A new U.S. consumer vehicle insurance coverage shopping study offers key insights to help insurance providers enhance their engagement methods in order to help increase insurance policy holder retention. The study reveals excellent news for insurance providers– insurance policy holders carry out in fact want to speak with their vehicle insurance provider, more than they are currently today, however it needs to be on their own terms. And, when insurance provider communication
is lacking, customers can be quickly tempted to patronize another provider. Advertisement
)are open to outreach anytime during the policy term. Despite customers'favored desire for routine communication, just 46% of respondents said they were contacted by their provider at any point during their policy term, beyond the routine renewal notification. Advertisement “With easy-to-use websites, mobile apps and always-on call centers, it’s much easier than ever to look for insurance plan, and customers are actively taking advantage– both on and off policy cycle, “said Ian Griffin, director, item management, LexisNexis Risk Solutions.”It’s motivating to know that consumers are willing to listen, however reliable outreach is a balancing act, and you need to make certain you have the best listening and communication methods in location to avoid attrition, and preferably develop client loyalty.
“Chance To Be Proactive
There’s a chance for insurance providers to be more proactive in reaching out and engaging with insurance policy holders across the entire policy lifecycle, however that outreach needs to be meaningful, and delivered on their terms.
Research found that most insurance policy holders aspire to talk about prices and discounts, however engagement should not end there. Other topics of interest to insurance policy holders include their options for additional protection (39%) and bundling (31%), as well as the opportunity to offer any feedback they might have (29%). This is even more evident for millennials, as 33% desire to offer feedback.
Significant life occasions are also critical in customers’ shopping and decision making, and this information is essential to carriers. In a 2019 LexisNexis study, of the 60% of respondents that had just recently experienced a major life occasion, half declared that the occasion impacted their decision to shop their vehicle insurance coverage.
Understanding of consumer life modifications offers carriers considerable chances to broaden protection with existing insurance policy holders and additional establishes the provider as a relied on advisor.
Prove You Know Your Customer
The survey results highlight that it is critical to connect to consumers, however it is also essential to comprehend your target audience’s choices and tailor outreach accordingly. When it pertains to how consumers want to speak with their carriers, 90% state they choose to be contacted by e-mail, making it the top platform. The 2nd most-preferred approach of contact is mobile apps (43%) amongst Millennials, and a phone call for Gen Xers (41%) and Infant Boomers (55%).
When it pertains to cadence, nearly half (49%) of insurance policy holders feel it’s suitable for their provider to call them within 2 to five days of them getting a competitor’s quote, however the bulk (68%) do not want to be bothered and feel that a person contact post-quote is enough.
However, carriers who are too quiet and do not proactively connect to their consumers are at a drawback as nearly half (47%) of insurance policy holders who changed to a brand-new provider said their existing provider’s failure to connect influenced their decision to switch.
Usage Easy Shopping
The LexisNexis study also validates that customers see how simple and hassle-free vehicle insurance coverage shopping can be. The ease of use causes insurance policy holders shopping with higher frequency– 47% of survey respondents had shopped their vehicle insurance coverage more than as soon as per year and 39% had changed carriers within the previous year.
“Understanding when and how insurance policy holders are shopping can lead to a huge competitive advantage,” said Griffin. “For insurance providers aiming to pay closer attention to their consumers, LexisNexis Active Insights can help to inform when an insurance policy holder is shopping, which then enables the provider to proactively engage them at the right time and consequently better keep their insurance policy holders.”
Customers Want To Be Valued
Understanding now that customers welcome increased contact from their insurance providers, the question then becomes what should carriers be communicating to ensure that the outreach to their insurance policy holders is engaging and well gotten? According to the study, consumer engagement that offers insurance policy holders a voice and stresses how it is valued is definitely critical.
LexisNexis Risk Solutions recommends that carriers let their insurance policy holders know that: 1) feedback is not just welcome, however encouraged; 2) carriers want to tailor policies to best fit insurance policy holders’ requirements; and 3) carriers care about insurance policy holders and want to do whatever possible to make insurance policy holders happy.
Carriers who master the cadence and messaging that customers are looking for are the ones best positioned for long-lasting success. Insurance providers, acknowledge that your insurance policy holders’ voices matter, and comprehend their interactions choices so you can tailor your outreach to meet their expectations.