The emphasis on customer experience (CX) is never more apparent than in the insurance industry where the focus has primarily been on price competition driven by a commoditised market.
Businesses are now recognising the long-term benefits of using CX as a differentiator. In fact, a recent Gartner study found that in 2017 - 89% of organisations expect CX to be their differentiator and predict by 2018 that 50% of organisations will direct their investments to customer experience innovations. This was further backed up by, a Deloitte study that found 62% of companies view CX as a competitive differentiator. So what is driving this change in emphasis? Increased customer expectation, compliance burdens and price competition has meant insurance companies are facing challenging times. This has created the perfect environment for a focus on customer experience, as it addresses most of these issues and provides a competitive advantage that is less easy for competitors to replicate.
Omni is the new multi…
…and it’s here to stay! Customers expect to decide how their buying journey will happen and they want organisations to be the facilitators of these journeys not the directors. Research by Aberdeen Group Inc. supports this view, finding companies with the strongest omni-channel customer engagement strategies retain an average of 89% of their customers compared to 33% for the weaker strategies.
There is a huge opportunity for insurance companies to use CX to transform the way they interact with their customers and break out the price competitive market while minimising threats from compliance requirements and comparison engines. Creating a CX strategy will not only create a point of differentiation but also deliver measurable results in terms of increased conversions, retention and reduced churn and costs.
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