Insurers are looking to boost customer experience using new Internet of Things (IoT) technology which allows them to more effectively track consumer behavior. This from a new report from Accenture, titled “Reimagining insurance distribution: Insurers accelerate the shift to a radically different distribution model.”
The survey polled 400 insurers around the world about what they consider to be key trends going forward. IoT allows companies to track objects in real time using connected devices that are able to sense one another using advanced communication technologies. These devices speak to one another to form a network of advanced information about consumer behavior, needs, and insights.
According to the report, 45% of insurers believe that these connected devices with be a driver of revenue growth in the next three years. Further, interest in using various connected devices has tripled since the time of last year’s survey.
What does this mean for customers? In short, the ideal result will be a personalized customer experience in every interaction with one’s insurer. For a more detailed answer, we turn to an Accenture executive.
“Insurers are using customer data obtained from IoT connected devices and applying analytics to make insight-driven decisions on how to better engage with customers and offer more relevant products and services aligned with their needs,” said Erik Sandquist, managing director for Accenture Distribution and Marketing Services in North America. “IoT technologies provide an abundance of data on customer behaviors and preferences. Carriers that analyze and use these new sources of customer data have a significant advantage over the competition, and will be best placed to offer ‘living services’ – which allow companies to personalize the customer experience and better respond to the evolving customer needs and desires as they develop in real time.”
Analytics are coming to the forefront as the best method of creating a personalized and effective customer experience, and companies are certainly taking notice. 63% of responders say that moving toward need-based selling is a top priority for the company. This shift requires advanced analytics to determine and fulfill the needs of each customer.
The Internet of Things will be a fixture in customer experience before we know it, and brands that are unable to embrace the new technologies risk falling behind.