To succeed in the Internet age, insurance marketers have to be more nimble, more innovative and better able to communicate with their customers, both for themselves and through their partner ecosystems. IBM’s Commerce portfolio for Insurance can help insurers achieve their marketing engagement goals. Insurance industry marketing executives need to reach prospective and current policyholders in context at every point of the purchase process by innovating personally relevant and rewarding experiences that draw customers in and keep them engaged. IBM’s Commerce portfolio helps insurance marketing leaders take an integrated approach to customer engagement.

1. Superior Customer Marketing for
Insurance Providers:
The CMO Agenda
Moments matter.

2. Individuals are more connected and empowered
 Increased consumer expectations
 Different ways to engage digitally
 Expanded information transparency
Operations and business models are being transformed
 Redefined consumer value
 Integration across digital with physical
 Concerns around risk, security, compliance and
privacy
Competition is coming from new and different areas
 New competitors
 Changes in value migration; new winners and losers
 New types of collaboration
Business
Challenges
Business
Challenges
Business
Challenges
Mobile
revolution
Social media
explosion
Cloud
Enablement
Power of
analytics
Forces of
Change
Source: 2011 IBM Digital Transformation Study, IBV Analysis
Digital forces are driving customer demand for change in the
insurance industry

3. Source:[1] IBM Student Study: Connected Generation Q5. “To what extent should organizations change to meet consumer expectations?”; [CEO Q9]
[2} “Winning Strategies for Insurers” IBV Study
New technologies enable consumers to expect and obtain more than
ever before
81%Improve response time
76%Understand individual needs
68%
Harmonize consumer
experiences
68%Increase transparency
61%
Support participation in
product life-cycle
50%
What should organizations focus on to appeal
to millennial consumers?1
Power is shifting to insurance policyholders
of insurance
industry leaders use
social media to
communicate with
policyholders –
almost 2X as much
as non-leaders
72%

4. Most insurers have not begun preparing for the big changes
ahead
Source: [1] 2013 C-Suite Study, CEO POV B4: “What kind of digital strategy does your enterprise have?” (n=243);
[2] 2013 C-Suite Study, CEO POV B1: “To what extent do you agree with the following statements about your enterprise’s capabilities?” (n=243);
[3] 2013 C-Suite Study, CEO POV B5: “Which of the following are the most significant challenges to implementing a digital strategy within the enterprise?” (n=243)
of insurance
CEOs see
consumer
influence on
their business
strategy
39%
of insurance
CEOs have an
integrated
physical and
mobile
strategy
38%
of insurance
CEOs say they
have a
cohesive social
strategy
34%
of insurance
CEOs believe
their mobile
strategy
enables them
to conduct
business
regardless of
location
33%

5. IBM Commerce brings it all together, integrating customer
engagement to insurers’ value chains
Provide a
seamless Brand
experience
Manage risk
Reshape internal
and ecosystem
operations
Gain customer insight
Personalize
relationships

6. IBM Commerce addresses the Insurance CMO’s agenda
Identify
customer
preferences and
trends in context
Use advanced
analytics to
improve
decision making
Provide consistent
Brand experiences
across the entire
ecosystem
Engage customers
throughout the
customer lifecycle
Create a seamless
omni-channel
marketing
experience
Stimulate customer
conversations and
new relationships
using new digital
channels
CMO
Agenda
CUSTOMER
UNDERSTANDING
SMARTER
MARKETING
SEAMLESS
BRAND
ENGAGEMENT

7. 2013 2011
In this empowered consumer era, CMOs plan to accelerate
the introduction of technologies to better reach customers
Source:Question CMO7–What is your plan around the usage of the following technologies over the next 3 to 5 years?; IBV Study, “Analytics: The Real
World Use of Big Data”
Intended use of digital technologies (3–5 years):
Across industries
Mobile applications
Content management
Search engine optimization
Customer relationship
management
Collaboration tools
Reputation management
Email marketing
Advanced (predictive)
analytics
Insurers
of insurers’ Big Data
initiatives are driven
by improving
customer experience
through a better
understanding of
customer behaviors
47%
94%
66%
94%
80%
89%
81%
87%
68%
81%
73%
80%
62%
79%
63%
47%
46%

8. 8
You need to enhance Customer Understanding
through comprehensive insight into customer
behaviors and preferences with Customer Analytics
FROM TOBest Guesses Precise Predictions
CMO

9. Understanding insurance customers in the digital era
requires analytics that span modes of customer interaction
Drive highly focused customer interactions across all phases of
customer experience lifecycle
Acquire profitable
customers
• Engagement
patterns
• Engagement
preferences
• Buying intention
• Sentiment
• Buying intention
• Product
preferences
• Buying patterns
• Peer
recommendations
Cross-sell and
up-sell
• Customer
journey
• Customer
struggles
• Customer
experience
• Feedback and
social comments
Reduce cost to
serve
• Relevant
engagement
• Reduce struggles
• Proactive
responses to
sentiment
Increase retention,
loyalty and
engagement

10. Insurance industry marketers need to understand what is
working – and what isn’t – before, during and after purchase
68%
56%
48%
48%
43%
42%
41%
33%
28%
27%
22%
27%
38%
48%
47%
55%
50%
50%
57%
63%
60%
59%
4%
6%
4%
6%
3%
8%
8%
10%
9%
13%
19%
0 50% 100%
How people become aware of your brand or website
Where people come from before visiting your website
What types of content make people more likely to buy
or convert
The value of visitors from different sources of traffic
Why visitors make a purchase or convert
What usability issues are most likely to affect the
conversation
What they are most likely to do on their first visit
How visitors behave on different devices (for example,
desktop, laptop, tablet, smartphone)
Why visitors leave the site without converting
Why people abandon the shopping cart or transaction
Behaviors of different visitor types (men, women,
frequent visitors and so on)

11. IBM’s customer analytics solutions offer unified views and
analytics across modes and channels of customer interaction
Anticipate and delight
Predictive customer intelligence solutions
WHAT IS HAPPENING
Provides quantitative insight by
capturing website and mobile
interaction data and providing
easy-to-use interfaces showing:
• Purchase funnels
• Real-time sales data
• Traffic flow through site
• Conversion benchmarks
WHY IT IS HAPPENING
Provides qualitative insight by
capturing, replaying and
analyzing individual user web
and mobile interactions:
• In-page context (including
dynamic, personalized
experiences)
• Each user interface interaction
• Error messages displayed
• Identify affected visitors
WHO IS TALKING
Provides powerful listening and
analysis platform across social
networks and communities:
• Assess social media impact
• Segment social media audiences
• Identify relevant relationships
• Discover new ideas and risks

12. Customer Analytics for Insurance goes beyond policy and
demographic data to develop a deep understanding of
customers profitability, preferences and lifecycle needs
•Increase
Revenue
•Improve
Customer
Satisfaction &
Retention
•Improve
Cross-Sell/Up-Sell
•Lower
Marketing Costs
•Learn
Customer
Attitudes
Enables you to
• Deploy web and social network analytics
as a source of valuable insight
• Understand and anticipate customer
behavior across all channels
• Recognize what products attract
each customer segment
• Manage the optimal balance between
service and cost of delivery
• Predict churn risk, customer satisfaction
and customer lifetime value
• Improve service levels and knowledge
of front-line employees
Analytics

13. 13
You can achieve Smarter Marketing by igniting customer
relationships with Omni-Channel Marketing, Real-Time
Personalization and Digital Marketing
FROM TOOne Size Fits All Relevant Offers
CMO

14. Within insurers, marketing silos are still the norm
Customers
Social
Search
Advertisement
Web
Mobile
Email
Phone
Agents
Brokers
Financial Advisors
Direct mail

15. What if your marketing efforts resulted in?
Improved customer value, loyalty and
retention
5%–15% increase is typical
Higher campaign ROI
15%–30% increase is typical
Increased response rates
10%–50% increase is typical
Other business metrics improvements
revenue, profit, others vary by industry (assets
under management, basket size, # products
owned, etc.)
More campaigns with the same resources
2–5x increase is typical
Reduced cycle time for marketing efforts
40%–80% reduction is typical
Reduced marketing costs
20%–40% reduction is typical
Lower customer acquisition costs
25%–75% reduction is typical
More effective marketing More efficient marketing

16. IBM’s Omni-Channel Marketing solution enables insurers to
engage customers in context at every point in the purchase
lifecycle
eMessage
Xtify mobile messaging
Deliver
Campaign
Interact
Contact Optimization
Decide
Campaign
Analyze
Marketing
Planning
Engages customers in a one-to-one dialogue
across channels
Marketing Operations
Interact
Contact Optimization

17. IBM’s Real-Time Personalization solution bundle enables
insurers to take full advantage of every customer interaction
and life stage
Enabled through:
Outbound offer personalization
Inbound offer personalization
Content and product personalization
Omni-channel campaign management and
execution, including mobile customer engagement
Maximize all types of
real-time engagement
across channels
Use response data to
refine and optimize
future decisions—
automatically
Directly engage in offer
design and creation

18. IBM Digital Marketing helps insurers improve engagement,
conversion rates and revenue through targeted and
personalized digital marketing automation
Personalize site, mobile, email
Automate marketing with omni-
channel campaign management
for digital channels
IBM Marketing Center &
Xtify solutions
Make it easier
• Speed time to deployment thanks to
a cloud-based solution
• Adopt quickly with ease of use
Automate recommendations
Increase engagement, conversion
rates & cross-sell revenue
IBM Product & Content
Recommendations
Create rich content and
manage marketing operations
Fuel personalized
marketing programs
IBM Customer Experience Suite
and IBM Marketing Operations
OnDemand
Grow limitlessly
• With the full Omni-channel Marketing
solution
• With the Customer Analytics solution

19. Smarter Marketing drives higher marketing returns for insurers
Increase in
conversion rate
on
recommended
products
250%
Business Outcomes:
Improved customer value, loyalty & retention
5-15% increase is typical
Higher campaign ROI
15-30% increase is typical
Increased response rates
10-50% increase is typical
Improvements to other business metrics
revenue, profit, assets under management, # products owned, etc.
Digital MarketingReal-time
Personalization
Omni-Channel
Marketing

20. IBM Commerce provides solutions that span all phases of
the brand experience across all channels of interaction
Seamless Brand Experience
Omnichannel Customer Engagement
B2B Commerce
Real-Time Personalization
Digital Marketing
Customer Analytics
Omnichannel Marketing Customer Experience for
Service
Multi-Enterprise Process Collaboration
Governance, Risk & Compliance for Critical Corporate Data
ServiceSalesPre-Purchase

21. IBM provides critical enabling solutions for Insurance
providers
Analytics
Social
Cloud
Mobile
Security
Accelerate
alignment across the
commerce value
chain
Increase
business agility
and enhance
customer value
Leverage
collaborative
business networks
• Extend digital interaction and visibility into customer
behavior to include social
• Deepen the brand relationship with social interaction
• Establish a new marketing/sales channel
• Leverage the power of instant community
• Accelerate speed to value
• Onboard users faster
• Scale to meet your needs
• Create a global “anywhere” platform
• Broaden customer insight to include structured and
unstructured data
• Understand interests, tendencies, behaviors,…context
• Become more relevant and essential
• Address consumer expectations for mobile interaction
• Extend digital into the shopping experience
• Extend the brand relationship to the most intimate
communication channel
 Secure transfer of data amongst ecosystem partners/
service providers
 Secure management of cloud data

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IBM Corporation 2014
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References in this publication to IBM products or services do not imply that IBM intends to make
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23. Thank you.