Banking, shopping, work, and communications. We’ve now condensed all of the touchpoints of our lives into our pocket-sized mobile devices, which we use every day to keep up with life’s routines. Each year, millions of consumers spend at least hundreds of dollars on their devices, if not thousands, looking for the best features for the user experience. As users continue spending more and more on their devices, insurance will come in demand and telcos will have a golden opportunity before them.
Insurance across the board has become a massive business globally, as more items previously considered uninsurable become insurable. With mobile devices specifically, original equipment manufacturers (OEMs) only offer one-year warranties—a period wherein the device likely won’t need much repair.
The current mobile device insurance market continues to grow, with 2020 numbers ($23.2 billion market value) indicating promising long-term results. A Grand View Research report determined the CAGR of the mobile phone insurance market is expected to reach 12.6% from 2021 to 2028. In this climate, insurance companies like Assurant are in for a big payday, as consumers gradually see the value in adding extended warranties to their phone. Many insurance plans now cover common problems consumers face, such as cracked screens, manufacturing defects, loss and theft, water damage, regular wear and tear, and more. Yet despite the cash that insurance companiescan rake in, telcos are losing control of the customer experience, which they rely on to reduce churn rate.
The existing insurance registration paradigm for customers entails a separation of the registration process from the actual service provision. Essentially, telcos partner with a device insurer and then hand off the service responsibilities beyond registration to the insurer. In practice, when a customer signs up for an extended warranty, the registration process typically takes place via the phone service provider in-store or over the phone. But when the time comes and a customer requires actual service of an insurer, he/she is redirected to the insurance company itself, not the phone service provider where the signup occurred.
Via the insurer, a number of scenarios can unfold—some of which can result in the phoneservice provider losing a customer. For example, an insurer can offer an insurance customer a new, cheaper phone plan with another phone service provider with whom the insurer is also partnered. In this scenario, the phone service operator may have sold a customer device insurance, but it lost the customer to a competitor in the insurance claim process, because the customer experience was taken out of its control. Therein liesthe opportunity.
Given that mobile device insurance is expected to rise, telcos must now maintain control of this portion of service, as well. Instead of allowing the insurer to dictate the customer’s experience and potentially drive them to competing partners, telcos can control the entire experience themselves. That’s where mce kicks in.
With mce’s Systems Omni-Channel Digital Suite solution, telcos will be afforded the power to manage the entire customer experience, from extended warranty signup through the entire service process. Ultimately, telcos then reduce the churn rate while maintaining strong relationships with their device insurers.
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About MCE Systems:
MCE Systems is the pioneer in mobile device lifecycle management, having created more than $2.5B of shareholder value for operators and their partners since 2005. MCE’s industry-leading solutions simplify operations, increase revenues, and decrease inefficiencies. Specific solutions range from device diagnostics and care to trade-in management with a price guarantee to handling device returns. All are omnichannel-ready with world-class virtualization and provide fully integrated data management to anticipate customer needs around device-related customers issues (e.g., device health, upgrade timing). Over its more than 15 years of experience, MCE Systems has become the trusted solution to Tier-1 operators and their partners. For more information, please visit:www.mce.systems.