We know shopping for insurance isn’t always an enjoyable experience, but the pain is real for some. The seismic shift in consumer expectations of customer service has risen as technology allows us to access products all day, every day, and from anywhere. Insurance companies continue to lag the market as far as creating positive engagements with their customers. This is another example of why customer their attrition rates remain high. The average retention rate for the insurance vertical is 84%. So on average, 16% of customers leave their insurance provider each year. According to The Independent Insurance Agents of Dallas (IIAD), insurance has higher customer acquisition costs than any other industry. Insurance companies can expect to spend seven to nine times more money acquiring a new customer than retaining an old one.
So how do you hang onto your customers? You give them good reasons to stay.
Chatbots & AI
A recent McKinsey report found that more than 80% of all shoppers use a digital channel at some point in the buying process. Unfortunately, a similar study posted by Accenture stated 75% of insurance shoppers ran into trouble when purchasing insurance online. This demonstrates a gap in lead capture and conversational engagement that can help convert more prospects or attain to customer inquires. Insurance companies can also take advantage of chatbot technology to help automate processes that improve the overall experience. Chatbot and AI automation is a terrific option because it’s usually designed for easy setup and use, so you don’t need an in-house IT person. One of the biggest channels the insurance vertical hasn’t tackled yet is a mobile strategy aimed at converting prospects on their device of choice. Consumers rather text than email or phone call. This is a big reason insurance-tech disruptors, such as Lemonade and Hippo, are beginning to find traction, revolutionizing the space with AI, big data, and a strong mobile channel. It’s time insurance companies move their business strategies into the 21st century. Sonar has a dedicated suite of AI and chatbot functionality that can be customized for specific use cases. Save time, effort, and money with technology innovation.
Drip Campaigns (Follow-Ups)
According to Esurance, one in five (20%) consumers who recently purchased insurance say they’d rather slam their hand in a car door than shop for insurance. There’s a reason the insurance industry has an unfavorable connotation. There is a lack of positive customer experiences in this space. The main reason so many companies fail to improve customer journeys is that understanding what customers value is not an easy task. Identifying what drives customer satisfaction and translating it into operational improvements requires several interactions with the customer. How many times have you spoken to your insurance company? Can you remember the last time? For many, they don’t know these answers. One of the best ways to boost the experience and decrease customer churn is to implement a follow-up strategy. With Sonar, you can schedule and tailor custom follow-ups with our Drip Campaigns (Follow-Ups) feature. You can select from pre-filled templates or create a personalized message to be sent at a later date. Remind your consumers of important deadlines, share information regarding package bundles, or just simply check in. This creates an automated, extra touch-point with customers and gives off the impression that your company cares. A 2019 Quesnay research report stated 56% of insurance applicants believe digital tools, on-demand service, and chatbots will see the greatest adoption over the next two years. Being available to the customer for all their inquiries and needs is seen as one of the strongest influencers in reducing customer attrition. Sonar has a Chat (desktop) and Ping Widget (mobile) for this very purpose. Your customers can text-in utilizing these functions and go through chatbots, which gather information, and route to the correct place in seconds.
Integration
The insurance industry faces foundational challenges as it attempts to aggregate a wealth of customer data. The inability to easily share and access data across tech stacks and communication channels continues to plague the space. Most carriers have massive amounts of data dispersed across different departments and across different systems within the organization. But why is this data so important? It helps create an opportunity to improve customer interactions and marketing. How can insurers bundle products to make insurance more appealing to different target markets? Data will tell us what people actually want, removing assumptions from the equation. With Sonar, we integrate with a dozens of technology softwares and offer customized webhooks so your tech programs can “speak” to each other and accept the sharing and storage of data throughout the sales/customer life cycles. All the information you need regarding your consumers will be stored in their Sonar customer profiles so you don’t have to leave the application.
Conclusion
Providing mobile touch-points is a great way for companies to move prospects through the funnel and ultimately drive more revenue. Insurance carriers need to overcome data silos and utilize their tech stack to improve communication when looking to better meet customer needs. Creating a strong customer experience is not just about reducing attrition. It is increasingly a way for companies in competitive markets to distinguish their brands.
Check out the published research on customer experience below:
- According to a report by J.D. Power, companies that offer consistent, best-in-class customer experience grow faster and achieve higher profitability.
- The same McKinsey report mentioned also uncovered another eye-opening statistic, namely that satisfied customers are 80% more likely to renew their current policies than unsatisfied ones.
- Bain & Company (the inventor of the Net Promoter Score) has found in study after study that companies that prioritize customer loyalty are far more profitable than those that don’t.
Ready to streamline communication with your customers?