Amazon's Jeff Bezos pins much of the retailing giant’s success down to the philosophy of 'starting with the customer and working backwards'. The insurance industry has taken a long time to understand this approach, but increasingly, given the opportunity that social media presents as a way of having a direct conversation with the customer and really working out what it is the customer values, we're beginning to see the fruits of what a truly customer focused approach can deliver. For insurers and brokers running insurance schemes* whether they're targeted at kennel clubs, swimming clubs, or photographers, it’s an opportunity that shouldn’t be missed. On your bike One great example is Bikmo Plus (external link). At Hiscox, we originally worked with Bikmo Plus to source replacement bikes for customers, and it was evident that as a retailer of high end bicycles, here was a business that really relates to their customers. They know their business and what their customers want. So we introduced them to a broker - Butterworth Spengler - who already had an insurance scheme for bikes. The result is a powerful customer proposition for cyclists who want to know that they are dealing with an insurance business that really understands their needs. One way that Bikmo Plus reinforces that perception is through active use of social media: they blog, use Twitter, post on Facebook... all the time sharing their cycling knowledge and reassuring the customer that they are offering ‘cycle insurance designed by cyclists for cyclists’. Four suggestions for a successful scheme If you run an insurance scheme and would like to grow it or explore ideas for setting up a new scheme, here are four areas I believe it’s critical to get right:
- Understand your target market. What does the ideal customer look like?
- Create a niche brand that appeals to that target market.
- Own the online space. Use every relevant online channel to reinforce your offering.
- Have a conversation with your customers. Share your expertise. Tell your audience what they want to hear. Talk their language.
Technology is making things possible that only a few years ago would have been prohibitive. Including feature rich content such as the use of videos on your website for example would have been too expensive for many businesses but is now far more accessible. For brokers and organisations looking to build or set up an insurance scheme, using these new tools to connect with the customer can make all the difference. *Insurance schemes are bespoke insurance offerings created by insurance brokers and insurers which focus on the specific needs of particular customer segments. For more information on how Hiscox can help whether you have an idea for a scheme or would like to grow your existing scheme, contact Darren Power [email protected]