Suncorp has revealed how it will spend the $100 million it earmarked for strategy during its results announcement last month.
Michael Cameron, Suncorp CEO and managing director, told the firm’s AGM in Brisbane that the firm will use the investment to continue the development of the Suncorp Marketplace with $27 million to be spent on technology, $18 million on improving customer journeys and integrated offers and $17 million on a national roll-out of a brand refresh.
“The marketplace is a platform, or an eco-system, for our customers, expanding the business beyond just manufacturing,” Cameron told shareholders. “We are building an app that will radically change how our customers interact with us, and this will create more value for them.
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“There is a small window to deliver the core components of this strategy. By accelerating the investment required to create the Marketplace, Suncorp can capture this opportunity ahead of others.”
The firm will invest $17 million in third party partnerships, which are designed to fill gaps in the Suncorp offering, and $5 million will be spent on a customer rewards program.
Suncorp chairman, Dr Ziggy Switkowski, noted in his address that while some saw the decision to invest a further $100 million in strategy when it was announced last month as “controversial,” the firm had to act fast.
“While recent years have felt like a whirlwind, as I have emphasised before, the pace of change will never be this slow again – and for this very reason we have taken the decision to move faster,” Switkowski said. “Our future will be much more than home loans and insurance. We will play an active role in helping customers on their journey to buy, protect, connect and maintain their home.”
Cameron said the added expenditure is already paying dividends.
“We’ve seen early signs of the deepening of relationships with improvements in our customer measures and good top line growth,” Cameron said. “We’ve grown customer numbers for the first time in years, through improved volumes and better retention. This is tangible evidence that the strategy is working.”
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