Reduce Communication Costs in Insurance with a CCM Platform

by | Oct 6, 2021

)Insurers Can Reduce Communication Costs While Preserving Customer Engagement

Today, increased competition, evolving customer expectations, and downward pressure on fees, means digital transformation in insurance is essential to your firm’s success. To serve more customers with lower operational costs, you need to encourage digital adoption and the best way to do so is by enhancing customer communications. But this often means sending more communications and the cost thereof can be challenging.

CCM vendors typically charge per communication, which means the more successful you are at communicating with customers, the more you spend. This can create a situation where you become a victim of your own success, as your digital adoption initiatives deliver way above expectations, meaning your digital volumes skyrocket, but your budget is blown.

Take the uncertainty out of your communications budget and reduce operational costs for your customer communications. SCHEDULE YOUR PERSONALIZED DEMO TO LEARN MORE

 

What if your customers choose to receive both print and digital?

There is another risk relating to increasing digital adoption. What if customers agree to receive digital communication, but do not agree to go fully paperless? These ‘double dippers’ want the convenience of digital communication but are not yet willing to let go of the familiarity of receiving an envelope in the mail. In traditional vendor pricing, this would mean a doubling up of messaging costs. Your organization achieves no cost saving on postage, which is then compounded by the cost of each digital communication.

Communicating with these customers costs more than those that are on print, only because you are paying for both print and digital communications. This doubling up of costs, while positive for your omnichannel communication strategy, could be catastrophic for your budget.

A Keypoint Intelligence report reveals the following when it comes to financial services customers:

Financial services customers receiving print only (37%)

Financial services customers receiving digital only (32%)

Financial services customers receiving print and digital (32%)

In two years, the percentage of digital only customers is expected to increase to 36%, at the expense of the print only percentage, which declines to 31%. But the number of double dippers is expected to remain the same.

This means, to reduce communication costs in insurance, these firms must either adjust communication budgets to accommodate double dippers or find innovative ways to encourage them to go fully paperless.

How to reduce communication costs in insurance while enhancing customer engagement

Unpredictable customer communication costs can wreak havoc with an insurance firm’s annual budget. At the same time, digital communications are a critical way to increase client engagement and serve more clients at a lower cost, so scaling back communication plans can cause long-term problems. By communicating less effectively or less often, you risk losing customers and prospects to non-traditional, low-cost insurance service providers with more engaging customer experience strategies.

The solution to this thorny issue is to find ways to simplify your communication-related budgets, so you know what to expect on your monthly communication invoice. The truth is your digital transformation project will not be approved if the return on investment is not attractive or can’t be calculated at all. ROI calculations become far more accurate when the fee for the year (ex-postage) is fixed.

What you need is cost certainty – one predictable fee structure that covers all communications across print and digital. As you migrate customers to digital, the monthly fee (excluding postage costs) remains stable.

This approach simplifies budgeting and removes the need for complex invoices based on volumes that need to be audited. It also allows you the flexibility to experiment with different types of communications, like targeted offers to encourage your “double dippers” to turn off the paper.

How Doxim can help reduce communication costs in insurance

As a single, trusted partner offering a holistic CCM solution at one fixed cost, with predictable monthly fees, Doxim can help you take the uncertainty out of your communications budget and reduce operational costs for your client communications.

Doxim’s omnichannel CCM platform can generate insurance policies, bills, statements, and any other customer documents, and distribute these communications through multiple channels (via print, PDF, HTML, email, text, and online interactive experiences).

Documents are stored securely online and made available for customers to self-serve via an online portal or mobile app; as well as supporting customer service teams by providing the information they need, at their fingertips.

The omnichannel capabilities of the platform are such that when a customer calls in to speak to a service representative or engages with a chatbot, both human and machine can provide immediate assistance by calling up the communication or document that the customer received.

Provide a great customer experience in insurance, by allowing customers to select the preferred channel on which to engage is vital. Doxim CCM enables this through both digital channels and digitally enabled humans.

Doxim’s client communication experts can also help you encourage paperless adoption and consult on creative communication design that both promotes engagement and delivers a great user experience.

Let’s chat through your insurance organization’s customer communication requirements. CONNECT WITH ME

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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