customer centricity paper 29 april final
DESCRIPTION
What is customer centricityTRANSCRIPT
The journey toward greater customer centricity
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The journey toward greater customer centricity 3
01 Executive summary
03 Introduction: evolving consumer dynamics
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technology and communication,
explosive growth in data
empowered global consumer.
The journey toward greater customer centricity 1
Executive summary
Voice of the customer,1
customer needs.
customer engagement.
1. Voice of the customer: time to rethink your relationships
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50 billion connected devices
The journey toward greater customer centricity 3
Introduction: evolving consumer dynamics
most individuals.
sectors, including insurance.
Consumer demands and expectations
More demanding
More diverse
More sophisticated
More hedonistic
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Insurers are not meeting customers’ expectations
Our Voice of the customer
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Protect business against disintermediation:
Increase productivity to gain a competitive advantage:
Diversify sources of revenue:
Collaborate with new partners across the value chain:
consumer demands and emerging regulations.
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The challenge
deliver what customers want.
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Customer–centric operating models
segment needs
Maturity model assessment
Barriers to successful transformation
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Figure 1: Customer–centric maturity model
Brand and market positioning
Customer segmentation
Distributor management
customers engagement model
Propositions
Service delivery
added interaction
Customer lifetime value management
Culture
actively managed or measured
Process
People
Technology
Stage 1: Undeveloped Stage 5: Leading
Stag
e 2:
Em
ergi
ng
Sta
ge 3
: Dev
elop
ing
Sta
ge 4
: Adv
anci
ng
The journey toward greater customer centricity 9
Data for competitive advantage: advanced segmentation and data analytics
Stage 1: Undeveloped
Brand and market positioning
Customer segmentation
Distributor management
Propositions
Service delivery
Customer lifetime value management
Culture
Stage 2: Emerging
Stage 3: Developing
Stage 4: Advancing
Stage 5: Leading
Company 2
Company 1
Company 3
Company 4
Figure 2: Customer centricity maturity assessment of four global insurers
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High satisfaction
Low satisfaction
Absent
Fully implemented
Perform
ance
/ lin
ear
Perform
ance
/ lin
ear
Exciters and delighters
Threshold / b
asic (must haves)
Figure 3: Customer experience analysis and design framework
The journey toward greater customer centricity 11
losing customers
Harnessing the power of digital as part of an integrated channel strategy
engaging channel partners early in the process and communicating a clear value proposition are essential
imperative that customer information be handed off between channels with limited consumer effort.
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Education and awareness
Research and decide
Purchase Use and service Loyalty
Targeted
mail, telesales
Internet ads
Blogs
sites
Tools and calculators
Intermediary agent
Interactive Interactive video
devices
Instant messenger and
incentives communication
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agent segmentation, customer management and communication
to evolving trends and drive greater
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Embedding innovation
external discovery centers and industry
regularly gain insights
The journey toward greater customer centricity 15
Develop a culture of innovation
Com
pete
ncie
s
Business models
Insurance as a service
models
centric innovation
igni cant grot
Protecting t e core usiness
isrutive gro
t
Figure 5: The stages of innovation across competencies and business models
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Generate customer
InvolveGenerate
Take
The journey toward greater customer centricity 17
to test, learn and act customer needs
Focus
Learn
Start
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Many insurers are not keeping pace
meeting customer expectations.
The journey toward greater customer centricity 19
Authors:
+61 7 3011 3333
About EY
EYG no. EG0131
ey.com/insurance
EY