Mobile Phone Insurance App

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The Mobile Phone Insurance App from Lifestyle Services Group

• Overview
• Market drivers
• The MPI app solution from Lifestyle Services Group
• Service account and support
• Acquisition channels
• Compatibility & security
• Key benefits
• Summary
• Contact

Overview

Our mobile centric society has fundamentally changed the way we go about our daily lives. In fewer than four years, Smartphones¹ and apps have become the hub of our personal, work and social lives, providing a means to easily and conveniently do activities ranging from interacting with friends to booking flights.

Accordingly, customers' expectations of how they can use their Smartphones have evolved - and will continue to evolve as Smartphone technology develops and more apps become available.

Crucially, Smartphone technology is evolving at such a rate that Smartphones are expected to replace desktop PCs in a matter of three to five years.² Significantly, internet giants such as Google are putting mobile software first because apps are seen to hold the key to growth.³

The mobile phone insurance (MPI) app from Lifestyle Services Group offers a pioneering and industry-leading solution to customers' demands for mobile convenience and accessibility. By redefining how customers can purchase and manage their MPI and other added value accounts (AVAs), the MPI app gives you the opportunity to proactively respond to your changing customers' needs and gain a significant competitive advantage.

What is a mobile app?

A mobile app is like a software program for your Smartphone. Apps make life easier and more convenient by allowing you to customise your phone to your specific needs and wants, ranging from shopping to gaming to business.

Worldwide, more than 30 million apps are downloaded per day and more than 60 apps have been downloaded for every iOS device sold.⁴ Almost 1,000 apps are added per day to Apple's App Store and latest figures show that by mid 2011 the store will offer more than 500,000 apps.⁵

Market Drivers

^{There are several drivers pushing app-based MPI services, the most predominant of which include:}

Mobile centric society
Giving customers more convenience and flexibility, and greater power and control over their everyday lives, Smartphones are outselling non-smart devices nine to one.⁷ Coda Research Consultancy anticipates worldwide Smartphone sales will total 2.5 billion units throughout 2010 to 2015, with a compound annual growth rate of 24 per cent by the end of the period.⁸

Crucially, Smartphones also outsold PCs for the first time in the last quarter of 2010. Consumer electronics manufacturers shipped 100.9 million Smartphones in the last three months of 2010 - an 87 per cent rise on the same period in 2009. PC shipments rose just three per cent to 92.1 million.⁹

Fuelled by millions of customers looking to use their Smartphone to its full potential, in January 2011 Apple's App Store reached 10 billion downloads. Moreover, worldwide app store downloads are forecast to reach 17.7 billion downloads in 2011, a 117 per cent increase on downloads in 2010.¹⁰ By 2014, IDC predicts the number of downloaded apps will reach 76.9 billion.¹¹

The exponential demand for apps makes a strong argument for app-based services. Crucially, Gartner lists mobile payment in its top 10 list of customer mobile applications, which is based on the apps' impact on customers and industry players, considering revenue, loyalty, business model, customer value and estimated market penetration.¹²

Pressure to maintain a strong competitive advantage
With the mobile phone market undergoing a radical shift away from non-smart devices, and Smartphones even beginning to displace PCs, the pressure to gain and maintain a strong competitive advantage and stay ahead of the game to attract new customers while improving customer loyalty has never been so great. App-based MPI services offer customers an innovative and exciting service element, providing highly valued convenience that will increase sales, brand advocacy and loyalty.

Significantly, the number of insured Smartphones has doubled over the past 12 months. This is a reflection of not only the surging Smartphone sales, but the fact that users have a higher propensity to insure Smartphones, since they are as much as 60 times more expensive than non-smart devices. App-based MPI services therefore are a logical move that will become imperative to meeting customers' needs and maintaining a strong competitive advantage.

Pressure to reduce overheads/improve profit margins
The competitive nature of the MPI market, combined with a challenging economic environment creates greater pressure to reduce overheads and improve profit margins. App-based MPI services are a viable way of reducing servicing costs by enabling customers to register for insurance and manage/access accounts independently and at any time. App-based services also promote paperless operations, which not only improves profitability but is better for the environment.

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The MPI app from Lifestyle Services Group

The client-branded MPI app from Lifestyle Services Group is configured to your unique functionality specifications. With full functionality the app will enable customers to:

• Register for and purchase MPI
• Contact Lifestyle Services Group (call and email)
• Access important information about their product, including terms and conditions and frequently asked questions
• Update details on their policy, such as change of address*
• Top-up cover levels*
• Register for and purchase other account benefits and features*
• Attach proof of purchase using the phone's camera*
• Amend selected package benefits**
• Upgrade to other products**
• Monitor claim status**
• Receive and interact with marketing promotions/communications**

*Phase 2, Q2/3, 2011
**Phase 3, Q4, 2011

The core aim of the MPI app is to provide a pioneering platform that redefines the way in which your customers can communicate with your brand and purchase MPI and other added value products and services. The app allows you to respond to your customers' rapidly evolving demands for mobile convenience and accessibility while complementing traditional routes of communication and purchasing. In doing so, the MPI app allows you to demonstrate proactive co-operation with the FSA's agendas/campaigns, set industry-leading standards of customer service and establish a clear competitive advantage.

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Service and account support

The MPI app will come with the following service and account support from Lifestyle Services Group:

Full brand application
The MPI app is a white label product so Lifestyle Services Group will apply your brand to the solution to ensure total brand coherency and create a seamless customer experience. The full brand application also provides unprecedented product advertising by enabling you to place your entire brand in the palm of your customer's hand.

Figure 1 shows typical screenshots of the MPI app. Of course, all LSG branding would be substituted with your brand.

Figure 1: Typical screenshots of the MPI app

Configurable functionality and service options
Lifestyle Services Group will build the MPI app to your unique functionality and service specifications. With options ranging from the ability to register and purchase MPI only, to complete AVA management, the app can be as basic or comprehensive as you wish. Crucially, we will design the app to complement and add value to your current product range and routes to market.

Fully configurable consultative platform
Lifestyle Services Group will provide as much or as little consultative support as you require, from advising on the aesthetic and functional design of the app to managing supplier relationships. Full marketing support is also available to support the app's launch and your ongoing customer usage, acquisition and retention objectives.

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Acquisition channels

The app will be free to download and widely accessible to both new and existing customers. You can use one or more of the following acquisition channels:

In branch/in store
Your customers can obtain the app in store or in branch by taking a picture of the app's QR code, which you can print on promotional literature such as posters and leaflets.

What is a QR code?
A QR code is a specific matrix barcode consisting of black modules arranged in a square pattern on a white background. The code is readable by camera phones and dedicated QR barcode readers (which customers can download as a free app).
Once customers have taken a picture of the app's QR code, their phone will take them direct to the app's registration page. If they choose to register later, they'll get a reminder text message.

Handset box
You can print the app's QR code on the boxes of new handsets, as well as the sleeves of replacement handset boxes.

Telephone
Your customer service representatives can use inbound calls as an opportunity to inform customers about the app and direct them to a suitable app store to download it.

Email campaign
You can use promotional email campaigns to explain the benefits of the app to your customers and provide them with a link to download it.

SMS push
You can send your customers a brief overview of the app and a link to download it in a text message.

Internet/app store
You can make the app easily accessible through online stores such as Apple's App Store, Blackberry's App World and the Android App Marketplace.

Pre-load on handset
For replacement Android and Blackberry handsets, it may be possible to pre-load the app on the handset before sending it to the customer. This way, customers can immediately use the app to register the new handset.

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Compatibility

There are currently five main mobile operating systems in the market:

• Apple
• BlackBerry (RIM)
• Android
• Symbian
• Windows Phone

Of these, Apple, Android and Blackberry hold 90 per cent of the market share.⁶ For the initial launch period therefore, the app will be compatible with these three main operating systems to capture the vast majority of the market. As Symbian and Windows Phone develop and grow in market share, Lifestyle Services Group will release compatible versions of the MPI app with no functionality differences.

Security

Data security is of paramount importance to Lifestyle Services Group and the app has several key security measures in place:

Dedicated gateway
The app passes all customer data through a dedicated gateway. The gateway does not retain any data and acts as a security measure by providing an additional firewall and proxy server. The firewall prevents unauthorised admission into Lifestyle Services Group's private network while the proxy server determines if Lifestyle Services Group's server can carry out the application requests.

Data encryption
Data encryption password protects confidential information by ensuring only authorised persons can access and view the data. Encrypting all customer data during transfer prevents unauthorised users from modifying/editing information and/or transmitting the data to unauthorised parties.

No data storage
No sensitive information is stored on the app to ensure the data does not become liable to misuse.

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Benefits of app-based mobile phone insurance services

Until now, improving customer satisfaction while reducing costs has been more of a paradox than a reality. However, by placing easily accessible MPI in the palm of customer's hands via an app, Lifestyle Services Group enables you to do just this, and gain several other benefits at the same time.

First and early mover advantage
Lifestyle Services Group's pioneering MPI app allows you to create a unique competitive advantage in a price-sensitive and mature market. The MPI app will enable you to differentiate your marketing strategy, create considerable appeal to new customers and significantly increase your customers' satisfaction, loyalty and advocacy.

Increase MPI accessibility, purchasing propensity and revenue
Lifestyle Services Group's app-based MPI services are convenient, easily accessible and offer customers more choice through an alternative route to market that sits alongside and complements traditional routes. By making MPI more accessible than ever, you'll be able to effortlessly deepen market penetration and increase revenue. Plus, by always being there when your customers need you, you'll increase purchasing propensity and promote loyalty across a diverse customer base.

The MPI app also allows you to support and increase sales through promotional methods that drive usage and registration, such as free iTunes vouchers.

Improve communication
Lifestyle Services Group's app-based MPI services create an additional marketing channel, making communication easier and more convenient. The two-way communication channel will have a profound effect on the way customers experience and interact with your brand. For those who wish to manage their MIP via the app, everything they need will be in the palm of their hands and just a click away.

Increase customer satisfaction
By redefining how customers purchase and manage their MPI, Lifestyle Services Group's app-based service will enable you to set new standards of customer satisfaction. Facilitating remote customer service, at any location and at any time, will enable you to give your customers the choice and convenience they want. Importantly, satisfied customers will become brand advocates, which will develop favourable brand perceptions.

Ease of use
Lifestyle Services Group's app-based MPI services give customers everything they need to manage their MPI and other AVAs at a time and location convenient for them. They don't need to call within opening hours and they don't need to be sitting in front of a desktop computer. The ease of navigation throughout the app means you can enrich engagement and interaction with your brand and services while improving communication at every level. The result is greater satisfaction and loyalty.

Reduce servicing costs and improve service efficiency
By enabling customers to register for MPI and manage their account via the app, demand on more expensive customer service routes, such as call-centres, is minimised. This not only reduces costs but can also simultaneously improve customer service efficiency.

Built to spec
Lifestyle Services Group builds the app to your unique specification, which enables you to customise your level of customer engagement and support. Our consultants will work with you to ensure you seamlessly and cost-effectively create an additional route to market to deliver your MPI and other AVAs while meeting your customer service and engagement objectives.

Generate valuable internal research
Lifestyle Services Group's app-based MPI services will generate valuable data and information for internal market research purposes, such as phone operating systems, devices registered, number of downloads and number of registrations/purchases. Information on cross sales made through the app will also be available shortly.

Direct brand engagement
There's nothing quite like the direct brand engagement Lifestyle Services Group enables you to create by placing your brand in the palm of your customer's hand. With full brand application, app-based MPI services offer unrivalled marketing potential.

Increase competitiveness
Ultimately, Lifestyle Services Group's app-based MPI services enable you to stay ahead of the game and establish a unique selling point and strong competitive position in a saturated, mature and price-sensitive market. Running app-based services alongside traditional routes to market will increase your competiveness by appealing to a wider target market, expanding your market penetration and enabling you to maintain a satisfied and loyal customer base.

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Summary

The pioneering MPI app from Lifestyle Services Group enables you to proactively respond to the fundamental shift away from non-smart devices and desktop PCs, and the surging rise in the use of Smartphones and apps. By meeting customers' demands for mobile convenience and accessibility, you can increase sales, customer satisfaction and loyalty. Moreover, you can demonstrate compliance with the FSA's agendas, reduce overheads and ultimately, create a strong competitive advantage. Crucially, the MPI app from Lifestyle Services Group is completely configurable and designed to support long-term growth by complementing your existing business model.

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Contact

For more information about the MPI app please contact us

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¹ Defined as a mobile device running an external operating system, such as Apple or Android
² Beta News. 2011. Will the Smartphone Replace the PC in Three Years?
³ Electric Pig. 2010. Google Boss: It's Time to Put Phones before PCs.
⁴ Asymco. 2011. More than 60 Apps Have Been Downloaded for Every iOS Device Sold.
⁵ Asymco. 2010. Apple has Accepted Nearly 400,000 Apps in 2.5 Years.
⁶ iCrossing. 2011. Mobile Operating System Market Share.
⁷ Phones 4u. 2011.
⁸ Coda. 2010. Coda Research Consultancy Forecasts that Sales of Smartphones Worldwide Will Total 2.5bn Units During 2010 to 2015.
⁹ IDC. 2011. Cited by The Telegraph: Smartphones Outsell PCs.
¹⁰ Gartner. 2011. Gartner Says Worldwide Mobile Application Store Revenue Forecast to Surpass $15 Billion in 2011.
¹¹ IDC. 2010. IDC: Mobile App Revenue to Jump 60 Per Cent by 2014.
¹² Gartner. 2009. Gartner Identifies the Top 10 Consumer Mobile Applications for 2010.

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