In the race to win customer engagement, insurance companies will need to embrace digital transformation
Insurance industry unlike other industries doesn’t seem to have their own way when it comes to engaging customers in this digital age. While banking, telecom and retail companies are trailblazing in digital interactions with the customers; insurance companies are yet to catch up with their counterparts.
How Amazon, Netflix and Starbucks are locking in customers and what insurance industry can learn?
What do Amazon, Netflix and Starbucks and the likes all have in common, it is the seamless experience that elevates the customer satisfaction. Like it or not, customers expect a similar kind of experience from insurance companies.
Customer experience, the only way to win the competitive market battleground
The competition for insurance companies is as fierce as ever. But this time the battleground is neither product nor price or even brand, it is sheer customer experience. Insurance companies can take a leaf from banks and retailers, who have made tremendous progress in developing greater customer interaction and engagement through digital channels.
Customers know more about your business from social media, point to be noted
Accept it or not, the digital era consumer is no longer a single-channel shopper and thanks to smartphones, ecommerce and social media that are intertwined in our daily life. As a result of the rise of social media and other platforms, face-to-face or traditional retail is not only the place where customers are learning about your business. They are getting to know about your business from social media posts shared by friends, recommendations they receive and sometimes directly from customer experiences posted online. So all you have to do is just make your business presence felt where it matters the most.
While your customers stare at other companies, digital engagement works
Insurance companies are increasingly coming under pressure and are struggling to make progress with their legacy systems to attract new customers, retain old customers and bring delight to customers. As long as insurance companies continue to rely on aging methods they will not only experience low customer retention but also stare at customers switching to other companies that can meet their growing expectations.
When the existing customers are unhappy and not willing to come back, chances are that millennials who form a majority of growing segment of the digital market, and whose expectations are centered around mobile-centric solutions are highly unlikely to respond to an offer, leave alone buying products or services.
Again, it is not that insurance customers have unrealistic expectations. They are expecting insurers to offer products that are simple to buy, tailored to their needs, be able to offer consistent user experience across multiple channels, relevant information available at a fingertip away and most importantly smooth navigation. They want insurers to cut down time taken to address claims and leverage digital technology to simplify time taking procedures that cause frustrating waits.
Insurer companies should look beyond insurance
For a long time, insurance company’s business activities were focused more on claims process, policy premium and renewal. But the expectations of customers have now largely changed.
The millennial generation customers are expecting insurers to look beyond conventional insurance services. They are seeking additional services like roadside assistance including breakdown repair, recovery, towing and tire change.
And who said insurance and fun can’t go hand in hand. Insurance industry can have gamification integrated as a marketing technique to drive customer engagement, in that it involves usage of gaming elements like challenges, badges, point scoring and rewards system to encourage participation. All this is aimed at achieving one thing: inculcating desirable driving behavior in users through rewards system.
How social media is influencing consumer buying decision
Majority of industries have adopted mobile technology as a part of their multichannel strategy not only because it is convenient and cost effective but the time taken to reach out to customers is quick and more effective through mobile, against that of existing ways. Using mobile technology, the insurance industry can quickly reach out their customers who are always present online.
Other industries like banking and retail have taken advantage of social media platforms to reach out to their target customers. Its time insurance industry should engage with customers on a more personal basis because a majority of consumers try to get maximum information from social media when making insurance-buying decisions.
Customers would choose digital solutions when given a chance
Digital transformation is touching every industry but insurance industry was slow to embrace it. Given choice of navigating insurance processes through the daunting manual way or navigating through hassle-free digital way, millennial generation would obviously choose the later.
Chatbots, self-service portals and many such digital tools enable insurance companies to interact with customers like real agents and answer all queries surrounding insurance, claims and handle complex queries without having to visit office, talk to agents or write a mail.
There are winners but those who respond faster
More organizations are discovering how digital technology enables them to tackle the challenge of meeting growing digital expectations of digital era customers. But the winners are those, who respond faster to change.