So, you’re spending millions on advertising, everyone knows your name and you’re seeing heavy traffic on your site. Now the question is, how do you boost your conversion rates to turn more of those visitors into customers?
The Digitally Savvy Take Center Stage
Tremendous advertising savvy has brought customers to your door. Now it’s time to take them through the purchasing process.
Since 58% of consumers state digital as their preferred method of buying insurance,[i] it’s interesting to see that insurers with leading digital strategies are also leaders in growth, with the top quarter of digital performers generating a CAGR of 6% compared to the industry average of 3.9%.[ii]
A recent analysis of the top-five P&C insurers may add insight. A savvy digital contender ranked above all others when comparing quote performance, by scoring quote initiation and completion rates over 70%, and conversion rates that topped 50% through digital channels.[iii] Agency channels saw more than a 20% conversion rate increase as agents were empowered with top digital capabilities.[iv]
It sounds like a lot of numbers, so what does it mean in plain English? Consumers are looking for a leading digital purchasing experience similar to what a top retailer like Amazon provides. Insurance all-stars employ comprehensive digital capabilities to ensure a smooth and efficient quoting process across channels. As a result, they realize as much as a 20% higher quote conversion rate compared to their nearest competitors.[v]
How Digital Improves Conversion Rates
Digital is the preferred way of buying for most consumers because it’s fast, easy and more than ever, what they’re accustomed to. However, there is more to gaining top revenues and market share than just selling insurance online. To realize high-ranking completion and conversion rates, insurers need customer-pleasing capabilities that address the following:
- I don’t understand what you’re asking: Buying insurance is confusing and consumers don’t always know the answers to many of the questions commonly found on applications, such as what type of shingles they have on their roof or what type of engine is in a new car. Smart applications with prefill capabilities do just what the name suggests, taking minimal information supplied by the customer and accessing verified third-party sources to quickly auto-fill much of the application. Optimizations like this make it both easy and fast for customers to get accurate pricing on coverage they can quickly bind, delivering completion rates that are 32 times higher than the average.[vi]
- I want to know now: If a customer comes to your site, enters the required information and is then transferred to an agent, or worse, told an agent will give them a call, your quote conversion rates will never meet the high levels of more digitally savvy competitors and the consumer will likely turn to alternative providers. Online buying is about speed and convenience, and insurers offering a streamlined application process with instant buying score big with consumers, converting more quotes than any of the other top five digital performers.
- Make it work for me: Many online quotes assume certain coverage basics to quickly return pricing, but one-size-fits all solutions aren’t what customer are seeking. Giving customers the option to tweak policies, such as deductibles and coverage limits, to meet their needs will drive higher conversion rates.
- Let me purchase now: If you want a customer to purchase after receiving a customized quote, you need to make it simple and immediate. Auto-underwriting allows customers to buy coverage by clicking a mouse or swiping a finger and gives them near-instant access to coverage.
- What if I need more than one coverage type? Many customers want to quote and purchase multiple types of coverage, like auto, home, and umbrella, and have the same expectations for speed and convenience when they do. Insurers who can provide detailed quotes for multiple types of coverage without making the customer start a new application or speak to an agent achieve a phenomenal 53% quote conversion rate.[vii] That’s 49% higher than the conversion rates of the nearest competitor.
- What about my agent? Even if more than half of consumers prefer to purchase their coverage online,[viii] nearly as many still want to talk to an agent.[ix] What they don’t appreciate is having to repeat information they’ve already provided, being transferred to a new agent for each product they desire or waiting for an agent to plug their information into multiple backend systems to get a quote. Empowering agents with the same digital superiority that insurers use to improve the D2C purchasing experience is necessary to encourage quote completion and conversion across all channels and products
A leading digital competitor in the P&C insurance industry realized industry-leading online quote completion rates of 70% for desktop users[x] and a 58% for mobile users, delivering a conversion rate that is 20 times higher than other digital providers.[xi] It’s proof that when insurers meet consumer expectations for a fast and simplified application and quoting process, they see results.
[i] Erik Sandquist. “The Increasingly Digital Insurance Customer.” Efma, Feb. 20, 2017. Web.
[ii] Tanguy Catlin, Ido Segev and Holger Wilms. “The Hallmarks of Digital Leadership in P&C Insurance.” McKinsey & Company, Aug. 2016. Web.
[iii] Noa Shavit. “Progressive Dominates the American Auto Insurance Market.” Jumpshot Tech Blog. Jumpshot, Sep. 13, 2016. Web
[iv] Progressive. The Progressive Corporation 2016 Annual Report. 2017. Web.
[v] Noa Shavit. “Progressive Dominates the American Auto Insurance Market.” Jumpshot Tech Blog. Jumpshot, Sep. 13, 2016. Web
[vi] Noa Shavit. “Progressive Dominates the American Auto Insurance Market.” Jumpshot Tech Blog. Jumpshot, Sep. 13, 2016. Web
[vii] Noa Shavit. “Progressive Dominates the American Auto Insurance Market.” Jumpshot Tech Blog. Jumpshot, Sep. 13, 2016. Web
[viii] Erik Sandquist. “The Increasingly Digital Insurance Customer.” Efma, Feb. 20, 2017. Web.
[ix] Dreischmeier, Ralf, Jean-Christophe Gard, Michael Nddam, and Alpesh Shah. A Roadmap for Winning as Insurance Goes Digital. Rep. BCG Perspectives, 27 Oct. 2014. Web. 6 June. 2016.
[x] Noa Shavit. “Progressive Dominates the American Auto Insurance Market.” Jumpshot Tech Blog. Jumpshot, Sep. 13, 2016. Web.
[xi] Noa Shavit. “Progressive Dominates the American Auto Insurance Market.” Jumpshot Tech Blog. Jumpshot, Sep. 13, 2016. Web.