A fundamental lack of understanding about who the customer is
means insurers are facing a "through the looking glass" moment.
Traditional perspectives about the importance of operational
excellence and a primarily product-focused approach, are being
turned inside-out in the rapidly emerging customer-ascendant
New research entitled "Creating an Insurance Customer Experience
Management Strategy" from Ovum, highlights how the insurance
sector is quickly moving through an inflection point in the way
commerce is conducted.
The market is moving from a model where one-to-many messaging
works, particularly in mass media, to a framework where
consumers are gaining more power in the business transaction.
However, Ovum believes that until insurers understand who the
customer is, they will be unable to shape, deliver, and
strengthen the experience each customer expects. Insurers must
ensure that marketing is tailored to each individual customer as
closely as possible.
"Without a thorough knowledge of their customers, insurers are
heading towards a competitive myopia. Customer experiences are
becoming the basis of competition in the insurance industry and
companies need to encompass customer needs, expectations, and
satisfaction into their customer experience management (CEM)
strategy," says Barry Rabkin, principal analyst, Insurance
The forces of technology are creating an environment of "more" –
more information, more smart devices, more functional apps, more
interconnected people to seek advice from or share opinions with
– and making all of it available at a customer’s fingertips.
The forces of "more" are delivering a personalised, real-time
experience to each person. One of the biggest challenges facing
insurance companies is figuring out who the customer is, and how
to find competitive success in an environment where each
customer expects to be treated as an individual.
"In this age of "more", customers are increasingly expecting to
receive a quality experience from their interactions with
insurers. Insurers must quickly weave in the importance of
customer experience into the company strategy at each touch
point in order to succeed or fail to meet their expectations,”
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