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Customer loyalty and the impact of the micro-moment



This post is part of a series sponsored by ITC (Insurance Technologies Corporation).

Digital consumerism is an unstoppable train, and in fact the global pandemic has accelerated it. Many companies worked for months working remotely. Entrepreneurs have learned that this is a rentable option in the long run. Buyers became accustomed to luxury and convenience with services that can meet them where they are. Or in the case of COVID-19, where they are stuck.

Let's talk about Amazon.

The logistics giant reported $ 75.5 billion in revenue during the first tax quarter of 2020. This may seem like an astonishing number to most people. But this number actually represents a decline in profits.

From Market Watch, "Amazon (AMZN), reported 0.85% first-quarter earnings of $ 2.5 billion, or $ 5.01

per share, down from $ 3.56 billion, or $ 7.09 Revenue increased to $ 75.5 billion from $ 59.7 billion in 2006. Analyzes conducted by FactSet had estimated $ 6.23 per share and an average revenue of $ 73.7 billion. "

Why?

Consumers have been counting on Amazon for its essentials throughout the pandemic. Products such as toilet paper, masks, paper towels and the uneven disinfectant wipes. So it's easy to believe that Amazon would make more money than ever. [19659003] Amazon CEO Jeff Bezos shifted his focus to COVID-19-related spending and looked to the future, meaning keeping his employees safe and securing orders on time.

Declining profits are often seen as negative.the quarter is actually a sign of growth. Bezos and his army of analysts understand that COVID-19 is poised to create a new level of long-term demand and usher in an increasing age of remote consumerism.

What is important to ask is why. The obvious answer is that they have created an empire that can deliver goods faster than anyone else. The less obvious answer is that they have changed the way people think about buying products.

Bring out the micro-moment.

What is a Micro-Moment?

Google coined the term in 2015 and defined micro-moments as critical touchpoints in today's consumer journey. Consumers act according to a wish or in their perspective a need. These actions are similar to one of these four needs:

  • Learning something
  • Doing something
  • Buying something
  • Looking at something

Think about these micro-moment scenarios:

Scenario 1: Want to find a movie theater near you?

  1. Open Google.
  2. Enter cinema near me.
  3. Choose from any of the theaters near your saved current location.

Scenario 2: Want to see the highlights of yesterday's baseball game?

  1. Open Google, YouTube, Twitter, Facebook, Reddit or any social media app.
  2. Enter Team A vs. Team B highlights.

Do you want to order groceries? Do you want to investigate the device you need to replace?

All these scenarios take less than ten minutes for the modern consumer. Technology has improved the customer experience and reduced our decision-making process to minutes. The expectation is set.

Here is a search scenario that you might be able to relate to on a more professional level.

Independent insurance agency near me. Would your agency appear in this search?

Customer Loyalty and the Impact of Micro-Moment

What Happened to Customer Loyalty? The simple answer: Nothing happened. Customer loyalty still exists, but it's more complicated.

An excellent product used to be worth the wait and maybe a little extra money. Excellent service and support for returning customers.

The digital marketing boom of the last two decades has created brand saturation. Building relationships is now more complicated.

It is now the task of insurance companies to satisfy consumers' individual wishes and provide an experience that makes the buying process simple.

From a JD Power study, “As consumers increasingly take control of the shopping process to find the value they desire, they find easy ways to compare carriers. Independent agents offer multiple quotes, and auto-fill in the browser allows collecting multiple quotes online a job in minutes. Elections rule the most, and the consumer holds the governments.

With that in mind, it's crucial to consider the buyer and how your agency can improve the shopping process for your customers.

Here is a simplified version of the buyer journey:

Step 1: Become aware of a product

Step 2: View the product

Step 3: Buy the product [19659003] The buyer journey is not a straight line. It is more of a layered, multivariate tree diagram.

Step one plays an extremely influential role in steps two and three. Increasing product awareness can take time, especially without an established, significant brand. Some digital marketing channels that play an important role in increasing brand and product awareness are …

  • Social Media Advertising
  • Pay-per-click advertising
  • Online reviews
  • Search Engine Optimization (SEO)
  • Email Marketing Campaigns
  • Social Media

Here are some statistics to consider if you are considering how important the list above is for your agency's marketing strategy.

  • By 2023, the number of users of social networks in the United States is expected to reach 257.4 million. The number of global users is expected to amount to almost 3.43 billion.
  • Eighty-eight percent of consumers trust online reviews as much as personal recommendations.
  • According to a study from 2019, search traffic generated 65% of the total e-commerce session. Thirty-three percent was generated through organic search and 32% was generated through paid search.

Your goal is quite simple. Create a consistent digital presence during the awareness stage so that your agency is considered and purchased when the micro-moment occurs. For more information on these topics, check out ITC's resource hub.

These digital marketing channels also help to support a good experience in the micro moment and help you to serve loyal customers.

So, how can you earn customer loyalty?

Here's why the micro torque is good. Yes, people want what they want when they want it. But for the most part, they have no clear idea of ​​WHO they want it from. They turn to their smartphones for that.

Here's another scenario.

Someone is shopping for insurance and they do not know a thing about it. Like many people, they find it a complicated subject. They are looking for someone who can guide them through the insurance trading process.

That someone is you.

Here are some tips to make sure your insurance company is prepared for the micro moment:

Focus on consumer experience

According to a global consumer survey on insurance from 2019, 66% of consumers do not care how you reach them. Consumers are more focused on getting their services done quickly and easily.

This feeling is reflected in the data. A bad experience is now a reason to change brand. Thirty-three percent of Americans would consider switching companies over just a bad customer experience.

In other words, focus on the insurance consumer experience for 2020 and beyond.

Communicate Consistently

Retention rate is a key metric that defines the performance of many agencies. (Even if you are careful about a storage frequency for blankets.) So I highly recommend an automated email platform as a way to communicate consistently with your customers. You will see improvement in your retention if you did not use this technique before.

According to a study from 2019, 95% of customers expect companies to communicate proactively, not reactively. Get started with customer service questions and notify your customers in advance.

Have the best website you can have

Get the most out of yours. We want to say that your website should be your best employee. It's true.

Technology is the focal point for excellent user experiences. Insurance is a low touch industry. This term refers to industries that only require attention each year. As the insurance trading process only occurs once a year, consumers are more likely to notice a bad experience. Therefore, they are more likely to become shoppers at renewal time.

And J.D. Power study says that customers who experience poor customer service are eight times more likely to buy new insurance. Your technology must be excellent so that your user experience is excellent. If the consumer experience of your agency is excellent, you will be more likely to convert in those micro-moments.

Find out what your agency offers easily. Make sure your customers can easily find what they need. And if something complicated can not be avoided, let your customers know and go through it.

Conclusion

The micro-moment is just beginning and consumer expectations are still growing every day.

The buying process should be relaxed, elegant and easy. The insurance agency that saves its customers time will retain these customers. Being ahead of the curve cannot be underestimated. Observe the consumer trends, so that you know what people expect from their experience of you.

With these three tips, you can put your agency into these micro-moments and thrive in the modern consumer market.


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