Direct insurer AA Insurance delivers on digital

Direct insurer AA Insurance delivers on digital | Insurance Business

Direct insurer AA Insurance delivers on digital
AA Insurance has bucked the trend and stood out as a top performing brand in digital experience in a sector which is lagging overall in digital engagement, according to new research by software company SAP.

The stand out performance for the direct insurer meant the knock-on effects for them were better too, the report found, with the findings showing a strong correlation between the digital experience and business outcomes including customer loyalty, Net Promoter Score and consumers’ willingness to share private information.

Digital experience was defined as how a brand digitally interacts with its customers during the discovery, transaction, delivery and support of a product or service.

The report gleaned its results from 2,500 consumers who rated 6,500 digital interactions against 14 digital-experience attributes, with consumers rating security, availability and simplicity the most important.

AA Insurance was recognised from among 38 of New Zealand’s largest and best-known brands across eight industries, including banking, media, retail and telecommunications. It scored third overall for delivering a digital experience its customers wanted, and was also ranked number one over other insurers.

Justine Burn, head of distribution and business systems at AA Insurance, said the research findings validated the company’s focus on creating a culture of digital connectedness to ensure an experience that was focused on its customers.

“Digital isn’t just a technology or marketing responsibility; it’s the CEO and executive team’s role to ensure a focus on a digital culture through the entire company,” Burn said.

“This means that each area of the business is looking at how digital initiatives can add value to our customers’ experience.

“This is one way in which we’re able to continuously exceed our customers’ expectations.”

She pointed to the introduction of Live Chat, personal connection for customer queries, media leadership and education regarding digital asset safety and security, and online magazine Living Room as being initiatives that had inspired and educated audiences and given the company an edge on its rivals.

The insurance sector as a whole came second only to the banking sector in its digital experience delivery, achieving a score of 6% and scoring positively in the same nine attributes.

However, its digital engagement was one of the lowest, with only 39% of consumers interacting with their insurance providers via digital channels, SAP said in its report.

“Like banks, insurance providers have responded to tech-savvy customers by mastering the basics of the digital experience in creating functional services that are integrated, always available and personalised,” the report said.

“The next phase of deepening the customer relationship is harnessing increasing volumes of customer data to provide exciting and unique digital experiences that go beyond the current transactional offerings.”

Customers who were delighted with their digital experience were over four and a half times more likely to remain loyal to a brand than those who are unsatisfied, the study found.

The Net Promoter Score for this segment was an impressive 69%.

But business outcomes took a dramatic turn among New Zealanders who were unsatisfied with the digital experience.

The research found just 17% of consumers that were unsatisfied with the digital experience would remain loyal, while the NPS score for this segment was a staggering -54%.

The link between the digital experience and business outcomes was also apparent in the report’s examination of New Zealanders’ data privacy and personalisation preferences.

Analysis showed Kiwis who were delighted with the digital experience were more willing to share private data than those who were unsatisfied.

The results varied across different types of data:
  • 40% of delighted consumers would disclose their buying preferences
  • 28% their social media usage
  • 25% their health records
  • 21% their web browsing history
These figures fell among unsatisfied consumers: 13%, 8%, 4% and 4% respectively.

Graeme Riley, managing director, SAP New Zealand said the findings demonstrated the strong connection between the digital experience and business outcomes in New Zealand.

“The vast differences between consumer loyalty, advocacy, and willingness to share personal information highlights the urgency with which the country’s brands must prioritise improving the digital experience they deliver for their customers, and demonstrates the rewards available to those that do.”

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