Why The Future Of Insurance Will Be Mobile And What Will It Mean For Insurance Business Models

Anybody out there who doesn't have a mobile device, raise your hand...just what I thought.

The explosion of mobile phones and apps in the everyday lives of consumers--and agents--is powering big changes in the business of insurance.  Heightened customer expectations are getting formed by the changing mobile landscape; new generations of customers; new competitors, and the ferocious pace of mobile tech-enabled innovation that is radically reshaping how customers become informed, purchase, and get service. 

In our new report, the first of Forrester's Mobile Insurance Playbook, we examine how mobile forces are driving customer expectations and how customer demands are going to influence new insurance business models.

Consider that:

  • Consumers are living La Vida Mobile.  Mobile is a pervasive element in the daily lives of insurance customers. With more mobile devices available within easy reach, US consumers are tapping into this ready convenience to research, buy, and service their financial needs, including insurance.  And how about those Millennial insurance customers?  More than one in four told us that they use mobile as their main personal financial channel. 
  • Agents are becoming proficient mobile tool users.  The tablet form factor looks almost purpose-built for the needs of agents.  From their hi-def displays to fast boot-up and super portability, agents are ardent tablet-ers, and half the agents in an informal survey at the end of last year cited mobile as one of their leading business initiatives. 
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What Will The Currency(ies) Be In TV And Video Advertising?

This past week, I was in Chicago for the Beet.TV Leadership Summit at Starcom's offices to talk about the future of TV and video. The event featured a great mix of digital video sellers, media agencies, data platforms, and measurement companies, all trying to understand where video media buying is headed and what the future of cross-platform media measurement might look like.

TV watching has always been a relatively simple activity. The TV set was traditionally the only place to go for video entertainment, and people made time in their day to tune in to their favorite programs. Advertisers measured who saw their ad by how many people tuned in to the show that they bought a spot in. Gross ratings points (GRPs) came to be the industrywide-accepted currency of measuring how many times your target audience saw your ad. Today, things are quite different:

  • Consumers have more choice than ever in where they watch. On top of the hundreds of cable channels on TV, viewers can also watch content on their connected devices (laptop, smartphone, tablet) or an ever-increasing variety of Internet-connected devices that allow them to stream content from the Web to their TV and bypass their cable TV subscription entirely.
  • Consumers no longer watch TV distraction-free. Our latest data says that more than two-thirds of Americans now use a connected device while they watch TV. In addition to refrigerator and bathroom breaks, marketers now need to compete with these devices to capture the attention spans of their audiences.
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Voice Of The Customer Programs Don't Deliver Enough Value

Many of the conversations I have with clients about voice of the customer (VoC) programs center on ways the programs can improve and best practices they can adopt. What I think is really underlying these discussions, though, is the question, "How does my program compare with all the others that are out there?" Or, more succinctly, "How am I doing?"

My anecdotal conversations, though frequent, do not make for a quantitative study. So I did just that: I surveyed our Global Customer Experience Peer Research Panel about their VoC programs. The results will be published shortly in a Forrester report called, "The State Of VoC Programs, 2012," but in the meantime, I'd like to give you a sneak peak.

Our most important finding was that customer experience professionals aren't getting the value they could be from their programs. Specifically, we asked how valuable their programs were in improving customers' experiences and how valuable they were in delivering financial results. It turns out that VoC programs help companies improve the customer experience; we saw more respondents getting that kind of value. But firms struggle to connect the dots to financial value.

So why the gap? It turns out that customer experience value is pretty easy to recognize. Respondents told us that the feedback data they collect helps them identify problems with the experience that need to be fixed. It also helps them prioritize what to fix because they can take the input from their customers into account when looking at all the various improvement project opportunities. The resulting projects make the experience better.

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The Data Digest: Multitasking While Watching TV

The proliferation of mobile and portable Internet-connected devices has made TV multitasking the norm. Forrester’s Consumer Technographics® data shows that about four out of five US online adults who own a laptop, smartphone, or tablet go online regularly while watching TV, but the intensity of interaction differs by device.

 

My colleague Tracy Stokes wrote about this in a report called “The New Layers Of TV Audience Insight.” Her take: Just because your TV audience is active on social and digital platforms doesn’t mean that they will blindly engage with your brand. To drive cross-media engagement, you have to have a clear call to action that easily conveys why consumers should be active across multiple media channels.

But when you do it right, there’s a lot to gain. Research from Discovery Communications shows that exposure to more digital touchpoints while watching TV can strengthen consumers' connection to content and brands, not detract from it. Discovery's study found that users who multitask with devices while they watch TV are more attentive and responsive to TV programming and advertising than the average viewer.

Storytelling And The Last Milliseconds

Last week, I participated in AdExchanger’s first-ever conference, which focused on the overall theme of “human-centered automation.” As a human who’s spent the past five years of her life calling for a future rife with smart humans using smart tools to run better digital media programs, “human-centeredness” was refreshing. Here are a few key things I heard for those of you who couldn’t attend in person, wrapped around three themes:

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NFL Owners Just Learned A Lesson About Bad Customer Experience. Did You?

I’m not the biggest NFL fan in the world, but now that I live in Boston, I follow the Patriots. I think it’s actually a requirement of citizenship.

And I do have a passing interest in some other teams. Who doesn’t love watching anyone named “Manning” throw a football? (Unless it’s against the Pats in the Super Bowl.)

With that as background, may I say that the now-ended lockout of NFL refs set the low watermark in football customer experience? Yeah, customer experience — not just for all those who buy tickets, but for all of us who “pay” for the games with our time by watching ads.

Lest we forget, let’s count some of the ways that the replacement refs ruined our Sunday afternoons and Monday nights:

  • Stopping the game every other play to try and figure out what really happened. Football is supposed to be a sport, guys, not a meeting of the local debate team.
  • Making game-changing calls that the replay showed were dead wrong. Hey, if you screw up, 'fess up — then make it right and move on. My sixth-grader knows that, so why doesn’t Roger Goodell?
  • Clogging the air time on ESPN with self-righteous defenses of their bad calls. (Okay, that didn’t happen on Sunday afternoons or Monday nights, but it was worse because it spread more pain across three weeks when all I wanted was to see the top 10 sports plays from the previous day. Argh!)
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Are You Breaking The Law? Understand The Impact Of The European Data Protection Act

Yesterday, I realized I have a criminal side. Of course, I know that I have a bit of a history for speeding. And I’ve had my share of parking fines. But until yesterday afternoon, I didn't think I had ever violated someone else's property rights. Now I know that I have – and I do it quite regularly as well.

Yesterday, I attended a session by Barry Ryan, Director Policy & Communication at EFAMRO – the European Research Federation. I’m interested in privacy issues and have been attending some of the privacy debates hosted by Esomar. And yet, during Barry’s talk, the real impact of the current European Data Protection Act rules took me by surprise.

Some of the things I learned:

  • The data protection laws talk about data. Data is defined as every type of information in a machine (device). When I’m talking and you’re listening, there’s no data. When I’m talking and you record my voice or take a picture, there’s data.
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Digital Disruption Is A Bigger Deal Than You Think

You have heard the word disruption; you know what that is. And you have heard the word digital. You know what that is, too. But put them together – digital disruption – and they add up to much more than the mere sum of their parts. Digital disruption, when properly understood, should terrify you.

Three sources of digital power – the prevalence of free tools and services that enable disruptors to rapidly build products and services, the rise of digital platforms that are easily exploited by aspiring competitors from all directions, and the burgeoning class of digital consumers ready to accept new services – have combined to unleash a disruptive force that will completely alter every business on the planet. Digital disruption isn’t disruption squared. It’s the disruption of disruption itself.

Most people I meet think they get digital disruption. And a survey of global executives we conducted shows that 89% of executives believe that digital will disrupt their industry. But they don’t realize just how big a deal disruption will be when it finally hits them.

I have been writing and speaking about digital disruption for years – full time for more than a year now – and it still manages to surprise me. In the month of October, I’ll keynote several Forrester Forums and there confess that digital disruption is even more powerful than I thought it was when I wrote the original Disruptor’s Handbook in 2011. What have I learned?

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New Nooks Quietly One-Up Amazon, But Don't Change The Game For Barnes & Noble

With a few discreet press and analyst briefings but no song and dance event (ahem, Foo Fighters), Barnes & Noble has unveiled its new Nook Tablets: the 7-inch Nook HD and the 9-inch HD+. The prices of the devices range from $199 to $299, depending on the size and memory configuration, which makes them competitive with the Kindle Fire and far cheaper than the iPad (although a smaller, cheaper iPad could erode some of the price gap). The devices are lightweight, with high-quality displays and fast performance, outdoing the Kindle Fire on several specs. They now come with a video store, with content for rental or purchase from all of the major studios, filling a major gap in the previous generation of Nooks. The Nook software interface has been completely redesigned. My favorite feature of the devices is the "Profiles" feature--when you launch the device, you see profiles that can be customized for adults or children, down to custom content, browser settings, and store recommendations. This is a long-overdue feature in tablets: Forrester's data shows that 49% of US tablet owners regularly share their tablet with at least one other person.

Walmart and Target, having booted out Amazon’s devices, give B&N exposure to customers in 5,200 retail stores where Amazon devices won’t be displayed.

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You Asked, We Answered! Questions From Webinars About Our New Book, Outside In — Part 2

On September 19th, my co-author Harley Manning and I delivered two webinars outlining the concepts in our new book, Outside In: The Power of Putting Customers at the Center of Your Business.

We received so many questions that we couldn’t answer them all during the webinars. So we split them up, and we’re answering them (in brief) in two blog posts. Harley posted Part 1 yesterday, and this is Part 2.

How can you develop a customer experience strategy before you know your customers?

You can’t. In the webinar, I described how Holiday Inn developed a customer experience strategy that led to a completely new lobby experience. (You can read more about this in one of my recent blog posts.) It’s important to note that the reason Holiday Inn’s strategy was so successful is that it was rooted in a clear and accurate understanding of who the hotel’s target customers were and what they needed when they were traveling. If you don’t know your customers, it’s nearly impossible to create a customer experience that will meet (or exceed) their needs and expectations.

How does social media affect the ability to understand the customer experience?

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