Other parts of this series:
The first step in personalisation is understanding your priorities
Insurers need to evolve if they want to thrive in the age of digital disruption. And while new technologies may be useful, the most important consideration lies in getting back to basics and focusing on customers and their needs. In my previous post in this series, I outlined why a personalised approach is essential for UK insurers looking to keep pace with their customers. Our research has shown that a strategic, data-driven customer focus will deliver significant returns.
We estimate that insurers which adopt a data-driven and human-centric approach to their customers can unlock as much as 5 to 15 percent of trapped value. This touches upon a number of business areas, ranging from lead generation, cross- and up-selling, customer retention and operational efficiencies. With a deeper knowledge of your customers, you can boost the returns on your marketing investments, enhance operational efficiency, and reduce fraud losses and other claims leakage.
A business that feeds on the data and insights of its customers is one that is in constant conversation with the people it serves. This means becoming a humanised insurer, and what Accenture calls a ‘living business’. How can you take the leap and sharpen your customer focus? The first step is to prioritise.
The journey towards becoming a living business begins with prioritising the opportunities for business value through better meeting your customers’ needs. The prioritise step should result in a clear identification of the value available to the organisation, some initial successes achieved and an honest assessment of what is needed to build the foundations for ongoing improvement.
As the diagram above shows, the first step in the Path to Value – the ‘prioritise’ step – is made up of three distinct elements: identify value, seize initial opportunities, and strengthen foundations. If you pay careful attention to every element of this step, you will prepare your business to bypass the limitations of a legacy infrastructure, and gain the flexibility you need to address the evolving needs of the UK insurance customer.
This first step is so important because it puts in place the key skills needed to forge a customer-centric path, such as a data platform, data science skills, technological capabilities and the ability to create the scalable platform required for rapid progress. If executed thoroughly and mindfully, this approach unlocks value almost immediately, within weeks rather than months. Here’s how to get started.
Three stages to personalisation
Preparing your business for its customer-focused journey, starting with prioritisation, requires the following:
- Identify value
First, identify value-creating actions and interventions across all customer touch points in your business’s value chain. For insurers, this could range from the initial web-based quote to adjusting customer renewal periods. Once these touch points have been identified, you can prioritise them based on their value and complexity and build an actionable strategic roadmap.
- Seize initial opportunities
Meaningful change can take place incrementally, in small steps. Once you have identified value opportunities in your business, you can focus on low-complexity initiatives with high potential value such as making the most of your digital marketing by decoupling it from the legacy business, or improving the channels through which information is shared in the contact centre to foster collaboration. Focusing initially on ‘no-regrets’ projects like these releases value quickly and frees up capital for investment.
- Strengthen foundations
The prioritisation stage allows you, finally, to prepare the business for a cultural and technical shift. This involves improving your employees’ understanding of the operational environment and how you can, as a team and with the right intelligent platforms, address customer and colleague pain points.
By taking the time to assess your goals and current infrastructure, and then steering your business towards this, you define the path of personalisation and ensure that all future interventions are strategic and intentional.
For more on why personalisation is so critical for the insurance industry, download and read our paper here.
If you would like to discuss personalisation in the context of your own business, get in touch.
In my next blog, I will discuss how your business can build analytic models and solutions that support your new, customer-focused strategic objectives.