Reimagining Customer Relationships – EY Global Survey
Article Synopsis :
As digital consumer needs and preferences are changing, insurers now need to look beyond traditional customer relationship management and develop an enterprise level vision for customer-centricity.
To provide more insight into current consumer preferences and attitudes, EY’s 2014 Global Consumer Insurance Survey asked 24,000 consumers across 30 countries about their relationships with insurance providers. The following key findings of the EY Global Consumer Insurance Survey 2014 make clear the actionable opportunities for insurers who view stronger customer relationships as a strategic imperative:
- High turnover and low trust signal serious relationship issues.
- Just because they leave you doesn’t mean they don’t love you.
- Insurers have so few interactions with their customers that each one becomes a critical moment of truth.
- Consumers want more frequent, meaningful and personalized communications.
- As consumers embrace digital, insurers must rethink their distribution strategies and partner relationships.
As highlighted in the survey report, the first step in moving forward is to understand current capabilities, as well as where the organisation is on its journey to strong customer relationships. Among the key questions to ask while reinventing customer relationship management include:
- How effectively do we serve and satisfy customers today?
- Why do we lose customers?
- Who do we want as customers tomorrow?
- What else do customers want from us or what they might buy?
- Which channels work best – for sales, service and sharing information?
- What tools and technology do we need to understand and deliver what customers really want?
The survey report also highlights that to meet rising expectations in the era of the empowered customer, transformation is required on multiple dimensions and strategic evolution and future competitiveness will depend on:
- Re-taking responsibility for the health of all customer relationships, regardless of distribution channel.
- Expanding the relationship by helping consumers meet their goals.
- Increasing opportunities for engagement.
- Mastering both product and customer experience design.
- Developing advanced analytics capabilities for deeper customer intelligence and more actionable insights.
- Seizing the opportunity to become true risk mitigation partners.
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Digital Insurer's CommentsCustomer relationship management in the new digital world spans beyond the internal framework of underwriting and claims best practices. New technologies and touch points such as social media, smart phones and the internet are the starting point of any new customer relationship and insurers need to quickly understand how to make the most of them in order to avoid just being another irrelevant, commoditised insurance carrier. Insurers in Asia are increasingly recognising the growing potency of digital customer relationship management, but the sheer size of the transformation is overwhelming as it requires a radical shift from the traditional brick and mortar model. It’s more about customer experience management now and we believe that insurers can achieve sustainable competitive differentiation through continued innovation in customer centric business processes and touch points.
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