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Customer Centricity: transparency for the title insurance industry.
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© 2008 October Research Corporation
Welcome to Your Future
Customer-Centric Title Services
© 2008 October Research Corporation
Discussion Points
CUSTOMERSEGMENTS
Clarifying Strategy
CustomerCentricity
Lifetime Value
© 2008 October Research Corporation
“I skate to where the puck is going…not where it has been.”
Wayne Gretzky
Where’s the (title)Puck Going?
The Trend Lines:Spitzer, NY 15%Garamandi / Poizner, CA: 22%New Mexico 6.3%Erin Toll / COCA/WA State: $25 and Rate CalcHUD-1 / GFE ReformHUD Closing Cost SurveyHVCC & GSE’sGAO ReportConsumer Federation TestimonyThe Iowa ModelTitle Wizards and Calculators
Regulatory & Consumer Pressures
Transparency: Consumer Marketing
Lower Premiums
Increased Competition
Reverse Competition
Reverse CompetitionThe practice of marketing settlement services to referrers rather than end users
Title CompaniesHow do you ‘compete’ for the consumer’s business?
LendersCompete and negotiate on rates and points
Realtors®Compete and negotiate on commissions
Home SellersCompete and negotiate on sales price
© 2008 October Research Corporation
How Will You Compete With:Regulatory and consumer pressuresConsumer-direct marketing campaignsTransparencies and open pricingReductions in premiums and/or splitsHyper-competition with underwritersCentralized production by underwriters‘Social networks’ & reputation mgt.Online ratings and reviews about you
Customer Centricity: Your Enterprise Strategy
1. Defining Strategy
2. Customer-Centricity and Lifetime Value of Customers
3. Customer Segments & Generations:
4. The Realtor® as the Gateway to Your Consumers
Consumer Boomer, X and YRealtor Boomer, X and Y Builder Boomer, X and YLender Boomer, X and Y
© 2008 October Research Corporation
Defining Strategy
“Strategy is the creation of a unique and valuable position,
by choosing what not to do and by creating fit among a company’s
activities.”Michael E. Porter
© 2008 October Research Corporation
The Forces That Shape Strategy
© 2008 October Research Corporation
Your ‘Unique & Valuable’ Position• Best Product?• Best Price?• Best Customer Experience?• Does your unique position align to the needs
and wants of your customer segments?• Your ‘unique and valuable’ position…is your
strategy!
© 2008 October Research Corporation
Getting to Strategy
1. Mission• Why we exist
3. Values• What we believe
in and how we will behave
2. Vision• What we want
to become
4. Strategy• Our unique and valuable position
5. Balanced Scorecard• How we will monitor
and implement the strategy
© 2008 October Research Corporation
Customer-Centricity: Your Strategy1. A way to maximize revenues per
customer….and not by product2. Understanding the values of different
customer segments and tailoring products and services accordingly
3. An organization-wide, long-term effort to focus objectives and execution around customer experiences and needs
The Inherent Conflict
Being Customer-Centric…IS… IS NOT…
• Starting with the customer • Product-centric or service centric
• Working with the right customers • Working with every customer with money
• Developing higher value to customers • Measure success by market share
• Training and compensating people based on customer metrics
• Train and compensate people on productivity metrics only
• Listening and acting upon customer insights • Manage customer insights
• Managing the customer’s experiences regularly
• Treat customer experience as ‘nice to have’
• Selling more products per customer • Sell less products to more customers
Customer-Centric vs. Product-Centric
Creating Customer DemandStrategy
Customer Centricity
Moments of Truth
Customer Feedback
Portfolio Manage-
ment
CRM
Social Media
CustomerDemand
Influences onThe Customer
Know Your Customer Touch Points
CustomerExperience
CRM
SALESREPS
OFFICESETTING
RECEPTION
PRE-CLOSING
CLOSINGPOST-
CLOSING
DOCUMENTS
TITLEPOLICY
WEBFRIENDLY
BLOGS, SOCIAL MEDIA
© 2008 October Research Corporation
Goal: Customer Loyalty
Your People:The Experience Creators
Experience:Memorable Human Touch
Relationship : Collection of Positive Experiences
Loyalty:Strong Relationships provide:- Share of wallet- Less defections- Referrals to new business
Loyal Customers are More Profitable
Customer-Centric Architecture
© 2008 October Research Corporation
Who Is Your Customer?
© 2008 October Research Corporation
Your Realtor® ‘Customer’
• Realtor® customer profile• Realtor® customer ‘lifetime value’
exercise• The gateway to your consumers!
Realtor® Profile
© 2008 October Research Corporation
Realtor Lifetime ValueTitle orders and premiums can be mined
from a Realtor’s:1. Personal production of real estate sales2. Personal ownership of real estate and
refinances3. Peer referrals: directing other Realtors
and consumers to your title company4. Realtor lifetime value can exceed $1M
Realtor® Lifetime Value Exercise
© 2008 October Research Corporation
Summary
• Customer Centricity can be your point of differentiation, your strategic imperative
• Customer centricity supports the need for transparency and full disclosure
• Customer centricity can increase revenues per customer
• Customer centricity can lead to loyal customers who send referrals
© 2008 October Research Corporation
To Learn More About Customer Centric Title Services