In today’s digital environment, consumer expectations are high. Big Data is now big business. Companies have a wealth of information readily available. With each keystroke and click of the mouse, consumers are revealing more information and potential insights about themselves to the companies who hope to garner their business. Those consumers expect something in return—a fast, efficient and personalized customer experience. Expectations are high across every industry, including life insurance.
The question is, are you delivering that type of experience?
If not, take heart, because there are numerous opportunities available for you to apply digital capabilities to turn customer information into actionable insights that can drive proactive outreach, customized experiences and lifelong customer retention—allowing you to please customers while growing your business.
It all starts with a holistic view of the customer
Comprehensive data analytics capabilities draw from myriad data sources to create predictive models that help you understand your ideal customers, across your suite of offerings, so you can reach out to attract their business.
In addition, automated application and underwriting processes, including data prefill capabilities that automatically populate and analyze data, make it easy for your customers to do business with you, while at the same time helping you refine your targeting efforts and filter out risks.
Once you’ve acquired a customer, the information you continue to gather about that customer can yield even more valuable actionable insights that lead to increased revenue—and a happier customer. Given the high cost of acquiring a customer, especially in comparison to the cost of retaining that customer, using data analytics to gain insights about existing customers so you can proactively meet their needs is a critical imperative for any insurer.
Meeting customer needs over time
Consider how each of the following customer life changes could be an opportunity for you to make it easier for your customers to address their changing life insurance needs while driving new revenue streams for your business:
- Getting married
- Having children
- Buying a house or purchasing a secondary residence
- Paying off a major debt, such as a student loan or mortgage
- Retiring or making other job changes
Here are some specific examples of how robust data analytics capabilities can be applied to help reveal actionable insights within your book of business:
- By tapping into third-party data sources, you can identify customer life changes. For example, people often reevaluate their finances when they move or purchase a new home. Armed with mover and homeowner information, you can proactively reach out your customers and advise them on ways to better protect themselves and their families by updating their life insurance coverage.
- By working with a data partner, you can obtain up-to-date, accurate and validated wealth and asset information to ensure each insured has appropriate coverage and affordable premiums for their needs and means, and offer alternatives if they don’t.
- Predictive models can be very useful in determining customers at risk of leaving, enabling you to take steps to retain those valuable customers.
- You can also establish event alerts that deliver automatic messages regarding customer life changes.
We invite you to read more about how implementing a data and analytics solution can help turn customer information into actionable insights.