The journey toward greater customer centricity

EY2

The journey toward greater customer centricity 3

01 Executive summary

03 Introduction: evolving consumer dynamics

EY4

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

EY2

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

EY4

Insurers are not meeting customers’ expectations

Our Voice of the customer

The journey toward greater customer centricity 5

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.

EY6

The challenge

deliver what customers want.

The journey toward greater customer centricity 7

Customer–centric operating models

segment needs

Maturity model assessment

Barriers to successful transformation

EY8

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

EY10

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.

EY12

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

The journey toward greater customer centricity 13

agent segmentation, customer management and communication

to evolving trends and drive greater

EY14

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

EY16

Generate customer

InvolveGenerate

Take

The journey toward greater customer centricity 17

to test, learn and act customer needs

Focus

Learn

Start

EY18

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