95% of online consumers will consult reviews for social proof before making a purchase.
Word of mouth has always been the most powerful form of marketing. South Africa’s rapid digitalisation may have transformed consumer behaviour but this fundamental inclination toward personal recommendations, remains as a key consideration.
According to Embed Social, 95% of online consumers will consult reviews for social proof before making a purchase.
Google is the number one review platform as it hosts 76% of online reviews and insurance is one of the top 10 industries to receive reviews.
The digital age has empowered consumers to share their experiences with brands to a much larger audience and, thanks to dedicated review platforms like HelloPeter, this is forcing brands to prioritise the customer experience like never before.
Consumer reviews play a pivotal role
Siyakha Masiye, Spokesperson at MiWay, says the wide dissemination of consumer reviews has had a significant impact on purchasing decisions within the local insurance market.
“Social media has widened our circles to include an online community of peers to share feedback and advice with.”
Masiye mentions a study on the factors influencing consumer purchasing decisions, which found that the recommendations of family and friends were the highest consideration when purchasing car insurance for at least 80% of people prior to the national lockdown in 2020.
“Now, that ‘family and friends’ network has expanded to include anyone who appears to be in the same social class or demographic group,” he notes.
“Non-commercial sources have always been an influence for people comparing insurance brands and policies, particularly when considering car insurance,” says Masiye. “This is evident in the rise of comparison platforms specific to the insurance industry. Your Hippo’s and CompareGuru’s for instance.”
People over policies
While short-term insurers spend money on customised messages and paid social media efforts to increase the likelihood of a purchase, the same study found that consumers were more likely to purchase short-term car insurance based on a good online review than a great ad.
Outside of traditional advertising the marketing efforts of insurers include three key elements that do inform a buyer’s decision:
“The way consumers make decisions highlights the critical role credibility plays in an insurer’s success,” says Masiye.
Practical implications of online reviews for insurers
MiWay is ranked among the top three car insurers on HelloPeter and while claims processing and competitive pricing are important, the reviews indicate that customer service is the prime indicator of this success.
One review noted that the reviewer had not even claimed yet but was moved to make a note of the well-mannered and respectful consultants he’d dealt with.
“The quality of customer service you provide will either increase or decrease the probability of a decision to purchase more so than any other marketing communication that goes out,” says Masiye. “Insurers really need to invest in how current customers and potential customers are treated at all points of contact. These insights point to more than a review management strategy but an alignment with recognising and fulfilling consumers’ needs.”
BUSINESS REPORT