Customer Services & Public Relations
This marketing function has a primary responsibility to respond to the queries of clients of Enterprise and attempt to provide solutions to them. “Customer service is the act of providing for the needs of the customers by ensuring and delivering professional, assistive, service of high quality before, during, and after the customer’s requirements are met” (Study.com, 2015). It is the focal point of reference for the public to get information from Enterprise and is therefore responsible for ensuring that client complaints and queries are attended to swiftly thereby sustaining the good reputation of Enterprise.
How the marketing function improves the Motor Insurance, to maximise future opportunities and minimise future threats
The marketing function of Enterprise is crucial in improving the Motor Insurance products, maximising the future opportunities as well as minimising the threats that it may encounter in the future as briefly outlined below.
Market Research
Market Research is often aimed at identifying and defining your customers, what they want, why they want your products if they would want changes to your product and will attempt to address these (Jane, 2012). By analysing data gathered from research, Enterprise can efficiently design products or services that will help satisfy the needs of the target market. Well-conducted research will help reveal vital information about the customers in the market and this can be a tool for maximising future opportunities.
The market research at Enterprise is a continuous activity even though several annual surveys are conducted including the Annual Customer Experience and Retention Surveys and Enterprise Market Needs Assessment (EMNA) survey which all feature in the Annual Comprehensive Marketing Report of Enterprise often referred to by management in making strategic management decisions. Various researches are also conducted targeting different segments of the market allowing for specific products with unique features satisfying these target groups to be developed. These researches normally seek to find solutions to queries; explore opportunities; identify threats; client concerns and needs; and several other areas that improve the various other marketing functions.
In the past, the Enterprise Motor portfolio consisted of the traditional covers, however, through market research, Enterprise Insurance has been able to develop other motor products that have sought to satisfy the specific needs of certain segments of the market such as the Motor Insurance with Profit Sharing, Executive Motor Insurance, Group Motor Insurance, etc.
Product design and development
Product development by Enterprise is mostly the result of market research that has explored the possible opportunities in the market and provides an opportunity to develop a product that meets the unmet needs of new or existing clients. Product Development though regarded as an essential aspect of the marketing function is mainly carried out by the Research and Actuarial Unit but with support from the marketing department.
The following key elements are engulfed in the product development process of Enterprise Insurance which allows them to exploit new opportunities in the market to improve the motor insurance product: They ensure that all product designs and developments are based on the outcome of the market research; Another key element is product differentiation by ensuring that new products offer benefits that are unique in terms of benefits; Also all Motor insurance products are developed to have flexibility features to ensure periodic adjustments to the policy when the needs of clients change.
Market Communication
Enterprise Insurance runs a very comprehensive product communications strategy that ensures continuous awareness of their products. Aside the traditional print media, radio, television and billboards that are used by Enterprise in promoting and advertising the motor insurance product, opportunities presented by recent technology have allowed for the marketing team to reach out to clients and potential clients through targeting on social media, advertising on high traffic websites such as myjoyonline.com, advertising the “Advantage App on various platforms to reach difficult to reach areas with the Enterprise Brand, etc.
These promotions and advertising platforms have been very efficient at making Enterprise a very popular brand among Ghanaians. The communication strategy has ensured that even in areas where there are no branches of Enterprise, the people are aware of the brand and resort to using their online platforms, the Enterprise Advantage App and the web portal for purchasing their motor insurance policies.
Product Distribution Channels
Product Distribution as a function of the market has a critical role in ensuring that the customers of Enterprise Insurance have access to the Motor Insurance products when they need them. Distribution of services is the activity that finally enables clients’ have access to the services needed wherever they may be.
Enterprise marketing strategy uses various distribution platforms to offer the motor insurance products to the general public and that has been significantly successful over the past years.
The distribution strategy includes a very strong agency system, Direct Branch Sales, Brokers, Mobile applications, Web Platforms among others. The agency system recruits skilled agents who are remunerated on commissions. The agency distribution strategy also includes assisting the registered agents to take up some of the cost of setting up the agency office. In 2018, Enterprise recorded a significant 32% of their Gross Written Premiums of Motor Insurance from Agents. Enterprise also uses branch office distribution by setting up branch offices called the “Enterprise Market” at 15 locations across Ghana where customers can walk in to buy their insurance, make inquiries, claims, etc.
In the advent of opportunities presented by growing technology, Enterprise in 2018 introduced technology-driven distribution channels including the Enterprise “Advantage App” where Motor Insurance and other products can be bought directly by clients as well as make inquiries and claims on the same app; the ability to purchase policies on their website. Clients who purchased motor products either through the Enterprise “Advantage App or through their website in 2018 when it was launched was 4% and further increased to 6% in 2019 (Enterprise Fourth Quarter Marketing report, 2019).
Customer Services & Public Relations
Enterprise has set up ‘Customer experience’ desk across all its branches responsible for attending to client queries and complaints and taking steps to find amicable solutions to them. The establishment of these numerous Customer Experience Centres across Ghana since 2016 has improved customer experience at the point of sale and after-sale. They also operate a 24hr customer service centre to respond to client queries at any time.
Enterprise conducts Customer Satisfaction Surveys periodically to ensure the effectiveness of this strategy. They would send a customer satisfaction questionnaire to sampled customers after each service and midway through their policy period. The results over the years have been outstanding and explain partially the overall financial success Enterprise has achieved over the years.
Recommendations to enhance the marketing function’s contribution to the improvement of the Enterprise Motor Insurance
Firstly, to have a clear strategy to enhance the marketing function, Enterprise must develop a Medium-Long Term Marketing Plan. The development of the Marketing plan must involve all relevant departments to ensure they gain insights from various areas of operation to have an all-rounded plan. To begin, Enterprise must engage the various departments and units that work with and have an effect on the marketing unit to understand the current status of Enterprise and thereby build from there what needs to be done. The marketing plan would be able to determine fundamental opportunities, threats, weaknesses, and strengths of their motor insurance. Enterprise must also ensure continuous evaluation of the marketing plan to ensure it continues to serve the purpose for which it is developed.
Furthermore, Enterprise must set clear and precise goals for every marketing activity. Clear output metrics must be set and results compared to measure the success or otherwise of every marketing activity. Where there is a need for a variation of strategy to meet these goals, adequate steps should, therefore, be taken to execute this. Enterprise must also ensure that investments in marketing are accounted for by results. So each marketing activity’s return on investment must be measured to ascertain which ones are worth continuing and which are not. Short term marketing objectives must be set and monitored monthly to ensure that Enterprise is on course to achieve their end year marketing goals.
Also, the marketing department works very closely with other departments and is heavily reliant on other departments in some respect. Therefore, there must be a well-defined cordial interrelationship between these departments to ensure a smooth flow of work and the ultimate success of Enterprise. For instance, the Marketing department daily is reliant on the Underwriting Department for price correspondence to ensure the pricing of motor products are adequate for every risk. Also, marketing works with the Actuarial unit to develop new products for the market.
Again, Enterprise must ensure that every marketing function is aligned with the needs of customers and must, therefore, be planned and executed with the client in mind. Marketing communication activities must be segmented and suitable promotional and advertising content targeting different segments. For instance, older generations are more likely to see and take seriously a television advert of Enterprise Motor Insurance than the younger generation who would likely prefer a social media campaign on Facebook or Twitter with infographics.
Similarly, the use of data to derive market intelligence and influence decision making has become a common practice in many industries. To enhance the effectiveness of marketing activities, Enterprise should make use of data science in analysing their marketing target segments and develop marketing activities that yield the best results for these segments using data.
Partnerships are critical to the success of Enterprise in the insurance industry. Not until January 2020 that Enterprise Insurance set up a Broker Relations Department, Brokers had to deal with branch offices of Enterprise for services. However, with the strong and growing influence of Brokers in the insurance market, Enterprise has to develop a good partnership plan to take advantage of the growing influence of the insurance brokers in the industry. According to National Insurance Commission (2019), Insurance brokers accounted for about 40% of all premiums generated in the non-life market in 2018 up from 35% in 2016 cementing the growing influence of brokers as a distribution channel. It is worth noting that some Brokers in Ghana have started building ‘comparison’ websites for selling Motor insurance. One such Broker is iRisk Insurance Brokers. Enterprise must act swiftly in entering into partnerships with brokers to take advantage of this opportunity.
Finally, for Enterprise to truly sustain and improve their marketing success, technology must become an integral part of their marketing operations. Enterprise must continue to invest heavily in technology that yields more efficient processes and gives customers a delightful experience. Investments in technology can allow for process efficiency and reduction in turnaround time. Another technological recommendation is to procure a dashboard system that displays the current status of key marketing metrics and shortfalls for the view of all staff.
Referencing must be completed before submission
All sources must be referenced in the body of your answer as well as in your reference list. See the 945 Specimen coursework assignment and answer for examples of how to reference correctly in text and in your reference list.
References
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7. Krizan, A., Merrier, P., Logan, J., Williams, K. (2008). Business communication (7th ed). Canada. p. 15.
8. Institute of International Finance, 2016. Innovation in insurance: How technology is changing the industry
9. Enterprise Insurance Company Limited (2019), 2018 Annual Report and Financial Statements
10. Enterprise Insurance Fourth Quarter Marketing report, 2019
11. “What Is Customer Service? – Definition, Types & Role in Marketing.” Study.com (2015), study.com/academy/lesson/what-is-customer-service-definition-types-role-in-marketing.html (Accessed 10th April, 2020)
12. National Insurance Commission (2019), 2018 Annual Reports and Financial Statements
13. Jane Frost, (2012), How to use market research to improve your business https://www.theguardian.com/small-business-network/2012/sep/25/market-research-improve-business