Driving Effective Customer Retention for Insurance
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In a world where penetration rates for insurance products and services have reached saturation levels in most countries, insurance companies are shifting their sales and marketing investment from attracting new customers towards maximising customer value through improved revenue and retention.
Pega is at the forefront of this shift with a market-leading Next-Best-Action Marketing solution that combines sophisticated predictive and adaptive analytics, real-time decisioning and a guided user experience to help insurers improve retention and drive incremental revenue. Today, Pega Next-Best-Action Marketing is powering initiatives for high dynamic industries such as telecoms and banking and specifically for companies like RBS, Vodafone, O2, Orange, BSkyB and Time Warner Cable, helping them drive additional revenue and margin from their existing customer base. For example, at the largest telco in the UK, the solution is part of a multi-stage initiative where they are already generating an incremental 24M GBP of annual operating margin in the initial phases. Leading insurers are now starting to take note of this success and questioning how it can be applied to the insurance market.
As insurers follow Communication Service Providers (CSPs) in the shift in focus from customer acquisition to retention and margin, we have identified a few key best-practices related to retention. These best-practices are partially enabled by technology but also enabled by our customers' leadership's ability to think "outside the box" in pursuing efforts to reduce customer churn.