Optimal remuneration models for the sale of omnichannel insurance

Data-driven digital transformation of competitor sales channels at ADAC Versicherung.

Germany, land of online commerce: this is the recent evaluation of the “Retail Reality 2022” study of the omnichannel solutions provider Shopgate. Most Germans now not only buy many products and services online, but also increasingly use the Internet for information before making a purchase.

Insurance customers are also more open to digital sales and service offerings. Despite this, traditional offline sales channels remain important to them. This development presents challenges to insurance companies. You need to develop an omnichannel strategy, that is, an optimal solution so that online and offline sales not only coexist, but can also support each other.

Compensation model of the future

An omnichannel concept not only includes optimally integrated offers on the customer side, but must also fit the underlying compensation models in sales. Also for ADAC Versicherung, which, as a subsidiary of ADAC SE, offers travel, legal protection, accident and civil liability insurance as well as motor vehicle insurance.

Customer expectations changed on the one hand and the sales channels of the competition on the other. How should the company ensure that the increase in revenue from online sales does not have a negative impact on established channels? How should I increase the potential in all sales units and increase sales? The previous commission model did not meet these requirements. Not only was it perceived as complex and unfair, but it also fostered internal competition: online versus offline, regional club versus regional club.

Development of models based on simulations

Therefore, PLAN D has developed and implemented a new compensation model for ADAC insurance companies. The digitization consultancy with a focus on data analysis and AI created a new model based on data from the ADAC Versicherung and supported it with extensive calculations and simulations. A first result was the “Online Appointment Scheduling” pilot, with which the implementation of the customer journey within the branches can be organized. Based on this experience, the consultants designed and developed the new remuneration model with the help of data analysis and comprehensive calculations. For the implementation of the new remuneration model to be a success, they also had to moderate complex decision-making processes, resolve conflicts and inform employees.

In 2019, the new remuneration model for the marketing of ADAC insurance came into effect. The goal of eliminating internal competition and increasing sales potential across all channels was fully achieved. The new model combines a strong incentive for sales success with fair consideration for consulting and support services. In this way, it sets the course for a successful omnichannel sale. Not least, thanks to the new compensation model, ADAC insurance companies were able to buck the industry trend and achieve growth even during ordered branch closures as part of the coronavirus pandemic.

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