Ideas & musings about consumer behaviour

When it comes to car insurance Irish motorists are on the move

Author: Marie Sheehan

60% are looking for a new car insurance provider

A report published by the Irish League of Credit Unions found that 6 in 10 motorists have switched insurance provider in the past 12 months.1

The obvious question to ask is “why?” Why are motorists changing insurance companies?

Of course, the easiest answer to give is the cost of car insurance. While I have no doubt this is a factor for some I don’t think it is as simple as that.

It’s not all about the money

86% of buyers will pay more for a better customer experience2

89% of consumers began doing business with a competitor following a poor customer experience3

Maybe it’s more about the customer experience?

Perhaps it’s also about how effective companies are at converting potential customers online?

Opportunity and lost opportunity

All of this movement of course represents opportunity – opportunity for motor insurers to acquire migrating customers.

However, from our latest Digital Marketing Effectiveness study of Irish motor insurance providers, we know that there is a 74% lost opportunity that insurers are failing to capitalise on.

When asked, Irish motorists gave “I have used them before” and “I trust this company” as the top two reasons they chose an insurer.

How effective are Irish motor insurance providers’ websites?

The findings of our Digital Sales Effectiveness (DSE) Q1 2014 study into Irish Motor Insurance providers market have just been published.

Organisations included in the study: 123.ie, AA, AIG, AXA, Aviva, Allianz, FBD, Liberty, No Nonsense and Zurich

DSE scoresThe average score across the industry was 52% This means that all but one provider are failing* to meet the needs of their customers online.

Where are Irish car insurance providers failing to meet the needs of the online motorist?

From our 14 years’ experience of collecting and analysing data on over 35,000 consumer interactions and over 500 companies each year, we know that a Digital Sales Effectiveness score of less than 55% means that the company is failing the customer online.

We are better than anyone else at helping companies measure, track and optimise their online and mobile sales effectiveness at a tactical and ecommerce level

Performance of Irish car insurance providers across the online customer journey

Our methodology provides actionable insights at a granular level on companies and their competitors at each stage of the online sales journey. Furthermore our programmes give companies unrivaled intelligence on their competitors’ strengths and weaknesses.

The weakest points in the online customer journey across the Irish motor insurance industry are:

  • Initial engagement – how providers build trust with motorists
  • Deciding to purchase – persuading motorists to take out their car insurance with them
  • Channel selection – convincing motorists to apply for their car insurance online

Customer journey averageOther findings from our study

  • The Irish car insurance provider that is most effective at digital sales interestingly was only recalled by a quarter of in market consumers initially
  • A number of the Irish car insurance providers are particularly poor at answering motorists questions online with one company scoring as low as 6% in this area
  • One company which scored highest in brand recall, conversely has one of the lowest scores when it comes to digital sales effectiveness which means they are not living up to the hype or the expectation of the brand

For details on all the other findings please contact us

To arrange a call back or meeting to discuss this study in more detail, and find out more about the full scope of the research as well as the actionable insights Global Reviews deliver please contact us.

To register your interest for our free webinar on this study or to receive our free white paper, please contact us.

Watch our video: Finding the missing “why?”

1. ILCU Launch Results of April 2014 ‘What’s Left’ Tracker

2. Customer Experience: Is it the Chicken or the Egg, Forbes

3. Source: RightNow Customer Experience Impact Report 2011

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