The Blossoming Role of Mobile Messaging in the Insurance Industry

Mobile Messaging in the Insurance Industry

With so many devices, technologies, and forms of communication in the world, you would think getting in touch with clients and prospective clients would be easy. Unfortunately, we’ve experienced the reverse effect. The fragmented nature of communication means it’s never been harder. That’s why so many insurance companies and their agents are turning towards mobile messaging as a solution for increasing customer relations and maximizing efficiency.

The Value of Mobile Messaging

You don’t need anyone to explain the pervasiveness of SMS. You’re more than likely familiar with it in your own personal life. After all, 97 percent of smartphone owners send and receive text messages on a regular basis. However, if you’re not currently leveraging SMS as a business resources, then you may be unaware of the value it offers small brands and large organizations alike.

Here are a few statistics and data points, as curated by the marketing agency Jacobs & Clevenger:

  • Half of consumers make direct purchases after receiving a branded SMS, discount coupon, or QR code. This demonstrates that SMS has a direct impact on revenue-producing transactions.
  • The average SMS campaign is seven-times more effective than an email campaign.
  • Nine out of ten mobile device users who enroll in SMS loyalty clubs feel like they benefit from being a part of the program.
  • Only 10 percent of SMS messages received by users are considered spam, which is a significantly lower rate than that of email and direct mail.

There are hundreds of other statistics just like this….but you get the picture. SMS isn’t just a valuable tool in your personal life – it has tremendous value in the business world. Thousands of other companies are currently using this technology with impressive results.

5 Ways the Insurance Industry is Using Mobile Messaging

From healthcare to hospitality and every industry in between, mobile messaging is being utilized with rather impressive results. Recently, insurance companies have hopped on board and the returns have been incredibly healthy.

Here are some of the ways SMS and MMS are currently being used in the industry:

1. MMS to Streamline the Claims Process

One of the coolest uses for mobile messaging involves MMS picture messaging and insurance claims. Whether it’s flood damage, an auto collision, or anything else that requires a claim to be filed for damage, clients now have the ability to send pictures directly to their agents right after the situation occurs.

The benefit of being able to send picture messages right away is that it’s extremely reliable and can be easily documented. For example, let’s say an agent isn’t able to meet a client or send out an adjustor immediately after a car accident occurs. The insured driver can send a picture message. This picture can then be used as evidence in legal proceedings should something go wrong with the case.

2. Bill Reminders and Text-to-Pay

Some insurance companies are using SMS to send clients bill reminders and invoices. This may even allow companies to go paperless. Other companies are instigating text-to-pay features that make it more convenient than ever for clients to make payments.

While plenty of insurance companies have allowed clients to pay through apps in the past, the truth is that not all clients have smartphones to access these apps.  “Our research shows that about 55% of our customers have smartphones, and they can pay through our app — but this gives an avenue for the other 45% to pay through mobile,” says Brian Hanrahan, chief actuary for an insurance company.

 3. Promotional Offers

SMS is frequently used as a promotional tool for reaching out to prospective clients and engaging existing ones. It’s also used to cross promote additional products to clients.

For example, an insurance company that’s currently insuring a family for their car and home may have a cost effective car-home-boat policy that the family would be interested in learning more about. A simple text letting this client know what their new rate would be may be an effective way of engaging them.

SMS can also be used to send out incentives. If a customer has been with a company for a while, the agent may send out an incentive that allows the customer to extend their service at a discounted rate. Little things like these can make a big difference.

4. Text for Quote Options

SMS is often used in conjunction with other forms of advertising and marketing. For example, if you’re running a PPC ad online, you could say something like, “Text QUOTE to 55654 to get an instant car insurance quote.” You can then have an automated system on the back end that asks the customer a few questions and spits out a soft quote.

A feature like this may not see a ton of use, but lots of value can be extracted from it on the few occasions it is used. When someone texts for a quote, not only do you get their contact information, but you also know they’re a qualified and interested prospect. This gives you some leverage.

5. Feedback and Surveys

Finally, we’re seeing a lot of insurance companies use SMS to facilitate feedback and surveys. After a client opts-in to your SMS list, you can send out an occasional message that asks them to rate your service. Using this information, you can tailor your approach moving forward. It’s small insights like these that allow you to grow the reputation of your brand.

Contact OpenMarket to Learn More

At OpenMarket, we are one of the premier providers of SMS and MMS messaging services. Our mobile solutions are used by some of the largest enterprises in the world and are designed to help clients streamline productivity, enhance customer service, strengthen marketing, and modernize the sales process.

If you’re interested in learning more about our services and how they can help you grow your brand and better engage customers, then please contact us today. We would love to speak with you more about how OpenMarket specifically meets your company-specific needs and demands.