February 16, 2017
Every consumer brings his or her own set of expectations to their relationship with their insurer.
Personal experiences shape these goals, including a user’s interactions with other companies. For example, engagements with the Ubers, Airbnbs and Amazons of the world dictate how consumers anticipate their experiences with insurers should look. Often, the experiences provided by Uber, Airbnb and Amazon raise the bar for what consumers expect when dealing with companies digitally.
This variety of expectations on how and when consumers want to interact with insurers is a simple idea, but one that insurers can easily forget when engaging users digitally.
Consumers’ unwavering expectations should drive the touch points in place for all businesses, insurance companies included. To meet users’ desires, insurers can architect their digital experience around user expectations and ensure their digital strategy includes engagement models that drive the four steps of the consumer decision journey: Consideration, Active Evaluation, Purchase and Post Purchase Experience.
Digital strategies that lack touch points at different levels of the funnel or that do not align consumer expectations risk consumers falling out the funnel and shopping for insurance with a competitor.
Conversely, digital strategies that find the right touch points for target audiences at all levels of the funnel lead to increased loyalty and renewal from consumers. It’s not a one or the other situation between maintaining existing policies versus acquiring new business. Insurers must work to understand their industry’s landscape and align their digital strategy accordingly to achieve the right balance of interaction opportunities. Attention throughout the funnel can even inspire additional services, such as adding an endorsement or rider for additional scheduled property, such as jewelry.
Upper-funnel touch points such as awareness and education are hallmarks of most organizations, but one area insurers struggle with is the post-purchase experience. While insurance companies’ first goal is to convert consumers, they cannot underestimate the importance of keeping users engaged after purchase.
So, what do good and bad post-purchase experiences look like?
A bad post-purchase experience: A user is unsure why she needs insurance and her first interaction with her insurer is to issue payment. She pays her bill monthly but rarely interacts with an actual insurer until needing to file a claim.
On top of this being an inherently negative experience, our policyholder is further disappointed by her poor relationship with her insurer. The claims process can be long and complicated, and an actual settlement can feel far off for consumers. Likewise, the claims process often involves many parties. For example, in the case of house damage, a typical claim will involve adjusters and mitigation contractors who manage the claim, as well as emergency repair contractors and repair contractors who actually fix the issue.
Rather than helping our policyholder navigate this stressful and complicated experience, the insurer fails to assist her, does not educate her and a prioritizes profit over a strong user experience.
A good post-purchase experience: A user is unsure why she needs insurance, but her insurer educates her on the value of a policy. She interacts with her insurer often and her insurance company routinely engages her with information that is important to her, even when there is no claim to be made. For instance, our user is interested in the weather and how it may impact her property. So, her insurer reaches out to her with more information on a Security First Mobile Storm Tracker.
The second scenario is more ideal because the insurer provides benefits up the value chain and positively engages the user with her personal expectations in mind. The policyholder’s needs are met, the insurer is communicative and makes information easy to find, and the entire relationship is crafted with the consumer at the center of the digital experience. In the case of a claim, emphasis on post-purchase interactions has prepared our insurer and policyholder to seamlessly handle the process together.
A negative engagement model will never be able to support long-term, healthy (and profitable) relationships with consumers at the same level.
Visit our Insurance Industry page to learn more about insurers’ unique digital experience demands and how PointSource’s vertical expertise can help companies embrace the disruption of InsurTech and better engage consumers throughout the entire consumer decision journey.