OPTIMISING MEMBER ENGAGEMENT

Transcription

1 SHARING BEST PRACTICE & OPPORTUNITIES AFM ANNUAL CONFERENCE LONDON 14 TH OCTOBER 2014

2 START POINT WHAT S THE PROBLEM? 53 CURRENT MEMBERS WHO MANAGE SAVINGS, PROTECTION & HEALTH CARE NEEDS OF 25,000,000* UK CONSUMERS WITH TOTAL FUNDS UNDER MANAGEMENT IN EXCESS OF 100 BILLION *Mutual year book, 2013

3 START POINT PLUS MUTUALS ARE BECOMING INCREASINGLY POPULAR! At a 5me when so many have lost their faith in Banks, a?er seeing some big names collapse, people are deciding they like Mutuals......Independent surveys reveal that customers report higher levels of sa5sfac5on with Mutuals *Mutual year book, 2013

4 SO, WHY DO MUTUALS NEED TO START BUILDING AN EFFECTIVE DIALOGUE WITH THEIR MEMBERS? Primary reason - growing pressure being exerted from a number of key stakeholders, for Mutuals to demonstrate their commitment and fairness to their members: o o o REGULATORS POLITICIANS PRESS & MEDIA A real opportunity now exists for AFM members to engage more fully with their members, and implement more effec5ve membership contact strategies

5 LAUNCH OF AN AFM WORKING PARTY TO DEBATE & SHARE BEST PRACTICES Recogni5on by the AFM of the poten5al challenges and opportuni5es of implemen5ng effec5ve member engagement strategies led to an AFM working party being established, to evaluate, debate and share best communica5on prac5ces The working party consists of a wide range of representa5on from both full & associate AFM members, including: The working party met twice to date in 2014, with significant insight gathered, and this forum provides the first opportunity of feeding back to a wider audience, our findings to date

6 REAL VALUE IN COMMUNICATING MORE REGULARLY WITH MEMBERS Over 8,000,000 current Mutual Members The working party agreed that members were their greatest assets - and essen5al to protect their long term income and profitability values. It was widely acknowledged that communica5ng more frequently with members, would be beneficial to: o Communicate the value of mutuality o Increase member saxsfacxon behaviour o Encourage advocacy recommendaxon o Encourage addixonal product and service purchasing o Maximise retenxon & reduce lapse a]rixon rates o OpXmise long term customer value o SaXsfy key external stakeholder requirements

7 BARRIERS & MINDSETS NEED TO BE BROKEN DOWN The working party iden5fied that many AFM members are currently reluctant to implement member engagement strategies, sta5ng high cost, IT restric5ons, data issues, resource deficiency, product limita5ons & restric5ons: Its too expensive to talk to our members, beyond the AGM & other regulatory updates and statements We have old legacy systems, so we don t trust our data quality, and consequently don t communicate ocen with our Members More communicaxon could de- stabilise our Members, and increase a]rixon risk Compliance & lack of resource restricts our markexng capability

8 MEMBERS WANT TO RECEIVE COMMUNICATIONS! FACT: 75% of members researched, were happy to receive more communica5ons from their Mutual provider FACT: Only 40% stated that their Mutual provider regularly engaged with them FACT: 60% were happy to receive between 4-6 communica5ons per year, from their Mutual provider

9 BUILDING EFFECTIVE MEMBERSHIP ENGAGEMENT PROGRAMMES

10 BUILDING EFFECTIVE MEMBERSHIP ENGAGEMENT PROGRAMMES To build a successful member contact engagement strategy, a number of key factors, need considera5on as part of development & execu5on of a more structured member engagement programme: o Defining business objecxves, both short & long term o EvaluaXon and enhancing the current member journey touch points & experience o Developing an integrated mulx channel communicaxon plalorm o Enriching your data insight & database capability o Researching the members needs & aspiraxons o Developing new products & services relevant to the audience o Commitment to budget; resource & IT capability o Regulatory requirements

11 BUILDING EFFECTIVE MEMBERSHIP ENGAGEMENT PROGRAMMES To build a best prac5ce engagement programme, the end to end member journey needs to be evaluated & poten5ally enhanced, to op5mise the member experience: Enquiry Fulfilment Policy Documentation Welcome Process Thank you process X-sell Up-sell triggers MTA Triggers Affinity Building Event Driven Triggers Renewals Maturities Expiries Reactivation Process

12 BUILDING EFFECTIVE MEMBERSHIP ENGAGEMENT PROGRAMMES PRE- PURCHASE ENQUIRY CONVERSION JOURNEY Enquiry Fulfilment Ø First impressions are cri5cal how efficient is your fulfilment process? Ø How quickly do you react to a new enquirer? Ø Have you reviewed the ease of understanding of the sales material and comple5on of the applica5on process? Policy Documentation Ø Does the documenta5on reflect value in the eyes of the member? Ø Are the policy benefits laid out simply for the purchaser to comprehend? Ø Do you reiterate value & benefits of purchasing the product?

13 BUILDING EFFECTIVE MEMBERSHIP ENGAGEMENT PROGRAMMES POST PURCHASE JOURNEY Welcome Process Ø Do you engage with new members in the first few weeks/ months to reiterate brand and product values? Ø How do you communicate by telephony, digital or by paper? Ø Are you using the opportunity to gather customer insight? Thank you Process Ø How do you recognise loyalty for renewal or repeat purchase? Ø Are you encouraging valued members to become strong advocates and reward recommenda5on?

14 BUILDING EFFECTIVE MEMBERSHIP ENGAGEMENT PROGRAMMES POST PURCHASE JOURNEY Affinity Building Ø Are you inves5ng in building an affinity with your members, whether by newsle^er, magazine, loyalty schemes, or product premium discounts how relevant are they? Ø When is the op5mum 5me & method to contact the member? MTA Triggers Ø Customer & Claims Services should be the voice of your company do they reflect it? Ø Is the quality of the scrip5ng and the documenta5on despatched, user- friendly and professional? Ø How quickly do you react to a request or complaint?

15 BUILDING EFFECTIVE MEMBERSHIP ENGAGEMENT PROGRAMMES POST PURCHASE JOURNEY X-sell, Up-sell triggers Ø Are you using the data and insight available to effec5vely communicate on a regular basis with your members & what channels are u5lised? Ø Are you using tac5cal and event triggers to drive communica5on ac5vity? Event Driven Triggers Ø Do they reflect value? Ø Are you managing expecta5ons about the value of their policy? Ø Are you effec5vely answering ques5ons? Ø Are the statements well laid out and easy to understand and delivered when expected? Ø Do AGM No5fica5ons drive op5mum vo5ng response?

16 BUILDING EFFECTIVE MEMBERSHIP ENGAGEMENT PROGRAMMES POST PURCHASE JOURNEY Renewals, Maturities, Expiries Ø Does the member feel valued sufficiently to remain with you or reinvest with you? Ø How much effort do you place on reten5on at pre/point/post renewal, maturity or expiry? Ø What happens if the member does not renew or reinvest? Reactivation Process Ø Do you have a win- back/reac5va5on programme in place? Ø How much effort is placed on reac5va5on? Ø Are lapsed members evaluated and fed back into the acquisi5on ac5vity?

17 GETTING TO KNOW YOUR MEMBERS Key to a successful membership engagement programme is to gather insight into the membership base, in order to communicate & engage cost effec5vely How well do you know you re members? o What data is known about your members? o What demographic profiling has been ac9oned? o Who are your most valuable members? o Are there any par9cular trends with lapse or non renewal history? o Is a=ri9on an issue with a par9cular channel or product?

18 UNDERSTANDING YOUR MEMBERS FINANCIAL NEEDS! Key to a successful membership engagement programme is also to be able to offer relevant products & services to meet your ever changing member lifestage & lifestyle needs o What products do you currently promote? o Do they cover all your members needs? o Is there a product set deficiency? o Do you manufacture or outsource addi9onal product developments? o Cost, IT and resource implica9ons?

19 MULTI- CHANNEL DISTRIBUTION CAPABILITY Key to future success will be the capability of AFM Members to enhance distribu5on capability. o What channels are you using now? o How effec9ve are they? o Does social media fit into your Plans? o Are you looking at new channels? 75% OF WORKING PARTY STATED THE IMPORTANCE OF HAVING AN EFFECTIVE WEBSITE <25% OF WORKING PARTY HAVE CURRENTLY EMBRACED SOCIAL MEDIA

20 BEST PRACTICE EXAMPLE: AGM NOTIFICATION

21 BEST PRACTICE EXAMPLE: AGM NOTIFICATION The AGM No5fica5on was viewed as the key flagship communica5on, and one which needed to op5mise vo5ng response. The AFM CORPORATE GOVERNANCE REPORT, 2014, highlights just over 200,000 members voted at the AGM of their mutual insurer or friendly society in 2013, either in person or by proxy. This excluded the delegate- based friendly socie5es % average vo5ng response

22 BEST PRACTICE EXAMPLE: AGM NOTIFICATION On average 96% of all members en5tled to vote, are currently not engaging, raising a number of ques5ons: Who is voxng and how much insight do you know about them? Are the same members voxng each year? What feedback do you gather each year from your AGM noxficaxons? British Friendly achieved nearly a 10% voting response, compared to a number of AFM members, who managed only 1% Family Investments indicated that around 50% of their votes were via electronic media 85% stated that a core objecxve was to increase the number of AGM votes next over the next few years

23 BEST PRACTICE EXAMPLE: AGM NOTIFICATION BEST PRACTICE TO INCREASE AGM VOTES ü Segment members and communicate to them accordingly ü Don t treat them as one generic group ü Provide both electronic and postal response op5ons ü Research members vo5ng response mo5va5onal forces ü Increase the quality, content and professionalism of the actual communica5on ü Re- iterate brand & mutuality benefits ü Ensure the communica5on is user friendly and engaging

24 SUMMING UP EMBRACE THIS OPPORTUNITY FOR GREATER REWARDS

25 SUMMING UP EMBRACE THIS OPPORTUNITY FOR GREATER REWARDS By engaging more regularly and effec5vely with your members will... CREATE TRUST & REASSURANCE WITH YOUR BRAND INCREASE CONFIDENCE & SATISFACTION INCREASE ADVOCACY RECOMMENDATION INCREASE PROPENSITY FOR INCOME & RETENTION OPTIMISATION

26 SUMMING UP EMBRACE THIS OPPORTUNITY FOR GREATER REWARDS Ignore your members, at your peril! 47% OF UK ADULTS, ARE CONSIDERING CHANGING THEIR FINANCIAL SERVICES PROVIDER, IN THE NEXT 12 MONTHS

27 THANK YOU Graeme McKenzie Managing Director redtag