A Singular Focus on Costs Could Be Damaging Customer Experience in Insurance

by | Mar 29, 2021

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.

Consider that 86% of buyers are happy to pay for a better customer experience and a good CX results in a higher customer lifetime value

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.

2. Track customer behavior to improve the relevance of customer communication and create personalized communications which drive customer engagement, loyalty and ultimately, customer experience.  

3. 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. TALK TO A CCM EXPERT

Our Bloggers

Erin Romo headshot
Gum Fa Ng

CCM Strategy

James Hall headshot
James Hall

CCM in Europe

Jason Pothen headshot
Jason Pothen

CCM in Utilities and Healthcare

Josh Noble headshot
Josh Noble

CCM for Banks and Credit Unions

Scott Biel headshot
Scott Biel

CCM in Wealth & Insurance

Guest Bloggers

Keypoint Intelligence logo
Keypoint Intelligence

CCM Industry Experts

A collection of blog posts and articles written by our team of customer communications and engagement experts at Doxim, providing you with direct access to the latest trends and proven strategies that increase engagement, helping you make the most of your customer communications.

Connect with us
Schedule My Demo
Skip to form