3 Ways Insurance Companies Can Respond to Customer Demands for More Personalized Policies and Experiences

Whether you like it or not, insurance isn’t traditionally an appealing forum when it comes to discussing customer value journeys and engagement. The general metrics of consumer satisfaction have usually been the retention rate. If insurers exceed their competitive benchmarks, it usually means that they’ve achieved positive results. 

However, the question is if it’s enough. Is it adequate enough to have your customer engagement mapped out only using retention rate in today’s digital age? More and more people are starting to see the thinning margin of engagement of financial solutions; they’re now looking for a similar experience, whether it’s banking transactions or purchasing insurance services online. In other words, they’re after personalized experiences and policies. To that end, here are some strategies insurance companies should keep in mind.

1. Understand your customers before engaging

Customer engagement is impossible without knowing the needs and expectations of your customers. In insurance, segmentation isn’t enough to fully understand your target audience in detail, including demographic dimensions, such as location, employment, income profile, and age. To create more personalized experiences, insurance providers must do the following:

• Map out your customers’ journeys throughout their life cycles.
• Make use of behavior based insurance to personalize your offering.
• Establish an event or connection whenever consumers abandon services.
• Provide a consumer-centric solutions organization to deliver contextual solutions that are based on customer demand.

Don’t forget to measure the efficacy of any strategy before the sale and once it’s been completed. Doing so will provide you with greater insight.

2. Create customer personas

As mentioned above, generic segmentation will only yield outcomes where the result-set is generalized to broad groups of customers instead of specific consumer needs. This leads to the creation of customer personas or value journeys. In doing so, you’ll have information that accurately reflects the intended customer’s age, goals, location, emotions, and social behavior, resulting in shaping more contextualized products. To create them correctly, follow these tips:

• Never assume you understand your target market. They must be patterned, mined, understood, and molded according to the target segmentation that the insurer prefers.
• Update your personas regularly.
• Ensure that the entire journey map is filled appropriately.

3. Measure the results

There aren’t many things as satisfying as knowing that your hard work paid off. It’s also vital to know if your efforts are producing the desired outcome, so always make sure you measure the results. While there are various KPIs that you can use to do this, the three most important ones are brand equity, satisfaction index, and the net promoter. Never skimp out on checking the results because it will make a difference.

Conclusion

The consumer engagement era is already well underway, and personalized experiences are a big part of it. If you want to succeed, you must seize this opportunity because it will enable you to connect the best services with your customers’ needs. With these tips, you’ll be able to respond to the expectations and demands of customers.