Single View of the Customer - Digital Insurance in India

Single  Customer  View  6th  August  2015  

 Sharad  Mathur  Senior  Vice  President  &  Na?onal  Head  –  Agency,  Digital  &  Alternate  Channel  SBI  General  Insurance  Company  Limited,  India    

Overview  

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Innova?ve  Techniques  to  Track,  Monitor  &  Analyse  Customer  Behaviour  Across  Mul?-­‐Channel  Touch  points  for  a  Coherent,  Single  Customer  View    

 •  Analyzing  the  en,re  customer  journey  across  all  digital  pla7orms  for  a  joined-­‐up,  single  

view  of  the  customer    

•  Knowing    customer’s  expecta,ons  and  how  they  are  changing  towards  devices  and  channels  offline  and  online  –  to  feed  analysis  back  and  improve  the  customer  journey  

•  Enhancing  sales  throughout  the  purchase  cycle  by  gaining  a  comprehensive  overview  of  customer  interac,on  and  conversions    

•  Harnessing  the  power  of  big  data  and  CRM  systems  to  generate  leads  and  link  data  for  an  integrated,  cross-­‐channel  view  of  the  customer    

General  Insurance  Landscape      

•  Insurance  is  largely  a  push  product  than  a  pull  

•  General  Insurance  policy  period  is  small,  an  annual  contract  

•  Churning  of  Insurers  during  renewal  is  prevalent  

•  Low    loyalty  and  high  transac,onal  price  driven  rela,onship  exists  between  Insurer  and  Insured  

•  Products  like  Health  insurance    are  sought  when  a  health  related  incident  occurs  in  family  or  with  friends  

•  Customers  seek  help  from  advisors  as  most  do  not  understand  the  wordings  or  the  coverage  or  benefits  offered  

•  Brand  selec,on  and  buying  decisions  are  highly  influenced  by  experiences  shared  in  social  circles  

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Consumer  changing  behavior  and  expecta,ons  

•  Dwindling  boundaries  between  Online  and  Offline  space  

•  Customers  exhibi,ng  mul,-­‐channel  behavior  –  60-­‐70%  of  online  users  conduct  digital  research  before  purchasing  a  financial  product  –  66%    customers  change  the  product  or  Brand  aTer  researching  online  

•  Consumer  awareness  and  involvement  has  increased  due  to  high    penetra,on  of  internet  and  mobile.  Self  ini,ated  Renewals  have  significantly  improved  in  last  5  years  

•  Customers  have  varied  needs  and  expecta,ons  which  demand  a  higher  customer  centric  and  solu,on  oriented  approach  

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Customer  interac,ons  across  different  channels  

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Mul?ple  channels  of  Customer  Interac?ons  

Call  Centre  

Social  Media  

Internet  Web  Chat  

ATM  /  Kiosk  

Branch  

SMS  

Email  Le[er   Apps  

Mul,-­‐channels  commonly  used  by  Customers  

   •  Receives  an  email  about  a  product  offering  

   •  Visits  the  website  for  details  and  generates  a  quote  

   •  Calls  the  Call  Centre  to  get  some  clarifica?on  

   •  Visits  the  branch  and  takes  a  policy  

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Mul,-­‐Channel  customer  expecta,ons  

•  50%  of  customers  today  are  mul,-­‐              channel  shoppers  which  is  a  mix    

 of  Social,  Mobile  or  Tradi,onal      modes  

•  Customers  demand  flexible,  real-­‐,me  personalized  experience  

•  Customers  expect  consistent  and  immediately  iden,fiable  appearance  across  all  sales  channels  

•  Customer  interac,ons  are  sca[ered  but  experience  expected  is  unified  

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Need  for  Single  Customer  View  

•  Single  Customer  View  is  needed  to:  –  Create  a  360  degree  view  of  the  customer  interac,ons  and  preferences  

–  Combine  customer  informa,on  

–  Have  a  be[er  knowledge  and  understanding  of  customer  needs  and  preferences  

–  Conduct  effec,ve  and  efficient  Marke,ng  ac,vi,es  

–  Offer  higher  level  of  service  through  be[er  customer  understanding  

–  Achieve  higher  return  on  investment  

–  Achieve  higher  customer  sa,sfac,on  

–  Build  durable  customer  rela,onships  

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Single  Customer  View  is  an  aggregated,  consistent  and  holis,c  representa,on  of  the  customer  data  

 SCV  builds  a  base  to  drive  ini,a,ves  &  innova,on  

 •  Build  dis?nc?ve  granular  customer  insights  to  capture  high  poten?al  growth  opportuni?es  

and  enhance  engagement  across  the  customer  lifecycle  �    

•  Upgrade  to  next  genera,on  technical  capabili,es  (claims,  underwri?ng,  analy?cs,  and  actuarial  capabili?es)  �  

•  Build  world  class  opera,ng  models  to  achieve  gains  in  efficiency  while  strengthening  the  human  capital  

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Cross  Channel  Customer  Centric  approach    •  Unified  communica,on  approach  in  CRM  

–  All  Customer  interac,ons  with  the  company  can  be  tagged  together  based  on  the  unique  customer  iden,fier  

–  This  can  include  all  modes  (email,  sms,  call,  le[er)  and  channels  (website,  branch,  agent)  of  customer  interac?ons    

   –  This  can  even  include  communica,on  done  by  the  Company    

–  It  can  also  consolidate  the  mul,ple  accounts  and  various  rela,onships  the  user  has  with  the  insurer    

–  This  can  also  include  data  from  other  backend  systems    

–  CRM  can  store  all  the  interac,on  data  for  appropriate  ac,on      

•  Rules  can  be  triggered  to  handle  the  customer  appropriately  

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Predic,ve  data  analy?cs  

•  Historic  and  Current  data  coupled  with  Predic,ve  Data  analy,cs      can  help  Intelligent  cross-­‐sell  and  up-­‐sell    

•  Dynamically  predict,  based  on  feedback  to  con?nuously  improve  results    

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Historic  data    +    

Current  data  

Predic,ve  Data  Analy,cs  

Intelligent    cross-­‐sell  &  up-­‐sell  

Customer  journey  based  on  interac,on  insights  

•  Example  1:  –  Customer  visited  the  insurer’s  website  –  Computes  premium  for  a  Motor  Insurance  –  Does  not  proceed  with  Policy  

•  This  Customer  interac,on  is  captured  in  Website  and  stored  in  CRM    

•  In  CRM,  an  ac,vity  is  created  as  a  ‘Poten,al  Customer’  

•  Email  related  to  Motor  Insurance  product  is  triggered  to  customer      

•  An  outcall  is  done  from  the  Call  Centre  to  assist  him  further  to  purchase  a  motor  insurance  policy  

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Customer  journey  based  on  interac?on  insights      Contd..  

•  Example  2:  

–  Customer  calls  Call  Centre  and  complains  about  non  receipt  of  insurance  policy  document  

–  With  the  available  dispatch  details,  the  Execu,ve  informs  the  courier  details  and  the  exact  reason  for  non  delivery  of  the  document  

–  Emails  the  policy  document  to  customers  available  email  id  

•  Due  to  the  seamless  integra,on  of  the  system,  the  updated  informa,on  of  the  policy  dispatch  is  available.  This  enables  the  Execu,ve  to  handle  the  customer  aptly  

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Big  Data  

•  Big  data  refers  to  a  very  large  and            complex  data  sets  that  are              sourced  but  can  not  be  processed              using  tradi,onal  applica,ons    

•  It  helps  businesses  build  long-­‐term            rela,onships,  realize  value  and              incorporate  all  sources  of  data,  thereby  changing  the  way  they  interact  with  customers  

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Customer  Disposi?on  

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•         Customer  Disposi?on  defines  the  essence  of  who  a  customer  is    

The  relevance  of  Insurer’s  interac,ons  with  the  customer  is  directly  related  to  its  understanding  of  customer  disposi?on  and  needs  

Big  Data  &  CRM  

•  To  create  value  for  customers,  internal  data  mining  and  predic,ve  data  analy,cs  form  the  base  

•  Understanding  internal  customers  using  CRM  is  essen,al  and  fundamental  to  ge_ng  customer  insights  

•  Integra,ng  the  two  insights  –  internal  customer  data  and  external  Big  data  create  be[er  understanding  of    customers  and  enables  the  business  to  provide  superior  personalized  experience  

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Leverage  CRM  &  Big  Data  

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•  Assess  life,me  value  of  a  customer  –  Through  internal  data  mining  of  exis?ng  customers,  iden,fy  the  a[ributes  of  the  

current  profitable  and  high-­‐value  customers  eg:  Motor  Insurance  customer  having  a  specific  segment  of  vehicle,  in  a  par?cular  loca,on  and  of  a  par?cular  age  group    

–  Target  similar  users  to  acquire  new  business  

–  Customized  offers  could  be  made  throughout  the  customer  lifecycle.  Like  an  offer  for  his  2nd  vehicle  or  a  personal  accident  insurance  

–  Mode  of  communica,on  could  be  chosen  depending  the  frequency    eg:  user  connects  over  the  website  or  over  web  chat  indicates,  he  would  be  recep,ve  to  a  mobile  responsive  e-­‐mailer  

–  Helps  reduce  resource  drain  on  low  value  customers    

–  Keep  a  check  of  the  low  value  customers  to  control  nega,ve  profitability  and  improve  reten,on  rates  

Leverage  CRM  &  Big  Data                        Contd…  

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•  Improve  accuracy  and  response  to  marke,ng  campaigns  

•  Reduce  cost  of  Acquiring  new  customers    Example:    

–  Users  who  have  expressed  preference  for  health  ar,cles  or  have  subscribed  for  health  magazines  

–  Health  campaign  to  acquire  new  business  would  work  be[er  for  this  targeted  set  of  users  

–  A/B  Tes,ng  of  targeted  campaigns  would  determine  which  campaign  worked  best  for  customer  acquisi,on  

Leverage  CRM  &  Big  Data                  Contd…  

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•  Iden,fy  behavioural  anomalies  across  channels  indica?ng  risk  of  losing  customer    Example:    

–  Receiving  mul,ple  calls,  emails  or  web  chats    about  service  issues  

–  Nega,ve  response  on  a  survey  or  feedback  

–  Access  Website  FAQ  pages  to  understand  policy  cancella?on  process  

 This  is  a  high  alert  to  retain  the  customer  by  offering  personalized  be[er  and  tailor  made  offer