In today's fast-paced world — where technology is changing the way we live and work — customer retention has become a significant challenge. The evolving needs and preferences of the younger generation mean that they’re willing to switch companies as needed for a better, more convenient customer experience.
Your insurance company risks missing out on building long-term relationships with Generation Alpha and their digitally native parents if you’re not adapting. And not effectively capturing the younger generations now means you could see the impact to your company for years to come.
To meet the needs of your future customers, prioritize enhancing customer expectations through digital experiences.
Here are four ways your insurance company can use technology to help retain the next generation of customers:
1. Data and analytics capabilities
Insurance runs on data. Your company already needs to use data effectively for crucial activities such as underwriting.
But if you want to make the most of the latest technology, you need to grow your data and analytics capabilities. Mature data opens more options for innovation in your company, including the potential for emerging insurtech partnerships.
Insurtech firms often have more modern and easily adaptable processes to help aid in building a bridge strategy to reach younger customers. Their use of technology and their ability to give a more catered experience can be a valued asset in helping introduce the newer generation to your company.
Technology has made personalized services the norm. Already, AI is being used by insurance companies such as Lemonade to customize pricing and settle claims faster.
In your company, focus on building products and services around digitally enabled, frustration-free customer journeys. If your company can provide a service at a customized level, and then provide a personalized response when it's needed, customers will be more likely to stay.
Combining your existing data with other user data points can make the processes easier. Integration increases usability for your end users, enabling them to focus more on creating a personalized customer experience.
3. Digital engagement
Paper forms and phone calls are likely to drive away younger-generation customers. Instead, user-friendly websites and mobile applications can help your firm streamline digital engagement by creating a single source for customers to access their policies and pay premiums.
Customers are looking for these digital touchpoints to offer easy navigation and secure transactions. If you combine that with an array of services, you can create a convenient option for meeting all of your customers’ insurance needs.
The new bar and level of interaction, accuracy and engagement that is expected is now a GPT-like experience.
The younger generation is growing up in a world of economic uncertainty, pandemics and other global financial crises. As a result, they are more likely to be cautious and seek out companies that can provide stability, security, transparency and a consistent presence. And they’re less likely to be loyal to a single company if a relationship has not been established early on and, most importantly, proven.
Your company should be providing customers with digital access to all available information regarding their policies, including the different ways customers can save and reduce their bills. Helping customers understand policies — especially policy exclusions — will help make the claims filing process easier and win over customer trust.
Additionally, look to offer savings through proactive and automatically activated savings options, services or alternative behaviors. Helping customers save money is now critical as price sensitivity, pricing information (think InsuranceGPT) and the ease of switching continues to advance.
How Wipfli can help
Wipfli is ready to help your insurance company enhance your digital experience. From software selection to cybersecurity services, we help you ensure you’re maximizing technology solutions for your company. Contact us today to learn more about how we can help you effectively serve the next generation of customers.
Sign up for additional insurance industry content or continue reading: