82% of insurers believe that a strategy for harnessing the potential of Big Data is necessary to remain competitive. Now, we’re not all data scientists, but we know that solutions around understanding your customer data are your surest bet at revenue growth in the insurance industry.
It Was All a Dream: An Outdated Business Model
Investment returns have seen a tenuous last couple of years, causing insurers to rely more heavily on premiums to meet revenue goals. Their teams are now under more pressure than usual to acquire new customers, take advantage of customer data, and to ensure their quality with a seamless underwriting process.
But selling hasn’t been easy. Premiums have risen in the past year (in areas like auto, life, and health) for various reasons. And higher price tags have made consumers more pessimistic about their dealings with insurers, leaving doubt as to whether their best interest even matters.
As insurance companies study their prospects with elevated scrutiny, their prospects are doing the same to them. Brand identity has become key to distinguishing your insurance company from the others.
Of course, there’s the surface-level of brand identity: products, logos, colors, document formatting, and customer service (technologies allow companies new opportunities for literal omnipresence in these respects). All of these items specifically depend on things like data visualization tools and customer data management.
Technology now allows companies to collect unprecedented amounts of information on customer behavior through the Internet of Things (IoT), advanced machine learning, and predictive analytics. Most of the data created by these mediums is in the process of being mined (endlessly), but as this happens, the ways of measuring your customer behavior multiply. With Big Data, tomorrow will bring countless new metrics by which to determine a customer’s fit with you, which is opportunity to include new fields in your databases.
If it’s that simple, why aren’t you doing it already?
More Data, More Management: We Need CCM
Extracting data can be a complicated process. Information captured by the IoT requires a mix of people and machines to sort through it and decide what’s useful. Data sets still need to be formed, and categories need to be established.
The concern we want to address is what happens between the creation of these new, useful categories and when business users actually sift through them for practical reasons. This is, in part, what CCM (Customer Communications Management) exists for. Data gets complicated.
In an emerging industry that aims to create a future-proof customer onboarding/engagement/retention product, there is a constant search for new and creative ways to combine different facets of customer satisfaction into one solution, while still leaving it as customizable as possible.
The focus of a data-driven product is the uniqueness and fragility of each company’s database. We like the idea of a “one-size-fits-all software”, but considering what’s ultimately being analyzed – customer relationship – and the consequences of unsecured integration, there’s no question about whether companies need to find solutions tailored to their existing CRM infrastructure, no matter how complex or unique, that clean the data reliably before delivering their communications.
Sky's the Limit: Data Feeds Data
It’s said often, in different ways, that data thrives on more data. But the keyword missing here is useful data. And what are the logistics involved in managing the overwhelming explosion of data that we’re continuing to see?
Insurers can look to CCM as a tool for withstanding all future information explosions. We expect businesses to dive ever deeper into the IoT, relying on powerful, durable solutions to facilitate the management of such vastly increasing amounts of data, and optimally leveraging it for branding, document formatting, delivery, and customer service. Ideally, there might be no “information overload”, and internal processes will be managed with greater ease, in order to know exactly who customers are.
Thanks to Big Data, you might be able to assess the value of a customer prior to their enrollment, rather than after the fact. With a Customer Communications Management platform, you’re using every bit of it wisely. As a customer relationship evolves, and you learn more about each other, you can trust that your communications will evolve accordingly.