The benefits of developing strategic plans that tap into the expertise, experience and skill-set of multiple functions across the organization are well known. Alignment across business functions is addressed head-on and the resulting strategic plan is often well developed, well received and executed.
In a recent nationwide study, LexisNexis sought to garner the thoughts and opinions of key decision makers from the marketing and the underwriting/product management functions within the top fifty auto, home and life insurance carriers. As part of the research, the respondents were quizzed on the interrelationship between themselves and their counterparts.
In an earlier blog post, we established that marketers, underwriters and product managers have a firm handle on their own core business goals and the core business goals of their counterparts. They also identified that profitability was the number one metric by which they are measured. The survey respondents also acknowledged that working more collaboratively was either “extremely important” or “important” to business success.
However, this resounding endorsement for working hand-in-hand seems to be contrary to reality. Only four in ten teams reported that they build their strategies together.
Given the ongoing challenging market dynamics, it seems counterintuitive for these teams to recognize the value of collaboration yet fail to embrace it within their organizational culture. So, what’s going on?
In our previous post, we identified that it is only through alignment and collaboration, that carriers can truly optimize their acquisition and retention efforts. However, it seems that this may not be happening. Without alignment and collaboration, it seems unlikely that carriers are able to Acquire with Retention in Mind. Carriers could be identifying, attracting, and converting prospects who switch long before the acquisition cost is recouped, and this can have a detrimental effect on profitability.
The next blog post in the series will delve deeper into the study findings – how do marketers, underwriters and product managers rate each other in terms of their acquisition and retention strategy execution? What is their level of satisfaction and what, specifically are the areas most in need of improvement that would enable them to Acquire with Retention in Mind?
Additional insights from the study will be shared in future blog posts. For more information, please refer to the white paper Collaborate Across Functions to Acquire With Retention in Mind