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ting them on the basis of demographics, purchasing habits, lifestyle and risk factors.

Example
In Europe, life and health insurance companies determined that majority of their customers wanted to be fit and live a healthier lifestyle. Insurers provided their customers with a product which included incentives such as discounts on health club memberships and seminars on nutrition and healthy eating.

Advantages
* Increase in customer retention

* Increase in cross and up selling opportunities

* Decrease in the number of claims filed

Right Channel
Objective
Having identified the right customer and the right product for that customer, approaching the customer using a preferred channel of distribution.

Traditional Practice
* Direct-response[4] marketing such as direct-mail and telemarketing targeted towards all customer segments including those that preferred a face-to-face meeting.

* Before the advent of Web 2.0 organizations relied on marketing intermediaries such as agents and brokers.

Current Practice
Besides using traditional direct-response marketing media and intermediaries, organizations have also launched web portals, comparison websites, and formed distribution alliances with financial institutions to sell products.

Examples
* A study conducted by a British firm, Datamonitor in 2007, revealed that aggregators and comparison websites account for instigating 22% of individuals seeking motor insurance[5]. Likewise websites such as www.policybazar.com in India target price conscious customers seeking better deals online. Another study by Datamonitor revealed that in 2007, 37% of those individuals that purchased insurance online changed their provider upon renewal as compared to 17% that purchased through call centers[6].

* The recent bank assurance alliance between Prudential Corporation Asia and UOB Life Insurance Limited will give Prudential the opportunity to sell its products to UOB customers in Singapore, Thailand and Indonesia.

Advantages
* Offer more comprehensive life insurance products through direct-response marketing methods.

* High response rates from personalized direct-response methods

* Well informed customers and higher customer retention

Right Timing
Objective
To make the sale and to win a customer for life by marketing the right product at the right time.

Traditional Practice
Organizations either marketed the right product at the wrong time or were unable to identify the right time to promote a product. In either case the customer was not acquired and/or retained.

Current Practice
With the use of sophisticated data analytic tools, organizations are able to predict customers' future purchasing habits with the passing of each life stage. They then target the customer whose life insurance needs change due to:

* Marriage

* Birth of child

* Schooling of child

* Marriage of child

* Retirement

Example
Customer A bought a life insurance policy a couple of years ago and declined coverage for her immediate family citing lack of disposable income. However, Customer A's preferences may have changed now and assuming her