Consumers are increasingly seeking seamless digital experiences, particularly given that many of our daily needs can be addressed with a single click. As a result, many individuals have become accustomed to using digital, from purchasing goods online to making payments using banking apps. However, when it comes to buying insurance, digital experiences that make each step as straightforward as possible – from acquiring coverage to submitting claims – are crucial.
Like the rest of the banking services sector, insurance companies realise that it’s time to engage with their customers’ expanding digital use. This predilection for online shopping is also evident in the insurance industry, with more than 80% of UK consumers and more than half of US customers currently purchasing auto insurance online.
This isn’t unexpected, given that we live in a digital-first era, with triggers like the Covid-19 outbreak hastening a shift in policyholder and provider priorities. Over 80% of insurance CEOs say that the epidemic has accelerated their efforts to create seamless digital interactions.
Insurance companies must build seamless digital experiences to attract customers, especially as buyers become increasingly comfortable comparing providers and products online. Companies that do not meet today’s expectations are likely to lose out to insurance providers with a competitive edge even before the brand-consumer connection begins. To become – and be – their preferred supplier, insurance companies must better understand their clients’ purchasing patterns, motivations, and expectations.
The urge to save money drives most people’s searches for insurance providers and policies. Money, however, isn’t everything; depending on insurance firms to protect critical assets demands trust. This explains why, after price, a company’s reputation is the most crucial factor in people’s insurance purchasing decisions. Financial incentives also motivate customers to take up more products with their current provider, with bundled pricing being the most enticing.
Despite their importance in consumers’ lives, insurance firms don’t have many opportunities to win them over. Typically, consumers only interact with their insurer when they need to file a claim, implying that many customers still value insurance providers only for their transactional value. As a result, there’s tremendous potential for insurance firms that can check all the boxes to nurture loyalty and enhance client lifetime value. However, orchestrating a journey that meets consumers’ insurance expectations necessitates a thorough grasp of them and their coverage requirements.
Data is the primary key to answering these issues. Insurers may offer hyper-targeted messages, increase cross- and upselling opportunities, and enhance their retention strategy when they generate richer data sets based on long-term connections.
Insurance firms must augment their digital transformation with the ultimate customer experience tool, an advanced customer data platform (CDP), to gather and transform mature data sets into a holistic view of each client.
A Customer Engagement Solution based on CDP will allow insurers to understand customer interactions on their digital channels, personalise customer journeys, enhance the customer experience, increase loyalty and maximize conversion.