Business process improvement directly correlates to increase in customer satisfaction.
In this series of articles we are going to look at how different industries are leveraging (or can leverage) Internet of Things (IoT) to improve their business processes. These improvements can increase efficiency, improve data accuracy and resource utilization and most importantly increase customer satisfaction.
Auto Insurance – Additional Discount Process with IoT
The first example we are going to look at is from the auto insurance industry. Recently all major auto insurance companies have started offering their customers additional discounts based on their driving performance. The customers are required to install a tracking device for a specified amount of time, once installed the tracking device starts transmitting data to insurance company. The insurance company captures and evaluates the data until the trial period ends.
Here is an overview of the additional auto insurance discount business process. This does not include all the steps, only main activities have been included to keep it simple.
- Customer applies for the trial
- Insurance company mails the device
- Customer installs the device
- Device transmit analytics
- Insurance company captures analytics
- Insurance company evaluate captured data
- At the end of trial period the insurance company applies additional discount (percentage is based on customer’s driving performance)
By leveraging IoT data both the auto insurance companies and customers are reaping multiple benefits such as:
- Insurance companies get more accurate driving data of customers for future analytics.
- Insurance companies utilize the captured data to provide appropriate percentage of additional discounts to good performing customers, which further increases customer loyalty.
- Rather than waiting for the trial period to end, customers get access to their driving performance and expected discounts information live.
- To get higher discounts, customers can use the violations data (such as rapid acceleration and rapid braking) to improve their driving habits as well.
In conclusion, organizations should start thinking about IoT and how it can exponentially improve their efficiency and customer’s experience.
This article was originally published on ProcessRamblings.com.