Creating an Exceptional Customer Experience through Customer Analytics for Finance, Banking and Insurance

1. Customer Analytics
Creating an Exceptional Customer Experience
Mark Hodson, Managing Practice Leader – Financial Services & Insurance

2. 2©2016 Clarity Solution Group, LLC
Consumer Engagement for Insurance,
from Lessons Learned to
Considerations for Getting Started…

3. 3©2016 Clarity Solution Group, LLC
Disruption
Uber, the world’s largest taxi
company, owns no vehicles.
Facebook, the world’s most
popular media owner,
creates no content. Alibaba,
the most valuable retailer,
has no inventory. And Airbnb,
the world’s largest
accommodation provider,
owns no real estate.
Something interesting is
happening.
GOOGLE, GOOGLE,
GOOGLE: Don’t Expect Them
to Give Up On Insurance,
What’s the Future for Online
Insurance Shopping Now?,
History of Their Rise and Fall in
Insurance, Compare
Shutdown Not an Automatic
Victory for Agents although
They Couldn’t “Compare”
In Other News…
Tom Goodwin, TechCrunch
http://techcrunch.com/2015/03/03/in-the-age-of-
disintermediation-the-battle-is-all-for-the-customer-
interface/
Kauffman Foundation
http://www.kauffman.org/~/media/kauffman_org/
research%20reports%20and%20covers/2012/06/
fortune_500_turnover.pdf
Valen 2/26/2016 “This Week in
Analytics” blog post
http://valen.com/google-exits-insurance/

4. 4©2016 Clarity Solution Group, LLC
Look beyond the bookends
Data
Analytics
Engage Customers Influence Outcomes

5. 5©2016 Clarity Solution Group, LLC
Look beyond the bookends
Data
Analytics
Engage Customers Influence Outcomes
INSTRUMENT INSTRUMENT
EXPERIMENT

6. 6©2016 Clarity Solution Group, LLC
Interface
Omni-channel
experience
rapidly evolving
with connected
digital, mobile,
and social
expectations
• Intentional
• Consistent
• Connected
• Cohesive
• Immediate
• Engaging
app

7. 7©2016 Clarity Solution Group, LLC
Instrument (the interface)
• Identity
• Interactions
• Feedback
• History
Data
Analytics
app

8. 8©2016 Clarity Solution Group, LLC
Instrument (the back office)
• Identity
• Events
• Transactions
• History
Data
Analytics

9. 9©2016 Clarity Solution Group, LLC
Experiment
“If you double the number of experiments you do per year,
you’re going to double your inventiveness.”
- Jeff Bezos, Amazon
“What we’ve done is to create an innovation machine. This is
not just a credit card strategy, testing is a revolution that can
be applied to many businesses.”
- Rich Fairbank, Capital One
“By thorough experimentation and trial-and-error in the
market, [successful companies] iterate towards a
strategy and a business model that really is viable.”
- Clayton Christensen, Harvard Business School

10. 10©2016 Clarity Solution Group, LLC
Experiment
Business environment as a lab for controlled experiments
- Gain clearer, more accurate, more significant insights about causation and results
- Fine tune data requirements for models, instrumentation, and feedback loops
- Ongoing strategy optimization at the customer interaction/transaction level
Endless: product development, interface/content design, service/process
improvement, recommendation engines, churn/retention, price elasticity, …
Which content
raises more
campaign
contributions?
Will opening
stores an hour
later reduce
sales?
Do live lobster
tank displays
increase lobster
sales?
Does image
quality affect
auction bidding
and sales price?

11. 11©2016 Clarity Solution Group, LLC
Experiment
Evolution of a testing culture…
Too often, organizations stall at A/B or OFAT—for data, talent, and/or technology
reasons—missing out on the benefits that compound with every step forward…
None A/B
“One factor at
a time”
(OFAT)
Multivariate
Multivariate
with covariate
analyses
Expansive,
cyclical
testing and
learning
Increasing insight and benefits while moving to the left, but still
“picking one winner for all”
Relentlessly refine actions
and optimize strategy

12. 12©2016 Clarity Solution Group, LLC
Conclusion
Interface
Instrument
Experiment
Data analytics
capabilities that
bear more fruit

13. Mark Hodson, Managing Practice Principal – Financial Services and Insurance
mhodson@clarity-us.com
847-702-6422