Digital transformation for customer communications

Introduction

A SINGULAR FOCUS ON COSTS COULD BE DAMAGING CUSTOMER EXPERIENCE IN INSURANCE

Cutting costs doesn’t cut it with insurance customers. Read why a focus on enhancing customer experience in insurance is more important & how to begin

A SINGULAR FOCUS ON COSTS COULD BE DAMAGING CUSTOMER EXPERIENCE IN INSURANCE

A SINGULAR FOCUS ON COSTS COULD BE DAMAGING CUSTOMER EXPERIENCE IN INSURANCE

A CX Enhancement Approach Is The Way To Build Customer Loyalty And A Significant ROI 

Today’s consumers expect the kind of customer experience (CX) they get from digital innovators and large tech platforms like Amazon and Apple. Meaning innovation in other sectors is driving service expectations to a level higher than many insurers can meet.

When embarking on a customer experience enhancement project, insurers are known to place too much focus on efficiency outcomes, like automation and cost reduction, and not enough on optimizing the customer experience. 

The problem is exacerbated when decisions are made by solution architects and IT, rather than specialists who understand customer experience in insurance and how it drives customer engagement and loyalty.

The result is a cost reduction exercise that is packaged as a CX project. So, it’s highly likely that the outcome will not be an enhanced CX.

The solution: move away from ‘cost savings’ and focus on enhancing customer experience in insurance

To stand out in today’s digital-first world, insurers need to differentiate themselves by making investments in CX. This should be their number one priority, as CX is now the key competitive differentiator  - over product and price.

bar graph with header: what is the top priority for your business in the next 5 years? bars below header displaying customer experience at 45.9% Pricing at 20.5% and Product at 33.6%

Source: SuperOffice

It is possible to achieve both an enhanced customer experience in insurance AND a reduction in costs.

How to begin improving CX in insurance

A good place to begin is to review and align the digital communication strategy. If customer communication helps enhance CX - this will become a key differentiator.

The good news is that CX enhancements can provide a significant ROI.

Here are some strategies to consider:

1.Digitize the customer communication experience by offering customers the option to receive bills, policies and other communication by email or online.

But don’t negate the value of print - some customers still want their documents in hard copy.  The ultimate goal is to create a seamless omnichannel experience across all communication channels including print and digital.

What does omnichannel communications mean?  

Omnichannel communications is about enabling a consistent customer communication experience and content across all engagement channels, both digital (email, web, text, mobile app) and physical (branch, service center, mail). A successful omnichannel communications strategy means customers receive consistent messaging regardless of the communication channel they prefer and can seamlessly switch between channels without fracturing the experience. 

  1. Track customer behavior to improve the relevance of customer communication and create personalized communications which drive customer engagement, loyalty and ultimately, customer experience.  
  2. Insert custom offers into transactional messaging.  Customers appreciate relevant marketing information that is personalized according to their interests and life stage.

The return on investment in a CX enhancement approach will be loyal customers who won’t be tempted to switch to another carrier.

We can help you enhance customer experience in insurance with seamless, omnichannel communications.

Elizabeth

Elizabeth Stephen

Vice President, Relationship Management, Aspire CCS

Liz is part of the Aspire CCS team in the US. She has a true passion for helping organizations identify their customers' needs and consulting with them to help fill those needs. Liz has for the past 8 years focused on Customer Communications Management (CCM) and helping clients utilize digital communications to meet their CX goals.

She is a lead consultant, workshop facilitator, blogger, and frequent speaker.

Prior to Aspire, Liz was at Striata, helping customers move to paperless, and then at Doxim as part of the consulting team helping clients advance in their digital maturity and digital adoption.