McKinley reports that advances in computing technology and the explosion of new digital data sources have expanded and reinvented the core disciplines of insurers. Advanced analytics can transform how insurers do business, but realizing it's potential requires complex, large-scale organizational changes.
Take personal auto insurance, underwriting changed when insurers incorporated outside data, like credit scores, instead of the old way of relying only on internal data sources such as claims histories, demos, etc. If the experts can keep up with the technology and utilize the tools creatively and consistently, this should equate to greater value to the customer in all types of insurance product lines.
Read more about the next wave of innovation and building a framework for success.
Posted August 28th, 2014 in Uncategorized,
By Sally Crawford
I’ve said before that IBM and other consultancies control the future of digital media because they can get access to both client and media data. Some disagree - they think that agencies could evolve beyond operational execution to become a bigger part of a marketer’s core value set. But unless agencies can offer a predictable path to reating net new customers, impact overall profitability, and get a seat at the boardroom table, the consultancies will win the day.
One agency executive told me that although the fees his agency received to manage several billion dollars in auto advertising for a major manufacturer numbered in the millions, it amounted to only 2% of ad spend. Grocers make better margins. Agencies are becoming commodity businesses where they merely execute strategies that come from the marketer and are therefore paid commensurate with their strategic contribution.
In order to make an impact on a company, and be truly valued, you must talk about how you can grow their business. You must offer a compelling marketing framework for drilling into new markets and uncovering areas with the greatest potential for profit.
A mentor once told me that unless I was responsible for 20% or more of a company’s revenue I would never get a seat at the boardroom table. Eventually, I got there with a few clients. And guess what? The conversations we had in the boardroom were all about marketing frameworks — and never about smarter media execution.
If agencies don’t want to be disintermediated by consultants like IBM and McKinsey, they'd better start figuring out how to get new customers and have the types of conversations that take place at the boardroom table.
Posted April 10th, 2014 in Uncategorized,
By Christopher Skinner
In a recent AdExchanger article, I asked those on the digital advertising LumaScape if getting first-part (client sales) data could make the difference between delivering mediocre performance for brands and becoming a “must buy.”
Because to really be an essential partner, the conversation needs to be about more than growing awareness - it needs to be about growing revenue. How can media move the sales needle, drive profits and optimize corporate efficiency? Where do the new customers need to come from? Those are the questions that, if answered, really move the needle.
So, who can have those conversations? If not the agencies or the media vendors, then it’s management consulting firms. The McKinseys and IBMs of the world. They understand how marketing tactics can impact the P&L and they don’t have a stake in the media game.
Want to make a bet on the future of digital media? If you think having access to client and media data makes all the difference, then I would go long on management consulting firms – or a new breed of media consultant that can get access to the data that really matters.
Posted March 15th, 2014 in Uncategorized,