It goes without saying that nowadays customers demand more than just products and services. And insurers should strive to adjust to customer needs in a more comprehensive way to gain and, what is more important, to retain loyal customers and reach tangible results. That will involve significant improvements in service and sales, based on end-to-end assessment of clients, their expectations, values and priorities.
Another aspect insurers need to pay attention to is the way customers choose to communicate with their insurers, which depends on the activity they want to take on. For instance, online networks (Internet via Mobile or PC) are now the most popular source to compare policies and services, learn about the best rate/price, or access information.
According to the statistics many insurers are now laying their hopes on reaching an all-time high by supplying their customers with mobile capabilities and introducing mobile CRM to their business. While many insurance customers still prefer face-to-face communication, mobile insurance applications have become essential tool satisfying customer requests. These days more and more consumers use their mobile phones to get in touch with their insurers.
Mobile CRM is a proper solution to provide thoughtful care of customers and gain market share by introducing hands-on knowledge to reach customers. Insurance customers appeared to be highly unstable altering their insurers trying to save money and satisfy their own unsteady demands. This churn is attributable to aggressive advertising and repulsive marketing campaigns. That’s why insurers have to recognize prospective customers at the right time to make their business flourish.
Mobile CRM has become a powerful device for customers as well as a tool of exclusive value for insurers. Thanks to growing smartphone adoption mobile has become a dominant foreground channel of data communication. Researches show that in the next two years manifold mobile services will noticeably increase.
Below are several beneficial changes that mobile CRM can introduce to any insurance business:
1. New products and services notification
According to the survey, 43% of insurers use mobile to provide information concerning new products/services. 48% of those asked are planning on switching to mobile in the next two years. It’s simple math that 91% of the insurers will be announcing about their services on mobile in the near future.
2. Providing quotes by means of mobile communication
People usually check their mobile devices very quickly. This entails faster proceeding from a quote to a sale itself than via any other channel of communication. Certainly, this process represents a powerful tool for insurers. Statistics shows that in spite of the fact that only 23% of insurers transfer quotes via mobile today, this rate will grow up to 70% in the next two years.
3. STP (including legal e-signature)
STP (Spanning Tree Protocol) makes it possible to accomplish all the sales quickly and efficiently. The current data shows that today only 9% of insurance companies offer STP via mobile. Nevertheless, 55% of insurers are expected to provide this service in the following two years. As regards e-signatures, they also represent an integral part of the whole process, providing the possibility to withdraw from dealing with paper operations and turn to electronic transactions.
4. Renewal lists
This service is aimed at contacting existing and potentially profitable customers before they get their policy renewed. It allows simultaneously dealing with current customers and gaining new clients. The number of insurers who have resorted to the renewal service will go up from 16% to 45%.
5. Comparison shopping
This mobile service also has a favorable impact on insurance companies’ clients. It gives them an opportunity to compare the offered service layer to the service of other competitors. The feature is also expected to disseminate (from 14% of insurers to 39%).
6. Claims service
Claims service is an extremely essential tool for customers. If a client encounters an unfavorable complaint towards a company, he/she is likely to immediately change the current service and turn to a different insurance company. The service also helps customers to observe and follow claims. As the survey shows the usage will go up from 16% to 73% of insurers in two years from now.
7. The ability to make policy changes
This ability is a significant innovation for insurers. Among other benefits it allows to decrease service costs (using call centers and branches). There will be an increase in the number of insurance companies providing this mobile service from 9% to 52% in two years’ time.
8. Cross-selling recommendations
The above mentioned service implies using mobile CRM to gain customers by making offers that are able to promote cross-selling (for example, personalized offers or preapproved online discounts). You can lure potential clients and raise your profit from current customers. The statistics says only 16% of insurance companies enjoy this service now, but about 48% of insurers are going to take on this initiative in the future.
9. Lifetime value-based offers
Gaining customers is important, but their retention takes much more time and effort. Studies show that only long-standing relationships with customers prove to be profitable and beneficial for insurance companies. So insurers should try hard to retain such customers by submitting offers based on their lifetime priorities and value. Regardless of only 4% of insurance companies who use this feature now, almost 43% of insurers expect to deliver such offers in the future.
10. Integrated product offers
Integrated product offers assume insuring auto with property, or term life with disability, for instance. Hereby, these offers are able to push up sales and increase profits. It’s interesting to know that of surveyed insurers 39% are planning on introducing integrated offers to their business, while only 5% of insurance companies are using them now.
Clearly, mobile is becoming the most popular choice for the majority of customer interactions. And mobile CRM can play a significant role throughout the insurance value chain. If you can’t satisfy the particular preferences in which customers prefer to perceive value, you might have problems with keeping them and, what is more important, building a sustainable and solid customer base. But if you are prone to be innovative and audacious enough to use emerging CRM channels, you will be armed to take advantage of these initiatives, boost revenues, as well as deal with customers in a more efficient and profitable way.
*The official source of statistics data: World Insurance Report 2013 provided by Capgemini and Efma
Industries and Technology Areas
Technology Areas: custom software development, CRM (Customer Relationship Management) software, mobile CRM systems