TriNet Group, Inc. (NYSE:TNET) Q3 2020 Earnings Conference Call - Final Transcript
Oct 26, 2020 • 05:00 pm ET
Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] And our first question today will come from Tien-Tsin Huang with JPMorgan. Please go ahead.
Hi. Thanks so much. Kelly, welcome to the call. So I'll ask you the first question, if you don't mind. Just curious with you coming over with an insurance background, what attracted you to the China business and any surprises on the quality of the book and how China maybe you can better engage with the carriers as you are coming over from that side of it. I heard the 360 view on LTV, which is interesting. So maybe something you can elaborate there, that would be great too. Thanks.
Great. Tien-Tsin, thanks. So as for TriNet, really what attracted me to TriNet is I think it's a tremendous growth opportunity, frankly. When I look at the market and I see how from my perspective how under-penetrated it is. I think we've got a lot of room there. It's hard to call anything from an insurance perspective in this environment with COVID-19 because trends are not what you would expect from a normal trend perspective. So I think it's -- that's kind of tough. What I would say is, with insurance background, it's about looking at the data, looking at the customers, the underwriting experience etc and continuing to evaluate that. But you know, TriNet as you know, [Indecipherable] and we'll always continue to do that.
Regarding that 360 view of customer lifetime value, I think the team has done a really good job at trying to understand its customers. I think in this environment, it's really played out in terms of focusing on white-collar verticals just given the fact that they were less impacted by the COVID-19 pandemic. But I think like anything, we've been investing in process improvement and I think we can continue to invest in our processes overall and really refine our view with data of what we think that longer-term value from the customer is. So you know I'm six weeks in, so still getting up to speed for sure, but thrilled to be here and very excited about the opportunity.
Okay, thanks for that. As my quick follow up and just on the full team, the recovery credit program they gave a lot of info there. You rolled it out to the first cohort of TriNet customers. So given what you've learned so far, is there anything else you could share in terms of what the impact might be on improving retention as you roll-out to to the rest of the customer base here?
Great follow-up question. I think in terms of the recovery credit and as we look forward, we just got really early views. Like Burton mentioned, we've rolled it out to the -- really the first cohort with renewals coming up in October. We're not going to really call the impact on 2021 yet, because we really wanted to see, as you know, most of