The insurance sector has never been an exciting forum to talk about customer engagement. Insurance companies have always been limited with their customer interactions – a bill in the mail, renewal notice, or a direct mail solicitation.
Customers usually have little trust in their insurance companies, resulting in low customer retention and severe financial losses. Analyses indicate that insurance companies may lose more than 10% of their customer base each year.
In a customer-centric business like insurance, customer engagement solutions should be the prime focus of the insurer. Companies must improve the effectiveness of their communications, and reward customer relationships. This may cut-down churn rate and build the loyalty insurers need today.
In this blog, we will discuss the three important areas insurers should focus on to build a sophisticated customer engagement engine.
1. Data Validation
Insurance companies have to deal with enormous data – customer demographics, addresses, assets, financial status, etc. – all logged across different areas of the company. But, uniting all of this data into one single view is still a vision for most insurance carriers.
Companies should understand that data is not just something to be stored in spreadsheets, but can actually improve their customer engagement strategy. Insurers should look for data software that can perform data cleansing, validation, deduplication and turn it into a corporate asset.
2. Analytical Tools
Once the data is cleansed and organized, it’s time to implement a robust analytics program. An analytical tool can help insurers glean actionable insights from the data.
Customer analytics fall into two categories – individual behaviors and group dynamics. By analyzing individual customers and identifying new opportunities, insurers can develop a more personalized relationship. Similarly, with group data, insurance companies can recognize patterns that can support product development and campaigns.
3. Customer Communications
Applying analytics to cleansed data, insurers can personalize customer communications. They’ll be able to garner data about the customer’s demographics and financial situation. This will not just help in sending more engaging and personalized direct messages, but also in web promotions, phone calls and social media messages. A positive experience will only build a deep insurer-customer relationship.
The Bottom Line
By staying relevant and engaging customers with personalized messages as per their needs and situations, insurance companies can build a relationship that lasts and eventually less churn rate.
Winners will be those who best seize the growth opportunity and offer products & services that connect best with the needs of consumers, making the insurance-buying experience as smooth as possible.