To deep dive and have more information about the different ways you can support your customers at every stage of their lives with smart bundling, download AXA Partners’ white paper: Credit and Means of Payment: How to boost your revenues with Smart bundles.
Discover how AXA Partners can help you anticipate customers’ needs with relevant insurance services
In recent years, neo-banks, e-commerce and mobile payments have shaken up the market, offering consumers an increasingly seamless payment experience. And because your businesses play a major role in the daily lives of your customers, setting up an automatically underwritten assistance offer adapted to their needs is key. Smart bundling, by coupling different complementary services, is an effective way to diversify your offer while accompanying your customers.
This is confirmed by two surveys we conducted in 2020 and 2021 with OpinionWay, the pioneering French institute that conducts marketing-communication studies and surveys, among a consumer panel spread across Europe, the United States and South America.
Our objective? To better understand the expectations of individual customers in terms of financial services and to measure the impact of a smart bundling offer combining payment methods and protection for daily life. Here are some key takeaways.
A study and survey conducted on three continents to better understand customer expectations
In partnership with OpinionWay, we conducted a study and a survey focused on issues affecting the payment and credit market. The objective? Always better understand the expectations of individual customers in terms of financial services and measure the impact of a smart bundling offer combining payment methods and protection for daily life.
The first study, conducted in December 2020, looks at the benefits, for credit institutions, to offer death, disability or unemployment coverage to their clients. The second survey, conducted in October 2021, explores the opportunities created by bundling insurance products (travel, theft, breakage, etc.) with the use of payment methods (credit cards in particular).
Both analyses were conducted on an international panel, divided between Germany, Spain, Italy, France, Mexico, Poland, Colombia and the United States. This provided a global mapping of customer expectations in terms of insurance products or assistance and banking services.
An approach aligned with the data and customer-centric philosophy of AXA Partners
At AXA Partners, listening is a powerful way and driver to learn about and to consider the market in order to be proactive. Because we are committed to understanding the expectations and needs of our clients in detail, we make it a priority to combine field surveys and quantitative analysis. Our analysis of the complementarity between taking a loan and subscribing to insurance, detailed in the report written alongside OpinionWay, enabled us to clearly identify the need for protection in the event of involuntary unemployment, permanent disability and or death. From there, our teams estimated price sensitivity and considered the development of product lines to maximise revenue.
Similarly, for the survey, we asked a little more than 6,000 people in France, Germany, Mexico, Poland, Spain, and the United States about their credit card use habits and the most popular insurance products. The study and survey conducted with OpinionWay enable AXA Partners to provide banking industry professionals with precious insights on the market. By providing a helicopter view of the market, upstream to downstream, this approach fits perfectly our desire to always identify emerging trends to ensure our customers’ the best quality of service.
Credit and Lifestyle Protection product offer greater peace of mind to customers
By integrating a Lifestyle Protection insurance product to your credit offer, you enable your customers to benefit from practical support and assistance in case of an emergency. By integrating the fact that products such as means of payment and credit are involved in the daily lives of your customers, you can develop a product that truly anticipates their needs. This is especially relevant since consumers' needs in terms of financial protection have increased during the health crisis. Health, job continuity and lifestyle stability are more central than ever to their daily considerations.
The financial services you offer have a real impact on your clients' lives: they enable them to travel, cover daily expenses, achieve their professional ambitions or become homeowners. Credits also require your customers to be able to pay them back. However, an accident or a loss of employment can alter the financial situation of your clients. Understanding this opens the door to greater reflection and opportunities to better support your customers in the face of life's hazards. Thanks to smart bundling, the customer experience is easier: with an integrated offer, the number of steps in the customer’s journey are reduced, time is saved, and your customers are reassured about their ability to pay their monthly instalments.
Stand out from the competition and increase your revenues
Finally, integrating the notion of Lifestyle Protection to your services is also an opportunity to stand out from the competition. By offering your customers long-term support, you will build customer loyalty. According to the survey we conducted, customers are willing to pay more for access to certain features. In some countries, such as Spain, this represents an opportunity for financial institutions to increase their revenues by up to +89% on certain services (1). The survey also shows the value that policyholders place on the ability to receive financial support combined with practical assistance in the event of unexpected financial loss. The inclusion of such products increases the intent to take out a personal loan by up to 43% (2).
Accompanying financial sector players to enable them to meet the needs of their customers is part of our mission. To do so, AXA Partners offers you powerful digital tools, a result-oriented approach and a high-quality customer experience, as well as more than 70 years of expertise in the field of assistance and insurance. This way, you can help your customers achieve greater financial peace of mind while increasing the added value of your product through a strong comparative advantage.
(1) Cf AXA Partners White Paper, Page 11 ; (2) Page 15 - see below.