Start the Implementation Process

Start the Implementation Process

Written by Stephan Binder, Ulrike Deetjen, Simon Kaesler, Jörg Mußhoff and Felix Schollmeier (McKinsey & Company) on 16 Aug, 2021

In the previous article ‘Moving to a user-first, omnichannel approach’ we mentioned new digital players and ecosystems that converge to offer basic insurance products. Carriers now need to evolve their digital capabilities and online user experiences to remain relevant and competitive. Our recommendation is to implement an overarching strategy using a three-step implementation process.

Developing a deliberate, coordinated implementation strategy
Implementing a user-first, omnichannel approach has far-reaching effects on an insurer’s technological and organizational setup (Exhibit 5). As a consequence, there is certainly no single, standardized approach to getting started. However, we recommend an overarching implementation strategy in which the capabilities of all channels are aligned toward the common business goals of acquiring and retaining business by meeting customers where they are. Now more than ever, that location is online.



Key prerequisites of the implementation process
This strategy typically requires a three-step implementation process.

1. Create transparency on user behaviour and channel performance. Since today’s decision journeys often span several channels, omnichannel users can switch back and forth between the same channels multiple times. To start, insurers must correctly define customer journeys and understand what drives decision making. To this end, insurers need to not only combine data across channels (as far as data privacy regulation allows) but also set up processes for measuring customer traffic, customer experience, and the value of converted business on a continuous basis.

Based on this data, insurers can correctly attribute the impact that each of their advertising campaigns has on the number of sales of a given policy and gauge the success of their individual channels in converting prospects to customers. This visibility is critical for finding out where and how the customer lead was generated.

2. Fully enable and optimize your online customer journeys. With the rising cost of lead generation, insurers must optimize conversion rates. The online channel is an essential part of the decision journey of most customers. Insurers should thus enable and incentivize customers to continue their journeys on the insurers’ websites for as long as possible and to purchase online.

To excel at converting customers online, insurers need first to ensure the technical prerequisites for online purchasing are in place. Second, they must ">

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