UK Insurers—Are You Leaving Revenue on the Table?
A few weeks ago, we wrote about how US insurers are making up ground with digital customer experience (CX) in an effort to close a widening revenue gap. However, it’s generally understood that UK insurers are further along in terms of embracing digital transformation— if you are an insurer in the UK, do you still have to be concerned about a revenue gap from digital CX?
Even though UK insurers are embracing digital channels to improve CX and engagement, there still could be holes in your CX strategy. Improvements in CX will deliver revenue you have already earned by bringing customers to your site with the intention of purchasing, but that is currently unrealized due to suboptimal customer experience.
When we consider the amount of money being spent to attract, influence, acquire and retain customers, the fact that the CX is not optimal, and we sub-consciously know it, means we are wasting money to deliver a sub-optimal experience.
The Current State of Digital for UK Insurers
Every industry is vulnerable to digital disruption and insurance is no exception. In fact, digital natives such as those in the Insuretech space have made the insurance industry one of the most vulnerable to disruption in 2016.
This may be an industry-wide reality, but UK insurers are aware of the challenge. According to Aviva Chief Digital Officer, Andrew Brem, “For me a fundamental change in [the insurance industry] is a shift to a retail consumer mindset. If I think of the nomenclature of financial services, even on digital, you are filling out a form. The button says ‘apply.’ When do I apply for something from Amazon? This notion of a form, of applying, of a quote or of acceptance is entirely outmoded.”
This statement points to the fact that UK insurers are staying ahead of this disruption curve, but how is that being implemented?
- 80% of UK motor insurers enable partial (get a free quote) or total online purchases, putting them at the same level as retail and travel insurance.
- More than half of motor insurance is purchased directly by consumers (for example, sales via price comparison websites.)
- Although it’s more complex than motor insurance, 24% of property insurance is purchased directly by consumers.
General Insurance companies are ahead of Health/Life insurers by virtue of their B2C focus, but both sectors of the UK insurance market are largely ahead of digital adoption relative to US insurers. Despite the generally successful transition to digital channels, UK insurers are still missing out on revenue that they’ve rightfully earned.
UK Insurers Have Earned More Revenue Than They’re Collecting
Insurers contribute nearly €30 billion to the UK GDP—but are still missing out on revenue in the form of low-hanging fruit already earned.
Your ability to embrace digital is indicative of your commitment to CX. In commerce, CX is the product of an interaction between an organization and a customer over the duration of their relationship. This interaction includes a customer’s attraction, awareness, discovery, cultivation, advocacy, purchase, and of course use of your product or service.
The effort you’ve put into acquiring a customer to get them to the point of purchase means you’ve earned their business—you just have to close and collect the revenue.
However, after following through on so many different processes—advertising, PPC/SEO, social media, web analytics, loyalty schemes, etc.—some prospects never become customers as they don’t complete their purchases. What’s happening to this revenue you’ve earned?
Resolving the issues that cause this abrupt end to the customer relationship—and unlocking your earned revenue in the process—requires a three-fold approach:
- Discover the pipeline of undisclosed opportunities in your customer journey data by capturing the entire experience and applying machine learning to uncover customer struggles.
- Monetize and quanitfy the value of these opportunities to determine exactly how much revenue is being left on the table and allow improvements to be prioritized.
- Optimize these opportunities by presenting technology teams with actionable insights into which aspects of the digital experience must be fixed – and the technical detail they need to make these improvements.
If you want to learn more about how the UserReplay customer experience analytics solution streamlines this three-fold approach to unlocking earned revenue, sign up for a free demo today and discover what this could mean to you.
John Thompson, CEO, UserReplay