September 13, 2022
Effective communication fosters solid relationships and ensures customers fully understand your products and processes – naturally, it is a vital part for all players in the insurance industry.
However, only a handful of carriers take this seriously by employing effective communication strategies with their clients.
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Successful insurance companies employ many tactics to communicate with their clients: face-to-face conversations, text messages, telephone talks, letters, and social media interactions. Knowing the right time for using different communication approaches can build a stronger bond with your client.
1. Adopt the right tone of communication
Establishing the right communication tone is a challenge all companies face. Worth noting, customers have different preferences, which you must address when promoting products to them. Each customer’s needs may be different and are subject to change.
Generally, these things might communicate better to someone looking for an insurance company.
- The quality of the insurance company’s site: Some insurance companies have a calculator or simulator on their site's home page that can help customers do simple insurance calculations like travel insurance, homeowner’s insurance, and motor’s third-party liability insurance.
- Payment reminders: Just like bank customers get regular updates for CreditNinja payday options and payment reminders, some insurance companies use bulk SMS to send alerts to their customers to avoid payment delays that could lead to policy termination. It is possible for customers to forget to make their insurance payments amid their busy life, and they may appreciate a reminder.
- Organization and data: Proper organization and effective data-gathering tools can help you know your customer better and tailor your company’s products to the customer’s needs. Duplicity of data can be annoying for the customer and frustrating for the insurer.
Insurance products are made for the big market, so insurers must target both young and old consumers when developing products.
Whether they are a 60-year-old retiree or a 20-year-old Generation Z member, you must design different communication tones to address their different needs. Remember, Gen Zers are the future insurance customers, and most don't speak the same way as the older groups. This means you may have to communicate some technical insurance terms in easy-to-understand language. Frequent contact with your target market helps you understand what tone of communication works best to meet your consumers’ needs.
2. Use relevant media depending on the target audience
Aside from the tone of communication in insurance, consistency in media selection is critical.
Previously, insurers communicated with their clients through phone and paper. But with the powerful tools today such as the internet and email, communication is at a racing pace. Social media is another powerful tool brands use to communicate and promote products and services to their target market.
Platforms such as Twitch, LinkedIn, Pinterest, Discord, TikTok, Facebook, Instagram, WhatsApp, and Twitter are capturing a broader audience – and each has its own set of rules that you must follow.
For older generations, the communication strategy may involve using brochures, television and radio advertisements, print media, and billboards to promote products. You may also contact them via telephone, email, and text messages.
For the younger generations, social media channels are the most effective platforms for reaching out and promoting your brand message. New players find success in social media because they can address a wide population to narrow down into niches, particularly younger generations.
3. Simplify to help consumers understand your messaging
Insurance can be complicated, and customers often complain about the fine print of policies with complex jargon and many exclusions.
The regulatory aspect of insurance and certain technicalities come into play communicating with your target market. To adopt the appropriate communication tone, you must eliminate jargon insurance terms by using simple words while adhering to the regulatory framework.
Above all, simplification is a marketing strategy that allows for successful communication. Any communication strategy in the insurance sector must consider certain essential client characteristics and products.
4. Have a reliable customer support system
There is no argument about it! All insurance companies have a customer service unit that answers client questions regarding claims, contract subscriptions, and more. Despite this, clarity and transparency of the support system are critical.
Along with a customer support system, you must have a feedback mechanism to address customers' issues promptly.
Some of the most successful insurance companies apply the following customer experience tactics:
- Sending payment reminders ensures clients don't fall behind on their premium payments. The carriers invest in bulk SMS services to continuously update customers on how much they need to pay and bill due dates.
- Informing customers about offers so they can decide whether to add more to their existing basket of products. Such companies use bulk and social media messaging to reach customers.
- Updating their physical location and address through Google Maps and SMS so clients know where and how to contact them, especially when filing claims.
Insurance companies may not enjoy the “wow effect” when promoting products to prospective clients. However, effective communication means having the customer's needs at heart.
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Aubrey Moore is a freelance writer and home renovation enthusiast living in New York City. She keeps up to date with the newest trends and passes this knowledge on to her audience. When Aubrey isn't researching and writing, she is out playing volleyball with her friends.
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