Other parts of this series:
Discover four reasons why insurers should pursue hyper-relevance.
In my previous post, I explained what hyper-relevance is and how insurers need more personalized data and the trust of their customers to be able to provide hyper-relevant customer experiences. But what are the real benefits to insurers of becoming hyper-relevant? In this post I’ll give you four reasons you should pursue hyper-relevance.
- Boost customer retention
It’s well-known that when customers are frustrated, they have a propensity to switch providers. But as their expectations grow, their reasons for switching evolve. Our research shows that 61 percent of customers stopped doing business with at least one company in the last year because of a poor customer experience, and 33 percent of those who abandoned a business relationship did so because personalization was lacking. What this means for insurers is that hyper-relevant experiences are no longer a nice-to-have capability. They’re a strategic priority for retaining customers.
- Attract new customers
Insurers have a tremendous opportunity to distinguish themselves with a more personal touch. Only 22 percent of customers worldwide agree that the companies they do business with tailor customer experiences based on a deep understanding of their needs, preferences and past interactions. And yet our research shows that 48 percent of consumers expect specialized treatment for being a good customer and 58 percent would switch half or more of their spending to a provider that excels at personalizing experiences without compromising trust.
- Gain loyalty
Personalization that is built on trust is critically important to 43 percent of customers. Nearly half (49 percent) of younger customers aged 18 to 34 feel the same way and 88 percent of customers find a company that can personalize their experience without compromising trust to be much more appealing and relevant to their needs. By eliminating trust barriers with new practices, controls and governance structures, companies can use data in new and exciting ways to deliver highly personalized experiences. It’s a positive feedback loop: an insurer provides personalized services, which builds customer trust and loyalty, which encourages customers to share personal data, which enables the insurer to provide hyper-relevant services.
- Grow returns on investments
Winning in the era of relevance means not only maintaining, but also growing returns on investments in products, services and customer experiences. Insurers that set themselves apart by continually adjusting customer experiences to keep pace with the “non-constants” and the changing circumstances of customers’ lives will gain an enormous competitive advantage over those that merely meet customer demands. To thrive in the years ahead, insurers must exceed those demands by a significant margin.
In my next post, I’ll share three actions insurers can take to become hyper-relevant to customers, and some of the roadblocks that might be holding them back.
In the meantime, to learn more, read the report: Put Your Trust in Hyper-Relevance.