The insurance industry has taken an often challenging route. This is a fast-moving and competitive industry with limited customer touchpoints. This means that every interaction your policyholder has with your organization – and the technology your organization uses – needs to contribute to a positive experience. In a competitive industry like insurance, improving the policyholder experience is critical as turnover is a constant challenge. In fact, data from a recent Invoice Cloud survey shows that 45% of insurance policyholders are “likely” or “very likely” to look for a new insurance provider in the next 12 months. Policyholder churn costs organizations DE Phone Number time and money. According to Harvard Business Review, “It costs 5 to 25 times more to acquire a new customer than to retain an existing one.
Focus on the online payment experience
According to Bain & Company research, only half of insureds had any form of interaction with their insurance organization over the 12-month period. Annual renewal payments and premium payments are the most frequent interactive touchpoints – making them the most effective way to leverage policyholder engagement to reduce churn. Payments are a critical piece of the customer experience puzzle. In addition to getting good insurance coverage for their specific needs, insureds also care about one thing: how easy it is for them to pay what they owe each month. Getting the right payment experience can mean the difference between keeping or losing your policy. Our research further supports the importance of online payments. For their most recent insurance payment, 77% of respondents paid online through a one-time checkout or automated payment method. That number increases when we look at respondents under the age of 45.
Find an easy-to-use solution for payers
Then asked about their satisfaction with the insurer’s payment service (i.e. omnichannel functionality, where you can pay your bills on your phone as easily as you do on a laptop), policyholders are generally satisfied with their choice. Based on these results, it is clear that omnichannel offerings are no longer optional. Your policyholders, regardless of age or demographics, look forward to these options. However, to improve the policyholder experience, your organization needs to offer more than just omnichannel options. A great policyholder experience requires optimized payment channels. This means your payments platform can retain context across channels, remember customer information, and create a seamless and effortless payment experience.