Nicholson_14120188_240753_Assessment 3 DRAFT

Hi.

Thanks for inviting me in to present auto insurances,

customer growth insights and recommendations.

My name is Ash Nicholson.

I'm a consultant who you have engaged to present on this brief.

I'd like to welcome the GM and marketing manager of auto insurance here today.

A key part of the brief when you first engage me was this problem.

Auto insurance doesn't understand how much to

invest into customer acquisition or retention,

because you don't understand the value of your customer segments or who they are.

So the key purpose of what I'm here to

present today is to help you understand your customer mix

and recommendations that will help to drive more retention,

customer satisfaction and profits.

Now let's start with who are your customers.

Through our segmentation and insights,

we've been able to group your customers into four key categories.

Now, our most valuable category are our stars.

Our stars have been longstanding repeat customers.

They're highly engaged with multiple premiums,

and they're paying the highest value in terms of premium.

Our next most valuable are called our Rising Stars.

These are newly acquired customers. They're engaged with multiple premiums.

However, they are still paying low premium values.

Our next in terms of value are our friends. These are loyal.

They've been around the longest.

However, they've always only stuck to one policy,

but they are paying a high premium value.

These customers are wonderful for cash flow.

Now our final grouping is only dating,

and if we think about a relationship they've just recently joined,

we're just getting to know them.

They're engaging in a fewer extra premiums.

However, they're not committing too much,

and they're still paying a low premium value

now for auto insurance.

Our most valuable cluster is the stars, and it's also the smallest.

Now Number two, in terms of our rising stars really has the potential for growth.

These customers are new and highly engaged,

and there's a real opportunity to grow them to the our style level.

So what demographics Aligned with loyalty, a quick segmentation.

As you can see here on the left,

we'll see that married people make up the

highest proportion of our customers in our friends

and rising stars categories by far,

but also in our stars and only dating categories.

So we can see that the auto insurance

products overall really appeal to married people Um,

and then next in line is single people to a lower degree.

We can see that those that are divorced, it really drops off in terms

of their account.

Now, on the right hand side,

we can see that our longstanding customers have have actually an education.

So they've achieved a bachelor in the high orange columns on the right, a bachelor,

a college degree or a high school

certificate.

Now the lowest rating are those that are retired or

are on medical leave or are disabled or unemployed.

So how will auto insurance grow? Knowing that these are who our customers are

our first key opportunity are are stars Now these customers,

they're our most valuable.

We want to keep them excited with offering them new products,

build really valuable loyalty programmes that are going to

keep them engaged and rewarded for their loyalty.

We know that they love our sales and branch sales channels,

and also cross selling midsize car products will be of huge interest to them.

Our next K opportunity is our rising stars.

These have the opportunity for a huge premium

increase as they are still on low premiums

like stars,

they would absolutely respond to a

loyalty programme because they're highly engaged.

We also want to continue to use the agent and

branch sales channels as our primary acquisition and retention channel.

For rising stars,

however,

it would be a great opportunity to invest in Web

sales strategy for our our star rising star acquisition,

as we did see that there was a little bit of potential there.

Cross selling products relevant to midsize car is

also a key interest to rising stars here.

So we're seeing a theme

now for our friends. It was the only category where offer to was the most successful.

So this is a really unique opportunity for our friends category.

We want to focus marketing language and the tone of voice to

appeal to married people and reinforce those loyalty programmes that we have

monitor complaints for fake us, though,

because there could be an opportunity for innovation for auto insurance.

But also we really need to monitor the

amount of time that this category of customers is

taking as they do achieve the highest number

of complaints in all of our customer groupings.

Again, mid sized car products are the most popular for friends

now in terms of our only dating these customers.

As we said before, they're just getting to know us.

So let's get them excited about offering them new products,

showing them the loyalty programme, getting them to feel a bit of foam.

Oh, because they're not involved yet

again. Use the agent and sales channels because they really responded.

Well, um,

and also midsize car products are a key factor

here for only dating customer acquisition and retention.

Also,

now here we'll see which coverage type is most popular.

We can see that 60% of all coverage type was actually basic.

So basic is a huge opportunity for us to focus our customer acquisition strategies.

In terms of renewal. We saw that offer type number one was the most successful,

and you'll see that highlighted in that blue bubble on the right at 41%

however, a key part of interest that for friends

on the left you'll see that offer Type two was actually the most successful.

So for friends,

we can really maximise offer one and two and for all other categories,

focus our efforts on offer one.

In terms of sales channel,

we really need to concentrate all of our efforts into the agent and branch channels.

People love to do business in person,

and we can see that on the left that it was proportionately higher.

However,

there really is an opportunity for growth in terms of

our Web sales for our friends and rising stars as although

in proportion.

It was a lower degree the Web sales because of

the low investment that it takes to achieve these sales,

that is still a high acquisition rate.

So we should invest a strategy around growing

the Web sales for our friends and rising stars

Now again, across all of our sales channels you'll see on the right.

Certainly the basic level of coverage was the most

popular and by far most popular for our agents.

Our agents in offer one

now where our risks, as I mentioned earlier,

friends and rising stars are the ones that complain the most,

and you can see that highlighted here in orange and red.

We can also see here on the left that those that are married complain the

most and also on the right that those that are employed also complain the most,

So these risks highlight where could take the most proportion of our time.

In terms of the limitations in these recommendations,

we'd recommend that more research is carried out on sales data.

Initial findings show promise,

but more customer lifetime value analysis is required.

Additional sales data be gathered to sales value projections

across these recommendations as based on the data set.

It's been hard to put a monetary value across these recommendations.

So in summary, Auto Insurance has four key customer groups.

Stars, rising stars, only dating and friends.

There is a high percentage of married couples employed

and educated people in auto insurance is most loyal.

Customer base

loyalty programmes and cross selling should be a

key strategy for customer satisfaction and retention.

Offer one and two drove the most success for acquisition, and Renewal's

agents and branch channels achieve the greatest results.

Basic coverage is the most popular and should be used as an acquisition strategy,

and med side scars are the most popular but also yield the most complaints

Nicholson_14120188_240753_Assessment 3 DRAFT

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