Enhanced Digital Customer Experiences Help Insurers Stand Out From the Industry

BY: RAJESH NAMBIAR – FOUNDER, CEO
JANUARY 20, 2022

Smooth digital interaction between clients and your insurance company translate to better customer acquisition and retention

Key Takeaways:

  • Most insurance companies operate at a standard market rate, which means their customers usually get similar quotes
  • In such a scenario, other factors that can be crucial in pulling the client’s attention toward a particular company should be carefully gauged
  • Studies have revealed that implementation of hassle-free digital experience technology is one of the most pivotal elements in making clients stick with a specific insurance company
  • Insurance companies that embark on digital transformation with a focus on better customer services are more likely to have a larger customer base
  • Digital transformation done right, with all the appropriate processes put in place to streamline client interactions, leads to optimum results for any insurance company

With the passage of time, an increasing number of people are converging to digital platforms for their varied needs. Sectors like banking and insurance are no exception to the trend. Like any other organization, insurance companies are also bracing themselves to meet the demands of the digital era.

The best response to growing client inclination toward digital exploration is to provide them with a top-notch digital experience. Most clients want the best deals they possibly can from an insurance organization, but a streamlined digital experience can prove to be a crucial component of a winning a customer whether you can offer that deal or not.

Simply put, in a market environment where potential clients are likely to get similar quotes from different insurance companies, the most decisive factor is the digital customer experience.

Stats highlight the importance of better digital customer experiences in insurance

The State of Connected Customer report from Salesforce shows that 84% of customers believe the experience provided by a company is no less important than its services or products. The report further shows that 73% of customers wish companies showed a better understanding of their expectations and needs. Also, 54% of the customers surveyed in the report said companies should opt for transformation in the way they approach client engagement.

Another survey revealed that 60% of insurance executives firmly believe that a comparatively better customer service experience is one of the most important factors in successful competition.

Better customer service in a digital landscape within the insurance industry is showing itself to be a strong competitive differentiator. Today, 80% of customers don’t feel any hesitation in using remote and digital channels for completing their transactions and carrying out different tasks. Insurance companies should be going all out to capture this new and massive cohort of potential clients.

A digital transformation can also bode well for an insurance company by actively reaching out and engaging clients. A global consumer insurance survey indicates that 44% of insurance industry customers had no interaction with their chosen company over the last 18 months.

A digitally well-equipped insurance company can automatically identify the interaction time-lapse and reach out to inform customers about new and better products available. This will not only benefit the client and improve their digital journey with the company, but also bring in more revenue.

Adopting a viable customer-centric model

A considerable number of insurance companies have already made the move toward implementing a customer-centric model in their businesses. The most important aspect of this model is the provision of the best possible customer experience.

The insurance sector has now reached a stage where 85% of insurers are using customer experience-oriented decisions in an effort to improve their customer’s journey with them. Also, 90% of the insurance companies have deemed it necessary to have a dedicated C-suite position for customer service. Most insurance organizations now have positions such as Chief Customer Experience Officer or Chief Customer Officer.

Insurance companies that follow market trends are now rethinking and redevising customer experiences by putting themselves in the customer’s shoes. By applying the insights gathered from the customer’s perspectives, processes are being streamlined and simplified. The aim is to give the customer a smooth sailing experience that results in customer satisfaction.

The initiatives that the customer-centric model has managed to bring into the insurance industry have resulted in new communication channels and AI-based automation. These advancements are a harbinger of improved customer services by virtue of better digital experience technology offerings.

With a significant shift toward the customer-centric model, the value of customer digital experience technology has become monumental. However, many insurers agree that they are lagging in their customer experience strategies.

Only the right kind of digital transformation yields a favorable customer experience in insurance

Before devising and implementing a customized digital transformation strategy, there are a few things you should keep in mind for an effective customer experience improvement plan.

It is imperative to perform a thorough analysis of the customer journey with your company. You need to go through each and every process involved with the intention to implement any possible improvements. The more the customer interaction with an insurance company is streamlined the better the chances of the customer staying long-term. Factors such as ease of use and swift processing can sculpt a loyal customer.

You can make use of the existing data to develop deeper insights about your customer services. Better customer service understanding via your digital or non-digital organizational memory can help improve the overall customer strategy. You can achieve service optimization through improved customer experience design.

It is also important to be able to clearly identify the customer service areas that are sufficiently structured to be automated. The areas that should be left to human interactions should be clearly demarcated and spared any experiments. Always do an initial test implementation of your digital strategy. Once the results are found acceptable as per your goals, further improvements can be introduced.

RD Global works with insurance companies to provide them with customized digital solutions that enhance the customer/user experience and your ability to deliver great customer service. You can contact us today for a free consultation.

"Insurance Technology leader and Software entrepreneur with decades of experience leading technology initiatives for fortune 500 organizations. Rajesh Nambiar founded RD Global to create a unique digital consultancy offering high quality software solutions with an extreme commitment to customer experience."

JANUARY 20, 2022
RD Global Empowers Insurance Companies to optimize total digital experience, unify data, and harmonize processes by developing high impact technology solutions infused with a 5-star customer experience.