# Why the insurance industry must tailor communications strategies Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-03-15 Category: INSURANCE Category URL: https://financedigest.com/category/insurance Meta Title: Enhancing Customer Loyalty in Insurance with Tailored Meta Description: Discover why insurers must move beyond batch campaigns to engage overwhelmed prospects. Learn how AI can improve personalised communication and boost sales. Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/why-the-insurance-industry-must-tailor-communications-strategieshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/dsc1944-2210-1736844082905-compressed.jpg) _Sam Madden, Director at_ _Wiraya_ _, describes why insurance companies must move beyond batch and blast campaigns to entice bombarded prospects._ Insurers know they need to create tailored, relevant messaging that works across a large customer base. In an ideal world, every insurer would speak personally to each customer and provide the best possible service. But with hundreds of thousands of customers, this just isn’t possible. In a [recent study](http://go.wiraya.com/bombardedconsumer), Wiraya discovered that 86% of customers who left their insurance, energy, mobile or banking provider said they would have been more content with the service if had they been contacted in the way that they preferred, in a timely manner (20%). Added to this, nearly one in five (17%) complained that they _never_ receive relevant information. With relevant and timely communication having the biggest impact on loyalty, [insurers need to find a way to deliver in these areas that isn’t expensive and time consuming](https://www.financedigest.com/whats-driving-consumer-opinion-in-the-insurance-sector.html "What’s driving consumer opinion in the Insurance Sector?"). **Many hands make light work** It is clear that traditional mass communication is no longer working. With [insurers](https://www.financedigest.com/different-countries-different-insurance-cultures-how-insurers-can-adapt-their-products.html "insurers") using email, text and social media more than ever before to get heard in a noisy market, consumers are switching off unless the message is highly personalised to them individually. [Artificial intelligence](https://www.financedigest.com/how-artificial-intelligence-is-simplifying-sanctions-screening-for-insurers.html "How Artificial Intelligence is Simplifying Sanctions Screening for Insurers") (AI) is pickup up pace as the chief solution to this growing gap between expectations and business capability. Combining AI with customer data means you can create intelligent [service oriented](https://www.financedigest.com/the-elder-care-services-market-to-witness-innovation-oriented-sustenance.html "The Elder Care Services Market to witness innovation-oriented sustenance") communications, that are automatically adapted to the customer’s behaviour in real-time. The communication is done in a way that suits customers and it’s an engaging, useful interaction. The latest [technological advancements](https://www.financedigest.com/the-diabetic-socks-market-to-prove-its-servility-to-technological-advancements.html "The Diabetic Socks Market To Prove Its Servility To Technological Advancements") in this area mean that it is now possible to retain a human aspect and be just as intelligent as a customer dialogue. For brokers, this can only result in greater sales and help build trust. **Choose the right channel** Whilst AI can help your marketing be more proactive and tailored, it is crucial that you remain [intelligent in your message](https://www.financedigest.com/artificial-intelligence-ai-to-catalyze-the-secure-messaging-in-healthcare-market.html "Artificial Intelligence (AI) to catalyze the Secure Messaging In Healthcare Market") and approach. A great example is a Swedish insurance company who we worked with called [If](https://www.wiraya.com/en/success-stories/if/). If wanted to get more customers to renew their insurance, yet didn’t want to bombard the consumer with traditional mass communication. By migrating to digital communication using an [Artificial Intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "Artificial Intelligence") (AI) based solution, and picking a smart combination of channels including SMS, pre-recorded phone calls and postal mailings, amongst others, the business enabled customers to easily end or renew their contracts from the convenience of their mobile phones, and significantly reduced churn. **Message** The idea of being a help rather than a burden to your consumer is a founding principle of AI. It offers the capability to be more far more relevant and proactive, but crucially, the messaging has to come from its human counterpart. This is where brain power must be focused. It’s important to review the language of each message and avoid a sales focused approach if possible. Try not to _ask_ your customers for things too frequently, rather offer _them_ a service and let them know how this will make their lives easier. Start by looking into whether a particular service for a customer suits them and if not, then enable them to easily switch. Do this _before_ they are approached by another provider or before they realise it’s not for them, which inevitably leads them switching provider. **The first 100 days** This time is incredibly important in building trust. From day one, customers should be receiving a personal dialogue that [sets the tone](https://www.financedigest.com/markets-slammed-with-noise-investors-trust-tone-to-set-the-record-straight.html "Markets Slammed With Noise, Investors Trust Tone to Set the Record Straight") for the brand experience. Efficiency and economy can be driven by executing pre-recorded personalised messages calls over phone and email. These messages can be sent in real time and connect the customer to the [human](https://www.financedigest.com/customized-innovation-to-drive-the-human-microbiome-market.html "Customized innovation to drive the Human Microbiome Market") customer support team at a time of their choosing. If you notice that your customer doesn’t have the best subscription suited to their behaviour, make sure they are offered the right service and enable them to switch, before they take the initiative to [end the subscription or get poached by the competition](https://www.financedigest.com/industrial-catalytic-converters-market-competitive-growth-strategies-based-on-type-applications-end-user-and-region.html "Industrial Catalytic Converters Market Competitive Growth Strategies Based on Type, Applications, End User and Region"). This proactive approach is [essential and much easier and cheaper than losing a customer and trying to get them back](https://www.financedigest.com/security-backed-mortgages-essential-tips-and-guidance.html "Security-Backed Mortgages – Essential Tips and Guidance") again. Customer acquisition is far more costly, and time consuming than customer retention, in fact 5 times as much, yet few insurers fully recognise this, and deploy resources appropriately The customer appreciates a pro-active service, rather than a reactive and impersonal approach. **Less is more** Businesses need to put themselves in their customer’s position. It’s important not to bombard your customers with messages, delivered at the wrong time or on the wrong channels. Moreover, less is more, deliver less communication yet deliver higher results with a high quality approach. Insurers that prioritize understanding their existing customers and gaining their trust first, not selling, will create a positive customer experience that can reduce customer churn. AI is just one of many tools [insurers can bring into the fold to reach customers in a relevant and timely way](https://www.financedigest.com/predictive-analytics-a-new-way-of-insuring-success.html "Predictive analytics: a new way of insuring success"), without breaking the bank. As ever ensuring your customers keep renewing with you is key, yet this challenge is ever increasing. Create a compelling message that speaks to your customer’s emotions, deliver it at mass [scale yet with a human](https://www.financedigest.com/increase-in-sales-of-human-insulin-market-to-scale-revenue-growth-in-the-global-market.html "Increase in Sales of Human Insulin Market to Scale Revenue Growth in the Global Market") and personal touch. The time to change is now. [For full access to the bombarded consumer study please click here.](http://go.wiraya.com/bombardedconsumer) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---