قالب وردپرس درنا توس
Home / Insurance / Place of purchase Life insurance: Sales where life happens

Place of purchase Life insurance: Sales where life happens



Every moment of every day, the retail business is reviewed. Leaders and management teams for grocery stores, gas stations, home appliances with large boxes, home repairs and department stores are obsessed with merchandising. Product placement is always in flow. Endcaps change for a season or a weekend. Special screens are designed when demand is expected.

And now they are equally obsessed with their digital repository – the digital version of the physical store – which highlights new products, sales and suggests items to customers based on their behavior and commitment.

A lot of thoughts go into both the digital and the store experience – the same issues, but only treated differently. How is the flow? Can we drive the flow of our store offerings to add more impulse purchases? How can we design our check-out process to make it quick and easy? Can we have space for visual space for products at the point of purchase? Can we suggest something else that can accompany the purchases? In some cases, this results in a mini-maze just before checkout, where a random last glimpse of something by chance triggers an additional sale at the point of purchase. Do I add a guarantee? Should I get a Starbucks gift card for my neighbor who took care of watering my plants? At the point of sale ̵

1; whether in person or digitally – the dealer buys the space that is in our heads. We advertise for ourselves. We make the decision.

And the process works and creates growth opportunities for retailers who are rapidly transitioning to offering both in person and digitally, such as Walmart, to meet customer needs and expectations. Just this week, Walmart announced its second-quarter results – crushing numbers! [i] Walmart's sales of e-commerce in the United States increased by 97% and sales in the same store increased by 9.3% as customers sent packages to their homes and used street pickup. This was the biggest profit surprise in 31 years for Walmart! A company that disrupted retail 30 years ago and was at the crossroads of Amazon disruptions, but reinvents itself.

Walmart leverages its huge store base – available to almost every person in the United States – with its investments in its e-commerce platform to expand its reach, engage customers and grow its business. If you go to their platform, you will see brands that you do not see in the store — partners that sell through Walmart. And with this platform, they now want to expand by adding a membership service. This traditional retailer has invented itself to meet customer expectations and needs and create an experience – like Amazon – that creates loyalty and deepens the relationship with the customer as the place to buy and manage different aspects of their lives.

Which makes us wonder, what if life insurance companies reinvented themselves to become obsessed with the place of purchase – digitally and personally?

2020, life insurance companies, annuity companies and providers of voluntary benefits. should remind themselves that when it comes to shopping, this new retail situation can be a game changer. This is the very first step in determining the need for a flexible, ecosystem approach that fits as comfortably into any digital cash queue as it does in the advisor's office. If we can determine the points of life where purchases can be seamless, simple and almost transaction-free, we will drive growth – something that has been difficult in recent decades.

The place of purchase – where it is, where it is.

In Majesco's latest thought management report, Review of life insurance: from a transaction to a life, health, wealth and well-being customer experience we take a closer look at what drives buyers of life insurance and other related products to cross the line and do the purchase. In our analysis, we identified some indicators regarding product location and the simplest ways to construct simplified shopping experiences. By digging deeper, we looked at how we can help customers sell to themselves through new digitally activated opportunities, which can still be linked to personal commitment.

To better understand how people's life experiences relate to their potential life insurance transactions, we surveyed consumers who asked a series of questions related to health, prosperity, well-being, life insurance and buying habits. The details of the survey highlight a rapid transition, especially of Millennials and Gen Z, to wanting a lifestyle experience rather than just a transaction.

This mix of the shopping experience in life experience is the key to unlocking the point of purchase in insurance.

Trends in life insurance Ownership

Ownership of life insurance has decreased significantly over the past 50 years. In our study, the older generation segment, Gen X and Boomers, have overall lower ownership than the younger generations, Gen Z and Millennials, as shown in Figure 1. In the three categories of traditional, UL / VL and Annuity, the younger generation has The total ownership level is 35% more than the older generation, which reflects a potential upswing in the life insurance market as the younger generation matures and expands their need for insurance. Most interesting is that both generations are clearly forced to traditional insurance – life and life – compared to investment-supported products such as UL, VL and annuities by a factor of 3 to 9 times, depending on the product.

Interestingly, this strong interest in traditional products is in line with the growth of non-traditional, liquid-free, fast-release life insurance from companies such as Haven Life, Ladder Life and other insurance companies. The two are increasingly compatible.

Figure 1: Types of life insurance owned

Even more interesting and encouraging is that the younger generation believes more strongly than the older generation in the weight of life insurance, 79% versus 69% (Figure 2). The key is to meet their expectations in the risk product, customer experience and value-added services.

Figure 2: The importance of life insurance

Interestingly, 70% of the younger generation who do not [194900010] still have life insurance indicate that it is important – indicating a strong market opportunity for insurance companies such as can meet their needs, requirements and expectations. However, only half (49%) of the older generation who do not have life insurance believe it is important .

With the value and importance of life insurance determined, what will lead each of the generations to buy life insurance? Our research has shown that the younger segment has more needs for life events on the horizon that would motivate them to make a life insurance purchase. They are interested. They think it's important. So …

Why do not many of them act according to their needs at common moment of impulse?

Something is standing in the way of the insurance purchase. There is an understood need. There are relevant life events. So, something in the current product range or sales and engagement process is not in line with their expectations. A clue emerges when you compare preferences for coverage periods.

For typical term insurance, everyone still prefers monthly payments. However, coverage for a specific event or short period – on request insurance – is of higher interest to the younger generation and on a par with the other payment options.

What this indicates is the need for different options to meet different needs at any time point in time for life insurance, whether you are planning for long-term coverage for death or meeting the need for short-term insurance for an activity such as a vacation. It's about needs and placement. The younger generation is ready to buy when needed – and probably digitally.

Validating these claims, we found that the younger generation is much more involved in activities that would make them buy insurance. Almost one third of the younger generation participated in a sport or activity that could lead to injury or death compared to 8% of the older generation . Millennial and Gen Z generations participate more in extreme sports, they travel more, they shop more online. It is the generations that value experiences over property rights, which means that they most likely want to protect themselves and their experiences. This highlights new ways to capture and grow new customer relationships.

With Gen Z / Millennials who valued and showed interest in buying life insurance, where and how will they buy?

It is not surprising that members of the younger generations are open to buying life insurance from a wide range of options, as highlighted in Figure 3. Agent and insurance websites are at the top, but of the 16 options we included In our survey, 7 of them exceed 50% interest (a rating of 3 on the 5-point scale), with the rest of them within just a few tenths of a point at this level – and a majority of these are digital, point of sale focused. However, the older generation has only 3 of the 16 alternatives with 50% interest or higher.

The approval of a wider range of purchasing options highlights the need for insurers to consider how and where they interact with the younger generation and to be there with quick purchasing announcements. This is where partnerships and an ecosystem become very strategic when it comes to helping insurance companies expand their reach and presence where their customers will be.

Figure 3: Settings for different purchases of life insurance [19659031] The case for purchasing readiness

If customers are interested and willing to buy insurance from so many different sources and in so many different ways, we can Start renewing what it will take for insurers to place their products anywhere, anytime – including their own digital platform. Walmart and Amazon prove that product sales are most effective when they are multi-channel, multi-delivery type and easily accessible. They place related products, such as warranties and accessories in front of buyers at exactly the right times. Each of them is successful because they understand their market's buying patterns, customer behaviors and they adapt the buying process to suit – with a digital platform that also uses sophisticated data and analysis.

When the process is consistent with the person, retailers and insurance companies will both be able to relax and know that they are not only capturing future generations, but that Walmart and Amazon are providing the best service possible for each generation.

Innovate for the Future

Will your products one day sell on car screens? Will they sell through smart homes? Will they be as simple as a faucet on an Apple Watch? Will they be part of another purchase – like buying a home and getting a mortgage. Your best life ideas come from looking at life and lifestyles and thinking, "We can place ourselves there." It all starts with insights and the initiative to transform the insurance model from a transaction to an experience. For more insight, be sure to download, Reconsider Life Insurance: From a Transaction to a Life, Health, Wealth and Well-Being Customer Experience .


[i] Repko, Melissa, Walmart second quarter results shatter estimates, as e-commerce sales jump 97%, CNBC, August 18, 2020


Source link