mobile insurance: freemium to premium adjoa boateng regional director – west africa november, 2015...
TRANSCRIPT
Mobile Insurance:
Freemium to Premium
Adjoa BoatengRegional Director – West Africa
November, 2015
AIO Life Seminar Lome, Togo | November, 2015
Outline
MicroEnsure– Who We Are & Global Footprint
The Freemium Model– The Lemonade Stand– The Win-Win-Win Model– Why Offer Freemium– Experience from Airtel Insurance
Upgrading to Premium– Current Position– Converting Free to Paid
Key Lessons
Founded in 2002 by Opportunity International
2007 Gates grant, 2012 conversion to for-profit social enterprise
Investors: AXA, IFC, Omidyar Network, Sanlam, Opportunity, Telenor
African footprint: Ghana, Malawi, Zambia, Nigeria, Kenya, Tanzania, Uganda, Mozambique, Niger, Burkina Faso, Madagascar
Design, implement and operate micro insurance products worldwide
85% of customers are new to insurance
Cover various classes of risk: life, inpatient/outpatient health, crop, political violence, micro asset, accident/disability, “decongestion”
90 banking and microfinance partners in 12 countries
70 insurance partners , 3 telecom partners
3-Time Winner of Financial Times/IFC Awards
‘’Best Micro Insurance Provider, Africa” - Mobile Money Africa Awards 2014
"Best Low Income Group Product, Africa" Mobile Money Africa Awards 2015
MicroEnsure - Who We Are & Global Footprint
10 –year – old Alex setup his lemonade stand. There were 6 other lemonade stands around but all of them
were offering similar lemonade flavours.
Decision? He decided to give:
A plain lemonade for Free plus; Offer 5 other lemonade flavours at a Price of $1 per
glass.
Note : The $1 is to make up for the cost of giving away the free lemonades.
What was the result? His stand attracted more crowd. He earned more than the other stands.
The Lemonade Stand
https://www.chargebee.com/blog/freemium-business-model/
The Win-Win –Win Model
Win – Win –Win Subscriber – Telco - Insurer
I. Subscriber is able to access FREE Insurance
probably for the first time
II. Telco is able to EARN MORE REVENUE from
LOYAL customers
III. Insurer gains access to a SIZEABLE risk Pool
Free
A Better Model
Why Offer Freemium?
The Win-Win-Win Model
Market Penetration Tool
People willing to pay, but after they have
experienced how the product works
More paid sales than paid products alone
Increase loyalty and spend
Product pays for itself via ARPU Uplift and
Churn Reduction
three for free!
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
15,671101,704
534,106
898,068
1,212,769
airtel three for free!
insurance for everyone – only from airtel
Enjoy peace of mind from airtel
life, accident, and hospital cover, all in one great package. Use more airtel, get more insurance!
Earn up to GHS 2,500 insurance just for using your airtel line
Freemium Market Impact – Airtel Ghana
Airtel Insurance (2014 Data)
• One of the largest benefits on a mobile insurance product in the world
• First launched in Ghana ; now 8 countries
• Airtel Ghana Three for Free, launched January 2014.
• Product to cover life, accident and hospital cash
• About 70% of registered Subs qualify each month for cover
• Conversion Rate of 65%
Upgrading to Premium
Current Position
Total Paid Subscribers 86,377
Avg. Daily Uptake 392
Avg. Monthly Uptake 11,020
Avg. Monthly Paying Subscribers (from inception
19,594Mar
-15
Apr-1
5
May
-15
Jun-
15
Jul-1
5
Aug-1
5
Sep-
15
Oct-1
5 -
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000
Monthly Subscriber Base
Overall there has been a 94% increase in payment success from 19% to 37% in April and
October respectively.
Converting Free to Paid
Sales Channels
– Field Agents– Call Centre – Telco Retail Offices– USSD– SMS
Best Option: Call Centre
– Product explained by real person.– Reach 3x more than field agent per day.– 70% of enrolments for Airtel Insurance in Ghana
Key Lessons
In-house call
centre more
effective & cost-efficient
Flexible payment
terms e.g. monthly,
weekly and daily
Staff knowledg
e on product offerings
& compone
nt is essential
Use customer balance data to design
payment structure.
Customer Education
is important
Use a combination of Above-the-Line & Below-the-
line Marketing