Insurance: Increase customer value by improving engagement

Leveraging data analytics will help you understand consumer channel preferences and improve customer engagement in insurance.

insurance customer value

Published ·June 12, 2023

Reading time·3 min

For businesses, the best way to make money and increase customer value is by keeping your customers happy and earning their loyalty. A good review can generate new business. And an unfavorable review can go viral in minutes and destroy your business. So, what’s the secret? How do you make money, get good reviews and attract new customers?  

We have all had to adjust and adapt to many changes over the past years. No one could have predicted how the pandemic would have propelled us into a new digital era. Like many businesses, insurance companies had to be innovative and find new ways to create a positive emotional connection, conduct business and interact with their customers.  

Connecting with policyholders 

Insurance companies missed a critical touchpoint opportunity during the pandemic. Trade association LIMRA found that more than 58% of health, life, disability, property and casualty insurers did not reach out to policyholders or potential customers during the first stage of the pandemic. On average, policyholders typically have only two touchpoints a year with their insurer — when purchasing insurance and filing a claim or renewing coverage.  

What drives customer experience (CX) and sentiment? What is the customer journey across touchpoints? How can you anticipate needs and proactively serve your customers? Understanding your customers’ personal experience at each touchpoint with your brand gives you the insights required to deliver a genuinely superior CX. Be proactive and drive interactions by creating new personalized and contextualized conversations. These interactions will boost customer loyalty and add value to the relationship.  

Omnichannel engagement 

Insurance companies must take a more radical approach to CX by using omnichannel platforms. For your customer, these platforms must provide seamless experiences and convenience. They want to be able to choose and switch between a desktop or mobile device, telephone or a brick-and-mortar store. For you, the omnichannel platform will allow you to gather the data needed. You will gain insight into your customers’ preferences, needs and expectations.  

Customer data is key to developing personalized customer services, improving products and services, and constantly refining the performance of your channels. Empower your customers to navigate between touchpoints and use the right channel combination depending on their needs and preferences. 

Communication channel of choice 

Meeting an insurance salesperson face to face is almost outdated now as digital channels have come to the forefront. Today’s Gen Z-ers and millennials have many choices for communication channels, including phone, text, email, chat and apps. However, while there are generational differences in the channels of choice, there is one conclusive similarity — they all hate to wait. 

While speed and convenience remain top priorities, a Zendesk study reveals that 18% of customers are satisfied with the number of channels offered. Leveraging data analytics will help businesses understand customer channel preferences and ensure personalized content delivery. Other interesting findings include: 

  • Only one-third of the companies surveyed are omnichannel. 
  • Social messaging apps (e.g., WhatsApp and Facebook Messenger) usage increased 36% last year, more than any other channel. 
  • 66% of customers feel that AI facilitates a better understanding of the customer and improves the overall experience. 

Results like these confirm that companies without advanced analytics are not only losing out on long-term customers but also on a significant competitive advantage. Investing in digitization and taking a strategic approach to customer interactions will help insurance companies create seamless customer relationships. 

Insurance companies worldwide should prioritize customer experience (CX) in their communications strategies. To find out more, read the best practice guide “How insurance providers can maximize a modern CX.”