	Why ads?

	Riding the Whirlwind
	Strategic Interactive Marketing for the Insurance Industry
Key Points:

The Acquisition Cycle provides a framework for analysing communications

6.5 Support an Integrated Acquisition & Ownership Cycle

6.5.1 The classical marketing model based on the stages throughout the Acquisition & Ownership Cycle provides a framework for analysing communications between prospects, customers and supplier. The following model shows the activities within the Purchasing phase:

Purchasing activities in the Acquisition & Ownership Cycle.

Each stage has different information needs, a learning element, and a series of linked communications.

6.5.2 Each stage has:

different information needs: for example, information on the needs met or benefits provided. Information about the company's products, as well as those of competitors; and information on using the products.
a learning element: for most customers there is a one time need to learn about both the product or service itself, and about the acquisition process. Increasingly customers have an ongoing learning process if they are to stay informed of new developments and opportunities.
multiple communications: the more complex the product or service the more likely that there will be a series of linked communications.

Consumers are using the new mediums to support a Pull strategy whereby they have the initiative. This has significant implications for companies. They are now seeking ways to convert back to a Push mode, as used in Direct Response.

- Consumers' Instigate Pull Mode -

6.5.3 One aspect of the use of these new mediums is that there is a sea-change. There is a change from a Push mode, where suppliers inundate customers with information (which they will increasingly block), to one of Pull, whereby customers have specific demands. Take for example, the acquisition of term life insurance. For customers there is hardly any additional work or cost in sending a specific request by e-mail to numerous companies, but for those companies on the receiving end there are two challenges:

responding to individual specific requirement is time-consuming and expensive. The more generic a response is, then the less likelihood of a sale.
how to convert communications back to a Push mode (as they are currently doing with direct response).

Achieving the latter is a way of addressing the first challenge.

Push mode requires a base of personal information on customers.

- Companies Re-assert Push Mode -

6.5.4 In a Push mode, the company builds up a personal profile of its customers which is used to generate targeted communications. This may initially be done using proxy data as described earlier. The diagram shows the process and the stages are briefly described:

Changing Pull into Push with Web Genetics (SM)

From this base, highly targeted and personalised communications are sent to customers. They must include some form of enticement, not to buy, but to communicate back. In return the customers are asked for further personal information.

When customers reply, the additional data is captured and then the process is repeated.

- Need to Entice Customers -

Using the customer profile, the company sends out infrequent, but highly targeted, personalised, and relevant information. The aim is to entice customers to communicate back, preferably using the companies electronic and automated mediums. The aim is not to force a premature acquisition.
Nationwide for example, entices customers with information on Football League Clubs (see next page).
Guardian Royal Exchange (www.gre.uk.co) links to UK Pocket Guides (www.ip7.co.uk) who provide city tourist information.
By identifying customers when they respond, they can be presented with further relevant information in-order to cement the relationship. Using the WWW, the real-time automatic building and presenting of unique customer pages is possible.
Further response is then invited from customers. For example, by asking them to assess how well the information has met their needs, and what unmet needs are remaining. After capturing and processing this information, the cycle is repeated.

6.5.5 Many of the requirements of the Acquisition Cycle also apply both to the Ownership Cycle and to the Disposal (or termination) Cycle. For some investment products, Ownership may be as demanding as Acquisition, whilst for other products customer requirements may not extend much beyond a change of address. During Disposal there is often a need to make further decisions and take some action. For example, with an endowment maturing there is a need to recognise the loss of life cover and the possible acquisition of surplus profits. These lead to further options and their evaluation.

All mediums must be used in an integrated way. This requires co-ordination.

The process continues throughout the customers' lives.

- Use of Mediums Must Be Integrated -

It is critical that all mediums, including the traditional direct responses, letters, posters, etc., work together in a co-ordinating and reinforcing manner. This requires that all promotional activities and administrative correspondence are under the direction of marketing.