To capitalize on the opportunity of personalized insurance experiences, insurers will need an actionable customer strategy.

It’s clear that there is not only opportunity, but also imperative for insurers to personalize their customer experiences. In order to take advantage of these opportunities, insurers will need to formulate and implement an actionable customer strategy.

Identify customer microsegments using advanced analytics

I talked earlier about the importance of data, especially with the Internet of Things—but of course, data on its own is of little use. Insurers also need advanced analytics and the ability to mine data for actionable insights.

In particular, advanced analytics capabilities can enable insurers to create precise, actionable customer microsegments and propensity models based on demographics, life stage, needs and behavior. From these microsegments, insurers can identify segment-specific opportunities to personalize offers, messaging, pricing and recommendations.

Deliver an omnichannel experience at scale

Importantly, insurers must develop omnichannel capabilities in their customer experience, spanning physical locations, web, mobile and call center channels. Segment-specific offers are no exception.

Another key component of insurance personalization is scale. Insurers need marketing processes, tools, organizations and agency relationships that can cost-effectively scale up. They need capabilities to use variable content and messaging as needed to appeal to their target microsegments.

Develop a test-and-learn capability

Given the dynamic, real-time nature of many emerging data sources, insurers must develop more flexible marketing processes. A test-and-learn capability can help them operate at speed. The key is to begin with small-scale or pilot programs, evaluate the results, and integrate lessons across other channels and lines of business as appropriate.

Capitalize on the personalization opportunity—today

Leading insurers are already developing the capabilities to deliver increased levels of personalization. One major insurer is in the process of combining data from customers’ past and current transactions, and social content, to offer a personalized experience via mobile app. Another is using data and advanced analytics to develop customer microsegments with the aim of improving customer retention and cross-selling rates.

Accenture has outlined five stages in the personalization maturity model, as well as the four Rs of personalization. To learn more, register to download Satisfy the Craving for Insurance Personalization: Delivering highly relevant, omni-channel customer experiences (PDF).

Learn more:

  • Email me to discuss how Accenture can help insurers design living services that foster stronger customer relationships.

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