5 ways insurance companies can improve customer engagement

13.05.2020

If you aren’t focusing on customer engagement, you’re missing out. Younger generations grew up with social media, so they are used to interacting with brands at the touch of a button. Last week we discussed the importance of attracting engaged customers. You can read that article here. To summarize, engaged customers tend to be more loyal, have a higher average spend, and are more likely to recommend you to others, all good things.

When we look at the insurance industry, it’s clear that there’s a problem. The leading insurance companies fail to answer more than two-thirds of questions asked through email or social media, and 30% of customers claim they’ve never had a positive experience with their insurance provider.

So, if you’re only engaging through call centers and emails, there’s room for improvement, here are five steps you can use to get started.

Think about your customer

If you don’t understand your customers, you won’t be able to engage with them. So take some time to put yourself in your customers’ shoes. What’s stopping them from buying a policy, or renewing one? With insurance, chances are you’ll have a wide variety of segments, so look at the ones that you’re struggling, and try to build up a buyer persona and look at the customer’s journey. From the first time, they think about insurance until the moment they click on that ‘buy policy’ button. The more you understand your customers, the better your interactions will be.

Deliver a personalized experience

To the customer, insurance companies look the same, and all insurance companies deliver the same product. Since insurance is intangible and making a claim is a relatively rare thing, even customers who stay with their insurance company for years, would struggle to differentiate it from another. There’s not much personalization in insurance, even things like a no-claims bonus, or a black box work the same regardless of the company you use. You need to offer your customers a little more. Insurtech companies are developing solutions that allow companies to stand out from the crowd, and it’s engaged customers that are more likely to notice these extras.

By leveraging social connections, VouchForMe allows customers to reduce their insurance cost by making use of guarantors, without the need for intrusive tracking devices.

Don’t go overboard

Engagement should be about quality, not quantity. Posting popular memes or cute cats to your company’s Facebook page might get more engagement, but it doesn’t mean you’ll get more customers. Focus instead on where you can improve. When someone asks you a question on social media, make sure you answer. Not only will it help them, but others will also see that you respond. While customer engagement should be higher, most customers will still only contact you rarely; it’s about making the most of each interaction so that you can build up trust between yourself and your customers.

Learn from the new companies

It won’t be a surprise to learn that it’s the new players that are on the ball with customer engagement. While big companies are leaving their customers on hold in call queues, start-up Lemonade has developed an online chatbot that can process straightforward claims instantly. While life insurance company DeadHappy has attracted a lot of attention with their unconventional advertising.

Survey your customers

An occasional survey can be an excellent tool for getting insights and reminding your customers that you take on board their feedback. Keep it simple, a survey that involves confusing questions or multiple stages will only frustrate people and result in your survey being abandoned halfway through. So keep it the survey short, and the questions specific. Don’t forget to thank the participants either!

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