Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business. You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy.

Get it on Amazon (Kindle/Print)

Insurers missing vital chances to earn customer loyalty

Weak customer relationships endangered by lower prices

The survey of more than 1,000 US-based consumers revealed just how price-driven they are: 63% of respondents ranked price as the most important factor when first selecting an insurer.

Curiously, only 13% ranked customer service as their top factor, but with so many consumers willing to switch providers as soon as they see a better price, the onus is on insurers to provide the kind of proactive customer service that will give them an edge to secure long term customer loyalty.

For insurers to create meaningful customer relationships that encourage long-term loyalty, they need to better understand three key areas surrounding customers' current needs and preferences:

1. Insurers aren't providing experiences to promote loyalty
   When it comes to insurer satisfaction, there's still room for improvement. Thirty-five percent of consumers report being only somewhat satisfied, with six percent either responding they are not very satisfied or not satisfied at all. Additionally, when asked when the last time an agent proactively reached out to them within the past year, nearly 40% of respondents said they had not or they didn't remember. And when insurers do reach out, they're not providing personalized experiences: more than half (53%) of respondents said their insurers only somewhat know their history and preferences. With a lack of personalized service and customer knowledge, there are no factors besides price motivating customers to remain loyal to their insurers.
2. Consumers are ready for advancements in customer experience
   As buying habits and customer expectations shift, insurers need to evolve to accommodate these changing needs. And consumers believe their insurers can do it: 91% of respondents feel insurance companies can be innovative and cutting edge when it comes to their use of technology for better customer experiences. Many are also willing to share more data about themselves if it means better pricing and service, including auto mileage trackers (33%), smart home devices like doorbells and cameras (26%), and wellness incentives (22%). Additionally, buying habits are seeing a generational shift when it comes to the use of technology: when asked how they buy their insurance products, 40% of 18-24 year olds buy online only, as opposed to only 19% of those 65 and up. It's critical that insurers have the right technology in place to accommodate and provide better experiences for all consumers, particularly new generations of buyers.
3. But don't forget about the basics
   Despite this, the human element still remains a top priority - when ranking preferred methods of communication with insurers, phone calls were ranked first (60%), followed by email (43%), and in person (39%). The basic fundamentals of service still remain the same: the most important element of good customer service is quick resolution (42%), followed by personalized experience (28%). Ranking among the top reasons for bad experiences are long wait times (37%) and the issue not being resolved after first contact (23%).

Insurers are doing well enough, but if they want to keep their customers in a competitive and fickle market, they need to do more, the company warned. "In such a price-driven industry, insurers need to look at ways to not only keep costs down, but also to give customers a reason to be loyal so they don't just chase the lowest quote," said Jim Ryan, vice president and industry market leader, insurance, Pegasystems. "Insurers require AI-powered technology to quickly identify and respond to key engagement opportunities, while also providing the right channels of communication for multi-generational customers. By offering better, more proactive, and innovative service, insurers can create lifelong customers, while becoming a more attractive option for new customers."

Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business.

You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy. Grab this goldmine of easily adaptable and up-to-date strategies, walk-throughs, trends, technologies, research, suppliers and partners, plus all the supporting arguments you need to build a solid CX strategy.

While most marketers could list maybe a dozen key points for improving their brand's Customer Experience (CX), the researchers and writers at The Marketing Factbook have identified FORTY main 'CX Keys' which will help you drive your customers to new levels of delight, loyalty, advocacy and profitability.

The areas in which customers have direct contact with your organization are perhaps the most obvious places in which CX improvements can be made, and this report addresses all 24 of these 'Direct CX Keys', applicable to offline and online businesses alike.

At the same time there are many other areas that indirectly affect CX (such as the supply chain, policies and processes) in which every business can make simple but far-reaching improvements. This report guides you through the problems and solutions for all 16 of these 'Indirect CX Keys', many of which are often forgotten or under-played even in the best CX strategies.

Get it on Amazon (Kindle/Print)