- April 26, 2019
According to a global distribution and marketing survey, modern consumers—especially those that are younger and digitally active—are willing to experiment with new providers. For example, 60 percent would consider buying insurance from a bank (up from 43 percent in 2013). And 29 percent would consider buying from online service providers like Google and Amazon (up from 23 percent in 2013).
However, unlike travel and banking—in which upstarts have all but upended traditional business interactions—insurance has been slow to respond.
As marketers in the insurance industry, you know it’s important to reach new customers. But the modern consumer expects a new type of experience. They prefer effectiveness, ease, and emotion—and they like to shop around. For insurance providers, this means bridging the gap between the digital and physical experience.
Making the most of the digital customer experience
Insurance is a unique industry in the sense that customer touch points are relatively low. Consumers generally interact with insurance providers when signing up for coverage or filing claims. And these interactions are commoditized by factors like convenience and ease of use. No one wants to spend more time than is necessary on the phone with customer service.
Despite this, research shows that customers would value advice that empowers them to live safer and healthier lives. For example, 80 percent of consumers would want notifications sent to family and first responders in the event of a health emergency. And 64 percent would receive alerts before driving on routes with a high frequency of accidents.
It’s understood that these types of integrated notifications require insurance companies to track customer’s daily behavior to help them reduce risks and price insurance more accurately. But this also requires organizations to market the right products to the right audiences.
Customers will begin to seek high-value, high-frequency interactions. And the quality of these interactions can lead to improved customer loyalty. According to Accenture, insurance companies that offer a higher level of engagement can better leverage big data and real-time analytics—which can result in more personalized products and services.
Ultimately, this another example of how the digital customer experience has taken precedence in the insurance industry. To succeed in the not-so-distant future, it’s important to meet your customers on the channels and devices where they spend their time.
Digital marketing and your customer experience strategy
Digital marketing can help insurance companies deliver the right products to the right people. How so? Paid search advertising provides the option to reach targeted traffic across specific platforms.
PPC (pay-per-click) ads deliver campaigns based around search terms and questions that customers are asking online. Because insurance is generally location-specific, it’s important to narrow down your audience. For example, targeting keywords like “best car insurance quote in Milwaukee” or “new home owners insurance in Raleigh” helps deliver ads in hyper-specific geographic regions.
Data segmentation empowers insurance companies to understand how and when customers are interacting with their products.
PPC also enables organizations to launch campaigns based on device and demographic parameters. Currently, Google, Facebook, and Twitter allow companies to set targets around age, income, gender, and parental status. These platforms have a high level of customization and control. For example, your company can make bid adjustments so you spend marketing dollars on prospects who are most likely to benefit from your products.
Paid search advertising improves your customer experience strategy.
PPC can help show you where customers are in their life cycles. This helps determine which types of communications, campaigns, and marketing messaging to use. And when these campaigns are executed properly, they can create loyal, happy customers.
Consumers desire a seamless, omnichannel experience that’s customized around their needs. As more customers desire autonomy over their buying decisions, they’ll do business with insurance companies that can deliver on these expectations. Are you delivering customized experiences?