Get smart: Why insurers need to rethink their communication strategies
Helping consumers to help themselves empowers them and strengthens their bond with the brand.
With more businesses emerging across virtually every sector, maintaining a line of communication with consumers is more important than ever. It plays a key role in the consumer experience, and any degradation there is likely to push a consumer towards a competitor who will make them feel more valued.
Consumers today also expect a greater experience due to the digital transformation happening throughout most industries. Technology has placed more power in consumers’ hands, and businesses will need to keep up or face irrelevance. To get a better understanding of what matters most to consumers when it comes to the communications they are receiving from financial services, insurance and health care companies, and to compare their desires with what companies are currently delivering, Smart Communications conducted a survey of U.S. and U.K. customers of businesses in these industries.
When asked to identify the elements that were most important to them when determining the value of communication, the following elements rose to the top:
- Are easy to understand
- Are relevant
- Are error-free
- Are well designed and easy to read
- Considers preferred methods of communication
With this in mind, here’s how the insurance industry’s communication efforts are regarded by some consumers.
Related: 6 reasons digital transformation is the future of insurance
Preference matters
Insurers today have a range of options available to communicate with their existing and potential clients. Everything from emails to text messages to chatbots is on the table, but each consumer has their own communication preferences.
When asked by Smart Communications to what extent do they feel the companies they are a customer of in the insurance industry communicate with them using the method they prefer, 31% of survey respondents said “always”, and 39% of respondents said “almost always”.
The survey found that email is the preferred communications channel for consumers in both the U.S. and the U.K. However, 66% of business leaders say less than 40% of their communications are being distributed via email. Thirty-five percent of business leaders say they are not distributing any communications via text messaging, but, when it comes to fraud alerts, two in five consumers want to receive these via text.
And while the majority of consumers surveyed feel that communications quality is staying the same — versus getting better or worse — business leaders are a bit more optimistic, with the biggest gap found in the insurance industry. Fifty-eight percent of insurance business leaders say their company’s communications are improving, while only 26% of consumers agree.
Related: Experience is key to customer retention for insurers
Time for action
Insurers looking to improve the communication quality should remember that doing so reflects the fact that they respect their consumer’s time and preferences. For those unsure where to start, Smart Communications has outlined an action plan based on their survey findings.
- Make error reduction a priority. As even minor errors can tarnish the brand image and sow doubt in consumers’ minds about the company’s ability to meet their needs, consider auditing all messaging templates, customer service/support scripts and other content that touches consumers. Look for customer communications platforms that integrate with other key systems, thus limiting opportunities for errors.
- Offer — and honor — consumer preferences for communications channels and content. Customer communications is not a one-channel-fits-all proposition. Instead, ask customers which channels they prefer for the different kind of messages you send, whether account statements, billing notifications, appointment reminders, fraud/emergency alerts, etc.
- Look for ways to make messages more helpful to consumers. Helping consumers to help themselves not only empowers them and strengthens the bond with the brand, but it also can reduce the load on customer service centers. Review message templates for opportunities to add helpful content, such as suggesting the next steps or where to go to get more information.
- Avoid complacency in the face of progress. The survey found that a small percentage of consumers (8% in the U.K. and 12% in the U.S.) say they would never switch from a company because of message quality. That leaves a very large base of customers who are being contacted regularly by the competition, and it’s not enough to hope they are happy when that call comes. Remember that a digital transformation is a continuous evolution and not a journey with a finish line. Regularly evaluate your customer communications strategies, as well as your technology, to ensure you are keeping the customer at the center.
Consumer expectations have evolved over the years, and insurers must be prepared to evolve with them. Going forward, insurers will need to deliver on the exceptional experiences that customers expect or risk getting left behind.