Social Media Analytics: Personal- ized product and service – Infosys
Article Synopsis :
“Social Media Analytics – Personalized product and service offerings”, from Infosys discusses how organisations can monitor, track, measure and leverage social media interactions happening on different channels to move from passive to active customer engagement, resulting in higher levels of customer loyalty. Though the paper focuses on the banking sector and highlights how banks can enhance personalization via social analytics, we see many parallels with challenges faced by both life and non-life insurers.
Banks have shifted from a ”one-size-fits-all” approach to “need-based-offerings” with an increased reliance on Artificial Intelligence and Big Data & Analytics. The paper depicts this more active framework as follows:
Banks and insurers both realize that life events play a very important role in the customer lifecycle as new events bring new financial responsibilities. Banks taking a reactive approach always find it difficult to capitalize on any cross-sell opportunities before the event. This is where social media analytics help by deciphering social data to predict upcoming life events prognosticating a customers’ impending product need. Here’s how it might work:
Step 1: Pointers – Customer browses auto websites frequently or visits car showrooms frequently.
Step 2: Event Recognition – Bank recognizes the pointers and registers the events as “interest in auto loan.”
Step 3: Confirmation of Interest – Bank streams personalized content on “auto deals” across all channels that the customer uses.
Step 4: Tailored Product and Services – On receiving interest, bank designs best products and services through partner dealers.
Step 5: Icing on the cake – Bank offers time-based exciting coupons/reward points to provide the impetus for customer action.
Step 6: Cross-selling opportunities – Bank positions other cross-selling opportunities such as insurance, travel deals, etc.
Socio-economic events can also be used as pointers and can be leveraged as cross-selling opportunities by the banks. Once opportunities are identified the key is personalization, including personalised products and services, personalised pricing and personalised communication.
While there is significant upside to an active approach to customer communication two challenges usually stand in the way:
- Building a unified analytics platform requires banks (and insurers) to have systems and processes compatible with changing customer and technology needs.
- Designing an enterprise-level approach involving data consolidation, digitization, and analytics can be difficult and time-consuming given the constraints of existing legacy systems.
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Digital Insurer's CommentsBanks are seen as an exciting channel of growth by insurers, especially in the developing markets of Asia. With a major focus on digital transformation, banks seem to be evolving faster than Agency channels, presenting insurers with advantages in terms of cost and customer service. The opportunities are immense and it’s up to insurers and banks to jointly collaborate to make things happen fueling digital insurance growth.
Early movers in social analytics are acquiring a distinct competitive advantage with respect to customer personalization and loyalty. Though banks seem to be moving faster in this area, insurers must make investments on their own to build internal social media capabilities independently. Owning the customer is the name of the game and insurers should not be content to let partners own the lead.
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