Tag: Digital Advisor

Conversational AI in Insurance: Nullifying false positives

Conversational AI problem statement: Operating as an Insurer for the modern-day, on-the-spot solution craving customers is a constant battle between passing out relevant information in the quickest possible turn around. As a thumb rule, insurers can’t keep their customers waiting and then pass on incorrect or unwanted information (false positives). While having a dedicated customer service team for this problem may seem like a tried and tested formula, it brings along its own set of business implications which can hinder profitability as well as brand reputation. Who are conversing through AI, and how? Research shows insurance companies across the globe are investing in conversational AI tools and solutions to overcome this problem, with the broad objective of delivering customer delight and higher recommendation rate. Conversational AI has already proven its merits amongst several leading insurers: • Tryg, a Denmark based insurance operator enjoys 97% resolution rates of all internal chat queries; the company has successfully enhanced the abilities of its existing customer support staff. The number of calls from support to back-office teams has also dropped substantially in just one year, post adoption of Conversational AI. • In a similar instance, Storebrand also claims to have achieved a major break-through in the usage of AI laced chat interactions. Presently, the company powers more than 70% of its chat interactions through AI-chat tools and zero human interventions; additionally, the company also registered a 162% increase in customer interactions through chat mechanisms. Even though Tryg and Storebrand are two distinct companies operating in separate geographies, they have a strikingly similar strategy of adopting the AI tools. Both the companies have adopted the AI as a complementary solution to their customer servicing team. The two insurance giants have actually deployed their chat tools as the ‘first line of defence’ for the ping traffic inbound. The tools generally soak up all the repetitive and mundane queries which suck up employee bandwidth, unproductively. These tools have been carefully planned, crafted and developed to delimit themselves from more serious and business critical queries, which are eventually transferred to more experienced and skilled customer service executives, owing to obvious reasons. Who is driving AI-based conversations? The conversational AI adoption trend is basically fuelled by the fact that customers, especially the millennials prefer fast, efficient and reliable modern communication over traditional channels such as emails and telephonic conversations. Insurers will have to address this sense of instantaneous resolution among millennials in order to carve a better market share among this cohort, which is fast becoming rich and finding ways to manage their finances. According to Accenture, in the next 30 – 40 years, millennials are expected to inherit wealth worth over USD 30 trillion in North America alone. This makes them the next important chunk of population wherein insurers will have to focus more often and create a groundwork necessary for the future to avoid becoming irrelevant and a tech laggard. How do you jump into the bandwagon? To kick off a Conversation AI adoption journey, Insurance players will have to begin from their drawing boards and slate down opportunities to improve the critical interactions customers have. Some important areas may comprise the provision of human support over and above AI support, positioning of the tool in the customer’s digital journey in a manner which highlights the scope of the AI chat assistant, induction of “pre-trained’’ insurance specific modules, deciding the key performance indicators for the solution and lastly, a reliable technology partner that can factor in all of the above and come up with a solution that can efficiently manage near 100% of all customer interactions and void of any false positives.

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How to Use Operant Conditioning to Enhance Digital Marketing

Psychological theories have had a profound effect on the way we understand human behavior. It does not come to us as a surprise that Internet behavior can be judged, assessed and predicted with the help of the very same psychological theories. Of particular interest are the learning theories, which fall under the school of behavior theories. What Is Operant Conditioning? Operant conditioning is a term that was coined by B.F. Skinner in 1937. He stated that people do not merely learn and unlearn without understanding the environment. People participate and learn based on environmental rewards and punishments. In other words, when an individual visitor to a website experiences something positive (a reward), he will be motivated to visit that website again. When this reward continues to be given repeatedly, the visitor learns to visit that website regularly, now that he is conditioned to that in an operant manner. Operant conditioning is a very important concept when it comes to digital marketing. Operant Conditioning in the Field of Digital Marketing The behaviorist school of psychology insists that all our behavior is learned and that there isn’t much that is innate apart from instincts and drives. This thought is very important in the field of digital marketing, as most people learn to view particular information either negatively or positively only because they have learned to do so. For instance, emotional appeals in digital marketing have been successful in times of disasters and threats. During peace and relative prosperity, emotional appeal is not very successful, and people learn to avoid it, finding it overbearing and unnecessary. This act of learning that emotional appeal is unrewarding can be traced to operant conditioning principles. Companies often apply operant conditioning in marketing to shape consumer behavior, and this operant conditioning marketing approach relies on rewards or incentives to encourage repeat purchases. Brands often use operant conditioning in advertising by rewarding consumers with discounts or loyalty points, demonstrating how operant conditioning advertising can shape purchasing behavior through positive reinforcement. Instrumental conditioning in marketing is often used by brands to shape repeat purchasing behavior, and many successful campaigns rely on instrumental conditioning marketing techniques to reward desirable consumer actions. Many brands use operant conditioning advertising to reward desired consumer behaviors, while instrumental conditioning in marketing helps reinforce repeat purchases through incentives and loyalty programs. Rewarding Your Target Audience If you are a company that sells products or services and wants people to visit your website often, you need to reward them for doing so. This reward does not have to be tangible and can be subliminal. A well-designed website that is pleasing to the eyes, when compared to your competitors can be a reward to your visitors. They will learn to make repeated visits to your websites solely because it is a rewarding experience. Likewise, the products and services that you sell need to be rewarding. In other words, what you offer has to be valuable and the customer or client must feel rewarded when he makes a purchase. This continued experience of being rewarded with great products and services will ensure that your visitors are loyal and faithful and that they keep returning back to your site. How to Condition Your Target Audience to Keep Coming Back In order to make operant conditioning successful on your website, you need to list down all the things that can be rewarding and punishing to your visitors. A deep insight into the competition, trends and tastes of your visitors, user experience of using the website, actual worth of your products and services and deep knowledge about a changing world are all very important in ensuring that your visitors, clients and customers feel rewarded. This sense of being rewarded is what will make them learn to come back to you. This rewarding experience will ensure that your business stays afloat and makes a profit. Thus, it is a very important strategy to learn how operant conditioning works, and how one must ensure that clients, visitors and customers are rewarded not tangibly but subliminally through great products and services. You do not need to bribe your customers and clients by giving discounts, offers and gifts. That is nothing but a bribe and will never be a sustained source of operant conditioning. You need to condition your target audience by being genuine, and by rewarding your target audience with quality, care, appeal and by building trust. Bribing with Discounts Will Not Help, but a Rewarding Business Experience Does Digital marketing will then have to be as genuine and rewarding as it can be. There should be no room for distractions or doubts, and companies and businesses must ensure that at the end of the day, whoever makes business with them feels rewarded. This sense of being rewarded is what will help people to learn that doing business with you is important and worthy. It requires deep psychological insight but is not difficult to practice as long as you know that your target audience likes to be pampered not with gifts and discounts, but with great quality of services and products.

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