Consumer behaviour within
the insurance industry has changed dramatically in the past 15 years. Consumers
originally would buy their insurance via a broker who would act as an
intermediary between the customer and insurance company. The broker would scan
the market for the best deal for their customer and arrange insurance for them
through an insurance company. The broker would be paid a commission for each
customer it referred to an insurance company if they bought a policy.
Since the internet has grown
and as more retailers and companies started doing business online, an online version
of a broker was created in the form of aggregator sites. The aggregators, which
allows consumers to compare different insurance quotes online, has revolutionised
the way insurance is sold and perceived (Timeetric, 2015). Customers are now
looking for the cheapest premium with more than three quarters of motor
insurance policy holders researching insurance prices on aggregators
(datamonitor, 2015).
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(An example of an aggregator
displaying quotations for car insurance)
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As the use of brokers
decreased by consumers, esure affiliated with several of the main aggregators
such as ‘Compare The Market’, ‘Go Compare’ and ‘Confused.com’.
However,
as many of the customers acquired through this digital channel are price driven it has
meant that retention of these customers can be difficult as they are likely to
return to the aggregator sites upon renewal, looking for the cheapest price
once again. esure understands that its renewal price for customers needs to
therefore be competitive online in order to retain them and digitally they need to be leaders to win customers over companies that give incentives to buy online such as the 'Compare The Market' Meerkat and the 'Brian toy' from 'Confused.com. As well as at point
of renewal or sale, the customer needs to feel valued throughout the policy year,
giving them more reason to stay. esure identified that it needs to improve how
it engages with customers digitally throughout the year with more engaging emails and interactive SMS's to give them more
reasons to renew rather than just simply being over price.
As the internet grew more popular,
companies realised the importance of their websites, realising these were the online equivalents to a company’s shop window and are the places where customers
visit and decide within seconds whether they want to buy from that site or a
competitor. The esure website was built originally to be viewed and used on a
PC, however, as digital technology increases and devices such as smart phones and
tablets became more popular, it needed to ensure its website was accessible via
such platforms.
The number of Global mobile users
has been increasing in the millions since 2007 and has now beaten the number of
desktop users (see table below) proving that to keep customers, websites need
to be easy to use on a mobile device as well as desktops.
esure, like many other
online companies has made their website and
buying journey clear and simple for those visiting from a mobile or tablet.
Customers are more likely to leave if they are faced with small copy or unclear
instructions when viewing the esure website from a smaller screen. The mobile
quote journey by esure was therefore simplified as much as possible with larger
buttons for customers viewing by mobiles.
Overall the digital revolution has meant that customers have much more choice in where they buy, what they buy and how the research about products. This has meant the businesses need to be able to adapt quickly and find ways to engage with new and current customers. If they do not, then this new type of digital savvy customer will find another company to go who can. esure therefore has needed to keep up with its competitors digitally to ensure there is no loss of new business and that current customers renew.
Bibliography
http://www.smartinsights.com/mobile-marketing/mobile-marketing-analytics/mobile-marketing-statistics/
