Other parts of this series:
To thrive in the digital era, insurers need to find ways to become hyper-relevant in their customers’ lives. Find out how.
Personalized offerings and services are a good start for insurers looking to improve customer loyalty, attract new and retain existing customers, and grow their revenue. But to really thrive in the digital era, insurers need to find ways to become hyper-relevant in their customers’ daily lives, providing an even more personal touch and more meaningful experiences. As customers’ expectations continue to grow, insurers should respond and evolve, or risk being left behind.
Tesla is a great example of a company that has successfully exceeded customer expectations and earned a new level of trust by providing hyper-relevant customer experiences. In 2017, during Hurricane Irma, the company granted owners of 60 kWh Tesla Model S vehicles an additional 30-40 miles of driving range to help them escape the impact of the storm. This demonstrates several hyper-relevant traits:
- The company’s commitment to meeting customer needs.
- Its ability to use personal data to deliver what customers need.
- Its willingness to serve its customers’ best interests.
But becoming hyper-relevant is not a simple proposition. As Stacey Higginbotham points out in her June post, insurers need to invest in data in order to learn more about their customers, and devices for smart homes and the internet of things are not cheap. It would be costly to get the volume of data insurers need to price risk; this is not a decision to be made lightly. That’s why Roost, a company that sells smart home devices, is working with a number of insurers to aggregate data from these sensors. It shows, too, the value of belonging to a collaborative ecosystem.
For insurers that recognize the value of hyper-relevance and choose to pursue it, we recommend beginning with three actions:
- Look beyond the traditional customer journey
Identify and prioritize areas where hyper-relevance can deliver added value and quickly address the unexpected. Beyond traditional indemnification-related offers, what can an insurer offer customers who have:
- Missed a flight?
- Moved to a new neighborhood?
- Been forced to evacuate their home during a hurricane?
In these situations, customers need different things and relevance becomes supremely important.
- Rethink data
Invest in predictive analytics, collaborate with an ecosystem of stakeholders to capture real-time snapshots of customers, and mine data in new ways to understand the customer journey that extends beyond core products and services, and across channels. Redouble data security efforts, ensure data veracity and implement strong cybersecurity.
- Earn trust continuously
Understand customers’ baseline level of trust, and eliminate issues or irrelevant offers that detract from the trust quotient. Make trust sustainable by establishing a rigorous process and a robust, cross-functional governance structure to continuously measure trust and hyper-relevant effectiveness—and act on those findings. Most importantly, recognize and manage trust as a critical underpinning of hyper-relevance and an enabler of growth.
Ultimately, hyper-relevance comes down to access to data, the insights that can be derived from that data and digital trust. Without data and trust, and the capacity to offer hyper-relevant customer experiences, insurers will find it increasingly difficult to stay ahead of the competition—let alone become winners in an increasingly unpredictable marketplace.
To learn more, read the report: Put Your Trust in Hyper-Relevance.
Or reach out to me directly to learn how Accenture can help you take action to become hyper-relevant to your customers.