Predictive Analytics is disrupting the business-consumer dynamic. To improve engagement with their customers, organizations have begun identifying potential segments (predictive audiences) that are likely to convert with them. Modelling data to learn about the potential ‘new’ customer, their preferences and spending behaviour has already proven demonstrably higher conversion rates and lower churn rates. In fact, the market value for these types of services is expected to touch $12.4B by 2022.

As we transition into a semi-connected world supported by global IoT sensors and devices, the real-time analysis of past and future-probable events is evolving business actions more prescriptive in nature. Every touch or interaction triggered by an individual customer is a data point that is captured, stored and examined for insights. Data is an interminable asset that continues to grow exponentially while storage likewise is getting cheaper each year. With nearly infinite cloud computing and scaling it becomes much easier to process these extremely large amounts of data.

But, are customer journeys actually getting better? Are these journeys still reactive? How much of the world has moved to a predictive-first approach? and, has it really helped CXOs address their business goals? Let’s evaluate the state of real-time predictive trends that are being put to use by global enterprises. 

First, let’s look at some easily identifiable use cases that have some verifiable results.

• Identity Resolution — understanding the individual persona consistently and accurately across -domain, -device and -channel, while maintaining stringent privacy compliance. This approach typically gives you a singular view of a potential customer. (ex: LiveRamp, Full Contact)
• Customer Journey Data Integration — data integration transcends the siloed view of traditional web analytics. For these multiple integrations like web, mobile app, email, social media, CRM, call centre, device, etc. are essential to understand customer flow across channels. (ex: FirstHive)
• Customer Segmentation and User Experience Recommendations — It is done using clustering models to perform highly accurate segmentation creating micro-segments and tracking each customer as they shift from one segment to the other. (ex: Lattice-Engines)
• Personalization — It marks which marketing campaigns, channels, touches, and behaviours users are responding to, and contributing to a business outcome, using a machine learning-based attribution. (ex: Everage)
• Lead Scoring, Prioritization & Allocation — It helps identify which leads will convert, churn and which customers will buy one or more products for a cross-sell or upsell. (ex: Mantra Labs LCA, Pardot) 
• Automating Prediction & Rule Setting — Use automated machine learning for predictive modelling. Enables rapid iteration cycles. (ex: Nokia, DataRobot)

The total number of journey interactions the world over is an unquantifiable number. It is predicted, though, that there will be nearly 2MB of data created by every individual in 2020, every second. With all this data to go around, why are companies so invested in them? It’s because customer experience has become the number one marketing activity of 2019, and will continue to rank highly over the next five years. 

In fact, Gartner predicts by 2019 more than 50% of organizations will redirect their investments to customer experience innovations. For SaaS enterprises, there is a lot to gain. Research indicates CX initiatives can double an organization’s revenues within 36 months, and this extra share will come from the customer’s wallet. Good CX will create real value for your customers, which means they will spend more.

According to Accenture, 87% of organizations agree on traditional experiences no longer satisfy customers. To counter this, Businesses are now investing in customer journey management. Interestingly, insurance (39%) is showing the highest adoption rates outside of retail (42%). The tech industry comes up third behind them at 7%. 

Customer journeys are orchestrated into three: Acquisition, Conversion and Growth. Majority of journeys are identified as growth journeys (64%), and typically run for nearly 34 months on average.

Has it made a difference in Experience?

Yes, and there’s data to support it.
The predictive journey allows businesses to place real-time marketing bets on the behaviour of the customer. We don’t have to look any further than the example of Netflix and its impressive predictive recommendation system. Almost 80% of the content watched on Netflix is attributed to recommendations. A robust predictive analytical engine working behind the scenes is able to perform two critical aspects of the customer life cycle: Needs forecasting and churn reduction. The system is estimated to save Netflix at least $1 billion each year in customer retention.

What about the Impact to Business Goals?

The short and long answer is yes.
According to a salesforce study, the key to building highly personalised journeys begins with predictive intelligence. The report found on average, predictive intelligence recommendations influenced 34.7% of total buys. The lift in conversion rate within the first 36 months is around 23%, which is significantly high. Imagine what 23% more in conversions can do for any business. The real value from predictive intelligence is that it gets more intuitive with time. After 36 months of implementation, there is 40.3% more influence in revenue from this technology.

For future engagements, customers want businesses to proactively reach out to them and offer them tailored products and services that will be highly relevant to their needs. On the other hand, businesses prefer to study their consumers by looking at their data under the strict regulations enforced in data privacy laws — because it will certainly avoid long term risk to their business models. The results are clear: A predictive journey is the only way forward. 

Mantra Labs is an Insurtech100 company creating AI-first products and solutions for the evolving digital enterprise. To learn more about how we are using predictive journeys to create the Internet of Intelligent Experiences™, reach out to us on hello@mantralabsglobal.com. 

In the event of unexpected or unforeseen instances, getting instant customer support and claims settlement reduces the potential for customer churn during critical customer touch points. However, these processes are iteratively long and cumbersome. For example, typical claims settlement involves inspection, documentation, submitting documents and proofs, and finally the settlement. Fortunately, all these stages can be transformed with nearly real-time analysis using Augmented Reality (AR) technology. Augmented Reality makes use of real-time digital content like audio, video, text, and images to enhance the real environment. 

In fact, not only claims, but AR can also enhance other aspects of insurance like- customer service, damage estimation, remote guidance, and customer education.

Augmented Reality: a solution to the timeless insurance concerns

Augmented reality technology has been in existence since 1968; however, it is only recently that industries have realized its true benefits. Many industries have already adopted AR and VR technologies commercially. For instance, we see VR flight simulators, virtual tours & workspaces, and even AR advertisements.

Now is the time for insurers to leverage this technology to resolve the pressing concerns.

Risk assessment & mitigation

Augmented reality and virtual reality opens several new avenues to minimize cost and loss ratio through risk assessments. While augmented reality adds elements to the visual environment, virtual reality replaces the original visuals with the projected ones. Both technologies are useful to analyze customers’ behavior and intent.

For example, Ready-Assess™ developed by the Center for Injury Research and Prevention (CIRP) and Diagnostic Driving Inc. assesses a driver’s ability to drive safely and avoid collisions. The Ohio Department of Public Safety plans to use the system as a pre-qualifier to taking the on-road exam.

Auto-insurers have started to consider virtual driving tests to determine whether someone is a safe driver before insuring. Similarly, actuaries can navigate a building before it’s built through AR and propose better insurance estimates. 

Marketing/customer education/customer engagement

AR simulation is a new marketing tool for insurers. It serves the two-fold purpose of educating customers as well as marketing. 

For example, Liverpool Victoria- one of the UK’s largest insurance companies interacts with customers coupling newspaper flyers and augmented reality technology. 

When someone scans the flyer, a 3D model house appears. Customers can further explore insurable things in the house. This simple playful experience gives an idea to the customers about insuring their belongings, which they might have never thought of.

Another interesting augmented reality use case in insurance is that of Allianz, a German international financial services company. They’ve built an immersive experience for users about the possible risks in day-to-day life. 

Customer service – claims settlement and remote assistance

The claims settlement for property damage is often cumbersome. It involves a member from the insurer to visit the property, inspect the damage, estimate, and process the claim. Some insurers like ICICI Lombard attempted to speed up the process by approving claims through video calls. Augmented reality can, however, give a new dimension to remote customer service by delivering more accurate details. 

For instance, with PNB MetLife India’s ConVRse application, customers can speak to a virtual assistant- Khushi in a 3D simulated room. It hosts a number of services like easy access to information, service requests like account updation, claims, and feedback.

Damage estimation

Augmented Reality can help insurers to address the operational challenges due to physical distance. 

There was a time when Farmers Insurance used to send adjusters on the field to train damage assessment due to catastrophes. Today, with VR and AR, employees can learn six different floor plans and 500 different damage scenarios, without actually visiting the affected zone.

Symbility Video Connect is an AR-based live collaboration tool, that initiates documentation at the first notice of loss. Policyholders can interact with adjusters through tablets and smartphones. Through the app, an adjuster can measure the damage, file them, and thus improve the settlement time.

Image: claimsjournal.com

Remote guidance to agents and employees

Dr. Daniel Neubauer, Former Global Head of Learning Design and Lead of Zurich Leadership Development Curriculum says – “The challenge with training 50 people is how you direct them. Augmented reality allows people to self-direct.“

Zurich Insurance uses AR glasses to help field workers and risk engineers work more efficiently, safely and collaboratively. It is a great wearable alternative to finding instructions on laptops and papers.

Final Thoughts

Accenture estimates that Insurers can reap 10-20% more profit annually by investing in intelligent solutions. Working with augmented reality can transform the ways agents interact with customers, enforce policies, and assess claims. 

Also read – Top 25 Augmented Reality use cases across industries

We’re technology solution providers for the new-age digital insurer. Mantra Labs specializes in AR-based experiential solutions for the insurance industry. Drop us a line at hello@mantralabsglobal.com to know more.