Saga Plc · LSE:SAGA
Saga — Investor Day (January 2023)
69 slides from Saga's investor day presentation, Jan 24, 2023
Slide 1: Saga's Superbrand Strategy
SAGA’S SUPERBRAND STRATEGY SUPPORTED BY INSIGHT, DATA AND MEDIA Capital Markets Event 24 JANUARY 2023
Slide 2: Agenda
AGENDA Euan Sutherland Welcome and our strategy Group CEO Lisa Edgar Powering a ‘life unlimited’ through insight Insight Michael O’Donohue Unlocking customer value through data Data Aaron Asadi Introducing Saga Media Media Euan Sutherland Summary and Q&A Group CEO 2 Capital Markets Event – Saga's Su
Slide 3: Our Strategy
OUR STRATEGY Euan Sutherland Group CEO
Slide 4: Building Saga into a Superbrand
BUILDING SAGA INTO A SUPERBRAND What is a Superbrand? A Superbrand offers consumers significant emotional and/or physical advantages over its competitors which customers want, recognise and are willing to pay a premium for through its inherent additional value Over the past two years, we have establ
Slide 5: The Saga Vision
THE SAGA VISION THE Our priority is SAGA to move to VISION higher frequency, higher engagement By 2027, our ambition is to be new products and the largest and services for our fastest-growing customers business for older people in the UK, …based on the largest active pool of the most insightful data
Slide 6: Delivering Our Vision
OUR STRATEGY DELIVERING OUR VISION Increased interaction From once a year to twice a day - product reset and Saga Media More products and services From one to three – creation of ‘the Superbrand’, consent capture and cross-sell Creating lifetime value Through database and CRM management based on exi
Slide 7: More Saga Customers Buying Multiple Saga Products
OUR STRATEGY …WITH THE KEY OUTCOME BEING MORE SAGA CUSTOMERS BUYING MULTIPLE SAGA PRODUCTS Database flow through to existing businesses Customer value pyramid Brand Media Innovation (new customers) (new customers) (new customers) Most 3 products held; valuable 500k customers customers Database Mid-p
Slide 8: Which Will Transform Saga in the Next 5-10 Years
OUR STRATEGY …WHICH WILL TRANSFORM SAGA IN THE NEXT 5-10 YEARS 2022/23 2027/28 2032/33 Insurance Travel Cruise Money Media Note that the charts on the left reflect an illustrative Insurance dominates earnings level of Cruise and Travel growth earnings and with… Move towards a more capital- mix of Lo
Slide 9: Our Three-Step Growth Plan
OUR STRATEGY …BY FOCUSING ON OUR THREE-STEP GROWTH PLAN 1. 2. 3. Maximising our existing Step-changing our ability to Creating ‘The Superbrand’ businesses scale while reducing debt for older people in the UK Specific growth plans for each Grow existing businesses while Re-position the brand to chall
Slide 10: Powering a 'Life Unlimited' Through Insight
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT Lisa Edgar CEO Saga Insight
Slide 11: Insight - A Driver of Value for Saga
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT INSIGHT - A DRIVER OF VALUE FOR SAGA More customers engaging Choosing to spend Spending a lifetime more often with Saga with Saga and spreading the word because Saga reflects who because products are built on because Saga knows customers are and what they
Slide 12: The 60s Bullseye
The 60s bullseye 12 Capital Markets Event – Saga's Superbrand Strategy
Slide 13: A Significant Opportunity
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT A SIGNIFICANT OPPORTUNITY Health + Wealth + Time £395k 25m average total free hours 86 years 88 years individual wealth (on average) Those reaching 60 in 2023 have Those approaching 65 years old (60- Released when 59-year-olds move in another 25-30 years 6
Slide 14: Realising This Opportunity
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT REALISING THIS OPPORTUNITY 1 People change as they age… 2 …impacting their spending behaviours… 3 …and translating into commercial value Saga is focused on a period of It then pinpoints how these Saga is realising commercial value significant change. Our a
Slide 15: The Journey to Tailor-Made by Saga
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT REALISING THE OPPORTUNITY: THE JOURNEY TO TAILOR-MADE BY SAGA Unique customer insight supports development of products and services Our new travel offer, Tailor-Made by Saga is a prime example Our insight and ageing expertise revealed that older consumers
Slide 16: Pillars of Success
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT PILLARS OF SUCCESS Our ambition is for Saga to better know and understand what it means to get older and how to make it the positive experience it should be An absolute focus on what it means to meet the A strong start, but it is just the start… needs of o
Slide 17: Our Customer Segmentation
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT We spoke to: OUR CUSTOMER SEGMENTATION… 2,800 2,500 …all aged between market consumers 50 customers and 90 What did we model? How does this lead to value? Personality Customer segmentation allows us to: Working status dimensions Life stage ✓ Shape our futu
Slide 18: Identified Three Core Customer Groups
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT …IDENTIFIED THREE CORE CUSTOMER GROUPS Group Group Group Horizon Group Cautious Life Group 1 2 3 Seekers 5 Planners Maximisers 8 4.0m 3.3m 2.3m 3.3m 3.6m 1.7m 4.6m 2.9m Total number of 50-9 0 year-olds in the UK: 25.7 million 18 Capital Markets Event – Sag
Slide 19: Three Clear Targets: Life Maximisers
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT THERE ARE THREE CLEAR, SIZEABLE AND ATTAINABLE TARGETS Life Maximisers Saga customers: 0.8m (47%) Opportunity: 3.8m Pipeline: 30 years, 60–90 year-olds Strategy: cement direct relationship , grow, cross-sell Financially comfortable – affluent, retired owne
Slide 20: Three Clear Targets: Cautious Planners
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT THERE ARE THREE CLEAR, SIZEABLE AND ATTAINABLE TARGETS Cautious Planners Saga customers: 0.3m (18%) Opportunity: 1.7m Pipeline: 25 years, 60-85 year-olds Strategy: Grow, retain and cross-sell Financially comfortable – retired, owner occupiers Some health i
Slide 21: Three Clear Targets: Horizon Seekers
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT THERE ARE THREE CLEAR, SIZEABLE AND ATTAINABLE TARGETS Horizon Seekers Saga customers: 0.2m (13%) Opportunity: 3.3m Pipeline: 35-40 years, 50-90 year-olds Strategy: Engage, attract, convert Younger, still working – but still very likely to feel younger tha
Slide 22: Strategy to Tactical Deployment of the Segmentation
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT STRATEGY TO TACTICAL DEPLOYMENT OF THE SEGMENTATION A route to strategies and targeting 12,000 10m 1 members overall database individual Incomparable Largest database of insight panel people over 50 Jim from Leeds UK’s largest panel of people Database mode
Slide 23: Building Tiered Travel Insurance Around Key Customer Groups
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT BUILDING OUR TIERED TRAVEL INSURANCE PRODUCT AROUND OUR KEY CUSTOMER GROUPS Our unique customer insight plays a pivotal role in the development of products and services that meet the needs and wants of our key customer groups. Our new tiered travel insuran
Slide 24: Human-Centered Design as Part of Our Ecosystem
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT HUMAN-CENTERED DESIGN AS PART OF OUR ECOSYSTEM… Translate ageing into needs and opportunities We are here Segmentation Personas Monitor against key Needs maps Drive those into value business metrics propositions and journeys 01 Brand consideration Gap anal
Slide 25: Insight - A Driver of Value for Saga
POWERING A ‘LIFE UNLIMITED’ THROUGH INSIGHT INSIGHT - A DRIVER OF VALUE FOR SAGA More customers Choosing to spend Spending a lifetime engaging more often with Saga with Saga and spreading the word because Saga reflects who they because products are built on are and what they want because Saga knows
Slide 26: Unlocking Customer Value Through Data
UNLOCKING CUSTOMER VALUE THROUGH DATA Michael O’Donohue Chief Data Officer
Slide 27: Our Database Covers 40% of the Market
Our database …containing rich, covers 40% of actionable the market… information… … that gives us unrivalled access to customers… …at a much lower cost 27 Capital Markets Event – Saga's Superbrand Strategy
Slide 28: Customer Management Based on Lifetime Value
UNLOCKING CUSTOMER VALUE THROUGH DATA A CUSTOMER MANAGEMENT APPROACH BASED ON LIFETIME VALUE IS AT THE HEART OF OUR STRATEGY £££ £ £ £££ Lifetime value - Cost per acquisition Current lifetime value Potential lifetime value By utilising lifetime value alongside cost per The difference between, and ch
Slide 29: Lifetime Value Has Three Distinct Advantages
UNLOCKING CUSTOMER VALUE THROUGH DATA FOCUSING ON LIFETIME VALUE HAS THREE DISTINCT ADVANTAGES Lifetime value recognises that… 1 2 The value of a customer The value of a customer relationship extends beyond relationship extends beyond one year one product 13 years Average Saga customer 1.4 products
Slide 30: Managing the Customer Relationship Over Time
UNLOCKING CUSTOMER VALUE THROUGH DATA A LIFETIME VALUE APPROACH INVOLVES MANAGING THE RELATIONSHIP WITH THE CUSTOMER OVER TIME Attract Identify and target higher value customers through a range of marketing activities Retain and recommend Nurture Increase time on book and Engage the customer through
Slide 31: Saga Is Now Well-Placed to Deliver This
UNLOCKING CUSTOMER VALUE THROUGH DATA SAGA IS NOW WELL-PLACED TO DELIVER THIS Platform Re-platforming all data Linking multiple datasets together New cloud-based data warehouse, processing large volumes in real time Tools State of the art tools for analytics, modelling and marketing New machine lear
Slide 32: We Are Already Taking Steps Towards This
UNLOCKING CUSTOMER VALUE THROUGH DATA WE ARE ALREADY TAKING STEPS TOWARDS THIS Grow our database Drive digital sign-up Enrich our existing data Increase the number of customers opting in Building value management tools Create the value model Build the strategy for managing lifetime value Enable our
Slide 33: Rolling Out a Group-Wide Consent
UNLOCKING CUSTOMER VALUE THROUGH DATA WE ARE ROLLING OUT A GROUP-WIDE CONSENT TO COVER ALL SAGA ACTIVITIES Grow our database Simple ‘yes’ or ‘no’ consent Consent to across all specific Saga products products (some or all) via email Via one of the following channels We will grow the volume of consent
Slide 34: Data Driven Marketing and Sales Across All Channels
UNLOCKING CUSTOMER VALUE THROUGH DATA WE ARE BUILDING DATA DRIVEN MARKETING AND SALES ACROSS ALL CHANNELS Enable our channels Assign lifetime value Use behavioural Set cohort strategies Test, learn and (LTV) cohorts to identify to drive LTV launch new initiatives drivers for growth High High Refined
Slide 35: Strategy for Maximising Lifetime Value
UNLOCKING CUSTOMER VALUE THROUGH DATA WE ARE DEVELOPING OUR STRATEGY FOR MAXIMISING LIFETIME VALUE Build value management tools Marketing Alignment Customer lifetime value Propensity RECOMMENDATIONS ENGINE models Intent signals Contextual overlays 35 Capital Markets Event – Saga's Superbrand Strateg
Slide 36: Deploying Data and Advanced Analytics Over Four Years
UNLOCKING CUSTOMER VALUE THROUGH DATA OVER THE NEXT FOUR YEARS, WE WILL DEPLOY DATA AND ADVANCED ANALYTICS TO UNLOCK GREATER CUSTOMER-VALUE October 2022 - 2023 - Q2 2024 Q2 2024 - Q2 2025 Q2 2025 onwards January 2023 Phase 1 Phase 2 Phase 3 Phase 4 Stand-up Plug in Speed up Build out Estimate the Op
Slide 37: Our Database Covers 40% of the Market
Our database …containing rich, covers 40% of actionable the market… information… … that gives us unrivalled access to customers… …at a much lower cost 37 Capital Markets Event – Saga's Superbrand Strategy
Slide 38: Introducing Saga Media
INTRODUCING SAGA MEDIA Aaron Asadi CEO Saga Media
Slide 39: Saga Media: Where We Are Going
SAGA MEDIA WHERE WE ARE GOING 10m global monthly users and 1.5m registered group customers in five years Phase 3 – Expansion £50m new revenue between 2023/4-2027/8 Applying Phase 1 and 2 to new categories £40m annual PBT by 2033/34 Phase 2– Monetisation Extract value through advertising and affiliat
Slide 40: Capital Markets Event – Saga's Superbrand Strategy
40 Capital Markets Event – Saga's Superbrand Strategy
Slide 41: Our Mission
OUR MISSION To build and launch digital media that is proud to represent the real needs and interests of people over 50, to give advice and share stories for them, to give them a place where they can be heard and valued 41 Capital Markets Event – Saga's Superbrand Strategy
Slide 42: Introducing Exceptional.com
INTRODUCING A brand-new website that is proud to be made for Saga customers, with best-in-class consumer advice and inspirational stories that celebrate this incredible generation 42 Capital Markets Event – Saga's Superbrand Strategy
Slide 43: Introducing: Consumer Advice and Inspiring Stories
INTRODUCING 1. Great consumer advice. In-depth reviews of products and services for the way our audience wants to use them 2. Inspiring stories about our audience, celebrating the personal brilliance of these generations in a way no one has before 43 Capital Markets Event – Saga's Superbrand Strateg
Slide 44: The Experience Behind Exceptional
THE EXPERIENCE BEHIND Exceptional.com from Saga is being led by some of the most respected creators in specialist media over the past decade, joining Saga from giants such as Future and TI Media 44 Capital Markets Event – Saga's Superbrand Strategy
Slide 45: Saga Exceptional Will Be For Them and By Them
SAGA MEDIA CONTENT SAGA EXCEPTIONAL WILL BE FOR THEM AND BY THEM A USP for Exceptional.com will be its celebrated over 50s contributors, both from in-house staff and from Saga’s panel. Exceptional.com will use these Experienced Voices panelists prominently and visually throughout the site. They’ll b
Slide 46: Platform Tech Overview
SAGA MEDIA PLATFORM PLATFORM TECH OVERVIEW Industry seasoned and feature-rich WordPress CMS User Editorial staff Customised product reviews content inputs to maximise efficiency, data governance A world-class user experience Cloudflare Global CDN Dynamically set banner ad units served via a Google A
Slide 47: A Commitment to Exceptional Quality
SAGA MEDIA A COMMITMENT TO EXCEPTIONAL QUALITY We have two clear goals for our audience experience on Saga Exceptional: 1. Within three seconds of arriving on the home page or article, they’ll feel like this is a site for them, their corner of the internet 2. They’ll leave feeling inspired to try so
Slide 48: Growing a Global Audience
SAGA MEDIA GROWING A GLOBAL AUDIENCE People over 50 account for roughly a quarter of Audience growth and mix internet usage Exceptional.com will reach approximately 0.5m 14.0m users per month by the end of 2023/24 This will grow to c.10m monthly users by 2027/28, generating 136m monetisable sessions
Slide 49: Media as a Funnel for Group Audience
SAGA MEDIA MEDIA AS A FUNNEL FOR GROUP AUDIENCE Data enrichment workstream Monetisation workstream Known user arrives via Users help email Users interact improve our with content, ability to links and deliver more advertisements targeted Unknown Group content user via a products and search On-site b
Slide 50: Audience Engagement
SAGA MEDIA AUDIENCE ENGAGEMENT Top of funnel – first-time, single-time users 25% By 2027/28, we will have an effective funnel of engagement, with new users discovering Click users – audience with intent, using site to buy Exceptional.com every month 20% 20% will be a mix of first-time and part-time
Slide 51: How We Will Create Value
SAGA MEDIA HOW WE WILL CREATE VALUE Capital-light, predictable, digital revenue delivered through incredible technology and driven by unmatched data Online ads Newsletter Affiliate Brand Events Social Standard display Display units sold Commission-based Sales of Ticket sales Revenue share of units c
Slide 52: Affiliate Partners
SAGA MEDIA REVENUE AFFILIATE PARTNERS Over 50,000 affiliate agreements in place from day one with major brands 52 Capital Markets Event – Saga's Superbrand Strategy
Slide 53: Advertising Partners
SAGA MEDIA REVENUE ADVERTISING PARTNERS Over 200 advertising agreements in place from day one 53 Capital Markets Event – Saga's Superbrand Strategy
Slide 54: Introducing Exceptional.com: Features
INTRODUCING Free to everyone No wall between what our customers need and what we can provide Global Taking Saga across the world, opening up vast new opportunities Built on cutting-edge technology The very same used by market leaders New revenue-generative Multiple, high-margin revenue streams Incre
Slide 55: And It's Live Today
INTRODUCING And it's live… Today 55 Capital Markets Event – Saga's Superbrand Strategy
Slide 56: More Than the Web
SAGA MEDIA MORE THAN THE WEB Web Video Newsletter “I need help to buy and learn “I want to feel inspired, “I want to be informed on about my passions” connected, and motivated” things that matter to me” Magazine Brand And more… Podcasts “I enjoy reading about “I want Saga to be with me Television th
Slide 57: Email
SAGA MEDIA EMAIL Passive, It’s clear our database will be a great advantage for siloed Saga marketing. But what if it was more than that? customer What if we made email a brilliant content experience too… where our customers could feel informed and inspired in Great, their inbox? regular content Imp
Slide 58: Making Saga Magazine Even Better
SAGA MEDIA MAKING SAGA MAGAZINE EVEN BETTER Saga Magazine is a key part of our Saga Media plans, as such we want to transform its fortunes, creating an even better experience for our readers and a winning part of the wider business. Bring print to Make one content family at Saga, where great content
Slide 59: Taking Saga Social
SAGA MEDIA TAKING SAGA SOCIAL Getting social right is a crucial part of the Saga Media plan. Audience growth and improved engagement on social platforms will mean: Increased traffic referred to Exceptional.com Monetisation of said engagement on social platforms But now, with our brilliant new conten
Slide 60: Ambitions - Content
SAGA MEDIA AMBITIONS – CONTENT 3,000 50 articles produced every week, increasing to… articles live by the end of 2023/24 150 articles every week by 2023/24 Dwell time to exceed industry standard by 2024/25 social posts 25 200 videos created and Pages per session per week from live across multiple to
Slide 61: Growth Projections
SAGA MEDIA STRATEGY GROWTH PROJECTIONS Audience and monetisation £25m Audience growth forms the basis for monetisation 0,000 £12,000,000 Initially, audience will outpace monetisation as it is the 136m 0,000 natural priority £10,000,000 0,000 Over the five years, the rate of monetisation increases fr
Slide 62: Big Business Benefits
SAGA MEDIA BIG BUSINESS BENEFITS £50m+ 30,000 130m customer interactions new revenue over users by 2027/28 at per day by five years 80% growth rate end of 2023/24 £270m+ Over 15m £7m+ PBT new revenue over at 10 years new data points Margin within two years 35% CAGR margin £40m+ PBT 7% pa 10m 5m by 2
Slide 63: 6 Reasons Why Media Is Great for Saga
SAGA MEDIA 6 REASONS WHY MEDIA IS GREAT FOR SAGA… It delivers on our purpose High frequency, Gives Saga a wider reach Saga is here to be a friend to people high engagement than ever before over 50. Quality advice and inspiring Media moves Saga from an annual No longer limited to those with stories d
Slide 64: 5 Reasons Why Saga Is Great for Media
SAGA MEDIA …AND 5 REASONS WHY SAGA IS GREAT FOR MEDIA Exceptional experiences A famous brand Incredible customer data every day with meaning and insight Quality matters so much more in media Saga stands for something and is A clearer understanding of customers than it used to – it is an algorithmic
Slide 65: Summary
SUMMARY Euan Sutherland Group CEO
Slide 66: The Success of the Superbrand
THE SUCCESS OF THE SUPERBRAND We are committed to, and have already made progress towards, building Saga into ‘The Superbrand’ for older people in the UK Insight, Data and Media are crucial to our success We continue to prioritise what our customers want Our commitment to developing a high-engagemen
Slide 67: Biff ily;
Biff ily;
Slide 68: Appendix
APPENDIX
Slide 69: Speakers
SPEAKERS Euan Sutherland Lisa Edgar Michael O’Donohue Aaron Asadi Group CEO CEO Saga Insight Chief Data Officer CEO Saga Media Appointed as Group CEO in Lisa joined Saga in February Michael was appointed as Aaron was appointed CEO of January 2020, Euan has 2022 to drive our vision of Chief Data Offi