What would you like to know
- Distribution models are changing.
- One place to look is inside your own organization.
- External distribution and retail platforms are also important.
In all industries today, having access to daily insight and insight throughout the value chain is what drives businesses forward.
For organizations that own the entire value chain, from manufacturing to distribution, access to data across the entire footprint is readily available. Yet we are now living in the era of the platform economy, where many manufacturers (product suppliers) now sell and distribute their products through third party platforms.
Think of the large and small retailers, who previously controlled the point of sale, now distributing through Amazon.com, Walmart.com, and Target.com. All third-party distribution platforms offering access to a large scale of consumers and potential sales volumes, but an entirely new game where the ‘board’ is now online, digital and an entirely different challenge to master than retail face to face.
In many ways, the sales challenge has become even more complex. What positioning results in a higher closing rate in an online experience? What is the best SEO position for my product in a comparative environment? How do I target a select purchasing audience on digital platforms – and how have I ensured continuous improvement, in a dynamic competitive environment?
And finally, what capabilities and what operational levers will lead to long-term success?
This is part of the future landscape that the life annuity industry now faces.
To successfully compete and win in the age of platform distribution – whether through proprietary or third-party distribution platforms (such as PolicyGenius, NerdWallet, Ensight, Simon, FidX, Luma Technologies and others) – life insurance and annuity companies will need to radically upgrade their access to data insights. Both internally and, more importantly, from external sources.
It is the analysis of data and its “actionability” that is fundamental to driving the performance and growth of the sales funnel in the age of the platform economy.
A changing funnel
Why is sales analytics so essential to sales today?
As in almost all other industries, new technologies and structural changes in the sector are having an impact on the wholesale and distribution model.
- Insurance companies are caught between the pressures on margins and the demands of seeking greater profitability while distributors want them to be more responsive.
- It is now possible for agents and advisers to use online marketplaces (many of which are adopted by BGAs and wholesalers) to work directly with carriers.
- With the improvement of the digital product sales experience (digital training, simplified quotes, accelerated subscription), the main distributors are now rapidly “all-in” on digital.
- Competition is intensifying and distribution is evolving. Think about the rapid emergence of new digital operators (such as Lemonade) and new players in distribution, such as the new digital models D2C, BGA and IMO.
The presale funnel is now almost entirely digital, enabling a new level of data analysis to increase operational productivity in sales, new product development opportunities and other areas of competitive advantage.
Analyzing sales data is essential to deal with this rapidly changing landscape.