What agents need to know about what insurance customers want
Churn rates are climbing, with more than 37% of customers switching insurers in the last two years, according to an IBM Surveys. Surveys also point to low trust - 56% of respondents "do not trust their insurer." At the recent Insurance Marketing and Communications Association (IMCA) Annual Conference in Nashville, Lynn Kesterson-Townes, worldwide commerce marketing leader for IBM, talked about what insurance customers want - with special emphasis on millennials.
The linked article above and video below are worth your time, but here are some key take-aways:
New marketing approaches are needed: "In today’s customer‑activated environment, marketing and communications strategies that used to work are no longer working to sustain retention or to significantly grow the business."
Customers want a more personalized experience: “They don’t want channels. They want interaction points, and we’ve changed that language on purpose because channels infer a one‑way communication. From me to you, from the insurer… ‘Let me push this product to you.’”
It's important to know where a customer is in the decision process: “[A]t the point of purchase, we are still seeing a lot of interaction, whether it’s on the phone or in person with a broker. What does this mean for insurers? Customers are obtaining their information and they’re quoting digitally. Then they’re purchasing a lot of times physically, we would call it,” she said."
Insurance customers today want four things: “They want advice, simplicity, convenience, and value from their insurers, which brings us to trust. After all, insurance essentially started as a social network among like-minded people to share risk.”