Direct to Consumer Customer Engagement Approach for Insurance

D2C Customer Engagement Approach for Insurance

As customers expect a transparent and more intuitive experience, insurers have the opportunity to address friction within the customer journey. Today’s consumer expects business to provide a simple experience that provides the information necessary to make informed buying decisions. Nikhil Govindaraj, goMoxie’s Head of Products, starts from the premise that insurance is an increasingly direct-to-consumer (D2C) business. As such, whether you’re GEICO with a $1 billion ad budget, or a design-first, lower-price insurtech startup, if you provide certainty and clarity to customers, you reduce anxiety and hesitation and drive success for the customer and the business.

Embracing a New Kind of Customer Acquisition

Govindaraj says that both legacy insurers and insurtech models need a shift in mindset to engage untapped market potential. Consider, for example, a 2019 J.D. Power Digital Experience Study revealing “37 percent of consumers have never spoken with their insurance agent.” Moreover, “one in 10 consumers report they have never interacted with their insurance company at all.”

These numbers underscore the potential for increasing customer engagement while anticipating struggle and making the process easier on the consumer. Imagine having the opportunity to identify exactly where in a customer journey engagement could result in a better policy option for a consumer.

Guidance is Key to a More Direct Insurance Customer Experience

All insurance providers will have to be agile in improving the customer experience. Govindaraj says this requires building a relationship within the first few seconds; greet a customer based on where they came from and anticipate customer needs, offer constant reassurance and assistance throughout their journey. Provide guidance throughout the digital journey.

Proactive Guidance allows you to address common struggles without the need for a human resource; human engagements are then reserved for situations where live assistance is required. Govindaraj advises that giving the right answer to a customer’s questions the majority of the time allows you efficiently scale to reach every customer, not just those who are aware they have an issue and take the time to ask a question.

Proactive Guidance Helps Customers have Successful Online Journeys

Simply put, Govindaraj says that relevant, proactive guidance helps customers complete their onsite journeys. A customer lands on the home page, and the insurer monitors for any signs of hesitation or opportunity. Site analytics help the insurer understand the nature of common hesitations. Relevant data at sticking points keep customers within the digital channel, all the while increasing self-sufficiency. By anticipating and acting on customer behaviors in real time, the insurer can act as a model agent: one who is clear, helpful, and attentive without ever being pushy.

Engaged Customers Generate More Revenue

Govindaraj concludes that “When customers are guided to the information they need to make confident buying decisions, they’re more likely to bind policies, give accurate information to enable accurate risk calculation, update their coverage, and generate revenue for the business.”