Cost is typically the most significant concern for insurers across all sectors. Because consumers aren’t purchasing a physical product or immediate service, insurers have always faced the challenge of balancing price with purchase intent.
This is especially true for optional insurance products, such as mobile device insurance. If the cost is too high, consumers will just take their chances without coverage. Price your offerings too low, though, and you won’t have a viable business model. It’s a fine line to walk.
However, competitive pricing isn’t enough to drive mobile device insurance adoption. More than anything, this is becoming a customer experience and expectation problem that insurance providers must solve.
The Need for Customizable Insurance
There’s no such thing as “one size fits all” mobile device insurance anymore. Not if you want to meet the needs and expectations of consumers, that is.
Today’s shoppers have such high expectations for businesses in all industries. They expect to be able to customize offerings to fit their needs. When selecting a service plan for their mobile device, they are able to choose a plan based on criteria such as their expected data usage, family plans and whether they need international service.
These customer experience expectations are only becoming more demanding. To keep pace, mobile device insurance providers should make the transition from “one size fits all” to customizable services – specific to an individual consumer’s device and coverage needs.
For example, what if you could offer short-term add-ons for smartphone owners? Maybe one of your customers is taking an international trip or planning an excursion where phone damage is a greater possibility (like white water rafting). Being able to increase coverage for special circumstances wouldn’t just add to your revenue stream—it would foster great relationships with your customers.
Consumers have more power than ever in their relationships with brands. If they aren’t getting the experience they demand and expect from your offerings, they’ll simply move on without it (or go to your competitor). Any way you can enable that sense of control through customizable insurance offerings can have a significant impact on the success of your business.
Consider the Reward Pricing Model
Another way to improve the mobile device insurance experience and drive adoption is to embrace a “reward pricing” model.
Think of it like a “good driver discount” in the auto insurance industry. The premiums go down as policies go longer without a claim. However, our own research into the mobile device insurance market found that consumers are interested in taking this idea a step further. Rather than simply offering a lower premium (which is a great benefit), Millennials are keenly interested in the possibility of receiving credits toward new devices.
Now, we just need to make the system work. With the right information at hand, you can embrace reward pricing strike the right balance between low cost and great experience.
How to Enter the New Age of Mobile Device Insurance
The key to transforming mobile device insurance experiences is actually the backend of your operation. When you have the right customer data and logistics in place, you can start building out offerings that appeal to more consumers.
All of this might sound easier said than done—but it doesn’t have to be. If you want to learn how our solutions can help, contact us today for more information.