Purchasing insurance can be a complex process. Customer fatigue from purchasing an intricate product is a very real problem. Adding friction through inflexible and hard-to-understand payment options can sometimes be the final straw. When selling anything, let alone insurance, to the modern consumer, customer satisfaction, convenience and speed are absolutely essential. With premiums increasing and the current cost-of-living crisis, the demand for simple, flexible payment options has never been more important. Let’s explore the options.
How improving the customer experience means better conversion rates
In the digital era, where convenience and speed reign supreme, customers expect seamless experiences during their insurance purchase journey. They also expect choice. So multiple payment options play a significant role.
Customers may prefer to pay online, by direct debit or a debit or credit card. Whatever their preference, it’s crucial to provide as many payment options as you can.
At Simfuni we look to integrate with any platform to provide the choices customers are demanding, combined with a seamless payment experience.
Bill shock and how to mitigate it
Whether it’s EQC levies, crime on the rise or multiple weather events, insurance premiums are increasing. Even if your customers know this, the arrival of a steep bill can be hard to swallow.
The recent Consumer NZ Insurance Satisfaction Survey identified that 17% of respondents had not renewed their contents policy due to premium cost. Clients need appropriate cover and presenting payment instalment options can ensure that clients get the cover they need and the ability to spread the cost of large payments.
Customers really appreciate (and have come to expect) the flexibility of paying over time. After all, we all know going to the gym is important but how many of us pay for an annual membership all at once?
The Simfuni solution presents instalment options with every customer premium, giving customers the choice and a positive experience with their insurance provider.
Presenting multiple payment options becomes vital as premiums increase. Customers who may have initially opted for an annual lump-sum payment might now find it challenging to manage. By offering flexibility with fortnightly and monthly instalments, brokers can alleviate the financial burden, remove an awkward conversation and, dare we say it, even make buying insurance more enjoyable!
Multiple options get more customers over the line
According to data from the Baymard Institute, approximately 17% of clients walk away when a checkout process is too long or complicated. A further 9 % ‘abandon cart’ when there are not enough payment methods.
People have unique preferences when it comes to managing their finances and making payments, so providing them with the familiar simply makes life easier.
The pandemic effect: How covid changed the way we pay for things
The pandemic gave rise to the largest and most dramatic shift towards digital payments ever. A recent PWC report highlighted the change in customer behaviour with digital payment volume and forecasted this to grow by 109% into 2025. By offering a variety of payment methods, brokers can meet the needs of the modern consumer - ensuring that every potential policyholder can pay quickly in a way familiar to them.
This flexibility and experience build a positive brand image and showcases a customer-centric approach that resonates with a broad range of individuals.
Conclusion
In a world where consumers crave convenience and value the power of choice, offering multiple payment options is a strategic move for insurance sellers.
By providing customers with flexibility and accommodating premium increases, brokers can enhance customer satisfaction, build trust and foster lasting relationships. Remember, a satisfied customer is more likely to become a long-term client and advocate for your services. So let's embrace the power of choice and make insurance buying a seamless experience by offering a range of payment options that cater for every preference and financial situation.
References:
https://baymard.com/lists/cart-abandonment-rate
