某咨詢(xún)市場(chǎng)營(yíng)銷(xiāo)customerloyalty-資料下載頁(yè)
2025-01-02 03:26本頁(yè)面
【正文】 ustomers Bain developed a retention strategy for Insure Inc., a large . auto insurance pany. 44 CU7021398RSA Customer Loyalty Insure Inc. Profitability Drivers () Auto Premium Auto insurance premium paid by customers ?Premium per customer increases with customer tenure due to the following reasons: –customers tend to buy more insurance as they get older. For example, as they get older and their family size increases, they buy insurance for a second car –customers tend to buy more expensive products as they get older. For example, they tend to buy more expensive cars that require higher premiums. Investment Ine The ine from premium invested in securities ?It increases from $9 per year for a new customer to $52 per year for a 10 year customer ?The reason for this increase is a bined result of lower premiums and higher expenses for a new customer versus higher premiums and lower expenses for a customer with longer tenure Acquisition Cost Cost of acquiring a new customer. Acquisition cost only exists in the first year ?For Insure, the average acquisition cost per customer is 5% of the first year premium Commission Expense Sales mission for customer acquisition。 paid to the agent/sales representative who sells the policy ?The mission expense for new customers is 17% and for existing customers % of the premium, since it is more difficult to bring in new customers than to retain existing ones Following are the drivers of profitability in the auto insurance business: 45 CU7021398RSA Customer Loyalty Insure Inc. Profitability Drivers () Expense Ratio The ratio of operating expenses (., underwriting, claims expenses) to premiums ?The average expense ratio for new customers is 67% versus % for a customer with 10 years of tenure ?Expenses are typically lower for existing customers because they have fewer questions and because insurance clerks can make quicker, more educated decisions based on knowledge of customers’ histories Loss Ratio The ratio of accident payout to premium ?It is about 88% of premium for new customers and 65% of premium for a customer with 10 years of tenure ?The reason for higher loss ratios for customers with shorter tenure is that as customers get into accidents, their premiums go up and they go to lower premium insurers. Customers staying for longer periods are the ones who are less accident prone Combined Ratio The sum of expense ratio and loss ratio 46 CU7021398RSA Customer Loyalty Insure Inc. Revenue Growth and Combined Ratio Trend From 1989 to 1991, Insure’s revenue growth rate declined, while its bined ratio increased. 1989 90 910%2%4%6%8%10%Revenue Growth in Percent 1989 90 9180%90%100%110%Combined Ratio in Percent9% 4% 3% 89% 96% 103% 47 CU7021398RSA Customer Loyalty Insure Inc. Profitability Trend As a result, Insure’s profitability declined. 1989 90 91(15 %)(10 %)(5% )0%5%10%Profitability in Percent5% (2%) (10%) 48 CU7021398RSA Customer Loyalty Insure Inc. Profit per Customer by Tenure I nv e s tm e n t I nc om eA u t o Pre m iumA c q ui s i t i on Cos tCom m i s s i on E x penseE x p e n seR a t ioL o ss R a t io1 2 5 10$890($ 1 , 5 5 3 )$988($ 1 , 1 3 2 )$ 1 , 2 0 5($ 1 , 0 6 8 )$ 1 , 3 5 0($ 8 4 3 )(2 , 0 0 0 )(1 , 5 0 0 )(1 , 0 0 0 )(5 0 0 )05001 , 0 0 01 , 5 0 0Profit per Customer (1991 Dollars) Y e a rs o f C u st o m e r Lif eSince longerterm customers are more profitable than shortertenure ones, Insure can improve profitability by retaining customers. Net Profit ($663) Net Profit ($144) Net Profit $137 Net Profit $507 49 CU7021398RSA Customer Loyalty Insure Inc. Profit per Customer by Tenure Steps ?Determine number of customers by tenure ?Calculate the value of each profit driver per customer by tenure ?Determine the profit per customer by tenure There are three steps in determining the profit per customer by tenure. Step 1: Step 2: Step 3: 50 Loyalty Customer Loyalty Insure Inc. Profit per Customer by Tenure Step 1: Number of Customers by Tenure Insure’s 15MM customers were broken down by tenure as follows: Years of Tenure Percent of Customers Number of Customers 1 2 3 4 5 6 7 8 9 10 11+ 22% 18% 16% 12% 8% 6% 5% 4% 3% 3% 3% 100% 15MM 51 Loyalty Customer Loyalty Insure Inc. Profit per Customer by Tenure Step 2 (): Auto Premium per Customer by Tenure Auto premiums were calculated for each customer tenure group. Customer Tenure Revenue from Auto Premiums Auto Premium per Customer 1 2 3 4 5 6 7 8 9 10 $2,907MM $2,616MM $2,434MM $1,967MM $1,404MM $1,101MM $984MM $805MM $590MM $584MM $881 = ( ) $969 $1,014 $1,093 $ $1,223 $1,312 $1,341 $1,311 $1,298 *Numbers are not exact due to rounding Number of Customers $2,907MM 52 Loyalty Customer Loyalty Insure Inc. Profit per Customer by Tenure Step 2 (): Investment Ine per Customer Investment ine was attributed to each customer tenure group. Customer Tenure Percent of Premium Invested Interest Earned per Customer 1 2 3 4 5 6 7 8 9 10 14% 28% 35% 38% 42% 42% 46% 48% 56% 56% $ = ( $881*14%*%) $ $ $ $ $ $ $ $ $ Auto Premium per Customer $881 $969 $1,014 $1,093 $ $1,223 $1,312 $1,341 $1,311 $1,298 Average Interest Rate % % % % % % % % % % 53 Loyalty Customer Loyalty Insure Inc. Profit per Custom
教學(xué)課件相關(guān)推薦
鄂ICP備17016276號(hào)-1