In 2020 digital platforms accounted for $36 trillion in global payments, claim that daily time spent on mobile devices has risen to 155 minutes per day. And those numbers are only going to increase as more industries are reshaped by the digital revolution.
With online options, it has never been easier to sign up for an insurance plan. However, despite the increasing ease with which insurance can be purchased online, a widening gap has developed between the insurance that consumers typically purchase and the insurance that they might need given their risks and exposures.
Affinity insurance programs aim to close the gap between online purchases, new gadgets, travel, and more. There are many of examples where customers can add insurance to other products or services. A partnership with Chubb can provide seamless integration of coverage and enhance your customers’ journey.
“At Chubb, we are proud to provide an optimized experience that allows customers to select the protections they choose in an easy and intuitive way, with just a few clicks,”
Savvy business leaders consistently push to increase market share, profitability and value in any business cycle. In insurance, creating strategic partnerships with forward-thinking businesses to introduce revenue optimisation strategies are both mutually beneficial and fundamental for their growth.
The idea of ‘set and forget’ client partnerships no longer exists, especially within affinity insurance partnerships. When looking at each unique business scenario, we need to work with partners to understand the various ways that their business is attracting customers and earning revenue; as well as where it is losing sales. With in-depth understanding of the customers’ buying journey, we are able to work with partners to identify the key areas for revenue optimisation.
If we looked at today’s online businesses – the trend of consumers making digital payments is ever increasing whilst smart companies rush to maximise their piece of the pie.According to the European Central Bank, there were 114.2 billion non-cash payments in the euro area in 2020, comprising all types of payment services. Card payments accounted for 49% of this number, while credit transfers accounted for 22% and direct debits for 20%. Whilst the numbers are appealing, most businesses in Europe are not operating at their potential to convert online visitors into customers; as well as their potential for increasing customer spend during the buying cycle.
Taking Expedia as an example, it is one of the world’s largest online travel companies with a 2018 market cap of US$17.1 billion and taking in close to US$10.4 billion in sales. To continue to be relevant and profitable, Expedia would be consistently working to increase revenue throughout its whole customer attraction, acquisition and retention phases. By making integrations such as improving its digital marketing, UX/UI, upselling or cross-selling timely and relevant services, the company would be able to increase customer traffic, conversions, loyalty and ancillary revenue. More importantly, for a company of that size, a 1% increase in customer conversions can lead to millions of dollars in additional revenue.
In order to do this effectively, companies need to focus on customer journey mapping, personal solutions, testing, refining and optimisation.
Each of the initiatives will need to be tested, altered and carefully tweaked based on unique business and customer needs; as well as its potential to drive revenue. It is a winning formula used by Chubb for many of its partners.
Companies are compelled to constantly revisit their strategies and alter business models to ensure that they are optimally using their resources to boost profits. The smart use of revenue building strategies will provide opportunities for enhanced profitability in the short term, as well as greater competitiveness and maximisation of customer value in the long term.
All content in this material is for general information purposes only. It does not constitute personal advice or a recommendation to any individual or business of any product or service. Please refer to the policy documentation issued for full terms and conditions of coverage.
Chubb European Group SE (CEG) is an undertaking governed by the provisions of the French insurance code with registration number 450 327 374 RCS Nanterre. Registered office: La Tour Carpe Diem, 31 Place des Corolles, Esplanade Nord, 92400 Courbevoie, France. CEG has fully paid share capital of €896,176,662. UK business address: 100 Leadenhall Street, London EC3A 3BP. Authorised and supervised by the French Prudential Supervision and Resolution Authority (4, Place de Budapest, CS 92459, 75436 PARIS CEDEX 09) and authorised and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request.
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