Tag Archives: customer retention

How Translation Aids Customer Retention

Customer retention is a must for any successful business in our competitive, global economic climate. Estimations vary based on individual studies and industries, but, according to this article on the value of keeping the right costumers, it can cost from five to 25 times more to find a new customer than to retain an existing one. Wherever the true number sits, it stands to reason that it’s easier to build on existing relationships with people who already have brand loyalty than it is to recruit and retain new customers. Otherwise, you need to go through the marketing, reduced introductory rates and manpower to set up new accounts and forge new customer relationships.

For businesses that are serious about their success, one way to boost customer retention is to invest in translation. The U.S. is a great example. Increasing numbers of people in the U.S. speak languages other than English, making it more important than ever that brands connect with them in the right way.

Why Translation Matters: Languages Spoken in the U.S., by the Numbers

The U.S. has become increasingly bilingual. Spanish had over 37 million speakers as of 2013 based on this census on Spanish speakers, ranking it as the most spoken non-English language, according to the Pew Research Center. That number is projected to go up to around 40 million Spanish speakers through 2020, up from 11 million in 1980. That’s 233% growth from 1980 to 2013. Clearly, the need for translation services won’t be fading anytime soon.

The U.S. Census Bureau listed a breakdown of languages spoken in the U.S. between 2009 and 2013, with about 231 million people speaking English only at home, while about 60 million people over that period spoke a language other than English at home. Some of the top languages besides Spanish included Chinese, French, Vietnamese, Korean and Tagalog, all boasting over one million speakers in the U.S. This diversity of languages has major implications for business document translation and how that can affect customer retention.

See also: The 3 Ways to Customer Retention  

These numbers show that there are vast numbers of customers who would feel more comfortable if a business could speak to them in their language, rather than in English. In fact, having a business accommodate language translation needs can mean higher sales and greater customer retention.

How Translation Can Help Keep Customers

An international survey titled “Can’t Read, Won’t Buy: Why Language Matters on Global Websites,” done by Donald A. DePalma, Benjamin B. Sargent and Renato S. Beninatto, shows the impact of language in a buyer’s decision: The more information is available in the buyer’s own language, the higher the probability that it would be a factor in their decision making. Although there is a percentage of consumers that will buy global brands without any information available in their language, smaller brands that are just making their name in the market are more affected by language. In the long run, localization and translation efforts go a long way to help your costumers understand the perks of your products and services.

All of that makes sense. Why would you be willing to buy something if you can’t understand the product information very well? This is especially true in the insurance industry, where customers need to understand complex rate and coverage structures.

Easy Ways to Implement Translation

Translation need not be difficult. If you’d like to boost customer retention, you can start by simply translating a few forms and letters. For instance, you could have a professional translator convert background forms, health surveys, letters informing people that you are reviewing their information or outlines of benefits. A little investment like that could go a long way toward helping customers know that you are willing to meet them on their own terms.

You might also consider having a website translation that offers information in multiple languages. Results from a 2011 Eurobarometer survey (conducted on behalf of the European Commission) show what you lose out on if you don’t:

  • 44% of European internet users feel they are missing interesting information because websites are not in a language they understand.
  • Just 18% of people search for or buy products online in a foreign language frequently or all the time, with 38% reporting that they do so occasionally and 42% saying that they never do so.

It might be worth having a professional translation of your company’s website completed, so that the site can be read by the widest variety of customers possible. You might also consider having a translation done for marketing materials such as brochures and fliers and even social media messages. That way, you can market additional services to your existing customers who speak other languages in ways that they can easily understand and that will support their longer-term engagement with your brand.

See also: ROI Study on Customer Experience  

Whether you want to simply translate a few documents to show customers that you care or undergo a full informational product translation project, doing so can aid customer retention. The numbers show that people who feel that a company helps them understand a product or service in their own language are more likely to do business with that company.

What Maslow Means for Keeping Customers

Explaining customer needs through the theory of Maslow is common practice. Marketers often apply the principles to attract new customers. However, if you fail to continue to do this once you have attracted a customer, your ability to retain her will be compromised.

In this article, the authors suggest an approach that takes into account the position of the client within the needs pyramid. After all, if you understand the initial need that has led to a buying decision, you can continue to apply this to retain your customers.

Maslow’s theory of needs – again?

Humans are predominantly driven by universal needs. The original motivational theory of Abraham Maslow (1943) arranged those needs in a pyramid, sometimes referred to as the pyramid of needs. According to the model, people will only strive for gratification of the higher needs in the pyramid after the lower ones have been fulfilled.

For this article, we use a three-layer, simplified version of the needs pyramid.

At the top of the pyramid, Maslow placed the need for self- actualization; the desire to develop your personal self and realize your full potential. The middle part of the pyramid describes the desire to belong somewhere and to be valued. The bottom part of the pyramid represents the basic physiological needs for survival: food, shelter, safety and security.

See also: How to Get Broader View of Customers  

Maslow always remained critical toward his own model. But in this article, we assume Maslow sticks to his own theory and acts accordingly. We use a mortgage product in the narrative, but the argument applies to financial services products in general.

Level 1: Customers need safety and security

Suppose it is the day that a young Abraham Maslow leaves his parental house to start his adult life. Maslow is looking to buy a house to fulfill his basic needs for security and safety and requires a mortgage to do this. His demands are simple: basic, cheap and something he doesn’t have to worry about.

Most financial products will answer to these basic needs. Some insurance products are simply required by law. You’ll need a debit card for making payments, at least for now. Customers looking for these products to fulfill their basic needs receive a warm welcome. However, once a prospect has become an existing customer, the approach often changes.

For instance, after choosing a mortgage Maslow would like to be informed about the suitability in terms of risk and costs. It would be great to receive confirmations that his mortgage still fits his profile and that he has made the right choice, or if better alternatives are available.

Often, this doesn’t happen. Instead, Maslow is being approached with offers made by competing mortgage providers, arguing he could be better off elsewhere. And while Maslow’s current mortgage provider receives payments on time and assumes Maslow is a satisfied customer, Maslow has not been able to resist the temptation and switches to a competitor offering more security and safety, as soon as his contract allows him to do so.

So what could Maslow’s original provider have done differently? First, it should have acknowledged Maslow’s primary buying motivation. As a next step, it should have contacted Maslow periodically to evaluate his choice of product. Providing customers with a regular check on their product portfolio builds relevant customer contacts and ensures some control at the provider.

Level 2: Consumers want to belong and be valued

Maslow, who has advanced in his career and now is a doctor, is looking for a place that allows him to build a practice at home. He learns about a mortgage provider that specifically serves the medical community. A provider like that should be able to exactly serve his needs.

Many financial products can be connected to a specific field of expertise or area of interest. Customers benefit from the specialty expertise offered by their bank or insurer. This may be realized through targeting specific customer groups or customers sharing a common interest. These customers expect a close relationship with their financial services provider.

Often, existing customers do not receive the same treatment as prospects. Maslow would like to remain informed about developments that relate to his profession. And he would like to share his experiences and insights with his financial services provider and colleagues. Because he now belongs to a specific target group, Maslow receives regular marketing messages and newsletters. However, these are often generic, and Maslow lacks the opportunity to share his ideas and suggestions to improve services.

During the course of his mortgage, Maslow is actively approached by competing mortgage providers, arguing he could be better off elsewhere. They may offer more expertise, additional services and other customer engagement activities. Maslow may not resist the continuous temptation and decides to switch to a competitor offering more of the services he is looking for.

So what could Maslow’s original provider have done differently? Again: Acknowledge Maslow’s primary motivation for buying in the first place. If his financial services provider had realized why Maslow had chosen it, the provider could have engaged him through activities and programs aligned to his interests and needs, e.g., by giving Maslow the opportunity to provide feedback and tips, and by actually recognizing his contributions. Companies like Tesla provide an amazing customer experience by acknowledging customers’ contributions to a new software release.

Level 3: Customers strive toward self-actualization

As a doctor, Maslow treats a set of patients suffering from post-traumatic stress disorder. Being confronted daily with the struggles of his clients, he finds it increasingly difficult to stop thinking about global politics and the causes of his patients’ condition. This afternoon, he has a meeting about a new mortgage. It would make him feel a lot better if his financial services provider demonstrates social responsibility and awareness.

Connecting financial services to social themes, lifestyle or trends may not be that difficult. Nobody cherishes a mortgage, savings account or insurance policy, but these are means to an end: the pleasure of owning your own home, to realize dreams or to take care of your loved ones. Managing the carbon footprint and supporting fair trade while avoiding child labor are increasingly the themes to reach younger generations. Only a small part of financial services providers embrace these themes.

See also: 5 Technologies That Connect to Customers  

As an engaged customer, Maslow hopes to hear how his bank or insurer is contributing to making the world a better place. He expects a regular confirmation that he has made the right choice and is very much prepared to pay extra or settle for less service as long as his bank supports his ideals.

Conclusion

Many financial service providers apply Maslow’s theory to seduce customers. Campaigns and commercials cleverly play on human needs. However, as soon as a customer has become part of a back-office system, the urge to leverage these data disappears. This is partly understandable, as many organizations lack a focused customer-retention approach. However, we believe significant steps can be made in customer retention by applying Maslow’s theory.

As a first step, you need to define your pyramid. What are the needs that make up the layers in your customer pyramid? There might be a link to a specific distribution channel. Leveraging all data from the customer on-boarding process is an obvious approach.

Next step is to assess in which layer a customer resides. All customer interactions provide valuable data. Next to questionnaires, interviews and feedback, actions and responses are a tell-tale.

Once a Maslow profile has been determined, the individual customer contact approach can be selected. This step should involve some level of experimenting.

By analyzing all customer contacts, financial service providers will gain valuable insights. An active customer may be involved in product development or asked to become an ambassador. For less active customers, it is important to periodically get in touch and re-assess their product choice.

What’s next?

The motivational needs theory of Maslow is not undisputed. The thought that individuals only strive for higher needs once the basics have been fulfilled, has not been tested by Maslow. To his great disappointment, his theory has been used widely while nobody ever has had the urge to thoroughly analyze or test this.

However, we do have this ambition. Will the Maslow approach add value in the area of customer retention? Is it possible to better understand customer needs through this approach?
Is it possible to create a formula based on customer contact data predicting in which level a customer resides in the needs pyramid?

Marketers are convinced of the relevance of the theory in analyzing initial buying decisions. Applying the same principles to customer retention doesn’t seem like a particularly big step. We therefore are confident that this approach may provide value for retention programs. We are interested to discuss the potential of this model with you in more detail and would love to hear from you!

For this article, Onno Bloemers has joined forces with Leon Veenhuijzen, associate partner at Improven. 

Thinking on Core Systems Is Backward

Insurance technology spending is high. In April 2015, Celent estimated that global insurance technology spending would top $181.6 billion by the end of 2016. This spending will include a combination of standard modernization, keeping legacy systems alive and well, supporting infrastructure projects and (increasingly) building digital and data frameworks.

Many insurers remain focused on upgrading or maintaining their core systems. The common internal debate is whether the insurer should maintain the legacy system or start over by adopting a modern solution. This debate almost completely ignores the proper approach to determining the answers to technology decisions, placing the cart squarely ahead of the horse. If one accepts the basic premise that core new business, policy, claims and billing management systems are really just table stakes, why not focus on the business — improving growth, increasing market penetration and improving both the combined ratio and profitability?

If we do this, we are likely to achieve all of these things AND construct a technology framework that fits now and is flexible for the future. For the sake of conversation, I have come up with three areas where business focus will lead to the right kind of modernization and transformation.

The first two are concrete business goals: reduce the cost per acquisition (CPA) and increase customer retention. The third is less concrete and more philosophical: embrace change by improving an understanding of the opportunities it may provide.

Reduce Cost Per Acquisition

The CPA is the largest cost in the current insurance business model (outside of claims). It is currently under pressure because of the rise in aggregators and comparison sites that are forcing insurers to sell standardized products for the least amount they can. The result is a market designed to churn because of a continual focus on price.

See also: 4 Benefits From Data Centralization  

How can insurers break out of this cycle, reduce the cost per acquisition and use the savings to remain competitive? Here are a few ideas:

  • Insurers should consider a cloud solution for core systems/back-office administration. U.K. insurers have, unfortunately, been slow to adopt shared services and technologies when they are proving themselves in other industries and geographies. Now is the time to consider cloud solutions if they fit with cost reduction objectives and if they can sustain or improve service levels.
  • The industry should use a permission-based consumer data storehouse. Churning policyholders benefits no one and costs all of us a great deal of time and effort. What is needed is a true permission-based marketing model, where consumers grasp the benefit of letting insurers see relevant profile information. This would enable the direct-to-consumer or small-business framework where insurers would provide a digital front-end that “pre-fills” the quote with existing data on the customer or other third party data, streamlining the process. It would also enable insurers to better match tailored products to prospects, instead of having to offer standardized products.
  • Insurers should hone data-driven target marketing. Today’s data sources and analytics allow for much more granularity and fine-tuning in the marketing process. With the right tools, insurers can now use consumer-provided data and detailed third party data to provide qualified offers to only those consumers and small businesses that fit a certain product’s risk profile. This would reduce CPA and improve risk selection.

Increase Customer Retention

With a high cost per acquisition, customer retention becomes an increasingly critical metric for insurers, particularly because initial acquisition costs are recouped over multiple years. The increasingly price-sensitive market has reduced the number of multi-year policyholders. Industry studies have shown a clear correlation between a customer having multiple policies with a single insurer and their retention rate. Yet with the exception of multi-car policies, there has been little effort in creating an overarching combined personal lines product with auto, homeowners put forward by U.K. general insurers. This is in stark contrast to insurers in the U.S. market that have been focusing on the customer relationship with a goal of a multi-policy environment and customer retention business processes.

Most U.K. insurers’ core insurance systems are legacy systems built around the product, not the customer. Realigning technology choices, process reengineering and customer-centric product development will result in the ability to offer multi-risk and multi-year policies (and discounts) and preventive risk management services. These will help to build loyalty and retention.

Embrace Change and New Ideas

Technology is enabling exciting changes in insurance. Whether it is innovative new products, new customer relationship business models, implementing modern core insurance solutions, leveraging new data sources or embracing new technologies — each offers an opportunity to begin the journey to a new future that is rapidly unfolding in the industry.

New technologies will give insurers improved data, better analytics and lower transactional costs through self-service. Consumers will benefit with services closer to an “Amazon experience” with a greater level of insurance understanding.

See also: How Technology Breaks Down Silos

To capitalize on the opportunities presented right now, insurers must embrace new ideas and change before new entrants do so and disrupt the industry. Insurtech is the conceptual umbrella containing insurance ideas and technologies that are rewriting the rules of insurance and helping insurers succeed. Internal education on the highlights of today’s insurtech landscape may be an excellent catalyst for change within your organization.

Preparing for change should still include conversations about the core insurance solution. The core can serve as a catalyst for change instead of an inhibitor to market potential. Discussing even a small part, such as the financial benefits of core change, can fuel both creativity and a desire to create and capitalize on a new model. Nothing will pull leadership together faster than a plan for real growth and solid change where efforts are directly tied to outcomes. Those are healthy approaches to core conversations.

So where do we begin?

To begin, focus on business priorities. If you do this, your organization will end up with the right technology solutions and a core system that fits and supports the business. You’ll make technology investments, not expenditures. Your costs will be lower. Your customers will be more loyal. You’ll recruit better businesses. And you will keep the horse in front of the cart, enjoying the way systems and processes and people work in unity to accomplish goals.

4 Myths About Independent Agents

While speaking at an insurance conference recently, I shared examples of how e-signatures are transformative because the technology now makes it possible to fully digitize the insurance sales and service process. “Imagine if tomorrow all your printers and filing cabinets disappeared,” I offered. Afterward, an agent approached me and said, “I don’t get what the big deal is with electronic signatures, anyway. My customers want to sit down with me and have me walk them through their policy.”

This isn’t the first time I have been challenged in this way. Evidently, some agents in the audience were left with the impression that digitization would replace personal service – an outdated fear among some seasoned insurance agents. This misconception often holds agents back from offering the best possible customer experience and become a roadblock to increasing their business.

Historically, the insurance business has been a personal one. Producers knew their customers well; knew their families, their businesses, their tolerance for risk. The entrance of direct writers onto the insurance scene has, indeed, removed some of that intimacy. But for independent agents, adding a modern, e-signing option to the buying experience doesn’t quash their personal touch.

Let’s debunk the four most common myths among independent agents:

Myth #1   Digital means “self-serve”

The goal of automation is not to remove human interaction; the goal is to provide a more efficient, error-free customer experience. E-signatures have been adopted across all channels in insurance, from remote call centers to face-to-face client meetings. Regardless of channel, we are still seeing customers continue to call advisers and meet with their agents; but at signature time, there is no printing, just an email invite with a link to e-sign.

Myth #2   Technology detracts from quality of service

Some agents believe that technology detracts from the quality, consultative and personalized service upon which they have built their business. The adoption of digital processes does not dilute the continuing value that independent agents provide; it simply modernizes the administration of paperwork. In fact, the time saved managing paperwork will be more time agents can spend offering specialized expertise. Trusted advice will continue to play an important role in the industry.

Myth #3   Consumers aren’t ready

This is simply not true. We track client preferences for e-signature automation across many mediated and unmediated channels. Mediated is when the client’s transaction is guided by a representative, offering the option for e-signature at the time of signing. Unmediated is when the consumer is online, in a self-serve situation.

In unmediated transactions, where e-signatures are offered 100% of the time, rather than being offered at the discretion of a sales agent, it is common to see adoption rates of more than 95% for e-signatures. Consumers are indeed ready and opting for the convenience and immediacy that e-signatures provide.

Myth #4   Digital signatures are risky

The fact is, electronic signatures are more secure than wet signatures. The identity of the signer – and the intent to sign – can both be authenticated and upheld in a court of law. Digitized audit trails of e-signing mean you not only get a log of document-level activity during the signing process, but everything the signer experiences during the signing ceremony can be captured, accessed and replayed as proof of signing.

Doing Digital Right

Independent agents who embrace digital upgrades to their processes will realize five key benefits:

  1. Improved customer experience: personalized yet modern nets better customer retention.
  2. Automated, expedited business process: requires less time to execute necessary paperwork.
  3. Efficiency: less time managing paperwork and fixing errors.
  4. Cost savings, by eliminating paper and having more time to spend with clients.
  5. Fewer errors, leading to less errors and omissions risk.

One of the most important benefits of modernizing business systems is the ability to attract clients. As generations shift, underinsured Millennials will open market opportunities. Progressive, independent agents will be viewed as service providers who have kept current with the times – yet still offer industry expertise with personalized attention.

“All business models must now rely heavily on digital tools; it’s what consumers want. What’s so exciting, however, is that consumers also hunger for a trusted adviser relationship with their insurance agent. Independent agents who marry the two will be big winners in the years ahead. That’s an opportunity direct writers can’t fully execute,” says Ron Berg, executive director, Agents Council for Technology.

Capturing Hearts and Minds

This article is an excerpt from a white paper, “Capturing Hearts, Minds and Market Share: How Connected Insurers Are Improving Customer Retention.” In addition to the material covered here, the white paper includes specific recommendations on how to improve retention.

To download it, click here.

Insurers currently operate in a challenging environment. On the financial side, premiums are stagnant and interest rates low, and many cost-cutting measures have already been enacted. On the other hand, customer empowerment is growing. Customers are finding the information and offers they need to switch providers more freely than in the past – customers whom insurers can ill afford to lose.

For many carriers, the key to preserving customer relationships still lies in personal interaction, executed through traditional distribution and service models with tied agents and brokers. For some customer sets – those who strongly favor personal interaction – this business model works well. Yet a growing segment of customers, especially those 30 years old and younger, differ in some key aspects. While they still look for help and advice, they seek personal contact in the context of a holistic, omni-channel experience; they communicate and find information whenever, wherever and however they want. And even traditional customers appreciate if their agents have broader and faster access to the information and specialists they need on a case-by-case basis.

How can insurers keep – and even expand – these diverse customer sets, old and young alike? What factors drive retention and loyalty? To explore these questions, we surveyed more than 12,000 insurance customers in 24 nations about relationships with their insurers, what they perceive as valuable and in what ways they would like to interact and obtain new services going forward.

We found that while insurers understand well how to cover risks, they often fail to engage their customers on an individual basis. Even though insurance is complex, customers want to be involved, emotionally and rationally. When insurers act on this knowledge, customer share can rise.


The churn challenge

As a rule of thumb, the cost of acquiring new customers is four times that of retaining existing ones. To grow market share, insurers need new customers. But for the balance sheet, retention has a much larger impact.

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For a long time, the insurance industry did not consider this lack of trust a problem. In the highly asymmetrical pre-Internet world, there was a necessary gatekeeper to information and knowledge about risks and coverages: the insurance intermediary. For insurers, the intermediary’s trusted personal customer relationship was a guarantee of fairly reliable renewals and low customer churn – thus, keeping the most profitable customers.

The technological innovations of the digital age have altered this picture. Information asymmetry is diminishing. Although many customers still seek advice on insurance matters, the empowered digital customer does not need to rely solely on the gatekeepers of old for information. With communication being swift and ubiquitous, misinformation is quickly uncovered, leading to a steady erosion of trust, even with the personal adviser and insurer.

We have come to expect that only 43% of our survey respondents trust the insurance industry in general – a number that has stayed fairly stable since our first survey in 2007 – but only 37% trust their own insurers to a high or very high degree. Most customers are neutral, with 16% actually distrusting their providers.

As we have often seen in past studies, trust varies widely by market and culture. For example, only 12% of South Korean customers responded that they trust their insurers, compared with 26% in France, 43% in the U.S. and 51% in Mexico.

Low trust translates to high churn. Even though 93% of our respondents state that they plan to stay with their current insurers for their recently acquired coverage through 2015, almost a third came to that coverage by switching insurers. Why? Most commonly (for 41% of respondents), their old insurers couldn’t meet their changing needs (see Figure 1).

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The pattern of increasing customer empowerment and decreasing information asymmetry is continuing. New and non-traditional entrants to the insurance market are taking advantage of the opportunities of digital technologies. For example, Google recently launched an insurance comparison site for California and other regions of the U.S. This presents a real threat to both online insurers and traditional providers – not because of the comparison option itself, but because Google has collected a huge amount of information about each individual through his or her surfing habits, thus allowing better personalization and higher-value offers.

The three dimensions of retention

What do insurers need to do to increase trust and customer retention with the intent of improving both the top and bottom lines? The findings of our survey point to three courses of action:

    • Know your customers better. Customer behavior is affected by experiences and underlying psychographic factors. Insurers need to know and understand customers better, not only as target groups but as individuals. Insurers also need to get their customers involved, rationally and emotionally.
    • Offer customer value. As overused as the term is, a strong and individualized value proposition is exactly what insurers need to provide to their customers. Value is more than price; it includes many factors, including quality, brand and transparency.
    • Fully engage your customers across access points. As Millennials become a significant part of the insurance market, speed and breadth of access has begun to matter much more than in the past. Insurers need to engage their customers as widely as possible, from in-person interactions at one extreme all the way to digital interaction models such as those made possible by the Internet of Things.

Customer perception and behavior

Ever since the Internet has become a viable way to shop for goods and services, much discussion has centered on the matter of price. In theory, insurance products are easy to compare, so shouldn’t the cheapest one win out?

This view assumes that, aside from the price, all else is equal. If that were true, price would indeed be the sole tie-breaker. In reality, though, all else is never equal. Insurance is a product based on trust, for which perception matters. Perception, and thus customer behavior, is shaped by the individual customer’s attitudes and experiences. Understanding a customer on an individual basis helps a carrier tailor these experiences by communicating the “right way.”

To classify our respondents according to their attitudes, we used the same psychographic segmentation as in previous studies (see Figure 2).

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One size seldom fits all

Overall, our respondents stated that the three most important retention factors are price (63%), quality of service (61%) and past experience (33%) – leading back to the price as the main tie-breaker. Yet a closer look across segments paints a more diverse picture: For a demanding support-seeker, quality is by far the most important (74%), while a loyal quality-seeker bases his renewal intentions on past experience more strongly than any other group (43%).

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Assuming an insurer is targeting all these customer segments, it will need a diverse set of customer communication options, as each segment requires approaches tailored to its specific preferences (see Figure 3). This figure shows the five most-used insurance search options in the three segments where we are seeing the biggest shift among Millennials, who represent future customers.

The power of emotional involvement

Our data show that appropriate communication with customers sets off a positive chain reaction. First, it increased the use of that type of interaction. Customers perceived the interaction as more positive, and ultimately this increased emotional involvement with their providers – the “heart share” of our study title. Finally, emotional involvement is strongly connected to customer loyalty, so increasing involvement from medium to high had a dramatic impact on the loyalty index (see Figure 4).

What is the right way to communicate and increase involvement? As seen in Figure 3, the answer is “It depends,” so there is no one right approach for all customers. But using current technology – specifically, social media analytics – can help insurers improve involvement.

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With this tool, providers can “listen” to various online sources, understand how they are seen by customers, uncover trends and quickly tie this knowledge to specific actions. Providers can combine the findings of social media analytics with psychographic segmentation and an individual customer’s place within the segmentation; the latter gained via more traditional customer analytics. With this customer view, insurers can even go beyond the personalized knowledge their tied agents tend to have: As customer wants and needs change and they articulate it on social channels, insurers will know and can react in close to real time.

Social media analytics

Social media analytics is a set of tools that allow insurers to analyze topics and ideas that are expressed by their actual or potential customers through social media. This can be on an individual basis, or per customer group. Through social media analytics, insurers can apply predictive capabilities to determine overall or individual attitude and behavior patterns, and identify new opportunities.

This article is an excerpt from a white paper, “Capturing Hearts, Minds and Market Share: How Connected Insurers Are Improving Customer Retention.” In addition to the material covered here, the white paper includes specific recommendations on how to improve retention.

To download it, click here.