The old mantra of ‘knowing your customer’ continues to be critical to the success of any protection or health insurance advice business.
But how can advisers best get to know their customers and maintain it over the longer term?
Advisers are clear social media has a key role to play in building trust with customers, however it can never entirely effectively foster client relationships.
And while advisers recognise the growing prevalence of artificial intelligence (AI) within the communication mix, they maintain it will never replace the human touch, although there is disagreement over whether the humble telephone still has a role to play in the process.
Whichever communication route is favoured, it is clear that a mix of these channels is necessary and they have to adapt to the needs of any prospective customer.
Difference between average and excellent
“I think knowing your customer is the difference between an average adviser and an excellent adviser,” Nina Brown, protection adviser at Pam Brown Mortgages, tells Health & Protection.
“Getting to know your customer is the most important aspect of the advice process – no two customers are the same and therefore no two protection portfolios are the same so its important to make sure I know the client and all the circumstances involved,” she adds.
Alan Lakey, director at Highclere Financial Services and CIExpert, maintains knowing your customer is “essential”.
“You need to know their current position and their aspirations such as whether they will start a family, receive an inheritance or move abroad,” Lakey says.
Building rapport
But for that conversation to even take place advisers need to bring the customer to the table and for some time social media has proven a key means of making this happen.
Joanna Streames, managing director at Velvet Mortgage and Insure Services, believes social media channels are “a powerful tool for maintaining visibility and building rapport” outside of formal meetings and with clients before they have even made contact.
“I share valuable insights, celebrate client success stories with permission, and showcase my expertise to establish trust which helps them get in touch in the first place and lay good foundations,” Streames continues.
“It’s also a place to humanise the business, letting clients see the real people behind the professional. It’s about engaging content that’s relatable, with storytelling to help reinforce connections and keep us top of their minds.”
Resisting pushy sales tactics and scripts
One of the big adviser success stories in terms of building a social media presence has been Emma Astley, founder of CoverMyBubble.
“It’s all about the right processes and systems with no pushy sales tactics or scripts,” Astley tells Health & Protection.
“In order to change their mindset, we need to speak in their language and no insurance jargon,” she continues.
“We need to take our time as advisers and give our clients time to process the information, ask questions and get more options if needed. It’s not a one-time call and that’s it – cover sorted.
“It’s about having the right processes in place to suit our clients and have multiple phone calls if needed until they understand their need for insurance and had the time to finalise the protection for them.”
This strategy has led Astley to concentrate on developing educational rather than” salesy” videos on her social media channels.
“I do lots of educational videos on socials,” Astley says. “This helps potential clients understand their need for protection and gives them the confidence to contact us to help.”
Personl touch outperforms AI
But Astley adds she has not relied on AI in post creation so far.
“Personally, I do not use AI much, as we have learnt having a personal touch brings down any barriers potential clients may have,” she continues.
“If some receive an automatic message after contacting us, they may not continue with their enquiry.
“Don’t get me wrong, AI is good in some contexts for our business, but I’m a firm believer in the personal contact with our clients as everyone is different and we have to adapt to suit their needs.”
While AI has potential, Streames maintains it cannot ever replace the importance of the human touch.
“AI has potential in our industry, particularly for administrative tasks like automating reminders or analysing data to predict client needs,” Streames says. “However, the human touch remains irreplaceable and I believe it always will.
“While AI can enhance efficiency, relationships are built on empathy, understanding, and trust, qualities AI can’t replace. I think it is just a tool to complement the client experience.”
Future of AI
However, Streames concedes AI will play a “huge” part in everyone’s lives in the future.
“While I think AI is going to be a huge part of our lives everywhere going forward, I am not sure I have seen how it can be used in the advice process enough to warrant any use,” Streames contends.
“It’s still about hearing someone’s voice and looking in the whites of the eyes whether it’s on Zoom or in person.
“Having said that, I am excited to see what’s coming and see it only as a positive going forward.”
But Brown warns she thinks there are risks attached to the growing use of AI.
“Unfortunately, I do not think forms of communication will go in a positive way,” Brown says.
“I do believe the future sees more AI and us losing that human touch of insurances.”
For Streames, communication will inevitably continue to evolve as technology advances, with AI and automation playing a larger role in the administrative side of customer engagement.
“However, the human element will remain central to advice-based industries,” she adds.
“I will ensure in my business and anyone I am mentoring this is definitely the case. Clients will still value authentic relationships and personal interactions, even as tools like AI help streamline processes.
“Balancing innovation with humanity will be key to staying relevant and maintaining trust.”
The humble telephone
But there is one form of technology that has helped build businesses for well over a century.
For Kristian Breeze, director of healthcare at Ascend Health, the humble telephone still has its place in the brave new world of Teams and instant messaging.
“In my experience, there’s still no substitute for the clarity and connection a conversation can bring,” Breeze says.
“A video call might offer face-to-face interaction, but the simplicity of a phone call removes the need for links, cameras, or even stable internet – making it accessible and convenient.
“I was thinking about this the other day and went down a bit of a rabbit-hole whereby I discovered that a recent survey by BT found that 58% of customers prefer phone calls for complex queries – especially when emotional support is needed.
“In health insurance, where clients often discuss sensitive issues, the phone remains a vital channel.”
Lakey agrees, adding the phone is “instantaneous” and remains an “important” factor.
“Email is great in as much as you can provide documentation and receive it promptly. But having a meaningful conversation generally means face-to-face, telephone and Zoom or Teams,” Lakey adds.
Old fashioned means of contact
Astley, however, thinks of the phone as an “old-fashioned” way to contact customers these days.
“It’s not what they want or need,” she continues.
“You have to give them the choice as it’s them who are enquiring and life is busy, so we have to understand that and appreciate their time is theirs.
“Just because they sent an enquiry through on a form from the website, doesn’t mean I pick up the phone straight away and call them.
“That’s what gets their back up and proves all their worries were right as they have had this before with other brokers and this is what has stopped them taking out or reviewing insurances for years.”
Use all resources available
However, Astley is also keen to stress the importance of advisers using all resources available for clients so as to suit all needs.
“Be diverse. People all have different capabilities so give them the functions to enquire or chat their way,” Astley says.
“We’ve had clients who have been scared of phone calls. So I have sent voice notes to answer any questions. This helps give them the confidence to pick up the phone and then they find we’ve been chatting away for 40 minutes having lots of giggles along the way and we now know probably too much about each other.
“Many companies are coming around to this same way of contact, as a business, we have to adapt and make changes to suit our enquiries. If we don’t do this then we won’t help people or grow as a business.”
WhatsApp or video call
Breeze agrees, adding the ideal communication balance varies by client.
“Younger generations might favour WhatsApp or video calls, while older clients may prefer traditional phone calls or even in-person meetings,” Breeze explains.
“The key is adaptability – meeting clients where they’re most comfortable,
“In the mid-corporation and large corporation space I would also be inclined to say that face-to-face meetings are far more prevalent. It is not uncommon to be doing presentations in a boardroom for us, and this is where Ascend thrives.”
Brown adds: “I always believe this is down to the client and their preference.
“I am based in Bicester and many of my clients are Eastern European, and their preferred communication is in person as they are in a position where they can better understand the situation and they prefer having everything on hand in paper form,” she continues.
“Whereas other clients prefer all communication via email.
“However, it is my job to make sure I understand which form of communication will be the most effective in engaging with the clients and making sure they receive all adequate information.”