Maintaining customer loyalty is harder today than ever, given the ease with which business offerings between providers can be compared.
A recent Accenture study on customer loyalty reveals 61% of consumers switched providers in the last year, and 77% say they now retract their loyalty more quickly than they did three years ago.
Meaningful communications are a major factor in winning and retaining customer loyalty, especially in the property and casualty insurance sector where customers must trust providers to protect their valuable personal possessions. Interactions throughout the life of the policy can determine whether customers continue the relationship, and potentially become a loyal brand ambassador, or whether they switch to a competitor when the time comes to renew.
Customers don't want to be communicated to, they want to be communicated with, in a two-way conversation Insurers must evolve from one-way, static message distribution, to personalized, interactions that are delivered in as timely a manner as possible, and via the recipients channel of choice.
So how can insurers develop their communication strategies that will inspire customer loyalty?
Related: Chatbots: The smart solution for insurance customer service
|Persevere with personalization
Customers want to be treated as real people, not policy numbers. They want interactions with insurers to make them feel valued as an individual, with communication and content tailored to their unique preferences and circumstances. In fact, research from Rapt Media indicates almost two-thirds (63%) of consumers would think more positively of a brand if it gave them content that was valuable, interesting or relevant.
Data-driven personalization can transform the customer experience. For instance, data variables such as location, coverages, bill payment option, and property type can be used to create highly engaging personalized onboarding videos to accompany a home or auto insurance policy document.
But personalization isn't just about tailoring messaging to the customer; it's also about adapting communication to their preferred channels. Customers don't want to be restricted to a single communication channel, especially given the ubiquity of the smartphone, which enables access to multiple channels from a single device. They want to be able to select the most convenient option at any given time – whether that's email, phone, mobile app or SMS — safe in the knowledge they will receive a seamless and relevant experience.
Related: 22 ways to make insurance customers feel valued
|Tackle technological innovation
Personalized communications are very impactful, but are they achievable across a large and growing customer base? Many insurance companies find their on-premise legacy communications software simply isn't agile enough to keep up with business growth and the pace of change.
For most, the answer lies in migrating from legacy IT systems into a cost-effective, scalable, cloud-based platforms. This type of customer communications management solution allows insurers to scale the conversation — being more efficient while delivering more meaningful customer conversations.
The range of communication channels supported by these modern communications' platforms is continually expanding in line with consumer preferences. Alongside more traditional channels, integration with chatbots and voice assistants such as Amazon's Alexa and Google Home – which are likely to be as universal as websites and mobile apps in a few years – allow insurers to hold meaningful and timely conversations with their customers.
|Step up security and privacy
Data-driven personalization is the future of customer communications, but consumers still want to be reassured about data privacy, with 95% concerned about businesses collecting their personal information without permission. Add with major changes in the data landscape – with landmark legislation such as the EU's General Data Protection Regulation (GDPR) coming into force this year – insurers will need to prove they can be trusted with personal data if they want to use it to enhance communications.
Putting stringent data protection practices in place, communicating data collection and processing activities clearly and transparently, and ensuring the necessary permissions are received, will be vital as insurers vie for customer trust and loyalty.
To win over customers, insurers need to build trust and make them feel valued as individuals through dynamic, personalized communications. By tailoring both content and channel to personal preferences, embracing scalable cloud-based platforms, and implementing stringent data protection practices, insurers can bring their customer communications strategies into the digital age and in turn secure valuable customer loyalty.
George Wright is the CEO of Smart Communications.
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