Insurers: In the digital age, effective customer communication can be even more profitable than before
Relevant, personalised communication with existing customers can be highly profitable for insurance companies.
This is consistently borne out in Riverside’s experience with some of the largest insurers around the globe. Our communication programmes typically result in profitable additional policy sales to at least 10% of all the customers included PLUS lapse rate reductions of 12%-30% across all existing policies held.
We also know, from our own research and other sources, that customers positively welcome and appreciate communications from their insurance companies – provided those communications are effectively personalised and relevant.
Of course, relevance is driven by the skilled and effective use of the available customer data. And constant digital developments, in technology, channels and applications, are rapidly improving the quality and quantity of the customer data available to us.
This includes powerful new “real-time” insight from digital interactions and devices (such as telematics and fitness trackers), enabling us to communicate the right message through the right channel at exactly the best time.
As a result, we’re convinced that good customer communication in the future can become even more effective and profitable for the insurance industry.
So much so, in fact, that we’ve produced a new guide on the opportunities for insurance companies to maximise the value of their existing customer bases in the digital age. Please see below.