Formulated Lifetime Model For Agency Compensation To Boost Sales Productivity

The client is a leading insurer selling auto and home insurance products through a network of independent agents and brokers.

According to the comScore 2011 online automobile insurance report, while the most frequently used method of initial auto insurance policy purchases continues to be going through a local insurance agent in person (43 percent), the Internet is gaining popularity and bagging a larger share of the initial intake market. Although the Internet is fast becoming a popular method of purchasing auto insurance, many consumers still choose to purchase offline. Even consumers who feel comfortable quoting online still purchase through offline modes, with 80 percent of respondents who shopped online stating they then went offline to purchase. Of those who purchase offline after shopping online, 62 percent end up purchasing in person through a local agent and an additional 31 percent purchase with a local agent over the phone.

Faced with a market environment where customers are more aware and increasingly have choice and preferences with regard to channels of interaction, the client wanted to boost productivity of its agents and company sales teams. The client selected WNS to deliver an analytics solutions in order to develop the right sales and distribution strategies.

The Client's Challenge

To address the challenge of increasing the productivity of its agent and company sales force, the client was seeking analytics support in order to

Design a new agent compensation plan

Assess effectiveness of its channel marketing programs

Increase the efficiency of engagement between the sales team and the agents

Develop a better understanding of customer retention drivers at the time of policy renewal.

The WNS Solution

WNS provided a comprehensive analytics solution deploying a range of techniques to analyze data including statistical forecasting, time series analysis, regression analysis, trend analysis and segmentation to deliver actionable insights. To meet the client's needs, WNS

Created a lifetime value model to support the design of the new agent compensation plan. This model calculates the present value of the future cash flows attributed to the agent relationship

Developed detailed reports used by the sales team in order to monitor and improve the engagement with their agents

Utilized trend analysis to determine the effectiveness of marketing campaigns including the impact of seasonal factors and macro economic conditions on sales

Deployed predictive analytics to understand customer retention through regression modeling. WNS identified data sources including information on variables such as product, distribution channel, customer demographics, and competitor pricing to determine the likelihood of customer retention

Generated MIS for insight-based decision-making for the client's senior leadership.

Benefits Delivered by the WNS Team

Given that agents are the key distribution channel for the client, it was imperative to increase the productivity of this distribution channel. By deploying the analytics solutions developed by WNS, the client was able to generate actionable insights into its sales and distribution channels and use these insights to formulate appropriate strategies.

Supported the successful launch of a new compensation plan for its agents

Assessed the effectiveness of a range of marketing campaigns, thereby helping the client devise the future campaigns

Delivered better insights into agent performance.

About WNS

WNS is a leading global business process outsourcing company. Deep industry and business process knowledge, a partnership approach, comprehensive service offering and a proven track record enables WNS to deliver business value to the world's leading companies. WNS is passionate about building a market leading company valued by our clients, employees, business partners, investors and communities.

For more information or to learn about our service offerings, please click here or write to us at marketing@wns.com

by: wns

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