🔺 97% of consumers backed out of purchase because it was inconvenient.
Customers’ demand for convenience drives integrations in every digital product from B2C to B2B,
🚀 But the virtuous circle of #partnerships is the second degree effect of this trend.
Integrating products and connecting data opens more granularity and innovation for the customer.
💬 Here is an example of how this trend in driving innovation in embedded insurance from our recent episode with Andy Bodrog:
✔️ Convenience
People already have trusted brands they use and they like to go to those trusted brands. And when there's a new offer on that trusted brand, if it's an embedded solution, and embedded add-on product, you trust the brand, so you purchase it.
The whole embedded nature of providing add-on services to an already existing service just makes it more colorful, more convenient for the end customers, everyone wins. I don't see this trend really dying down anytime soon, and it's really only starting in insurance. And again, specifically insurance, what's really key here is these products are generally not thought of, you don't wake up in the morning thinking about buying insurance.
✔️✔️ Innovation
But when it's attached to a transaction, it's a new distribution source for carriers and also allows a lot of innovative policy developments. You atomize the insurance, bundled, dynamic pricing - all of this is really relevant when it's embedded to an otherwise existing transaction. A different length of a plane ticket, a VIP or business class ticket might require different fine tune coverages than an economy class. There's a lot of interesting innovative pricing, bundling product plays behind the scenes that the customer might not see. But it's driving innovation forward in the industry and new products can be developed for embedded type of distribution.