How can a business pursue opportunities to increase customer retention and diversify revenues?
Our insurance client sought to create value-added services based on a partner company’s software, in order to access their customers’ data entered in the software — thus creating increased customer intimacy, better customer retention due to platform lock-in, and the potential to diversify revenues. But how to convince customers to give their insurance company access to data that could negatively impact the price of their policy? We had to design a suite of value-added services that relied on the software’s data, and, deliver against a customer need that was more important than the price of their insurance. Peer Insight led a business model development program to help identify critical customer needs and apply the right processes and technology to create a data-rich business model.
The Peer Insight team designed a transparent process for exploring the potential of new technologies and value-added services with the insurance company’s customers. Armed with direct customer feedback into which potential solutions would be most valuable, Peer Insight developed a new business model and created a 3-year growth roadmap for the new service offerings.
Peer Insight’s innovation effort prepared the client for swift integration of a valuable new business practice.
- Established a clear, repeatable process for exploring opportunities for data-driven services with existing customers.
- Validated assumptions about the value of new practices and technologies to the overall business portfolio.
- Moved from project kick-off to pilot within 10 months.