As health insurance providers evaluate where to invest for the future, enhancing the digital customer experience should be a top priority. A seamless, intuitive, and efficient digital journey is essential for improving member satisfaction, reducing operational costs, and staying competitive in a rapidly evolving market.
Understanding what customers expect from digital channels is key to delivering a great digital experience. In our extensive research on the digital experience for hundreds of brands across a number of different verticals, we have found that customer expectations for digital are similar across industries.
Here are 10 key reasons why digital customer experience deserves your focus:
1) Increasing digital adoption means lowering the cost to serve customers.
Moving a customer service conversation from phone to digital chat can reduce their cost-to-serve by half or more. Digital self-service represents an even bigger cost savings for the organization and likely higher customer satisfaction.
2) Customers prefer digital channels for service and support.
Our research shows higher levels of satisfaction when customers can serve themselves online. According to the J.D. Power 2025 U.S. Property Claims Satisfaction Study, overall satisfaction is higher among customers who use digital tools when filing a claim, submitting photos that are used in the estimate and receiving proactive updates.
3) A good digital experience lifts customer satisfaction.
Delivering a great experience is how leading brands differentiate, and digital channels can play an integral part in that experience.
The J.D. Power 2024 Commercial Member Health Plan Study and the J.D. Power 2024 Medicare Advantage Study both find overall satisfaction is higher among members who use their health insurer's mobile app or website for self-service when they have a question or problem with their coverage. Members who report no self-service digital tool usage have lower overall satisfaction.
4) Digital tools require more investment to live up to customer expectations.
Our research shows that digital solutions are missing the mark on functionality.
The J.D. Power 2025 U.S. Retail Banking Satisfaction Study found that, among retail banking customers who switched banks in the past year, 14% said it was because the website or mobile app lacked functionality. Among those who said they “probably” or “definitely will” switch in the next year, that percentage was higher, at 15%.
5) Personalized digital channels create the opportunity to better engage with customers.
Engagement is especially critical in the health insurance industry, where a seamless digital experience plays a major role in member understanding, satisfaction, and advocacy.
When members struggle to navigate their benefits, find information, or connect with support, frustration grows. Health insurers must prioritize digital solutions that simplify access to tailored guidance, deliver timely updates, and provide effortless self-service options.
J.D. Power Commercial Member Health Plan Study data finds that commonly used website features (for example, an Explanation of Benefits review) have a low or negative impact on health insurance member website satisfaction. Meanwhile, members who report engaging in more personalized digital activities (for instance, receiving information on how to treat an illness, personal health assessments, etc.), register satisfaction scores up to 92 points higher than their less engaged peers.
6) Exceptional digital channels drive customer loyalty and business growth.
The J.D. Power 2024 Healthcare Digital Experience Study (HDES) reveals that a strong digital experience can more than double plan loyalty amongst Medicare Advantage (MA) health plan members. Indeed, only 39% of MA plan members who register HDES satisfaction scores ≥ 500 points say they intend to renew their health plan. Conversely, 89% of health plan members who report top levels of digital satisfaction (HDES satisfaction scores of 801+ points) share that they are likely to renew their current plan.
J.D. Power healthcare intelligence reveals that offering a good digital experience is a top consideration for employers as well. When selecting commercial member health plan coverage for their employees, 67% of health insurance HR decision makers report that digital offerings are "very" or "extremely" important in their selection process. Moreover, 12% of HR decision makers report that they have switched health insurance carriers due to a lack of user-friendly digital features.
This underscores a critical reality: Digital experience is no longer just a differentiator- it’s a key driver of client growth and retention.
7) Seamless digital experiences turn one-time users into digital adopters.
A strong digital experience is a key driver of sustained engagement across both Medicare Advantage and commercial health plan members. According to the J.D. Power 2024 Healthcare Digital Experience Study (HDES), 70% of Medicare Advantage members who rate their desktop experience as “excellent” say they will continue using their health insurer’s digital channels, compared to just 36% of those who say they have a “poor” experience.
Commercial health plan members exhibit a similar trend in the 2024 HDES study, further validating the link between digital satisfaction and future engagement. Among these members, 66% of those with an “excellent” desktop experience say they will continue using digital channels, while only 28% of those with a “poor” experience express the same intent. The gap is even wider for mobile platforms, where 71% of highly satisfied users on mobile websites and 79% on mobile apps indicate they will return, compared to just 14% and 13%, respectively, among those with a “poor” experience.
These findings highlight the critical importance of investing in streamlined, user-friendly digital platforms to drive retention and long-term digital engagement across all health plan segments.
8) A great digital experience can yield brand advocacy.
According to the J.D. Power 2023 U.S. Consumer Financing Satisfaction Study, customers who are digitally engaged have significantly higher levels of overall satisfaction, greater Net Promoter Scores®1 and have a lower cost to serve than customers using traditional channels to manage their accounts.
In fact, digital engagement is key to customer advocacy: Auto loan brand advocates, or promoters, are 37% more likely to view billing statements via their lender’s app; 38% more likely to pay their bill digitally; 59% more likely to receive digital account alerts; and 48% more likely to contact customer care via the lender’s app than brand detractors.
9) Digital can serve as a platform for value added tools.
Results from the J.D. Power 2024 Commercial Member Health Plan Study show that plan members who use digital, self-service tools to estimate their out-of-pocket costs—such as a digital cost estimator tool—report substantially higher levels satisfaction than compared to members who passively wait for a bill (+86 points), call their healthcare provider (+41 points) or call their health insurer (+22 points) for cost estimates. This suggests that self-service digital options not only provide greater convenience but also enhance transparency and accuracy, leading to a better overall member experience.
10) Digital channels are quickly scalable, especially in times of crisis or a surge in demand.
The utility industry is faced with weather related outages on a regular basis. Our research shows that when mobile apps and websites work well, they become vital communications tools for utilities, helping them alert customers to storms and potential outages, providing useful information on sustainability initiatives and energy saving tools and dramatically improving customer satisfaction.
The J.D. Power 2025 U.S. Utility Digital Experience Study finds that digital channels are becoming the first line of communication, with digital traffic surging when consumers have a question. In fact, 50% of electric utility customers that have downloaded their utility’s mobile app have used it in the past year (up from 45% in 2024).
A good experience anywhere sets expectations everywhere.
When it comes to customer experience- including digital interactions- your customers aren’t only comparing you to companies within your industry. They’re comparing you to experiences they’ve had with every organization they’ve ever interacted with.
A great digital experience is important for success and should be a high priority on every brand’s roadmap.
1Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
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