In 2023, a major insurance provider sought to understand the impact of customer experience (CX) and loyalty programs on policy renewal. OGC Global conducted an extensive analysis to quantify the ROI of CX improvements, leading to strategic changes that boosted annual recurring revenue (ARR) by over $50 million.
Challenge or Opportunity
Our approach involved an analysis broken into several phases:
Investigative Analysis: We explored current CX trends and modeled interaction behaviors among policyholders, utilizing advanced analytics tools and merging customer datasets from across the enterprise.
Simulation and Modeling: We simulated thousands of combinations of various CX and interaction levers to determine their impact on outcome metrics using a decision science-based methodology centered around several machine learning models. This process involved rigorous testing of different scenarios to identify the most effective strategies.
Strategic Implementation: The focus was on reducing friction in the policy audit process and enhancing proactive outreach to third-party brokers. This strategy was selected for its significant potential to enhance policy renewal rates, as indicated by our simulations.
This project improved the client’s immediate financial performance with a 3.7% increase in policy renewal and loyalty rates, leading to a marginal rise in Annual Recurring Revenue (ARR) by over $50 million.