The profitability of insurers depends on improving the customer experience through its digital transformation
“Our report concludes that the benefits of insurers can be driven with positive customer experience improvement and responding to their preferences, both online and mobile digital channels, as well as the digital transformation of the mediation. Insurers that dominate the capabilities of digital distribution and online services through the different stages of the cycle of life of insurance, especially in the areas of claims management and policies, which is where customers expressed needs for improvement, will be the biggest competitive advantages”, says Ricardo Cruz-Estadão, Senior Vice President of financial services of Capgemini Spain.
The positive experience of the client associated with the profitable behaviors
The customer experience index Customer Experience Index (CEI) that analyzes the responses of more than 15,500 customers insurance through the report customer voice [2], shows a clear relationship between improvements in the customer experience and behaviors that lead to greater profitability, as additional purchases and customer references.
The ERC believes that customers who live a positive experience are almost twice as likely to generate a new contact and are 50 percent more likely to make additional purchases. This is especially true in emerging markets where the experiences of customers with insurance companies are relatively new. But, on the other hand, the negative experiences could be detrimental. The percentage of customers who have expressed their intention to let your insurer is double for those who have negative or neutral experiences. There is an important link between the level of positive experience and the factors that generate profitability. Customers with positive experiences in Spain are more likely to recommend the company or to buy additional products, a 56 per cent, a percentage that rises to 64 per cent in the case of insurance non-life.
Insurers have to provide a positive experience to customers whenever they interact with the company,”says Patrick Desmares, Secretary General of the EFMA. “This constant and positive experience will help to create a customer base that is loyal and ultimately more profitable.”
The report concludes that insurance agents remain the predominant channel to promote the positive experience of customers (39 per cent for life, 47 per cent for the non-life) [3], followed by Internet (32 per cent of life, 41 percent of non-life) and mobile (26 per cent for life, 31 percent non-life). Holland had the greatest increase in the positive experience of customers by 18.2 per cent, mainly due to digital channels and insurance agents. Younger customers (between 18 and 34) show preferences for digital channels instead of the traditional ones. In Spain, the channels most used by users are insurance agents (54 percent for young people between 18 and 34 years and 60 percent in the case of over 35) and the phone, while the digital channels closely follow you. 48 per cent of users between 18-34 opt for Internet while this percentage rises to 52 per cent in the case of the over 35. In the emerging markets of the developing countries in Asia-Pacific and Latin America, the importance of digital channels is very high among younger customers.
Therefore that large operators like Movistar and Vodafone, among others, have decided to set its strategy not only in offering more services at lower cost but also to improve its image with actions which go from the back of the phone service to Spain or the remodeling of its stores.