Harvard’s Theodore Levitt famously said that customers don’t want quarter-inch drill bits; they want quarter-inch holes. Similarly, insurance customers don’t want products; they want outcomes. However, many insurers still operate with a product-centric, rather than customer-centric view. And customer-centricity is one of the keys to getting on the offense in a digitally connected market.
Get on the offense
Just as there is no single prescription for how insurers should bolster their defense, there are myriad ways they can get on the offense. To determine the best strategy, insurers should answer a few key questions.
- What is your value proposition and what are your differentiators?
- Can your business find new opportunities from so-called disruptors, such as the Internet of Things?
- How do technology innovations, such as the Internet of Things, contextual data or usage-based offerings, present opportunities to improve existing offerings?
- How can you capitalize on customers’ willingness to share certain information in exchange for benefits like lower premiums or more personalized service?
Insurers are not alone in the need to expand their product and services beyond traditional offerings. Register to download Stand on the Sidelines, or Boost Competitiveness? How to make bold moves on the new insurance playing field (PDF) for examples of how players in the media and entertainment industry have dealt with similar pressures—and thrived.
Join me next week as I discuss one more tactic for insurers on the new playing field: expanding the team.
- Read The new insurance playing field, part 1: Game changers.
- Read The new insurance playing field, part 2: Bolster your defense.
- Email me to discuss how Accenture can help you become more customer-centric.