Our client knew they were leaving revenue on the table. Our RevClarity assessment showed them where and what to do about it.
Our client, a regional insurer, knew they were leaving revenue on the table in their Small Group Insurance department. The question was “where?”. Their traditional reporting showed strong revenue, however, they couldn’t shake the feeling they could do better. Instead of chasing ghosts, they brought in our team for a tailored RevClarity assessment, which in just six weeks identified meaningful areas of revenue opportunity, and delivered a plan grounded in their real-world needs to address them.
While retention, customer satisfaction, and margins looked healthy according to their lagging indicator data, the leading indicator data uncovered concerns for their future state.
Our client’s traditional reporting showed retention rates above industry averages. However, this hid a deeper issue—the contracts were retained at higher rates, so revenue remained steady while the total number of subscribers was already falling.
New business acquisition had dipped below historical levels, running at a pace unable to replace expected attrition.
While our client still held a dominant space in the market, the competition was gaining both in market growth and key financial metrics.
As with all RevClarity engagements, we approached the analysis holistically, gathering quantitative data from the client, industry benchmarks, and publicly available data from competitors. To this, we incorporated findings from stakeholder interviews, broker surveys, as well as other employees. Then, we fed our analysis into our Revenue Maturity Index to highlight key strengths and weaknesses.
Our work was designed to give the client two views: the first, an accurate picture of where they are now and what gaps exist between current and desired future state, and the second, an actionable, prioritized roadmap of how to get there, complete with expected returns.
At the heart of RevClarity is the holistic approach to data, as described above. The key was going beyond our client’s typical KPIs to incorporate novel viewpoints through interviews and surveys, voice of the customer data, and competitive analysis, so we can present a complete picture before zooming in on the biggest opportunities.
Most data, such as retention, market share, customer satisfaction, etc., only tells the “what is happening right now” story. However, that doesn’t provide a path to action. By combining that data with our intensive analysis, we drilled down into the “why behind the numbers”, allowing for truly actionable recommendations.
The truth is that not all projects provide returns in the form of revenue, though that doesn’t make them less important, and that some projects which have the largest potential impact on revenue will take months, if not years, to come to fruition. So, the final critical component of RevClarity was taking our analysis, sizing the impacts of our recommendations, and setting clear priorities for the client, along with real expectations for the near-term, medium-term, and long-term.
Our findings highlighted three priorities that the client should tackle to improve revenues and protect their current products from competitors.
This was where we saw the biggest pressure from outside competition, as well as some of the lowest hanging fruit. With acquisition being key to improved future revenues, it was clear that this needed to be an immediate priority that would show benefit quickly.
Our analysis uncovered several concerns around internal processes that were eroding current revenue. This included a redesign of retention targeting that focused on price, which had been generally accepted as the cause of attrition. Our deeper analysis revealed completely different customer issues to address—not the rates.
The client had the basics of necessary reporting in place, however, to grow their future revenue, they needed to improve several key areas of data, such as deeper financial visibility, including lifetime value and cost allocation at the account and segment level. Without this visibility, the decisions made around products and pricing would be based on assumptions, not real-world implications.
Applying our recommendations across these three areas would both grow revenue and protect immediately at-risk revenue, with an expected impact of $2.6M in just the first year for this single department. It would also set them on the path to confidently grow beyond our three identified priorities.
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