Behavioural economics lifts insurance sales by 89%
Behavioural economics capability in analytics
Applied behavioural economics
Area of Expertise:
Behavioural economics capacity building
Large South Africa bank
Genesis Analytics conducted a three-month project in a large South African bank to showcase the value of behavioural economics. The result was an 89% increase in short-term insurance sales through the bank’s contact centre.
The project involved two workstreams: the first educated and embedded a common language across the value chain; the second demonstrated the power of applying the science in a live campaign environment.
The work began with a full day’s training facilitated by our UK partners, London Economics. This was followed by eight seminars, which revisited in depth the content from the training session. The seminars used a combination of videos, case studies and facilitated discussion to explore highlighted issues. Attendees came from a range of areas within the bank including insurance, analytics, customer insights and more.
In the second workstream, the Genesis team was asked to investigate how leveraging behavioural economics in a short-term insurance contact centre could increase the quality of conversations and therefore sales.
A key challenge identified was that conversations were too general and often resulted in information overload on the customer's part, particularly at the introduction stage of the call. Genesis overcame this challenge and others with better analysis and an ability to uncover the actual customer decision journey at play.
Customer communications were redesigned to tailor the conversations to each customer context based on internal customer data. These communications aimed to decrease information overload by leveraging herd effect, priming, framing and exclusivity.
Making this detail available to the contact centre agents enabled them to identify and address the specific needs of each customer and help them to make the right insurance decisions. The outcome was an increase in sales of between 89% and 100%.
Following these successful results, our team was retained to leverage behavioural insights across all contact centre teams.
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