No ROI Without Relevance in the Insurance Industry

Author:

Today’s business strategy is about integrating new insights and creating a plan that will lead to success. McKinsey’s study found that companies who use customer analytics regularly are more likely generate above-average profits. They also perform better than their less analytically-oriented peers by staying ahead of customers throughout the customer lifecycle and enjoying much higher customer loyalty. What is analytics doing for enterprises?
This success can be attributed in large part to the responsiveness of businesses to customers and their emphasis on creating systems and guidelines that are relevant to them. Analytics give companies insight into customer preferences. Companies can tailor content and messages to remain relevant to customers, and wait for a prompt opportunity to make offers that are suited to their customers. Their insights are used to create better, more relevant, and more valuable interactions that turn even new customers into loyal customers, so they return for more. These measures also help to retain long-standing customers’ loyalty.

These are important ways that enterprises can stay relevant to customers:

Timeliness When a customer expresses interest in your product, then you can establish relevance. Customers are not interested in your sales targets, goals, or metrics. You can pitch your product to customers who are looking for something similar, and then watch the deal go through.

ALSO READ  Marriage, Children, and Other Life Changes That Will Help You Get Insurance Discounts

Personalization Use analytics for understanding the customer’s decision-making process and identifying areas of friction that may be of interest to the customer.

Additionalpolation: Use the insights provided by analytics to cover your customer base at a high level. You can use a wide range of attributes such as behavior, demographics and location. You can use them to create personalized messages that speak to your customers about what they want, right down to the color or size.

Segmentation You can use data to create customer segments by using broad criteria. Then, you can dive deeper to tailor your message to each group based on its characteristics and attributes. These could include thank you notes, feedback requests and new offerings of products similar to offer them special discounts or other incentives.

Employee orientation. Businesses must train and orient employees to deliver a personalized experience to customers. They must be open to learning and flexible enough to adapt their approach to customers.

Understanding customer intention: Businesses that are successful learn to recognize positive and negative signals from customers. They also learn to use their behavior to identify their refusal to engage. Insurers can spot the intentions of customers and be able to read them correctly. Today’s insurers are able to use data from third parties to gain a better understanding of customers’ health, lifestyle choices, and risk-taking behaviors. This allows them to customize policies to meet their specific needs. Businesses can use data today to predict intent. This is done by using predictive analytics based on past or similar purchases made by customers. This encourages upsell initiatives and offers.

ALSO READ  Colorado Car Insurance Laws

Rewards customers for volunteering data: Today’s customers tend to share data freely and without incentivizing them. Customers who share their data, which includes their preferences, habits, and values with businesses are often offered freebies or rewards.

Cross-sell and upsell flagged customers: Brands treat high-value customers differently. Callers are offered a variety of choices and options as agents present them with relevant products and services or an upgrade.

Businesses are realizing the tremendous value and increased return on investment of such an approach. Real analytics cannot be achieved without gathering detailed, relevant, and useful information about customers that can be converted to real-time business intelligence. To ensure the success of this approach, it is crucial that all customer-facing representatives, managers, and other staff adopt the same approach and attitude when dealing with customers.