Giving Customers Confidence When Sharing Their Data

Posted on

August 23rd, 2022

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external software solutionsPersonalization is a critical part of delivering a high-quality customer experience in the insurance industry. However, tailored experiences require customers to share their data with their insurance provider, something many may hesitate to do. Insurance providers need to understand the four primary attitudes about sharing data before they can take steps to convince customers to give out personal information.

  1. Unaware access granters. These customers don’t fully understand how companies use their data. They often click accept without reading the terms, and many don’t realize what they agreed to share. They may have apps that have access to their photos, their apps, or location without realizing how much they’re sharing. They often have strong and harsh reactions when they discover how much data they unknowingly provided.
  2. Begrudging acceptance. A significant portion of customers know how much access they’re granting when they accept terms of service, cookies, and so on, but they are not happy about it. They consider it the cost of doing business or a necessity to receive the services they require. Pushing these customers to share more can backfire quickly, as they are already on the fence about it.
  3. Cautious and wary. Customers who seem overly cautious when companies ask them to share data likely had negative experiences or had their trust betrayed in the past. They often require evidence as to why the company wants their data, how the company will use their data, and how the company will protect their private information. Making this information difficult to locate or understand will immediately set these customers on their guard or send them looking for a more transparent provider.
  4. Incognito anonymity. These individuals do not want companies to know more information about them than is absolutely necessary. Even then, that information is often misleading. They view data gathering as an unnecessary hassle. They employ several tactics to protect their data. Examples include browsing online while in incognito mode on Google Chrome, using P.O. boxes for package deliveries to maximize privacy, or setting up a second email account to capture all the spam emails they assume will follow. Convincing this group to share data requires careful trust building, pristine transparency, and a friction-free customer experience.

Identifying which group customers fall into can be challenging early in the data gathering process. Thankfully, insurance providers can avoid major missteps with all customers by following a few guidelines. To start, explicitly explain what data they collect, how they use it, and how it benefits the customer. Make the information easy to find and use easy-to-understand language. Avoid asking customers for a lot of information too quickly, acknowledge their concerns about the sensitive nature of their data, and explain the security in place to protect their privacy.

Customer service in the insurance industry is often high stakes. Many customers only contact their insurance provider following a loss and will look for a new provider after a single negative experience. Text and chat services give customs the immediate access they need during stressful times. Agents also have an opportunity to establish a rapport and build the trust many customers require before they’ll share their data. Contact Actec to learn more about implementing text and chat services.