Customer Analytics for Financial Services & Insurance

Customer Analytics Creating an Exceptional Customer Experience

Mark Hodson, Managing Practice Leader – Financial Services & Insurance

2 ©2016 Clarity Solution Group, LLC

Consumer Engagement for Insurance, from Lessons Learned to Considerations for Getting Started…


Disruption Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something interesting is happening.

GOOGLE, GOOGLE, GOOGLE: Don’t Expect Them to Give Up On Insurance, What’s the Future for Online Insurance Shopping Now?, History of Their Rise and Fall in Insurance, Compare Shutdown Not an Automatic Victory for Agents although They Couldn’t “Compare” In Other News…

Tom Goodwin, TechCrunch http://techcrunch.com/2015/03/03/in-the-age-of-disintermediation-the-battle-is-all-for-the-customer-interface/

Kauffman Foundation http://www.kauffman.org/~/media/kauffman_org/research%20reports%20and%20covers/2012/06/fortune_500_turnover.pdf

Valen 2/26/2016 “This Week in Analytics” blog post http://valen.com/google-exits-insurance/


Look beyond the bookends

Data Analytics Engage Customers Influence Outcomes


Look beyond the bookends

Data Analytics Engage Customers Influence Outcomes

INSTRUMENT INSTRUMENT

EXPERIMENT


Interface

Omni-channel experience rapidly evolving with connected digital, mobile, and social expectations

•  Intentional

•  Consistent

•  Connected

•  Cohesive

•  Immediate

•  Engaging

app


Instrument (the interface)

•  Identity

•  Interactions

•  Feedback

•  History

Data Analytics

app


Instrument (the back office)

•  Identity

•  Events

•  Transactions

•  History

Data Analytics


Experiment “If you double the number of experiments you do per year, you’re going to double your inventiveness.”

- Jeff Bezos, Amazon

“What we’ve done is to create an innovation machine. This is not just a credit card strategy, testing is a revolution that can be applied to many businesses.”

- Rich Fairbank, Capital One

“By thorough experimentation and trial-and-error in the market, [successful companies] iterate towards a strategy and a business model that really is viable.”

- Clayton Christensen, Harvard Business School


Experiment Business environment as a lab for controlled experiments -  Gain clearer, more accurate, more significant insights about causation and results

-  Fine tune data requirements for models, instrumentation, and feedback loops

-  Ongoing strategy optimization at the customer interaction/transaction level

Endless: product development, interface/content design, service/process improvement, recommendation engines, churn/retention, price elasticity, …

Which content raises more campaign contributions?

Will opening stores an hour later reduce sales?

Do live lobster tank displays increase lobster sales?

Does image quality affect auction bidding and sales price?


Experiment Evolution of a testing culture…

Too often, organizations stall at A/B or OFAT—for data, talent, and/or technology reasons—missing out on the benefits that compound with every step forward…

None A/B “One factor at

a time” (OFAT)

Multivariate Multivariate

with covariate analyses

Expansive, cyclical

testing and learning

Increasing insight and benefits while moving to the left, but still “picking one winner for all”

Relentlessly refine actions and optimize strategy


Conclusion

Interface

Instrument

Experiment

Data analytics capabilities that bear more fruit

Mark Hodson, Managing Practice Principal – Financial Services and Insurance

[email protected]

847-702-6422