We live in a world of mass customization where products and services are tailored to meet the specific needs of each customer. Digital technology has shifted the power from suppliers to customers. Hyper personalization will only accelerate and those companies that do not embrace it will be left behind.
Take three different industries:
Automobiles, in the 1980s BMW sold three models, the 3, 5, and 7 series. Today BMW offers over 50 different models with the ability to customized each model.
Starbucks has taken the consumption of coffee from a functional task into the world of emotional experience with every customer consuming their personal preference.
Every Apple iPhone is the same when it leaves the store. However, from that point onwards no two iPhones will ever be the same. The most personalized device in the world is the smartphone.
The question is then – if this is the world we live in then why isn’t insurance hyper-personalized to meet the specific needs of the customer?
The standard response is, you would not understand, insurance is difficult, insurance is complex. The reality is that it is no more complex than building a high-performance automobile like a BMW. The customers of today and particularly of tomorrow will insist that insurance is relevant, easy, and tailored to meet their specific needs.
There are many business process, technical and regulatory challenges to overcome to get to a world of hyper-personalization but at CodeEast we are already on this journey and we can help you if the future is important to your business.