Faced with these massive potential customer defections, insurers simply have no choice but to become more customer-centric (and thus digital). Deciding to take bold action is quite a shift in thinking for many insurance companies, but having decided on it, one of the first priorities should be to decide what kind of customer experience they will offer their customers.
Based on the research, Accenture believes that there are five elements that should inform the unique customer experiences individual insurers will craft:
- Know me: Be customer-relevant. I was amazed to note that 82 percent of respondents said that they would be prepared to share usage information with their insurers to have their insurance coverage optimized, while roughly the same proportion would do the same to optimize their premiums (81 percent) and to get more personalized products (78 percent). Personalization is also a key driver in attracting new customers and keeping existing ones. In fact, a growing number of customers will pay more for personalized services. Obviously, analytics will play a huge role in helping insurers understand their customers better. Learn more about achieving payback in insurance analytics.
- Show me you know me: Build relationships at scale. Technologies like cloud computing, analytics and social media are making it possible for insurers to analyze and respond to customers in real time.
- Delight me: Deliver a seamless customer experience. Customers use traditional and digital channels interchangeably across the insurance life cycle, and become frustrated when they don’t receive consistent treatment across all of them.
- Enable me: Gear up for mobile. Huge and growing take-up of smart mobile devices is changing the game. Already, 67 percent of customers would be interested in services offered via mobile devices, and this channel gives insurers the ability to take customer relevance to the next level.
- Value me: Take advantage of social media. Social media is changing the customer dynamic, and also provides an invaluable “listening post” for insurers. Significant portions of the insurance customer base are using social media for various insurance-related activities, and 55 percent of them (in aggregate) are ready to transact using social media. Social media and mobile are converging, opening up new opportunities for insurers to interact more frequently with customers with context-relevant offers and advice.
Next time, I’d like to focus on how insurers can go about implementing the customer experiences they have designed.