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

3. Expansion of digital products

As banking customer behavior shifts, banks must move with the times, or risk getting left behind. Many banks today are exploring the power and potential of open banking, which can allow them to offer more innovative products and services to their customers, as well as to better compete with fintech companies and other non-traditional financial service providers.

As you shift your banking business model to reach new segments or provide an enhanced array of services, communication becomes even more pivotal to your success. After all, if your customers don’t know which new services they qualify for, or how those services will help them meet their goals, then they are unlikely to explore them further. CCM technology can be leveraged here to provide personalized on-statement messaging that directs customers to the right products and services, as well as 1:1 personalized “explainer” videos to help them get started.

Adjusting your bank’s priorities to thrive in 2023

In an era of constant change, the key to successfully transforming your bank’s business model will be to stay attuned to the changing needs and preferences of customers, and to be open to exploring new opportunities and technologies that can help your FI stay competitive and relevant. But these new opportunities are doomed to fail if you do not clearly communicate their benefits and make it simple for customers to access them.

That is why transforming your customer communication strategy is the best first step to broader digital transformation. By updating your approach to communications to meet omnichannel customer needs, you also position your bank to communicate the benefits of changes in your broader organization, like new or enhanced products and services. The pace of change in banking has never been brisker – but with the right strategic approach to these changes, the future is bright.

Investing in a modern customer communication management and engagement platform is an essential part modernizing your banking strategy, as it can provide the personalized digital experiences that will keep your bank or credit union ahead of the competition. It helps provide a great customer experience, and builds rich relationships, which in turn results in customers for life and a competitive advantage in the rapidly evolving financial marketplace.

How Doxim can address the banking customer communications trends identified and help future-proof your digital banking strategy

banking customer communications trends

Doxim’s experienced consultants and omnichannel platform can help transform your customer experience in many ways, including:

  • Gathering and utilizing customer data to continually improve the personalization of communications.
  • Building trust with customers via communication (via print, PDF, HTML, email, text, and online interactive experiences).
  • Leveraging interactive video to drive personalized digital customer experiences, such as interactive statements, bills, or reports, that offer visual engagement and real-time interactivity
  • Putting customer data, including customer statements, at the fingertips of your service representatives for immediate and personal service.
  • Making a meaningful connection with value-added content, like information about philanthropic activities, on customer statements.

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