November 16, 2022 | Authored by: Jesus Luzardo
Insurance: why to think of customers as subscribers, and how to stop them from leaving
“It’s better to have it and not need it, than to need it and not have it.”
Everyone has to have it, but no one wants to think about it.
What’s more, buying good insurance demands a lot of research from the consumer. There are numerous types of policies, and endless combinations of plans for all kinds of risks. Whether insuring a car, home, a pet, vacation or life, the right policy, plan and premium all depend on the customer’s individual situation.
There is something common to all insurance purchases, though.
They are not one-time purchases of a single product. They are recurring transactions, with premiums paid on a monthly or annual basis.
In a fundamental way, insurance is similar to a subscription.
Not just customers, but subscribers
When a customer takes out insurance, the policy is active and valid only as they continue to make successful recurring payments.
Like subscriptions, insurance is an ongoing relationship between the customer and provider. The policy and premiums are periodically reevaluated and adjusted according to need. Much like a subscription, the customer can choose different bundles and offers, depending on their situation, which may be dynamic and changing. For example, if a person is renting a house, they will just buy a renter’s insurance policy to cover their furniture and belongings. But when they purchase their own home, they will upgrade to include fire, flood, and earthquake insurance on the structure.
In this way, it makes sense for insurance companies to think of their customers as subscribers. Whether or not the customer wants to think about insurance, the fact is, they are connected to their provider 24/7, in terms of coverage, premium payments, and – when the need arises – submitting claims and getting the payout they are owed. It’s far from a simple purchase; it’s a long-term relationship.
The insurance industry is complex and personalized. Numerous providers compete for customers who want the product, but – once purchased – don’t want to have to think about it or work to retain it. Insurance is a sensitive issue, often needed during life’s most stressful times (e.g., theft, illness, death). Customers are always connected to their insurance provider; even so, they might go months or years without making any sort of claim or initiating contact.
At the same time, a single bad experience or miscommunication with an insurance provider can turn the customer away for life. Given the tricky nature of the customer relationship, and the tight competition between providers, customers leaving is usually just a heartbeat away.
The last thing an insurance company wants is for a customer to have a bad experience that leads them to question their relationship and loyalty to the brand. That’s why insurance providers should go proactive in their retention management strategy. Rather than focusing on fixing mix-ups after they occur and contacting their insured, when it is probably too late, insurance companies must change their perspective, think of customers as subscribers, and focus on delivering the best experience, including when processing the premium recurring payments.
Take control of recurring payment failures now, so you can change gears into better operational mode – focusing on improving your policies, personalizing insurance offers, upselling with advanced products, and generally making your customer experience smoother, frictionless, and satisfying.
No more failed transactions
People don’t want to think about their insurance too much, so don’t give them a reason to. If they do start questioning their relationship with you, that only gives competitors an opening to start a conversation and bring them over to the other side. Instead, prepare to “heal” those failed payment transactions and optimize your retention strategy, smoothing the path to a seamless insurance experience for your subscribers.
How to retain subscribers in today’s post-pandemic environmentDownload