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Online policies? Upselling and cross-selling in a competitive market

Online insurance, especially for third-party auto liability coverage, has grown considerably in recent years, and this growth has been accompanied by a proliferation of ghost brokers and fake websites designed to scam consumers. In such a market, the first weapon an insurance company has is its brand reputation, which must be associated with quality and reliability.

 

The competition is won by brand reputation

An online brand’s reputation is the basis of any marketing activities for upselling and cross-selling. Reputation is built from the beginning of the relationship with the customer. The first tool for brand reputation, therefore, is the simplicity of communication that must enable the navigator to understand the contents of the policy: premiums, cover, guarantees. A simplicity that finds a valuable ally in technologies (online video, e-mail marketing, interactive apps) if used appropriately.

For users shopping for insurance online, pthe rice will be important, but so will the brand’s reputation. Legitmacy will be important, but so will communication style. Brands need to be able to easily convey information about the contents of the policy, from premiums to coverage, and all aspects of the policy. This simplicy of communication finds

 

Upselling requires prior confidence

Once acquired, this is just the start of the relationship with the customer. If a brand waits until the time of renewal to communicate, this is too late. Instead, insurance companies must have regular communication with customers and through multiple channels such as social media and via email, where they can send emails that include relevant information, news and offers.

Brands can take advantage of customer intelligence to develop a personalized marketing strategy, which could include videos built by drawing on the data provided by the customer when taking out the policy.

Upselling can only be successful if a climate of real trust has been created, and this must prevail above the typical “hit and run” online transaction. In order to upsell an insurance customer on a more expensive policy they need to be correctly informed beforehand about the details and usefulness of such a policy. In addition, any up-selling can be accompanied by a different method of payment, such as installment. So much so that it is more attractive compared to a one-off payment, albeit of a lower amount.

 

Cross-selling online policies: know your policyholder

Also in cross-selling, i.e. in offering complementary insurance products to those already purchased, an already established loyalty is the starting point, and it can further become an opportunity to consolidate or strengthen it.

Based on a thorough knowledge of the insured, his habits and wishes, a personalized strategy can be used to anticipate an implicit and unexpressed need. It can incorporate recent events, such as the purchase of a new vehicle to the arrival of a new family member, all news whose sharing can only derive from a close bond between the company and should be used from the perspective of customer experience.

The typical case could be that of someone who has taken out a third-party liability policy, but has not yet stipulated protection for personal assets or for damage caused to third parties. In the course of the relationship, the frequent contacts solicited by the company may pique the interest of customers, making them aware of the importance of these forms of protection, in the interest of keeping the family safe, as well as for discounts or special offers for new services or products.

The competition for online insurance is increasingly competitive when it comes to pricing, but also on the reliability and ability of companies to lead policyholders to choose the policy that’s best for them in an increasingly conscious way. And this has a recognized value; also economic.

 

The challenge facing insurance companies in the age of Insurance 4.0 is the need to help policyholders understand the value—tangible and intangible—of the services they provide. Learn how to create a customer experience that is able to provide an emotional connection with the brand/business where the customer is an integral part of the story. Download the eBook:

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