By guest blogger, Mark Weishaar
 
mobile-by-age-01
 
Today’s smart, marketing-focused organizations realize the value of communicating with their customers using the channel of their customers’ preference. More and more, that preference is mobile.

It’s commonly reported that over 87% of Americans (90% of Canadians) own a cell phone, and most of them won’t leave home without it. For many, checking their mobile device is the last thing they do at night and the first thing they do in the morning. Almost 80% of smartphone owners use their device more frequently today for mobile email and texting than to actually make phone calls. Mobile marketing is dominating the media landscape, and mobile users are lapping it up.

  • 82% agree it’s a good way to learn about new products and brands;
  • 80% believe it can influence them to investigate a product or service;
  • 71% accept that it can change the way they think about a product or service; and
  • 65% report that it has the power to influence them to BUY a product or service.

Given this proliferation and mainstream acceptance of technology solutions, one would think that insurance companies and financial services organizations would be among the first to provide their customers and prospects with cutting-edge, lightning-fast applications. But one would be quite wrong. The fact is, only about one-third of marketers report having a defined strategy for mobile marketing! And the insurance industry, in particular, is lagging at the back of the pack when it comes to offering engaging mobile experiences. This sector must explore mobile websites, mobile applications and SMS text messaging campaigns to effectively respond to emerging consumer behavior.

Maximize the efficiency of your Customer Service efforts

One of the easiest and highest-ROI considerations should be your company’s website. Google reports that a good 50% of mobile users become frustrated when they encounter a site that is not mobile-friendly. It seems unnecessary to say that annoying your clients, especially those who may be experiencing an emergency, is not very smart. A mobile application is essentially a tool to make it easy for your customers to connect with you. It can be fun and useful, informative and interactive; it can be a short-cut to service. A Customer Service-specific mobile app might feature

  • Talking to a live agent
  • Dealing with an accident on the spot
  • Requesting a live call-back
  • Filing and managing a claim

Implementing these mobile options can help reduce support costs and call center overhead, reduce customer churn and even increase customer lifetime value. An app can enhance brand advocacy and promote upsells and cross-sells. What’s best, all of these benefits are entirely measurable in terms of ROI.

Building a Useful Database

The success of a mobile marketing strategy is going to depend on the power of your database. No program is complete without an Acquisition Model to cost-effectively harvest and manipulate prospect information. An advertising plan combining online, SMS and traditional channels is vital to drive traffic and promote downloads of a mobile app, with a clearly defined conversion funnel from prospect to customer.

Growing Pains specific to Mobile Payments for Insurance and Banking

Although Juniper Research reports that mobile payments are expected to reach $630 BILLION by 2014, remittances such as insurance premiums are not included. The issue does not lie with the technology of the Mobile Application, but rather with the capabilities and guidelines of mobile carriers, such as AT&T, Verizon and Sprint, among others.

Bill-to-Carrier US Obstacles

  1. Each carrier must approve each program based on their own guidelines. They demand a 2-3 week beta test, during which they review an online-hosted version of each app for flow, usability, bugs, and terms of use acceptance.Your customers choose from among many Carriers, so you need to be compliant with all of them. The degree of speed, complexity and cooperation varies from one Operator to the next; they are however consistent in requiring 20-30% of each purchase amount.
  2. Operators are strict and favor big brands; legitimacy is important given the number of bill-to-carrier scams. As a alternative, they look for a guaranteed minimum of $50,000 in monthly bill-to-carrier revenue, proof that is often first generated in Canada or Europe.
  3. US Carriers prefer micropayments to the tune of $2. They are reluctant to approve monthly fees of $15 or $20 due to the higher risk of complaints or accidental enrollment by children.

Their preference for lower price points, non-recurring fees and virtual goods over outside services can all be hurdles for monthly insurance premium billing.

In addition to carrier complexities, success can depend on the various device operating systems. Currently, only Android supports bill-to-carrier within a native application. iOS will only use its IAP API (In-app purchase) using iTunes to make a purchase.

Retention and Loyalty – in a Mobile Environment

It is possible to truly integrate mobile into your existing strategy and better measure increased retention and loyalty from your customers. It’s all about convenience and real-time communication. Give them instant fingertip access to source and share critical data:

  • Review the latest product and service offerings
  • Manage personal “MyAccount” files on the go
  • Provide 24/7 emergency access to processes and forms on a handheld device
  • Enable immediate accident claims reporting and supporting photo uploads

These are just a few of the exciting, dynamic Mobile solutions that will propel your further differentiation from the competition – with measurable results.

Yet there are many complexities surrounding the development of mobile apps and mobile websites for insurance premium payment processing and lead generation. Any such strategy requires an in-depth understanding of the various Carriers, government regulations, operating systems, user demographics and data availability. This calls for the experienced insights of seasoned experts.

Today’s technology does not allow “catch-up” time. But it’s never too late to adjust your marketing focus onto those channels that are proven to build connections with your customers. They will reward you with interest, participation and brand loyalty.

Mark Weishaar is VP, Business Development with Direct Access Marketing, based in Burlington, Ontario, Canada and Philadelphia, PA.