Having a modern CX means thinking beyond the channels that are used to interact with consumers. Instead, focus on how new consumer lifestyles demand new or highly modified products. With more people working remotely, consumers can move around in a more flexible fashion, which certainly comes with rewards but also inherent risks. This creates a greater need for certain insurance products.
With these new lifestyles comes the need for new products. For instance, Allstate’s Drivewise rewards-based auto-insurance program leveraging telematics is an example of a new value-added proposition that drives consumer interactions.
But how do you place emphasis on the key elements to keep consumer loyalty as the Boomer generation shifts from home ownership to renting, and price isn’t at the top of the list? “The generational shift from home ownership to renting represents a significant customer retention risk unless insurers figure out a better way to maintain consumer loyalty throughout this critical life phase.”4 Focusing on these drivers is fundamental to strong consumer retention for your brand.
In addition to insurers getting the life stage transition formula right, they should keep a focus on consumers who live in a fast-paced world and expect instant gratification with immediate responses.
This means your brand needs to factor in speed as a key component for delivering policies and paying claims to keep up with consumer demand.
Having the proper technology and a skilled team to offer support in new customer channels is key for your high-level claims processing strategy. Offering self-service options and innovative mobile apps supported by direct deposit is also a great way for consumers to file claims and receive payment in an efficient and timely manner.
However, you also need to consider that this newfound efficiency for claims processing can also affect your cash flow. With billions paid in claims every year and less float time from claims made to claims paid, it can have a measurable impact on interest earned on collected premiums. Keeping a balance between delivering an optimal CX for your consumers while maintaining healthy financials can increase customer loyalty and ultimately drive your bottom line.
Key elements to keep consumer loyalty5
1 - Good service experience
2 - Brand reputation
3 - Bundled products
4 - Convenience
5 - Price
4 & 5 - J.D. Power, “Home insurers struggle with customer loyalty as boomers flock to rental market, J.D. Power finds,” jdpower.com.