The Customer 3.0 is pushing insurers to reinvent themselves
With the digital revolution making waves across all market sectors, and particularly in insurance, customers now hold more power than before. Time-poor, demanding, and savvy, customers are pushing insurers to reinvent themselves, and therefore traditional marketing strategies are changing. This is your “Customer 3.0”, and here are some innovative solutions that you can offer them.
Consumers are ever-more critical of products, services and prices offered by insurance companies, and are now eyeing insurance offers more cautiously than before. With digitalisation and its potential for interactivity, its wealth of information and instantaneous nature, now consumers are sitting up and paying attention. The Customer 3.0 is backing insurers into a corner, pushing them to reinvent themselves. So which solutions can they use?
Customer 3.0: time-poor and demanding
Customers want efficient and speedy services, both when processing their claims as well as being offered differentiated add-on services. This will go towards justifying the renewal of their contract, along with clear, honest advice to assist and give them some reassurance from the initial proposal to the moment they take out the policy.
>> Solution: Offer innovative customer experience
First of all, customer insight is evolving all the time, and so using navigational data to understand their customers’ online behaviour is no longer good enough for insurance companies. They are now investing heavily in descriptive and predictive models to qualify and quantify changes in customer behaviour through the use of Big Data.
To do so, the sensors on connected objects and other smart devices are essential for collating new data. By using this large volume of data, insurers can improve customer insight and gain an undeniable competitive advantage by establishing an overall understanding of the market.
Moreover, this will allow the company to construct a medium to long-term, fairer pricing policy as it will be adapted to the consumer habits specific to each customer.
>> What you can expect: control over actuarial risk, brand attractiveness, customer loyalty
Having real insight into risk exposure allows for better control over actuarial risk, as well as improving the image and attractiveness of the brand thanks to active prevention. Of course, we mustn’t forget customer loyalty in the long-term (particularly enhanced by personalised dialogues and services), and the improvement of combined ratios in the medium-term.
The Customer 3.0 uses all communication channels to stay informed
Consumers also reach out to services which can be accessed through any communication channel, at any minute of the day, to suit their connectivity habits. In addition, having multi-access not only allows customers to switch communication channels when they like, but it also maintains the smooth customer journey.
>> Solution: Innovating products and services
Fully aware of the importance of innovating, insurance companies’ R&D programmes are largely focused on renewing offers and enhancing the services available to customers. First of all, products have been adapted to suit new omnichannel distribution methods by offering a simplified online service. Offers have also been given a modern lift using connected insurance (pushing innovations linked to home automation and the “quantified self” trend), and flexible insurance (playing the “industrialised personalisation” card).
The roll out of online tools and ensuring a smooth and coherent customer journey will allow insurers to attract prospects and direct them towards physical networks. Further still, it will enable customers to engage in direct communication with their insurer at any moment, with chat services, video-conferences, or assistance from robot or virtual advisors. Also, customer self-care provides services (proposals, claims, subscriptions) that the customer may access without the need for additional assistance from an advisor.
>> What you can expect: risk reduction
The scope covered by insurance companies is, then, getting progressively wider. They are implementing programmes to encourage customers to install preventative tools. Moreover, insurers can check they are using these tools correctly by analysing the data collected from the installed devices. Using these different connected services, insurers tend to be better informed about their customers and can, therefore, reduce risks.
Clearly, the Customer 3.0 is driving insurers to offer a new and real customer relationship, which was virtually non-existent until now. The current trend is for prevention as well as assisting customers while they go about their daily lives. Insurers will become protectors, and not just exclusively incident managers. And there we have it, for the duration of the contract, the insurer will be connected to their customers, across all available digital channels, proving their availability and willingness to assist at any moment.
Despite their demanding nature and level of knowledge, the Customer 3.0 needs insurance, and reassurance, at each important stage of their lives.
Deborah Osada & Emmanuel Gambart de Lignières
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