Handling 3 Changing Insurance Customer Expectations
The landscape of insurance is changing as is the industry’s forthcoming target market. That is Generation Y or Millennials will be the main focus when attracting talent and clients.
As noted in previous blogs, by 2025 (just five years!), Millennials will make up 75% of the workforce. Therefore, the importance of handling changing customer expectations will be crucial for your success.
Otherwise, you may get left behind by your competitors who chose to adapt to the changing needs of consumers.
Which is just as easy to do as it is to say. According to Salesforce Research, 76% of customers report that it’s easier than ever to take their business elsewhere and will switch from brand to brand to find an experience that matches their expectations.
Handling 3 Changing Insurance Customer Expectations
No Wait, Self-Service Experience
The idea of being able to make a transaction anywhere at anytime is less of an idea and more so reality already, except when it comes to insurance. Big box insurance like Progressive and insurtechs like Lemonade already allow you to instantly add more coverage through their mobile apps. Now to just get the smaller, independent insurers on board. Allowing consumers this type of accessibility, especially when your competitors are not, opens up the door for more consumers.
For example, you are leaving work at 6 pm and on your ride home there are two stores next to each other that both offer your favorite candy bar for the same price, however Store A is only open until 5 pm and Store B is open 24 hours. Are you going to wait until tomorrow to get your candy bar from Store A or will you just run in and grab it from Store B?
I’m assuming you would just go to Store B, right?
Now think about how many customers Store A is losing simply because they are not open and how many Store B is gaining and likely retaining just because they are open. In terms of insurance, when we as consumers need insurance, we need it now. Waiting for our agent to respond to a phone call the next day between 8 AM and 5 PM doesn’t have to be an option if we can make that same transaction elsewhere at anytime.
“ 57% of customers have stopped buying from a company because a competitor provided a better experience.”
Similarly, consumers want a no wait, self-service experience when it comes to shopping around for insurance, receiving a quote, paying their bill, and adding or removing coverage. When there are seamless processes to doing any of the above you are more likely to win their business. In fact, 70% of customers say connected processes are very important to winning their business (Salesforce Research).
The key here is having the right technology that will meet consumers’ needs for instant transactions. Such as electronic channels, client portals, and mobile apps. With those electronic channels, processes are simple, quick, and there is no need to wait for an agent. Which is an added benefit to you and your staff by freeing up their time to focus on higher priority tasks.
Tailored Communications & Services
“70% of customers expect businesses to tailor communications and services.”
Why do consumers want more personalization?
Simply put, we want to feel like a person and not just another number to you.
Knowing what we like makes it easier to advertise to us as it’s not just a shot in the dark – plus a ‘Happy Birthday’ text message from our insurance agent is the cherry on top of great customer service. Using personalization shows you care about your client’s best interest and took the time (even when you didn’t, thanks to modern technology).
Again, using the right technology can help you achieve more. And in this case more personal, tailored communications and services. Using data from social media, analytics from app and website behavior, and other big data is crucial in helping you tailor your offerings, promotions, modes of communication, and so forth without spending copious amounts of time delving into each client, current and future, one-by-one and hand-by-hand.
One example of analyzing, organizing, and summarizing data is that it can help you find trends between products bought by similar people which will help you cross-sell more accurately. Going through app and website behavior you can find behavioral patterns such as where people fall off or spend a lot of time. From there you can smooth out those processes, so there is less drop off and an increase in moving them along their buyers’ journey.
Usage-Based Coverage
Millennials are the driving force behind usage-based and episodic insurance. Usage-based insurance is a type of auto insurance that tracks your mileage and driving behaviors such as speed, frequency of driving, braking, etc. using a car plug-in, mobile app, or a device already installed in your car. This helps insurers accurately develop premium rates based on the safety of the driver. Whereas, episodic insurance gives the consumer the ability to turn their coverage on or off through their mobile app, or client portal.
Why is this becoming increasingly popular?
The gig economy.
The gig economy is short-termed, so those who are Grub Hub drivers or drive for Uber and Lyft may only need extended auto coverage for certain periods of time. Likewise, consumers are traveling more often, but not every day, so travel protection would fall under episodic insurance as being something they can turn on and off when needed.
Similar to the other changing insurance customer expectations, you can navigate usage-based/episodic insurance with better technology. The technology for this should allow the customer the ability to turn it on and off when needed, without having to contact an agent. Again, mobile apps!
How An MSP Can Help
By partnering with an MSP, like Omega Computer Services, that specializes in I.T. specifically for insurance you are able to set your mind at ease…at least from tech and compliance problems.
All while keeping you and your staff equipped with updated hardware every three years, so you don’t fall behind the tech curve and risk running on non-compliant systems or software.
Without the help of an MSP, the large up-front cost of updating your equipment can be a heavy burden and is often times why technology refreshes are thrown to the back burner.
Not to mention, without the right technology your business will become stagnant and unable to keep up with changing consumer demands - a recipe for failure.
Conclusion
Technology plays a very important role in the above three changing insurance customer expectations.
It’s time to get rid of those legacy systems as they are outdated, clunky, and don’t allow your business to grow with changing customer expectations.
2020 and beyond should be about setting your business up for success, whatever is thrown your way (pandemic, anyone?).
Thankfully, partnering with an MSP can help take the financial burden of a large upfront cost for new hardware off your plate, and keep your mind focused on better handling changing customer expectations.
