In an ever-evolving insurance landscape, the lines between product and price offerings are getting blurred. This is compelling insurers to find innovative ways to capture customer attention and secure their business. Hence, customer engagement and experience have become extremely important for success. However, there are road rails that are creating obstacles for insurers, although, they are acknowledging the need for prioritizing customer-centric approaches and personalized experiences. A staggering 74% of customers are abandoning purchases due to an overwhelming feeling. Additionally, customer trust and loyalty remain alarmingly low, which further contributes to the increasing distrust of insurers.
Keep reading to decode the reasons for this increasing distrust and the key levers that insurers can tap into to improve customer relationships.
What is Adding to the Increasing Global Customer Dissatisfaction with Insurance?
Here are the three key factors that are crucial for insurers to tap into and can be the potential reasons for the increasing distrust among customers:
Top Three Levers to Improve Customer Relationships in Insurance
While insurers globally are harnessing the prowess of digital transformation, it’s important to leverage the right digital tools and resources to improve customer relationships in insurance. Here are the top three levers that insurers can tap into to improve customer relationships in Insurance:
Data-Driven Marketing with AI
One of the key benefits of AI is that it has made hyper-personalization extraordinarily accessible and has been guiding customers through their decision-making journey. 94% of CMOs believe that GenAI capabilities can help enhance organizational efficiency and agility in response to market demands. Hence, with the integration of AO tools, there is a significant push in marketing campaigns to focus on relevant topics that will help attract leads. With this evolving market demand, insurers are differentiating themselves by developing AI capabilities that match products to the customer based on a variety of data factors which include recommendations based on the degree of alignment between products and the customer’s needs. With this effort to harness the capabilities of AI, insurers need to prioritize data organization and foster a scalable collaboration between technology and human insight.
Marketing Technology for Driving Innovation and Speed
In an interesting insight, 68% of Chinese CMOs feel that customer expectations are evolving much faster than their own companies. To bridge this gap of catering to evolving customer expectations and gap in insurer’s efforts, insurance providers need to harness marketing technology to gain valuable insights into customer preferences, enabling quicker responses through automated campaign workflows and more targeted marketing. This essentially means delivering the right campaigns at the right time and in the right format tailored to each of the customer’s unique preferences. Additionally, to effectively engage with customers, insurers need to use marketing technology to create strategies based on customer preferences and behaviors. This approach will significantly help insurers to connect with customers more effectively as well as present a unified brand experience.
Building Customer-Centric Relationships
When products and services become homogenous, customers do not assess the transactional relationship that is formed, instead, they look at the broader experience that they have with the brand. They seek more meaningful interactions that may not directly relate to the product that they are buying. To build customer-centric relationships, brands need to increasingly emphasize unique experiences that are particularly crucial for the insurance industry. This comes at a time when purchasing decisions are less frequent as compared to other consumer goods.
To truly build customer-centric relationships, insurers need to focus on offering memorable experiences. While most of the customers might not be able to grasp the technical gaps between products offered by the different insurers, they do understand they do remember any unique moments that are offered by the insurers. Thus, offering unique experiences will form the key to customer engagement in insurance.
Conclusion
One of the keys to building customer engagement is to offer unique and memorable instances that will stick with the customer for a longer period of time. Additionally, as the insurers navigate through this challenging terrain, their focus on customer engagement and differentiation will form the catalyst for sustained business growth.
