Delilah: Hi, I’m Delilah. How can I help you?
You: Well, I have a mixed breed dog and my current insurance is saying I could lose my homeowners policy because of him. This seems very unfair and prejudiced towards certain breeds that are actually very docile, but are misunderstood.
Delilah: No problem. I see you’ve done business with us before and have all your information right here. I just need to ask a few questions and we can get you squared away in no time.
You: Wow, that is fantastic customer service! I’m so relieved. Thanks!
Delilah captured your information and signed you up for a better and less costly homeowner’s policy in less than an hour. You might not have realized that you weren’t talking to a person. Delilah is an AI-powered chatbot; she reacts and responds as a person would, providing a humanoid personalized customer experience (CX). The site Risk and Insurance states that a survey by SnatchBot of 6,000 consumers found that more than 80 percent of users were satisfied with a chatbot experience.
The value of chatbots lies in their ability to analyze historical data while helping a customer, providing a faster, more personalized response. They are particularly useful in an industry that involves repetitive questions, such as the insurance industry.
Here are five ways chatbots are driving new customer engagement standards in the insurance industry:
- They are available 24/7. And you know where to find them – at your fingertips. Accidents, thefts, and emergencies that come out-of-the-blue don’t stick to business hours. These things happen at night, on holidays, in fact, all the time, so the ability to file a claim immediately is a great enhancement to the customer experience. Some ‘bots can even give repair estimates and recommend a place based on a customer’s personal history.
- They make buying insurance more appealing. Let’s face it, no one actually wants to go insurance-shopping. Until the rise of chatbots, it was a chore involving confusing paperwork and boring legal-type language, with blanket estimates for policies based on a broad demographic. Chatbots can explain personalized products to customers in simple terms. Now, customers can log on, and answer some conversational questions which the chatbot uses to auto-populate an online form. It is like having a personal shopper run and get clothes for you to try on, saving you the time-consuming research and leg work.
- They offer personalized service, and they remember who you are. Once your information is in the system, any chatbot can find you and bring up legacy data. This is a vast improvement over different agents searching for a physical file. If you have to file more than one claim, you don’t have to repeat your history to anyone; the chatbot already knows.
- They can make useful recommendations. Chatbots are based on algorithms which are becoming increasingly smart and sophisticated. Based on stored data and your history, chatbots can offer deals you might not otherwise know about, providing another layer of customer support. They can inform you of offers or bundles that could reduce costs, and also alert you to discounts on premiums.
- They are fun and not annoying. Seriously, chatbots are designed to be appealing and helpful. They communicate through instant message (IM), or messaging platforms, which can be less invasive and more efficient than email or snail mail, the latter of which generally looks like garbage and goes unread. And chatbots don’t need an app.