Decoded: 3 Things Insurance Companies Can Learn From Tinder About Selling Online

3 things the dating app nails from a psychological perspective that insurance companies can adopt.

What does Tinder have in common with an insurance company? Well, not much. But even still, Tinder is way ahead of the game. Discover 3 things that Tinder nails from a psychological perspective and how insurance companies can follow suit.

In this article, you’ll discover: 

  • How Tinder makes the registration process look seamless and what insurance companies can learn from this; 
  • How to remove all the clients’ uncertainties even before they actually occur; and
  • How to present offers so that it’s a breeze for customers to choose (and not just choose the cheapest option).
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If your first thought after reading the title was “What? What on earth do these two things have in common?”, then you’re definitely not the only one. But the thing that both- Tinder and insurance companies share is an online conversion funnel. And, as is often the case, one of them does it better. And since chances are you work at an insurance company and aren’t trying to beat Tinder on the dating app market, you probably know which one it is. Yes, Tinder does it better.

Let’s be honest, Tinder has the high ground here. Swiping through photos of good-looking, interesting people... your hormones spiking every time you swipe right as you eagerly await a response before eventually meeting someone- all this sounds way nicer than paying for car insurance.

But this should only increase insurance companies’ motivation to make their online funnels as engaging as possible. So let's see what are 3 things that Tinder knows about consumer psychology that insurance companies don't? And how can you leverage them to gain a competitive edge? 

In the following examples, you’ll see Tinder’s funnel compared to a car insurance funnel. (It took a lot of effort to convince the author’s girlfriend that his registration on Tinder was purely for research purposes, so let’s make it count!)

 1. Make it look easy from the beginning

The first thing any company needs to do in their registration funnel is collect information on their prospective customer. And oh boy, do insurance companies ask for it. In a lot of cases, they simply ask for too much information before they even give you anything in return:

A long insurance form can be overwhelming and drive potential clients away
A long insurance form can be overwhelming and drive potential clients away. Source: https://generali.sk/poistna-kalkulacka/pzp/#/1

They overwhelm potential clients with so much required info in the first step that it feels like the scrolling never ends. And there are 5 more intimidating steps to go through. Sure, they need the info, but there’s a good way to do this and then there’s a bad way. And overwhelming the customer in the first step of the process is definitely the bad way.

What about Tinder’s information gathering?

Tinder's registration funnel asks the users one question at a time to make the process feel easy
Tinder's registration funnel asks the users one question at a time to make the process feel easy. Source: Tinder

The whole process is chunked, so they always ask you one question at a time. Why is this a better idea? Even if they ask for the same amount of info as the insurance company, it feels so much easier to complete. That’s because the perceived effort is much lower. 

Perceived effort basically means that if you want the customer to do anything, not only does the action need to be easy to do, it also needs to feel easy to do

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Perceived Effort: How Easy Things Feel Matters More Than How Easy They Really Are
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Research by CEB Global, summed up in the book The Effortless Experience: Conquering the New Battleground for Customer Loyalty, points out that objective obstacles account only for a third of how difficult customers think something is. The remaining two-thirds is how customers feel about it. 

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