A compounding factor in the fight for customer retention is one of the hard truths of the nature of insurance – that customers only make contact when they need to make a claim. Their subsequent claims experience is often the only time that the insurer has the chance to create the positive impression that could increase the chances of retaining that customer.
Insurers know they need to influence the customer’s perception of their brand through positive, engaging interactions that will result in improved consumer satisfaction and retention. What can insurers do to move the conversation beyond just point of claim?
The insurance ecosystem
Creating engagement through added value services, beyond just improving communication, is at the heart of this - moving the insurance customer relationship away from a purely transactional, renewal one into an emotionally engaging, positive touchpoint outside of just claim in a way that helps make an intangible product, tangible.
By exploring the opportunities within the insurance ‘ecosystem’, insurers can develop ways to complement the customer’s lifestyle and experience beyond that of the insurance product; Mckinsey & Co define the ecosystem as ‘an interconnected set of services that allows users to fulfil a variety of needs in one integrated experience’.
Through offering customers additional benefits to the core product, not only are you differentiating the brand and making your product ‘stickier’, you are also able to gather additional data on your customer beyond that which is already collected.
Experiences lead the way
Deciding what type of products and services to offer is key to success. So where to start? Research from YouGov on behalf of Priority Pass™, the world’s leading and original airport experiences programme, found that the trend for experiences over material goods is global. Surveying over 10,000 people from nine countries across all corners of the world, the data showed that we all overwhelmingly value shared experiences – which manifests most clearly in the form of holidays.
Global Currency of Experience Barometer
Here are the top ten activities people around the world value the most (from most valued to least valued):
- Cultural holidays overseas
- Holidaying at home
- Wellness and spa holidays abroad
- Overseas city breaks and weekends away
- Going out for a meal
- Solo travel abroad
- Catching a film at the cinema
- Attending live events
- Sporting holidays overseas
- Buying luxury items
Enhancing the travel experience
With this in mind, one of the products that we see most interest in from our prospects and clients is our Flight Disruption Assistance product, SmartDelay. Offering instant lounge access in the event of a flight delay without the need to make a claim is seen as a positive benefit that a brand can offer its customer. Being a travel-related benefit, it is attractive and gives the client the opportunity to enhance the experience and proactively turn a negative into a positive. The client benefits from a cost-effective solution that delivers differentiation from an acquisition and retention perspective that moves the offer beyond just one of price, and also gives insight into the travel behaviours of the customer. This valuable data can be used in many ways such as to inform new product development; finesse customer segmentation, and so on. Read how and why Hiscox implemented the solution for their home insurance customers.
Another of our products, ID Assistance, can be used to complement home insurance policies. Our research found that 79% of respondents agreed that adding identity theft protection to their home contents insurance policy would be a useful addition. With more people travelling and the added risk of losing devices, knowing that their personal identification documentation and data is safe is a great way insurers can help protect experiences as well as the core product benefit.
By combining our travel insurance and lounge expertise, we designed and developed an innovative, real-time solution to flight delays. Put simply, customers have access to an airport lounge if their flight is delayed. And it’s all sorted instantly, without any lengthy travel claims.
As a proactive identity protection measure, or as a mitigation service following a data breach, our Identity Assistance solution helps to reduce the risk of identity theft and identity fraud.