UK insurers struggle with digital and social customer care (via facebook or twitter) with only 48% of the basic online questions answered satisfactorily.
Research, carried out by Eptica (@EpticaUK) Multichannel Customer Service Study, found that the performance of insurers is declining with the number of questions answered dropping by 2% from the 50% of the previous year. However, they successfully responded to 30% of emails.
UK insurers are facing challenges with the rise of internet and price comparison sites. Customer loyalty is now at an all-time low and the claim costs and regulation are increasing. Many insurers are struggling to adjust with the new multichannel, customer-centric, low margin world.
The key to increase efficient is moving to cheaper channels. However, there are still issues with providing timely responses that answer customers’ questions. 80% of insurers provide email contact details, but only 60% respond to messages. Moreover, only 30% replies with relevant answers.
According to Dee Roche, the insurance industry is at a critical stage and the key in succeeding is providing a superior customer experience across multiple channels such as social media. Study found that 50% of insurers provide Twitter links while 30% have Facebook pages, which is 10% higher than 2011. Overall 70% of the 100 companies have Twitter links and 64% have Facebook pages.
- 48% of the basic online questions were answered by UK insurers satisfactorily, dropping 2% from 50% of the previous year
- Only 30% of UK insurers successfully responded to emails
- 80% of insurers provide email contact details; 60% respond to messages; 30% reply with relevant answers
- In terms of response time, insurers take 30hrs 6min to answer emails, 2x longer than the previous research
- In terms of performance, one insurer took over 2 days to answer emails although another responded in an hour and 18min, delivering a greater advantage
- In terms of online customer service, 2 of the highest insurers answer 7out of 10 questions, while the lowest score was 2.
- 80% of customers research insurers online
- Overall performance of UK insurers has worsened over the past 12 months
- 50% of insurers provide Twitter links and 30% have Facebook pages, which is 20% higher than 2011
- Overall, 70% of the 100 companies have Twitter links and 64% have Facebook pages
Dee Roche, VP, Global Marketing, Eptica: “The insurance industry is at a critical juncture, faced by diminishing margins, rising costs and vanishing customer loyalty. Efficiently providing a superior customer experience across multiple channels is at the heart of succeeding in such a difficult market.”
Covered by my Visible Banking Team
How do you think insurers should tackle this problem of customer service via social media channels? Should they fix their more ‘traditional’ digital customer contact channels first? Would you use facebook or twitter first to reach out to your insurer in case of emergency or during the claiming process?