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Loyalty Strategies for Digital Insurers in USA
Loyalty Strategies for Digital Insurers in USA

April 11, 2023

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The economy of the U.S.A. is currently in the grips of an economic crisis the likes of which we haven’t seen before. Unlike its predecessors, this one sits amidst multiple realities: those experiencing unprecedented growth and those dealing with a significant downturn. One common theme that should be of concern to consumer-facing businesses would be the rising inflation in personal consumption expenditure (PCE).

The insurance industry is bound to bear the brunt of this as wallets are tightening and discretionary expenditures (even insurance) are on a downward trend.

With so many areas of friction for the end consumer, how can insurance companies seek to correct the double whammy of rising costs and dipping revenues? Technology and better customer experience could be the way.

Unlocking delightful experiences

The shock of depersonalization, coupled with rising expectations of convenience vis-a-vis mobile applications means that the only candidate for bringing about differentiation is customer experience (CX). CX can be improved in many ways, with the following being a few successful examples:

  1. Mobile-First User Experience: Smartphones have become commoditized to the point where most online interactions, especially among the younger generation, are mediated through mobile browsers. Keeping this in mind, insurance companies will need to revamp their digital strategies to ensure it’s mobile-focused.
  2. Smart Automation: Insurance involves a lot of paperwork, signatures, and general monotony that stresses both customers and employees. Leveraging rudimentary AI-powered chatbots and automation tools would allow employees to focus on more meaningful tasks and customers to resolve their queries without having to wait for a service agent to pick up their call.

Inspiring Loyalty

Any insurance company wishing to earn their customers’ loyalty should understand two things: it’s easier to retain an existing customer than to acquire a new one, and loyalty is ultimately a function of the customer’s experience with the entire brand. Treating these tenets as the gospel would be enough to nudge your company in the right direction.

Here are a few things that will help improve your customers’ perception of your brand:

  1. Data-driven personalization: All companies, especially in the BFSI sector are sitting on a treasure trove of customer data that they never use. The truth is, this kind of personalization cannot be fully automated and would need close collaboration between man and machine to truly deliver. Having a comprehensive database in place would allow customer service reps to look at individual family profiles and then come up with policy nudges that benefit the customer (like adding a child who came of age to the car insurance policy).
  2. Usage-based PricingIn the current economic climate, there is nothing that customers would appreciate more than a company that actively encourages customers to only pay for what they use. Such pricing models would signal to customers that the company actively cares for its customers and is willing to implement pricing methods that make insurance lighter on customers’ wallets.

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Mantra Labs is a global experience engineering & consulting firm that builds intelligence-driven solutions and delivers digital-first customer experiences for global enterprises. With its 275+ skilled and passionate technologists, the company specializes in providing end-to-end solutions for its clients across eight key industries. Mantra solves the most pressing front & back- office challenges faced by BFSI, Healthcare and Consumer Internet enterprises. Having worked with some of the World’s leading Insurers like SBI General Insurance, Care Health Insurance, Pramerica, Aditya Birla Health and AIA Hong Kong along with unicorn consumer startups like Ola, Myntra, Yulu, BlueStone and Quikr - Mantra Labs has been deeply involved in developing AI-powered technology solutions for business-specific problems. The company also has strategic technology partnerships with MongoDB, IBM Watson, Microsoft Azure and Nvidia.

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