Business Objective
Our client is a leading provider of life insurance and annuity plans in the US. It was observed by them that the user engagement on digital platforms remained low, which was driving up the costs related to non-digital communications and low-value calls handled by the customer care team. The client wanted to create a data-driven strategy that could improve digital platform usage.
More specifically, the client wanted to:
- Reduce the overall communication expenses
- Drive overall customer engagement, thereby leading to higher lifetime value
Challenges
- Internal customer data on product holdings and transactions were not enough to understand digital preference. Market research data from KBM used to drive better recommendations
Solution Methodology
- Divided the path to digital engagement into multiple phases. Assessed current state for each phase to recommend appropriate solutions:
– Registration on the platform: What is the current registration rate? How do we drive higher registrations?
– Awareness of digital functionalities: Which functionalities are in demand? How can we increase the adoption rate of these functionalities?
– Effective usage of digital functionalities: What is the completion rate for the usage of different functionalities? What are the reasons for drop-offs? - Observed that 80% of annuity consumers are still unregistered and account for ~75% of total offline transactions at an estimated expense of $13M a year
- Noticed a low adoption of online functionalities (33%) amongst registered users
- Built a registration propensity model to target the 80% unregistered base using product information, online platform activity, offline transactions, KBM market research data
- Proposed targeted registration campaigns along with awareness drives as the immediate strategy, considering factors from the model that correlates to higher adoption – customers with online access, a higher number of transactions, and in high-income buckets
Business Impact
- The proposed targeting strategy estimated an impact of ~6M in cost reductions per annum
