Hyper-personalised and Simplified products: Are they two contradictory objectives?
It is often said that simplicity is the ultimate sophistication. In a world of overloaded information, a multitude of choices, and nuanced offerings, simplicity can help break the clutter. Personalisation happens when a brand takes a suitable offering to a given customer, through the relevant channels at an appropriate time.
For instance, as a customer, if I were a single, adventurous surfer being sold a baby diaper, it would not help the cause. Extending this to financial services, if I am the primary provider for my family that includes a spouse and child and having recently taken a loan to purchase a new house; it may be pertinent to share details with me for long term risk protection.
In simpler words, personalisation happens when a brand can take a product or solution and make it more useful for a specific prospect or customer. Once the use case is established, the simplicity often drives the choice or the decision to adopt or purchase the given offering versus other options. Hence, a simple offering that is relevant and communicated correctly is a winning proposition and not contradictory.
The ongoing pandemic has redrafted the rules of engagement and the need for risk management. Here are some possible action points for meeting the goals for customer risk management:
Customer-focused marketing: The ongoing pandemic has accelerated the digital adoption curve. This has enabled remote access and self-aided research for every customer. The customer is now ‘connected’ to the internet through his / her handheld device, irrespective of the nook or corner he resides in. The customer leaves his digital footprint with every interaction, tying in to give us a full picture of his needs and aspirations. Leveraging big data and analytics, organisations must transition from the erstwhile product-centric marketing to personalized customer-focused marketing across moments, channels, and buying stages.
Simple is Beautiful: The objective of simplicity is different from standardisation. Simplicity involves clarity of benefit for the customer. Our offerings should be able to have core values and commitment that a customer can understand, trust and depend on.
Context: Priority for any customer is often influenced by context. For example, the pandemic has made us all very aware of the risks surrounding the health and safety of self and loved ones. In this context, brands need to provide assurance and handhold customers irrespective of the stage in the value chain. At IndiaFirst Life, we launched an initiative of ‘Ghar Baithe Insurance’. We enabled information about and access to assured solutions and risk protection for prospective customers. We reached out regularly to our existing customers and reassured them with inputs of their existing policy benefits, extended grace periods, the opportunity for deferred payouts in bear markets, and self-service enablement.
Conclusion
We, as brands or as risk management experts, should be ‘relevant’ for customers by offering benefit based simple products that are enabled/empowered by hyper-personalisation.
The author is Chief Marketing Officer at IndiaFirst Life Insurance Company
DISCLAIMER: The views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.