Fundamentals for data-driven CX are still incomplete among insurers

The demographic curve, revenue pressure due to increasing regulations and more intense competition, a high level of offer transparency, and growing consumer demands: insurers have good reasons to put their customer relationships back on a firmer and more sustainable footing. Their own customer data combined with technologies such as CRM systems, digital experience platforms and artificial intelligence offer the best prerequisites for this. A survey conducted by the software manufacturer BSI in cooperation with the AMC Assekuranz Marketing Circle shows that the need for this is seen - 72 percent of respondents consider the topic of "data-driven customer experience" to be very important or important.

At the same time, there is a lack of elementary foundations for this in some cases, including data as a resource: 88 percent of respondents have data on communication history and business transactions, but only 40 percent have data on customers' life events (marriage or moving house), 28 percent have those on behavior on the web, and 18 percent have data on customers' habits. But this is precisely the kind of information that would be needed for offers and targeted communications that meet a real and current need among policyholders. And when it came to the question of additionally desired customer data, e-mail addresses were at the top of the list (with 72 percent each), along with consulting preferences and information on hobbies - an absolute basic requirement for automated and personalized customer relationships.

Focus on customer behavior and sales support

The answers to the questions about the added value and areas of application of customer data are fairly consistent. The respondents expected the greatest benefits to come from a better understanding of customer behavior (84 percent) and support for sales and marketing (80 percent). Consequently, the respondents' main uses of customer data today are for cross-selling/upselling recommendations (82 percent), personalized targeting and services (68 percent) and planning customer journeys (56 percent). However, people tend not to want to share their own customer data - even if this results in a business benefit. The highest level of willingness to share data is among other providers of complementary services (47 percent), from whom the company apparently hopes to expand its own offering.

Weaknesses in data strategy - and the right mindset

In addition to data quality and lived use cases, the insurers surveyed also reveal a need to catch up in terms of organizational and technological prerequisites: while efforts to establish a consolidated database across divisions (72 percent) and the use of a CRM system (52 percent) appear to be quite far advanced, only 24 percent of respondents state that their company has a data strategy in place. At the same time, there still seem to be weaknesses here as well: when asked what companies now need for a successful customer journey, a good consolidated database (72 percent) and the right mindset and more customer orientation (64 percent) were at the top of the hit list. This was followed in third place by a targeted CX strategy, defined processes for customer journeys and a modern CRM system (all 52 percent). The need to work on the foundations for customer experience based on data is thus clearly seen by the respondents. "The figures reveal a fairly good understanding among the participants of the requirements for a data-driven customer experience, and also its benefits. At the same time, however, the answers also reveal that there is still some catching up to do in terms of the basics," comments Oliver Hechler, Community Manager Insurance at BSI. "In addition, many potentials of the use of customer data are not yet seen to a sufficient extent, and concepts such as a seamless accompaniment of customer journeys online as well as offline have hardly been implemented yet. Basically, however, we see insurers on a good path, which we also experience in our numerous customer projects in the industry and can see from the high demand for our CRM and customer experience solutions."

For the BSI study on "data-driven customer experience CEOs and marketing and sales managers from the insurance industry were surveyed in the period 23.3. - 16.4.2021. Detailed results of the survey combined with market insights, best practices and recommendations for action for a data-driven customer experience have been published by BSI in consolidated in a current and very comprehensive white paper.