Insurance customer engaged through phone

5 Trends shaping Customer Engagement in the Insurance Industry

In the past, when mobile phones were used mainly for calling and the internet could only provide several kbps of speed, the relationship between the customers and insurers usually extended no further than the point of sale. 

However, the widespread adoption of social media and the internet during the 2010s has precipitated modern customer demands. Customers are used to two-way communication with the brands, keeping them updated and making them interested to stick around.

In the realm of improving customer satisfaction and loyalty, the buzzword here is engagement. It is the way to the customers’ mind and heart. Especially for the insurers, this aspect of customer experience is only getting more and more important. 

What is Customer Engagement?

Customer Engagement is all about the interaction between the customer and a company through different offline and online channels. Nowadays, there’s a social phenomenon where people engage online to discuss brands, solve issues and learn new things. The key is to provide customers with something valuable beyond the products and services that they purchased, establishing an emotional connection and forming a strong relationship with them. 

According to Spiegel and Broadly, 95% of customers read online reviews before purchasing, while also spending 31% more when a company has excellent reviews. The data shows the importance of delivering a seamless experience across all customer touchpoints with today’s hyper-connected and empowered customers. To achieve this, we’ll deep dive into 5 key trends that are shaping Customer Engagement today. 

Trends of Customer Engagement

Customers are everywhere 

Beyond the expectation of information and services that are accessible in just a few clicks, customers have also gotten used to engaging with companies through multiple channels. Many customers use different channels to engage with the companies before making a purchase. This could be via website, social media, comparison sites, apps, and/or physical stores. Regardless of where the customers are, insurers should establish an Omni-Channel presence to support the customers throughout their touchpoints. With the addition of an Omni-Channel tool, insurers can unify the customer experience by managing different communication channels from a single system. As a result, customers can enjoy a seamless experience, whereas, insurers will achieve higher customer retention with increased renewals and decreased cancellations.

Delivering hyper-personalized marketing

The amount of information created in this current digital world is truly astonishing. By collecting and processing that information, insurers keep customers engaged by offering something that is hyper-personalized. In reality, 79 percent of consumers said they are only likely to engage with a brand using coupons or other offers if those promotions are directly tied to how they have interacted with the brand previously. Therefore, the ability to offer hyper-personalized interaction to customers is important for engagement and retention. One of the ways is to use a good campaign management tool that makes it possible to send out marketing campaigns to different customer segments based on the data (age, location, income, etc) collected from various sources.

The use of IoT

The Internet of Things (IoT) establishes connections between processes, things, and people that were once completely siloed. Insurers use IoT technology to engage better with customers through gamification and scoring. For example, a telematics device collects data about the customer’s driving behaviour and usage. If it detects safe driving behaviour, it can reward the customers by offering lower premiums, and that is personalization at its best. In the meantime, customers will engage more frequently with the insurers, through the use of gamification features in the customer app. This paves the way to discourage dangerous driving while increasing engagement beyond the usual renewal event. 

AI technology keeps interaction alive  

According to McKinsey, there are about three-quarters of customers expect “now” service within 5 minutes of making contact online. It is difficult to rely only on humans to deliver such services this fast, especially with limited resources. The use of AI in the insurance industry, which comprises chatbots and virtual assistants powered by machine learning is thriving, as customers seek faster response time and 24/7 customer support. Insurance deploys AI for simple tasks like answering low-level enquiries, checking billing information, etc. As a result, the customer service agents can focus to engage personalized and dynamic conversations with their customers on sophisticated issues.

Leveling up customer experience with AR 

Augmented Reality (AR) is a technology that is both new enough to pique customer interest and familiar enough that they know how to use it without much trouble. It has unprecedented real-world applications, specifically in the engagement between the customers and insurers. By using a smartphone, AR delivers next-level personalized sales, marketing, and support, by enhancing the interaction abilities and offering beyond simple novelty. For example, insurers utilize AR technology to create explanatory videos on the insurance plans. It can simulate real-life risky situations to showcase the importance of various insurance plans. Hence, customers are more engaged when they use AR apps and can choose the most appropriate insurance plans without hassle.

Grab the Opportunity

Customer relationships are changing dramatically as customer experience is becoming the differentiating factor in the insurance industry. In the eye of the customer, 80 percent state that the experiences provided by a company are as important to them as its product and services. In other words, the way insurers engage with customers has a fundamental impact on future business success. Therefore, insurers need to develop the right Customer Engagement strategies to serve their customers better throughout the entire policy lifecycle. 

i2go 

I2go helps insurers to enhance customer engagement by offering cutting-edge solutions. It enables the insurers to establish an Omni-Channel presence, manage the leads, and create targeted lead campaigns easily. With i2go, you can enjoy the benefits of:

  • Omni-Channel Capabilities by having Call Center and VoIP Integration.
  • Integration to several distribution channels like websites, comparison sites, and APPs.
  • Having an integrated telematics solution with APP and Gamification.
  • Activity Management to see a full audit trail of all policies and customers.
  • Campaigning and engagement tools for mass and segmented email, SMS campaigns.

To find out more, book a demo today.