Services make the difference

Services make the difference

Great services set customer-focused insurers apart from the competition. Insurers should aim at being relevant to customers in different life stages, even when they are young and uninterested. Working with partners also helps insurers reach out to new customers, although retaining existing ones by keeping service levels high is just as important.

Insurers should compete on great services, not prices. Oftentimes, customers cannot recall the details of their insurance policy, but never forget how they were treated. They talk to friends and colleagues about the great service they received, and that makes you stand out from the crowd. How do you give your customers the service they really value?

Be relevant at different life stages

The lifecycle of insurance customers is intimately tied to life stages. Insurers are sitting on a pile of insights on what people need in different life stages, such as when they move away from home for the first time, when they form new families or when they retire.

These insights are mainly used to develop new products. However, insurers could share these insights with customers when they need them, and build a more relevant relationship that lasts.

Get young adults on board

Young adults are notoriously uninterested in insurance, but it does not mean they won’t become your customers. In fact, they will. First-time insurance customers seldom make time to understand the products. Their buying decision is often based on advertisements and advice from people they trust, such as friends, family or colleagues. Therefore, great services are likely effective in getting them on board.

Among young Britons aged 15-24, almost half of them do not take out any insurance while travelling abroad.

Acquire new customers

People don’t care much about insurance until it really matters. It may be a holiday abroad, buying a new car or moving into a new house.

Insurers work with many different partners to reach out to customers, who judge the insurers mostly based on the service they and the partners provide. Insurers must ensure their partners are delivering the best service too. When people talk about your service, your credibility increases.

Retain loyal ones

Providing great service throughout the customer’s lifetime is not just churn insurance. Customer satisfaction predicts how much customers will spend on insurance in total. They stay with you if you keep service levels high throughout the customer lifecycle. Increasing customer satisfaction through services is the most effective way to boost customer engagement and value over time.

Tangible impression on customers

Many businesses invest a lot in product development, while viewing customer service a costly necessity. It turns out that a great customer experience is what distinguishes an insurer from its competitors. After all, great intangible service makes a tangible impression on customers.