For decades, Prudential Individual Life Insurance has been there for people seeking to protect what they value most. Dedicated to helping families find security in a dynamic and changing world, Prudential Individual Life Insurance has delivered on their promises for over 140 years. People and organizations from all walks of life can benefit from the protection life insurance provides. The key to Prudential’s success has been to carefully and consistently develop trust.
Recently, Gail Van Dalen, Chief Marketing Officer of Prudential Individual Life Insurance, found time to talk with Loyalty360 regarding the strategies this business uses, what they consider in terms of customer loyalty and some of the exciting engagement opportunities that lay ahead for this iconic brand.
What does customer loyalty mean to Prudential Individual Life Insurance?
Van Dalen: I think the idea of customer loyalty has really changed. To me, it is someone who advocates for your brand, even beyond just the product. However, this idea of the “customer” takes on several different meanings. Prudential Individual Life Insurance is actually a B2B2C organization, which means it primarily sells through intermediaries that include independent advisors, institutions and the company’s national career distribution system. We often refer to intermediaries as “business partners,” but it’s important to remember that in reality they operate independently as they look to address the needs of their own customers.
This means understanding what is truly important to the intermediaries as well as their clients. It also means looking at a life insurance policy as more than a mere statement. To the customers and intermediaries that we serve, a life insurance policy needs to provide for a variety of unique and individual circumstances.
Since you so often work through intermediaries, does that make it challenging to understand the needs of the end consumer?
Van Dalen: In my world, I look at the intermediary as a business partner and the consumer as the end customer. At the same time, just like consumers, our intermediaries have choices every day. They can sell my product. They can sell someone else’s product.
We deliver a value proposition here that is beyond just a product. We think about the value we can bring to the customer experience, and the challenges they are dealing with that we can address. So rather than being product focused, we really try to understand what the issues are so we can offer solutions.
One of the biggest challenges facing the industry today is wrestling with the relevancy of life insurance. And just as those individuals who have no or little insurance coverage in place are dealing with these issues of relevancy, so too are the various intermediaries. Therefore, different distribution channels require different customer engagement tactics. Some intermediaries are insurance professionals, and already possess a comprehensive understanding of the products. For others, life insurance is not core to their practice, so they may look for more guidance and support from the manufacturer.
What are some of the ways Prudential Individual Life Insurance overcomes these challenges?
Van Dalen: We look to establish relationships and provide a level of service that creates advocates of our brand. We’ve historically done a good job of this with our intermediaries, but are now looking to further enhance the customer experience so they are more inclined advocate for our brand as well.
Also key to this is our ability to manage relationships with our intermediaries so we are providing the tools and products that help position life insurance as a key component of an overall financial plan. Since life insurance can offer solutions to protect against various risks, we look to consider how they can best address the needs of the end consumer on a case-by-case basis.
Does Prudential Individual Life Insurance have a formal loyalty program?
Van Dalen: Life insurance is a heavily regulated industry, so we can’t give out any promotions or anything like that for customers who purchase our product, or for staying with us. However, when you consider the idea behind creating loyalty - that comes with trying to understand customers better.
We’re looking at ways to make the customer experience better, such as making the process of purchasing life insurance easier or less time consuming. We think about the value we can bring to the customer. So rather than being product focused, we really try to understand what their issues are so we can offer solutions.
What are some of the most exciting opportunities for Prudential Individual Life Insurance going forward?
Van Dalen: The face of America has changed and we are a very diverse nation. This presents tremendous opportunity. We’ve made a commitment, around understanding and doing a better job of reaching out to underserved markets and have dedicated enterprise level resources to do that. In addition to traditional markets, we take more of a “total market” approach that also takes into account these underserved markets.
So as we become more diverse, there are more opportunities. But how do you overcome the challenge of really listening to all these different customers?
Van Dalen: We have done what we refer to as “signature series” surveys that explore the needs and behaviors financially of underserved markets. For example, we released this year our eighth biennial study on Financial Experience & Behaviors Among Women, which surveys women's attitudes, behaviors and financial knowledge, as well as their financial goals and confidence in meeting those goals. Demographic is certainly a focus. We also have research studies that look at the African American, Hispanic and LGBT markets.
Also, within Prudential, we have something called business resource groups. These groups, which are open to all employees, serve as networks for promoting individual professional development, while helping the company achieve its business objectives. In addition to representing market segments based on ethnicities, a new group that represents generational views is being formed. We also have a group that represents Veterans.
These studies and white papers go a long way in terms of how we reach out to communities. It is important to reflect this changing face of the United States, and these studies help us reflect a lot of different perspectives and opinions.
Do these different groups have different reasons to purchase life insurance, or are the reasons more standard?
Even though the specifics between these groups can vary, the basic needs of most may transcend differences. In addition to the death benefit and living needs benefits, life insurance can be used for estate planning, business continuity, and savings, which are things people from all walks of life can use.
Across most markets, you are going to have people who want to leave a legacy behind for their family. So I think it is a matter of understanding the needs of these different markets, and then being able to help them understand how life insurance can support and solve for their needs.
Every step in this process is working towards the goal of building loyalty, trust, and deeper relationships, and a substantial part of that goes back to understanding the customer, who they are and what they want.
About the Author: Mark Johnson
Mark is CEO & CMO of Loyalty360. He has significant experience in selling, designing and administering prepaid, loyalty/CRM programs, as well as data-driven marketing communication programs.