In a saturated market place, it’s those who don’t move with the times who pay a hefty premium
Digital advancement has infiltrated almost every industry imaginable, with a strong correlation between investment in this area, and continued success. If there’s a commodity to be had, you can bet there’s a website to support it, and if there’s a website to support it, then there’s an opportunity to bolster your offering with digital investment.
The insurance industry has undergone a transformation of sorts since the broadband boom and widespread explosion onto the market of the price aggregator sites in the early 2000s. It’s allowed for new players to enter the game and disrupt the market, with varying results due to the high stakes nature of insurance. In some market segments, such as travel insurance, the aggregator channel is responsible for over 50% of sales. With so much traffic coming through a single channel, the subsequent journey on the insurer’s own platform has to be top notch in order to maximise revenue.
A rude awakening of sorts, it showed that route to market diversification is necessary to survive. There may yet be a place for the corner street broker, but for those insurers with a desire to be scalable, an online presence with an iterative improvement roadmap is essential.
Insurers are obviously not alone in their quest to increase revenue per customer, but with loss ratios, commissions, and claims eating into their profits, it’s now more important than ever to optimise the sales funnel to minimise drop off throughout the journey.
It’s almost a given that your website design has to be intuitive and responsive, but the market leaders are investing in their digital offering to answer and resolve each of the following key business pitfalls.
How can you keep potential customers on your website?
So a potential customer has made their way to your site; fantastic! But what now? Each subsequent page carries a risk of potential drop off, so do everything you can to keep them on your site. You could have designed the best site in the world, but even then, a percentage of users may still find elements of the journey confusing. Many ecommerce brands and businesses in financial services have introduced co-browsing software in an attempt to curb this problem.
Co-browsing software allows the user to invite a customer service or sales representative into their web journey, and interact with their bespoke quote and options. While results vary from business to business based on implementation, case study statistics from the Aberdeen Group suggest that the software can boost performance metrics. A 2.4 % decrease in support costs, and an overall revenue increase of 7.2% attributed directly to co-browsing is certainly enough to make it a worthwhile investment.
How can you ensure users move through your online journey with ease?
Due to the complex nature of insurance products, and the sheer volume of competitors out there, customers would be forgiven for shopping around, and looking for more information in general as they move through your sales funnel. At each point where the user raises an objection point, this is a potential for them to drop off the site.
Live chat software is
a good way of intercepting the user at these key points, defusing the
situation, and keeping them moving steadily towards the payment page. Only 9% of companies use live chat, but as
many as 77% of customers won’t make a purchase online
if there is no live chat option available. The utilisation of live chat is on
the rise, which will in turn drive customer expectation levels up. With this
interaction point soon to be available across the board, can you really afford
not to invest in it?
How to answer customer queries consistently
The financial services industry in the UK is amongst the most heavily regulated in the world. With the interests of the consumer in mind, they’ve tightened up across the board, and are taking insurance companies to task on their processes, security, and levels of compliance. Weeding out the occasional rogue trader is of course a huge benefit to the market, but with this level of scrutiny often comes a barrage of procedural, borderline mundane questions from a now more distrusting customer base.
White hat companies will of course look to get the required information over to a potential customer as quickly and easily as possible, so an automated chat function on site can be a massive boost for efficiency. Despite being a relatively new addition to the tech suite, 67% of consumers have used them in the last year, 40% of consumers don’t care whether a chatbot or human helps them, and upwards of 85% of all customer interactions are expected to be handled without human interaction by 2020.
Every insurer operates slightly differently, but digital integration is now an irreversible trend for market leaders, so to maximise your business opportunities, it’s vital that you remain ahead of the curve on digital. Each and every drop off from your platform is a £ amount wasted, so now’s the time to plug the gap by shrewd investment.
The next step for revamping your systems
Consumers’ expectations are evolving for every market; the insurance industry is no exception. Advances in fintech and digital platforms can be implemented throughout different stages of the customer journey, and insurers can harness chatbot technology, co-browsing and messaging automations to bring their platforms to the 21st century.