Customer engagement, loyalty, and lifetime value attract considerable strategizing, efforts, and investments from insurers. The good news is that insurers can now impact and improve these aspects with the help of an Omnichannel Customer Engagement solution for insurance, which helps them adopt a proactive approach and integrate suitable technological infrastructure.
Customer expectations are changing rapidly, and insurance providers cannot afford to continue to live under the rock. Limited to a single or even a few channels for interacting with the target customers does not suffice in today’s market. Moreover, Insurtech players are rapidly evolving and pose a risk to insurers if they do not adopt proactive communication practices based on data and empathy.
The Omnichannel Approach to Insurance
As per a research report, the share of insurance customers leveraging online channels is rapidly increasing. Service providers must be sensitive to customer demands and this calls for omnichannel engagement. For insurers, an omnichannel approach means that they can provide a seamless customer experience at every touchpoint, whether it is physical or digital. The approach integrates different communication channels to create a unified experience.
Customers expect the highest level of personalization and digital experience when transacting with their insurance providers, and an omnichannel strategy helps to attain this. Using this route, insurers can communicate through the following channels:
- SMS texts
- Mobile apps and Messaging apps
- Company website
- Email correspondence
- Physical offices and agents
Perquisites for Omnichannel Customer Engagement for Insurance
Imagine a customer who wants to apply for a health insurance policy through the website of the insurance company but is not able to complete the form in a single go. She saves the information, and resume the process through a mobile app. The onboarding process starts with the insurer connecting with the customer through WhatsApp. This is omnichannel customer engagement in action.
Insurance companies are taking all measures to establish such a system where customers can connect with them through any channel at any time. The core capabilities that are required to set in place a flawless omnichannel journey are:
- Developing digital journeys – Insurers can preplan journeys that are powered by AI and metrics and cover all stages from policy issuance to claims processing. They must set up an organizational framework of digital services that connect at various levels and increase new business and renewals through digital modes
- Streamlining of operations – Removing silos between various functions will lead to reduced costs by minimizing manual efforts and physical documentation
- Establishing deeper engagement – Being more proactive and personalizing the communication on digital channels will reap great results for insurers. They have to pre-empt the needs of consumers and reach out with relevant solutions
Benefits of Strategizing Omnichannel Customer Engagement for Insurance
Consistently serving customers through all channels goes a long way toward creating an excellent customer journey. Let’s look at a use case of omnichannel customer service to understand how.
There are several benefits of adopting such a strategy:
- Boost in customer loyalty and retention rates
- More opportunities to cross-sell and upsell
- Higher revenue growth and operational efficiencies
Way ahead for Omnichannel Customer Engagement in Insurance
An article by McKinsey calls this a customer-first approach, and reveals that more than 90% of multichannel insurers provide online access to their motor and household insurance products, but only about 40% do so for full health coverage—and a mere 11% for traditional or unit-linked life insurance.
Insurers can improve their omnichannel reach by adopting omnichannel customer engagement solutions that leverage the latest technologies like AI and machine learning. They will need to partner with leading tech solution providers and embark on an automation journey for revamping customer communications and business operations.
