7 digital customer journey trends in insurance for 2023 and beyond
Digital customer journeys are constantly evolving, and as customers become more digital, the insurance industry must adapt.
[.emph]We are entering the digital journey era, where customers are in the driver's seat. In this new landscape, insurers must provide a seamless, personalized customer experience across all channels. [.emph]
As customers become increasingly digital, customer journeys in the insurance industry are evolving. Here we discuss 7 key trends in customer journeys that will have an impact on the industry in the years to come.
1. The customer is in control
In the digital customer journey model, the customer is firmly in control.
Today, customers can easily compare products and prices and switch providers with a few clicks. When switching to another provider is so easy, building trust and customer loyalty is more important than ever.
Data shows that customer loyalty is declining, with only 27% of customers saying they feel loyal to their current insurer. That is a shift from the traditional customer journey, where insurers held all the power. That means insurers need to work harder to win and retain customers.
In line with that trend, customers increasingly expect to be able to serve themselves. In the past, customers would have to call customer service or go into a branch to change their policy, but this is no longer the case.
Self-service is now expected for a range of customer service tasks, from making a claim to changing your address. In the near future, it will expand to encompass nearly any customer service task.
This trend is likely to continue as customers demand more control and insurers invest in digital customer journeys.
2. The customer journey is omnichannel
Omnichannel customer journeys are the new norm.
In these customer journeys, customers move freely between channels. They might start their research on a desktop computer but finish it on a mobile phone. Or they might make a purchase online but then call customer service with a question.
That means insurers must provide a consistent experience across all channels and make it seamless for customers to switch between them.
Siloed customer data is a major pain point for customers and can lead to customer service problems.
In an omnichannel customer journey, customer service needs to be integrated with the rest of the customer journey. That means customer service reps need to have access to the same customer data and journey history as the customer.
This means that integrations with the ecosystem platforms and tools are becoming a key capability. More attention must be paid to how customer data flows between channels and systems and how different systems can talk to each other.
3. The customer journey is personalized
As customers become more aware of the data that is being collected about them by brands, they increasingly expect a more personalized experience throughout their customer journey in return.
This means that insurers need to use data they collect to understand each customer's unique needs and preferences.
In the past, customer service was largely a one-size-fits-all proposition. But now insurers are using customer data to tailor the customer journey to each individual. Each customer has their own unique path through the customer journey.
This trend is being driven by two factors: customer expectations and technology.
Customers now expect a personalized experience. They are used to being targeted with ads that are relevant to their interests and they expect the same from insurers.
At the same time, technology has made it easier to personalize customer journeys. Insurers can now track customer behavior across channels and devices and use that data to deliver a personalized experience.
There are a number of ways to personalize the customer experience, such as:
- Offering personalized product recommendations
- Creating targeted marketing campaigns
- Using data to understand customer needs
- Tailoring digital journeys to each individual customer
4. Customer journey is flexible
In the customer journey, customer service is no longer a one-time event. It is an ongoing relationship between customers and insurers.
That means customer service needs to be available in real-time, 24/7. Customers expect to be able to reach customer service at any time, day or night
This trend is being driven by the rise of digital customer service channels. In the past, customer service was largely phone-based. But now, customers can reach customer service through a variety of channels, including chat, email, and social media.
This trend is likely to continue as customers demand more flexibility in how they communicate with customer service.
4. The customer journey is interactive
In the customer journey, customers expect to be able to interact with brands. They want to be able to ask questions and get answers in real-time.
This trend is being driven by the popularity of messaging apps like WhatsApp, Facebook Messenger, and WeChat.
Customers are using messaging apps to communicate with their insurance providers more and more.
[.emph]of customer service organizations will abandon native mobile apps in favor of messaging by 2025 (Gartner)[.emph]
In the customer journey, customers expect insurers to provide instant gratification. That means insurers must be able to provide quotes and customer service in real-time.
This also means that customer data needs to be utilized in real-time so that customer journeys can be personalized dynamically based on customer actions and input.
5. The customer journey is data-driven
In the customer journey, data is used to personalize the experience and make customer service more efficient. That means insurers need to have access to data and use it effectively.
In order to do this, insurers need to have a data strategy. This should include data collection, storage, analysis, and action.
Data intake is another crucial aspect of customer journeys. The way insurers collect data from customers needs to be easy and convenient.
6. The customer journey is customer-centric
In the customer journey, customers are the focus. That means insurers need to put customer needs first and provide a great customer experience.
To do this, insurers need to understand customer needs and design customer journeys that meet those needs.
This customer-centric approach should be evident at every stage of the customer journey, from awareness all the way to post-purchase.
7. The customer journey is mobile-first
In the customer journey, mobile is the preferred channel. Customers use their smartphones for everything from researching products to making purchases. This trend is only going to continue as mobile devices become more and more popular. By 2025, it’s estimated that there will be 5.8 billion mobile phone users worldwide.
This trend has major implications for insurers. They need to make sure that their customer journeys are optimized for mobile devices. This includes everything from responsive website design to mobile apps.
The future of digital customer journeys in insurance
Digital customer journeys are constantly evolving, and insurers need to be prepared for the changes that are coming.
The trends we’ve discussed in this blog will have a major impact on customer journeys in the insurance industry. In order to stay ahead of the curve, insurers need to focus on customer experience and make sure their customer journeys are customer-centric, data-driven, and mobile-first.