Why customer engagement is key in insurance

09.04.2020

Traditionally insurance companies managed without focusing on customer engagement. You bought your policy and unless you had to make a claim, you wouldn’t think about insurance until the day you renewed it.

Things are changing, with social media marketing, influencers, and personalization as well as the rising buying power of Millenials and Generation Z. Thanks to proven success within the fashion and online shopping, customers expect brands to predict their needs, interact with them on social media and offer custom products.

Smaller companies have the opportunity to gain. In the UK, only three of the most engaging brands are big players in motor insurance.

Customer engagement is on the rise. If you aren’t doing it yet, you’re losing out.

Engaged customers stay with brands

It’s an old saying but it’s true. It’s easy to keep a customer but hard to attract a new one. If you’re not engaging with your customers, you’re just another brand. They might have bought from you in the past, but you can’t rely on them in the future. Don’t let the effort of your marketing team go to waste, engage with your customers and keep them hooked!

Engaged customers are less price-sensitive

Engaged customers take a holistic approach to shopping, they don’t just look at the product and price, they look at the whole experience. Ask yourself some questions. Do you respond to your customers on social media? Is your website user friendly? Do your customers find your brand trustworthy? If not, chances are they’ll be shopping around next year.

Customer experience is the biggest opportunity of 2020

Don’t take our word for it, look at the data. According to Adobe’s 2020 Digital trends report the biggest opportunity for brands in 2020 is customer experience. 86% of customers are willing to pay more for a better customer experience and a Walker study predicted that by the end of 2020, the most important differentiator for brands will be customer experience, beating both price and product.

Engaged customers will come to you first

All insurance companies should cross-sell. If you’re selling motor insurance to customers, get them to come to you first when looking for income protection, or life insurance. If you’re not providing them with a good experience, chances are they’ll be looking at your competitors. According to Gallup engaged insurance customers are 22% more likely to buy different types of insurance from the same provider.

So time to get started!

Hopefully, now you can see the benefits of engaging with your customers, but there’s no use going in blind, follow VouchForMe on Medium. Next week, we’ll show you how to master customer engagement.