The issue
- Shrinking customer base
- 13 legacy books and numerous policy variants causing customer and staff confusion
- Operationally complex to manage – high cost to serve
- Existing proposition and pricing created trigger points for customer exit
- Customers not segmented by value
- No differentiated renewal or save strategies
- Not pricing for risk or maximised value retention
- Poor customer journey: passed from function to function, advisors not empowered
What we did
Designed & executed a pricing, product and service migration of all policyholders to one new modular product
- Developed new proposition which drove retention of high value customers and higher return from lower value customers
- Built in upgrade/downgrade ‘right-size’ choices to mitigate competitor switching
- Created pricing engine enabling all business to move to NCD-based policies and set renewal premiums to optimise gross margin
- Cut expected IT lead time to launch from 12 to 3 months
- Changed customer communications and management processes to de-risk customer disruption & loss
- Engaged Legal and regulator on ‘automatic renewal’ plans throughout
- Piloted the transition on 2 highest lapse-risk books to ensure error-free process and no adverse increase in lapse rates
The results
- Exceeded the £20Mpa gross margin improvement target
- Reduced customer loss by 25%
- Improved operating cost ratio from 30% to 16% with greatly improved IT flexibility
- Excellent customer and FSA feedback
- Successfully rolled out from personal to SME & Group schemes
What our clients say
“As a result of Curzon’s support a strategic and digital leap has been made in how we manage the entire asset lifecycle to transform our Developer Service experience. This is a programme and a product that sets a new benchmark within the industry.”
Jason Tucker
Director of Alliances & Integrated Supply Chain, Anglian Water
An award-winning team
