Embed Size (px)
Citation preview
THE FUTURE
DISTRIBUTION &
MARKETINGStaying Relevant in the Digital Era
CLARA SHIH
CEO, Hearsay Social
Board Director, Starbucks
@ClaraShih
OF
Geoffrey Moore
Organizational Theory
“All aspects of humanlife are being digitized.”
CONSUMER TECHNOLOGY IS RADICALLY
CHANGING OUR LIVES
Traditional
vs.
DIGITAL TRENDS ARE CHANGING THE
INDUSTRY
M O B I L E S O C I A LC L O U D
1.7B+ People worldwide
on social networks
hours spent worldwide
on social networks each
month7B+Of US online
population uses
social networks74%
Google+
Foursquare
First Social Networks
Launched
2005
2007
2009
Today
THE WORLD HAS GONE
SOCIAL AND MOBILE
3 Choices…
Ignore it,…
3 Choices…
G R O W B U S I N E S S O N S O C I A L |
You have to think differently.
1. Changing client expectations
2. Aging advisors and generational gap
3. Outdated distribution model
Source: “Valuable Humans in Our Digital Future,” Quentin Hardy, New York Times, May 3, 2014
“Human contact has become relatively scarce, and
therefore valuable, in a digitally-driven society.”
New York Times
1
Play to your strengths
Preferred Purchase
Method+
All
HouseholdsGen Y Gen X
Baby
BoomersSilent Gen
Face-to-face with a
financial professional58% 54% 54% 58% 68%
At my or my spouse or
partner’s place of work19% 22% 21% 20% 7%
Through the Internet 16% 20% 19% 14% 13%
Direct by mail or
telephone 7% 4% 6% 8% 12%
PREFERRED PURCHASE METHOD ACROSS
GENERATIONS IS STILL FACE-TO-FACE
*Source: Bob Kerzner, LIMRA DLRT Feb. 2014
Data: 2010 U.S. Life Ownership Study
Social networking is about enhancing human capital.
Online sources influence
offline purchases
Personalized and personal
service
Ability to communicate on
their terms
CHALLENGE 1: TECHNOLOGY HAS
CHANGED CONSUMER EXPECTATIONS
G R O W B U S I N E S S O N S O C I A L |
THE OPPORTUNITY: 1B+ CLIENTS
BROADCAST BUYING SIGNALS EVERY DAY
Source: 2012 McKinsey LIMRA survey of
financial advisors.
3 10% lift
MCKINSEY LIMRA STUDY: KNOWLEDGE OF
LIFE EVENTS LEADS TO INCREASED SALES
Knowledge of 3 or more life events Average production gain
G R O W B U S I N E S S O N S O C I A L |
70% of companies have programs
supporting financial professionals’
use of social media.
61% of advisors surveyed said they had
landed a new client
directly from
social media
2011 HubSpot survey of 611 financial
advisors in all specialties.
77% of financial advisors surveyed said
social media helps
with client retention
*2013 Accenture Report "How
Tech-Savvy Advisors Can
Regain Investor Trust"
CHALLENGE 2: AGING ADVISORS
AND THE GENERATIONAL GAP
Today’s recruits aren’t going to find you. You have to find them.
FIND RECRUITS WHERE THEY ARE
SOCIAL HELPS NEW ADVISORS
BUILD THEIR BUSINESS FASTER
“Social media is the
natural tool for me to
reach out to my
contacts to start
building my book of
business.”
– 1st-year Advisor
CHALLENGE 3: TRADITIONAL
DISTRIBUTION MODEL IS OUTDATED
Revenue is directly proportional to distribution.Online direct sales is emerging but selling predominantly simple, low-margin products.
Sell Direct
Commoditized goods and services
purchased mainly on price
Sell Through Trusted Advisor
Complex products and services
that require advice and
explanation
vs.
INTERNET “DIRECT” SELLING vs.
ADVISOR-LED, RELATIONSHIP-BASED SELLING
BUT what if digital weren’t separate from advisor channels?
What if they could combine forces?
THE ADVISOR’S NEW PLAYBOOK
FOR THE SOCIAL ERA
Just like the Yellow Pages, being listed isn’t enough.
We must teach advisors how to grow business on social.
GROW BUSINESS ON SOCIAL |
In the past:
How Life Insurance was Sold
By
Phone
In
PersonYellow
Pages
A g e n t / A d v i s o r
Today’s advisor must adapt to stay
relevant and reach more clients.
A g e n t / A d v i s o r
WebBy
PhoneEmail
ChatMobileIn
Person
BEYOND SALES & MARKETING
EXAMPLE: SINGLE CUSTOMER SERVICE
EXPERIENCE WILL BE THE EXPECTATION
Source: Pinpointing Preferences, LIMRA, 2014.
78% 68% 63%
Gen Y Gen X Baby Boomer
Policyowners: Importance that all service channels are integrated
Percent rating very or extremely important
WHICH SERVICE CHANNELS MATTER IN
THE FUTURE
69%
43%
30%
19%
79%
61%56%
14%
Financial professional Company (mail, phone) Online to the company No service needed
Used in the past Desired for the future
Source: Pinpointing Preferences, LIMRA, 2014.
The next frontier for firms to thrive
in the digital era
Customer
JourneyAware
Research Purchase
Refer
www
Intelligent
Interactions
Single
Customer
ViewEngage
Predict
Insight
Analyze
Enhance
Collect
INFORM & DISCOVERY
MINING BIG DATARELATIONSHIP BUILDING
& MONITORING
1
23
G R O W B U S I N E S S O N S O C I A L |
Innovation is everyone’s job
SUCCESS IN DIGITAL ERA REQUIRES
LINE OF BUSINESS SPONSORSHIP
Social media and digital initiatives have risen to the leadership team’s agenda.
Shift from compliance to business-driven; Shift from optional to mandatory.
Marketing Compliance
Wholesalers Producing Managers
Distribution
① Time to reflect, re-tool, respond.
② Lead by example – sign up for social, understand digital.
③ Enable your champions for innovation in your organization.
④ Resist the naysayers.
⑤ Be the innovation curator to connect the dots and prioritize.
HOW TO LEAD YOUR TEAM TO
SUCCESS IN THE DIGITAL AGE
