of online transaction and member onboarding processes are abandoned midway
US citizens will join the health insurance rolls by 2014 with already established customer service expectations
of the brands with “very poor” Customer Experience Index ratings in 2011 are from the health insurance sector
The insurance sector is struggling with expanding customer expectations. For customers, one insurance company is replaceable with the next and insurance packages all look the same. More and more customers are looking towards the Web for purchasing, service, and support. Customers have gone multichannel. They are using any number and combination of channels—social, mobile, the web, contact center, catalogs, stores—to complete one transaction, with their customer service expectation having been set by their experiences in other sectors, such as, retail and telecommunications. They could be hopping from one to the other channel but will vent their feelings on the social web if you are not consistent. Deliver or die—that is the quandary facing the insurance sector.
The winners in this scenario will be businesses that not only interact but also proactively engage with the customer in a smart, proactive, unified manner across touchpoints—channels and devices.
Customer attrition is the bane of the insurance sector. Consumers defect for a variety of reasons—better prices offered by a competitor, better customer service, and better reputation. This problem is even more pronounced among the digital, social, and mobile Generation D.
A significantly huge number of consumers are abandoning forms and transactions midway. Companies are in a quandary as they have been opening more and more products online. Online shopping abandonment costs the sector in millions.
Customers share their experiences—mostly negative, but also positive feedback—online, on social networking sites, blogs, and community forums. They are also open to reviews and opinions made on this medium. Increasingly, these opinions, from friends and strangers, are influencing their buying decisions.
Companies are increasingly opening new products online to capture web-based customers, and struggling to reduce overheads without compromising on quality.
Implementing point fixes to problems instead of adopting a unified strategy across departments and processes creates chaos and lead to multiple digital customer experience initiatives across functions, product lines, and channels.