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Transforming the Mobile Customer Experience in the Insurance Industry

Transforming the Mobile Customer Experience in the Insurance Industry

With mobile usage growing year over year, marketers are now deeply entrenched in a world of mobile marketing, messaging, and customer engagement. People carry their smartphones with them everywhere and mobile channels are where your audience spends much of their time.  A 2015 Bain survey of insurance companies projected that digital channels will continue to significantly replace physical channels in the next 3 to 5 years. The survey found that 20-40% of physical activities in insurance will be transitioned to digital and mobile channels.

Check out these statistics on how mobile has impacted the insurance industry:

  • 40% of insurance research time was spent on mobile devices (xAd)
  • 5% of insurance shoppers use only their smartphones (xAd)
  • 60% of mobile shoppers find it important to be able to call an insurance company during the purchase process (Google)

Unfortunately, a recent poll, The Effective Mobile Engagement Report 2016, found that consumers ranked the mobile experience with insurers worse than any other type of company. Satisfaction with insurers declined from 60% in 2015 to 47% in 2016. According to the report, 85% of consumers are unlikely to do business with the same organization again following a bad mobile experience. Seven in 10 respondents have also left a website because navigating on mobile was too difficult.

insurance customer experience

The ability to engage and convert mobile insurance consumers begins with understanding your target audience and the experiences they are seeking. In research by PointSource, insurance companies are often unsure of what user experience to offer their customers, with some even questioning the value of mobile within their organization.  When asked why they have not yet adopted mobile, aversion to change was the number one reason given (65%), followed by a fear of losing customer touch points (43%) and a general lack of comfort with mobile devices (39%).

Additional finding from the research indicate that the majority of survey respondents (89%) have implemented a mobile website or mobile app (74%). However, 19% of those with a mobile presence rates the experience as 6 or below on a 10-point scale.

Like many companies, those in the insurance industry are preparing to invest more in mobile strategies. Eighty-nine percent plan to invest more heavily in mobile, with 85% planning to spend more than $100,000. When respondents were asked why they were investing in mobile, the top responses included:

  • 77% – Our customers have expressed a desire in mobile experiences
  • 66% – We are trying to expand our current products or services
  • 62% – The future is going to be mobile-driven and we want our business to be ready
  • 51% – We need mobile technology to make our internal processes more efficient

What Do Consumers Want in the Mobile Experience?

Across industries, almost half of consumers (48%) rank convenience as the most important element of a good mobile customer experience (Sitecore). This is followed closely by security (46%) and speed (42%).

mobile customer experience

In the PointSource survey, these points also came up as top elements of a good mobile experience. Insurance respondents said their customers’ biggest pain points are related to speed and information. Sixty percent report customers not having access to the necessary information when they need it, 55% say customers do not receive assistance in a timely fashion and 26% point to a lack of communication with agents as a main customer pain point.

As stated in the research, “In order to address the issue of speed, 81% are interested in offering mobile payments, 60% in claims assistance and 58% in policy quotes. Likewise, to improve daily access to insurance information, 62% of respondents would be interested in offering policy management via mobile, 62% in alerts and notifications and 51% in live chat with customer care representatives.”

insurance mobile services

Mobile Apps

Mobile apps are not new, but keeping up with demanding consumers means your app needs to be up to par. Roughly 78% of companies now offer consumers the ability to report claims online, and 79% offer that capability via a mobile device (Insurance Journal).

Consumers want convenience and access to their information wherever they are and your app should serve a variety of roles. In addition to “standard” content customers can find in a mobile app—such as their policy number or payment due date— apps are becoming more sophisticated in the types of features they offer. For example, if a customer is unsure of what type of policy they need, mobile apps can offer “e-advice” for personal insurance plans. Or if a customer gets into a car accident, apps can provide an easy way to file claims, contact roadside assistance, or offer step-by-step instructions on what to do in an accident.

insurance mobile apps

Apps can even use location-based services to track where an accident took place or provide services to locate and contact an auto repair shop. Your mobile app should provide convenience, enhance the brand experience and be seen as a direct link to your company wherever and whenever your customers need you.

In nearly every industry, shoppers have come to expect a fully interactive mobile experience that offers easy access to product information on any device. This means mobile-first design and mobile optimized experiences for insurance agents who want to maintain and enhance their competitive advantage.

To learn more about data driven practices can improve your customer experiences download our free customer experience marketing guide.

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