Comms really matter and can really affect your renewal ratio. That means spending more cash on marketing and ads to win new customers. So yep, it makes sense to streamline and aim high when it comes to insurance communications. Here’s a new report FYI;
Smart Communications, a leading technology company focused on helping businesses engage in more meaningful customer conversations, released its 2024 “State of Customer Conversations” research reports today, revealing how consumers feel about Generative AI (GenAI) in customer communications. The report also analyses the link between personalised, clear communications and customer experience, trust, and loyalty, highlighting how consumers have less patience than in past years when their expectations aren’t met.
Smart Communications’ research, which surveyed 2000 consumers worldwide regarding their opinions on customer communications from financial services, insurance, and healthcare companies, shows that most consumers want businesses to employ human oversight and establish guardrails for GenAI use. Over threequarters (77%) of consumers feel it’s important for companies to explicitly call out when GenAI is used in their communications, and four in five (81%) say that a human should constantly be checking content that GenAI models suggest.
Consumers also have doubts and concerns about GenAI in customer communications. Two-thirds say they have ethical (63%) and security concerns (66%) about the use of GenAI in customer communications, while fewer than half (47%) agree that GenAI has the potential to improve the communications they are receiving.
“The reality is that while customers have concerns about GenAI in customer communications, there is significant value in using it to enhance operational efficiency and effectiveness,” said Leigh Segall, CEO of Smart Communications. “It’s more important than ever to choose a CCM solution provider that safeguards these critical interactions and guides companies in the proper, high-value use of GenAI to drive superior
customer engagement. Our Benchmark research reinforces our dedication to staying attuned to everevolving customer preferences and ensuring our solutions equip our customers for the future.”
Consumers are tired of complex communications
Beyond GenAI, The State of Customer Conversations report found that the risk of losing customers through poor communications and complex form processes is higher than ever. Compared to 2023, insurance customers are 29% more likely to switch from a company if their communications did not meet expectations (51% in 2023 vs. 66% in 2024).
The report also found that good customer communication can be a business driver, as insurance customers are likely to make a recommendation if the communications, they receive exceed their expectations. Overall, over three-quarters of respondents (77%) are likely to give a recommendation, underscoring how excellent communication has the ability to retain customers and drive the referral business.
Clear, accurate, and timely: consumers make their communications preferences known
The State of Customer Conversations asked what consumers value in the communications they receive from their institutions. Nearly three quarters of respondents said that customer communications need to be straightforward and easy to understand, while over half (55%) valued accuracy and over a third (39%) valued timeliness.
Smart Communications’ research shows the rising stakes of CCM for organisations, and the importance of delivering best-in-class customer communications. Kaspar Roos, founder and CEO of Aspire CCS confirms that “the CCM market is at an inflection point, driven by a changing demographic makeup of the customer base and an increasing focus on digital channels for customer engagement. While many CX leaders have
been espousing the value of AI in meeting these new demands, there is a clear need to be open, honest and respectful of consumer attitudes towards this ground-breaking new technology.”
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