this helps to get the ball rolling

• Create a way for people to submit ideas – could be an email address or an intranet page

• Publicise and incentivise it so people want to use it

Find out the big ideas

• Get people in the know to review WOEs, and see which ones have got legs

• I’ve developed a Business Improvement Team of canny agents and team leaders to do this

Kick off projects

• Once you’ve picked your WOEs put some structure behind them

• Scope it, CBA it, LEAN it, investigate it… then make the change and track your benefits

Tell everyone about it!

• Once people know they can make a difference it becomes self perpetuating

Why On Earth… do we use scripts?Challenges from our people improved the call process

We involved 2/3rds of our agents to redesign it

We removed scripts and introduced call aids

Average call length reduced by almost 2 minutes!!

Overall Sales Average Handling Time

500

520

540

560

580

600

620

640

660

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

AVH

T (s

econ

ds)

Plan Actua l

We’re saving £1m a year!11

Sales UpSales UpConversion UpConversion Up

Customer Sat. UpCustomer Sat. UpStaff Engagement UpStaff Engagement Up

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Why On Earth... can’t I make decisions?

2008: 15p

Average Write-Off per call

2009: 9p

2010: 6p

We gave authorisation decisions to agents

Trusting and empowering them to make the right call

Customers win too – no delay on decisions

We saved £260k over 2 years!

Customer Sat. UpCustomer Sat. Up

Staff Engagement UpStaff Engagement Up

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Why On Earth …can’t someone help me?

We introduced a brand new technical assistance team

Providing instant help and coaching

96% of all queries are answered in the first call

48 Hours

3.5 Minutes

Query Resolution Time

We are saving £142k a year! Customer Sat. UpCustomer Sat. Up

Staff Engagement UpStaff Engagement Up

Fixing those WOE’s saves LV= money…

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… and helps us be competitive at renewal

93% of our people believe their team

constantly looks for better ways to

serve its customers

Senior team spend 40 hours with our people every month

520 ideas from WOE’s so far this year

Over 400 of our people have been involved in a Lean event

Benefits from WOE changes are on plan to deliver £2m in savings by year end.

Contributed to us halving our Cost Expense ratio over 3 years

5 years worth of ideas – offering a Cost Expense reduction of a further 3rd

People Power Against High Performing Companies

81%81% vs

77% HPO

Engagement

score

93%93% of our

people

believe

strongly in

the goals of

LV=

78%78%

believe LV=

is interested

in the well

being of

employees

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We’re Breaking Our Own Engagement Records!

85% of our people recommend LV= as a great place to work90% of our people believe LV= really cares about it’s

customers

“72% of organisations believe that there is a strong correlation between customer satisfaction & employee satisfaction”

- UK Call Centre Association

Employee Engagement Survey 2010 - Towers Watson

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Employee Engagement Overall

81%78%77%

83%

78%

64%

2006 2007 2008 2009 2010 2011

Stop Press!

This year’s Engage results are even better!

Great For Our Customers!

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Step into your

Customers’ shoes

“In a recent survey, most respondents report that the average agent becomes

productive and efficient after 4-6 weeks of training” - UK Call Centre Association

What does your perfect

customer look like?

What’s the cost of staff

attrition?

We’ve calculated it costs £7 pure to recruit and replace agents

…but in real terms this can rise to as much as £30k

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PEOPLEPEOPLE

CUSTOMERSCUSTOMERSBUSINESSBUSINESS

TIME SAVED REINVESTED:TIME SAVED REINVESTED: More coaching time Better agents Making their job easier

Putting our people first……creates our award winning virtuous

circle!!MAKES OUR PEOPLE FEEL:MAKES OUR PEOPLE FEEL:

Engaged Valued They can make a difference

LESS EFFORT

SMOOTH PROCESSFASTER CALLS

HAPPIER CUSTOMERS

LOWER COST EXPENSE = LOWER PRICE

GOING UP GOING UP SalesCustomer SatisfactionEmployee EngagementLoyalty/RetentionFirst Call Resolution

GOING DOWNGOING DOWN AttritionCall TimesCosts

= MORE COMPETITIVE PRODUCTS

By Listening We’ve Turned Our People into

Brand AmbassadorsWell... Most of

them!

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Awards: our benchmark against the industry best

National Management & Leadership Awards

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Our results speak for themselves…

Customer Satisfaction - Extremely / Very Satisfied

67%

68%

69%

71%

72%

73%

74%

73%

76% 75%76% 76%

77%

64%

66%

68%

70%

72%

74%

76%

78%

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

% E

xtr

em

ely

/ V

ery

Sa

tis

fie

d

Growth in Monthly Sales & Total In-Force Policies

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Jan-07

Mar-07

May-07Jul-0

7Sep-07

Nov-07Jan-08

Mar-08

May-08Jul-0

8Sep-08

Nov-08Jan-09

Mar-09

May-09Jul-0

9Sep-09

Nov-09Jan-10

Mar-10

May-10Jul-1

0Sep-10

Nov-10Jan-11

Mar-11

May-11

1,000,000

1,050,000

1,100,000

1,150,000

1,200,000

1,250,000

1,300,000

1,350,000

1,400,000

1,450,000

1,500,000

1,550,000

1,600,000

1,650,000

1,700,000

1,750,000

Total in-force policies Call centre Monthly Sales

Any questions?

Q&

A