Implementing behavioral analytics to drive customer value: Insurers cannot afford to wait.
Imagine two customers phone into your call center. One customer recently inquired about increasing coverage when she got married, then researched policy cancellation on the website. The other customer searched for payment
options. With this information, you can presume that different interactive voice response (IVR) options
are appropriate. Yet when these customers phone into the center, they are presented with identical and equally frustrating automated responses. Because the technology fails to recognize the behavioral pathway that led to the call, the experience is generic.
Automated responses are often developed to replicate the call routing in the absence of behavioral context.
In this day and age, customers expect more. Their experience outside of insurance has taught them that
information and help can be context specific — or, in their words, relevant. Fortunately, by applying analytics that
assess both the characteristics and behaviors of their customers, insurers have powerful tools to meet higher
Behavioral analytics as a critical enabler
Behavioral analytics creates a unique value proposition for both insurance companies and their customers. The benefits can range from higher acquisition rates and customer retention to more aligned product portfolios
and a reduction in fraudulent activities, as shown in the chart below.
Moreover, behavioral analysis helps explain the “why,” “who” and “what.” Insurers increasingly understand “who” their customers are based on the characteristics. Age, sex, income and residence are all attributes that insurers capture. They also are able to track the interactions they have had with customers. All of this information provides valuable insights.
To find out more on Automation and Behavioral Analytics that are shaping the insurance proposition, please click on the link below.