The changing landscape ofeBusiness

Roberto HortaleBusiness Director, CEE

The changing landscape of eBusiness

• Where can we look for the future innovation for the eBusiness market?

• What are the newest technological advances to take forward?

• Exploring attitude towards pervasive online services and devices

• Learning from personal lines experience

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Looking for future innovation for the eBusiness market

2010 – the year of accountability

• Do you have a Cult of Analytics?

− Collect every last bit of information

− Explore and squeeze your data

− Data-driven improvement at thecore of all you do

• Are you looking at the rightKPIs?

− Conversion and hit rates, GWP, CPS

− By segment, by channel,by campaign, by product

− The impact of customer delight

• Are you generating maximumvalue?

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Example – social media: turning Tweets into $$$

• The legend: You can’t measure social media

• Most companies are still figuring out social media

− Have a presence, run in house as a test

− Measure followers, friends, engagement

− Struggle to measure commercial return

• Most insurers are not yet using it!

• Dell’s @DellOutlet in Twitter

− 2008: $1M in sales

− 2009: $6.5M in sales

− Clear commercial vision and goals setfrom the start

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The tools of accountability

• Set the right targets

− Do visitors really represent value? Look at your bounce rates

− Selling policies vs acquiring customers

− eBusiness across the customer and employee lifecycles

• Measure everything you do

− Web and campaign analytics

− Measure your supporting channels

− Commercial analytics: eBusiness P&L

• Continuously analyse and improve

− Behaviour targetting: Automate!

− Agile management = agile metrics

− There’s always a chance to do more

− Breaking out of the Web glass box

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Accountable to your customers

• Open up

− Sales is no longer enough

− I need to feel in control

− You know who I am

• Add value

− I want more than just claims

• Convenience is the new price

− Products that I build for me

− Intuitive, enjoyable experience

− Additional products and services

• Solid foundations

− Always there, fast

− No surprises

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Innovation in accountability

• Enterprise Web analytics

− Free to use, hard to manage well

• A new marketplace for service providers

− APIs free data to enter the corporation

− Interaction: breaking the page paradigm

• Campaign management

− Automating the measure-change-analysis cycle

− Commercial performance at the core, no surrogates

• Channel optimisation

− Tighter integration across channel constituents

− Accountability extends

• To all inside your organisation

• And all partners and suppliers

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Technological advances to lookforward to

HTML 5

• The next version of HTML

− Remove the need for plugins

− Local storage of data

− New page elements

• What does it all mean?

− Video, audio and rich interaction supporteduniversally

− Data reuse across sites

− Full applications in the browser:my pricing on your PC?

− A semantic standard for page layout structureto improve SEO

− A lot of work!

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Location and awareness

• My device now knows who I am

− Connected devices are personal

• My device knows where I am

− User experiences that adapt to situation

• My device is always on

− Customers expect immediacy

• A great opportunity to develop value-addedservices

− One-button breakdown assistance?

− PAYG travel insurance?

− Discounts/penalties for driving certain routesor times?

− New data for your Cult of Analytics

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Innovation overload

• The pace of change continues, but are customers interested?

• We all lack time to try new things

• Sometimes I just want good enough

• Sometimes innovation is just not required, or not practical

− Google Wave

− The paperless office

• Hype is not always aguarantee

− Google Buzz

− eBook readers

− iPad?

• Innovation requires both need and time to mature

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The always-on world of pervasiveonline services and devices

Mobile is here, but not as we knew it

• There’s an app for that

− The browser is being replaced bythe app as the preferred way to accessservices on the move

• When there’s no app, mobile users rarely prefer mobile sites

− Why would my experience be worse just because I’m not at home?

• Instant gratification expectations heightened by mobility

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Augmenting reality and blurring boundaries

• Location, orientation, rich data enhanceour perception of the world around us

• There is just one world

− No more cyberworld and real worldin the year 2010

• Technology is permeating all aspects of our lives

− Constant curiosity

− Not just for new, unknown places

− Enhancing our ability to connect in person

− Enriching our interactions with others

− Freeing us from place

• We have an opportunity to participate in shaping thisnew space, if we leave our comfort zone behind

− A new value chain

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Fragmentation

• There was a time when going online meant PCand Internet Explorer at home

− Devices abound and there is no clear winner

• There was a time when we found it all in Google

− Aggregators, social media fragmenting thesearch space

• There was a time when content lived at a page

− RSS, reTweets, creative commons helpcontent get copied, changed, shared andspread out of control

• Our Marketing, Pr and Customer Service effortswill become much more complex in an onlineworld that is rapidly fragmenting as it mergesinto the real world

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Learning from personal linesexperience

The UK journey – personal

• Explosive growth of online sales, particularly on car

• Home and travel follow similar pattern, lagging by 2-3 years

− Intermediated distribution impacts home, travel

• Telephone becoming support channel for online sales

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Online sales as % of total Car sales distribution

Source: RSA estimates, approx values used

The UK journey - aggregators

• Growth fuelled by aggregators

− From 2008 over 50% of new business sales online from aggregators

• Panel brands sell about 80% new business through aggregators

• Profitability, selection and retention at risk

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Source: RSA estimates, approx values used

Online sales by channel (motor)

Thank you!

Roberto HortaleBusiness Director, CEE

roberto.hortalmunoz@gcc.rsagroup.com

@rhortal