Technology has revolutionized the way people will buy insurance.
Think like your customer, what will you do when you decide to buy insurance? Where do you look for help before buying insurance?
Of Course, on the internet.
The internet and technology have an impact on human life. We are dependent on it for lots of things from alarm clocks, reminders, connecting with family, relatives and friends, searching for jobs, finding food places or many more. Gone are the days when customers search through catalogues, ask friends or relatives, or look for recommendations. Technology changed how consumers react, take decisions and purchase the product. The multiple platforms like social media, blog, mail, newsletter, website, business review, and online community help improve customers’ knowledge about the product. Customers want to take charge of what they want, in their life and technology provides that freedom to them. Sometimes people feel overwhelmed with the amount of information they find that’s why they need guidance.
Here are some stages on how customer behaviour has changed with technology.
1. Problem recognition
It is the stage when customers understand their problem and what they need. Customers may find that he/she needs P&C insurance, child insurance, health insurance or need insurance for their education. It can be anything. With technology, an insurance provider can advise the customer why they need specific insurance and when they need to buy insurance. Insurance providers can help users to understand what is best for them. Insurers use platforms like advertisements, webinars, referrals, customer review and testimonials, social media and email to the target customer and improve what they provide and why they need a particular product or service.
2. Information Search
After the customers understand what they want, they start looking for information on different sources. They look for information on the internet or take expert advice. On the internet, websites, blogs, newsletter, case studies, research posts provide information. The reason customers search for information is to gain knowledge about what they exactly need. The internet flooded with a huge source of information. It may help customers with the purchase decision. People look for a company that gives in-depth knowledge about the product or service. Customers while searching for information are impatient. They read reviews and ask queries and look for instant responses. Customers subscribe to multiple channels, attend webinars, visit places, and ask for recommendations. Customers invest a pretty good amount of time in research. It became the responsibility of the business to take charge and provide authentic information to customers.
People always search for the best product or services that they can get. They compare products or services on multiple points: premium, insurance cover, customer review, digital presence and customer support. Customers try to find the best product as per their knowledge. The most crucial part that customers are looking for is digital accessibility, where the company shares the information and updates. Customers can connect with multiple businesses, compare the services, prices, cover, and choose the best options.
4. Purchase decision
The purchase decision, a customer is ready to buy the product or services but not acquire yet. The reason may be future buy, financial complications or any other. Technology allows insurers for improving the decisions of customers. Insurers can share offers, send updates, discount, personalized recommendations to the customer.
Choosing the right services takes time, but after making purchase-decision customers look and choose the best product as per their knowledge. While purchasing, customers should feel delighted. The insurer should take responsibility to help the customer with the purchase and make them feel comfortable. Sometimes people may find technical problems of document submission, internet issues or need to change numbers or codes or many more. Customers need instant customer service, and it should be active for them when they are purchasing products. There are multiple businesses which provide 24 X 7 customer support.
6. Post-Purchase Evaluation
The experience of the user helps the insurance provider to manage customer expectations. It decides whether the customer is satisfied with service or not. Post-purchase decisions include whether the product and services are the best fit for the customer or not. Digital presence, user interface, user experience, security, content, timely update, customer services, offers, payment gateway and notifications are part of customers post-purchase evaluations.
Let’s look at how technology impacted customer expectations and changed the buying behaviour.
1. Digital features
The increased use of the internet makes it difficult to provide all information and service to the customers. The features of the digital platform should be updated and easy to understand. With proper consultation and agile methodology, it is possible to align structure.
2. User experience
The person’s emotions and attitude while interfacing a system or feelings about using a particular product, system or service is user experience. With technology, user experience starts with the digital-first interaction of customers. Digital-first interaction positively impacted customer engagement and retention more than agent interactions. Not only the look but the feel of the digital software make a difference in business. After purchase, the insurance software features help customers to understand the use of technology. The insurance software use should be simple, easy and understandable.
3. Security of data
It doesn’t matter how good you are with a digital presence. Data security is a must need if your business is digitally active. Customers share data for their benefits and trust the company to use it authentically and safely. The amount of precautions and security a company provides helps to maintain the insurer’s reputation and trust of the customer. A loss of data or the breach of the contract can harm the business. People prefer to buy insurance from those businesses that show respect to their data privacy.
4. Premium notifications and updates
Insurance is an evil financial need of a person. People feel the payment of a premium is an obligation. With the help of technology, an insurer can make the customer feel less stressful by sharing updates and timely notifications. Customers want insurers to take one step to remind the customer about the premiums and send them offers. Many businesses have seen the customers appreciate the automated emails, messages and notifications that customers can check at the comfort of their time. It is not easy to call all the customers about their payment times and pay dues or offers, and people hate to receive a call about such updates. Customers prefer the notifications, messages and emails from the insurance company to gently remind them about premiums, offers and bonuses.
5. Personalized premium
Policyholders feel happy about the customized services. The use of artificial intelligence, machine learning, robotics, social media helps to create personalized services.
The technological impact has made a difference in customer behaviour from problem recognition to purchase to product evaluation. The insurer is incorporating technology with human resources to make the business more impactful. Providing customer access to the digital platform is a must for the insurance business to survive.
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