How Insurers Can Leverage Customer Communications to Bridge the Customer Relationship Gap

by | Jun 15, 2021

Bridge The Customer Relationship Gap In Insurance With Communication

Today’s insurance customers expect the kind of efficiency and immediacy they experience when dealing with online banks and retailers. Having recognized the importance of customer experience (CX), these sectors are successfully leveraging customer communication management to retain customers, drive engagement, and build loyalty.

Insurers, however, have a legacy to contend with -in many cases there is no direct relationship with the policyholder. This creates the customer relationship gap in insurance. Let’s take a closer look at all the factors responsible for this gap:

Customer Relationship Is Held By A Broker Or Intermediary

The purchase or renewal of an insurance policy is often facilitated by a third-party agent, broker, or online consolidator. There’s a risk in this business model, in that it places a third party between the insurer and their customer.

With little to no control over customer touchpoints and the associated communications, insurers find themselves in the restricted position of having no direct relationship with their policyholders.

Insurance Lagged Other Industries In Focusing On Customer Experience

Traditional insurers were slow to move away from the old-school focus on products, risk, and ratings. Providing a great customer experience requires technology investment and change management, and some insurance providers are still in the process of moving away from a product-centric mindset.

It’s critical that companies put the customer at the centre of the organization, but without an existing relationship, this is even more challenging.

Opportunities To Engage With Customers Are Few

The only guaranteed interaction between an insurance provider and a policyholder is the bill or annual policy renewal. When these touchpoints are managed by the broker or via self-service on a portal, the insurer is left with little to no opportunities to connect and engage with the customer.

Where there is no interaction, there is no engagement and that means carriers are severely limited when it comes to building healthy, loyal relationships.

Highly Competitive Offerings From Big Tech, Digital Attackers And Insurtech Companies

Innovation from large tech platforms like Amazon and Apple has exposed consumers to the kind of customer experience that can be achieved through digital technologies, and this is setting high service expectations in other sectors like insurance.

There are many competitors, including new entrants, digital attackers and Insurtech companies, that have aligned their business models with evolving customer expectations. These competitors offer online services and fully digital processes, lowering the hassle of moving providers, and increasing traditional carriers’ risk of customer churn.

Investment In Technologies That Enhance Customer Experience Is Growing

The insurance sector is one of the largest investors in technology for the purpose of optimizing business processes. One report estimates that global IT spending in the insurance segment will reach 126 billion USD worldwide in 2022. A large portion of this investment (27.9 billion USD) is in technologies relating to the optimization and improvement of customer experience.

Clearly, companies that are not investing in customer experience are going to fall further behind.

How Customer Communications Management (CCM) In Insurance Can Help Bridge The Customer Relationship Gap

Customer communications that are timely, personalised and relevant, are a key component of bridging the customer relationship gap. Successful relationships require a strategic approach that is supported by a customer communication management platform and the expertise to guide an optimal implementation and execute the right strategy.

Customer communications management in insurance plays a vital role in enhancing customer experience.

Building relationships requires customer communication management technology and expertise

Doxim’s strategic consulting and advisory services assist insurance providers to review customer journeys, map communication touchpoints across print and digital, and identify gaps that detract from the customer experience.

Doxim’s CCM platform supports customer communication goals within a secure and compliant CCM framework. With Doxim’s CCM platform and expertise, insurers can:

  • Consolidate all your print and digital communications with one vendor, at one predictable price.
  • Engage with insurance customers and brokers via print, PDF, HTML, email, text, and online interactive experiences.
  • Generate and deliver insurance policies, bills, statements, and any other customer documents, via print and digital channels through a single provider.
  • Store documents securely online and make them available to multiple interfaces including customer self-serve.
  • Gather and utilize customer data to continually improve communications.
  • Encourage customers and brokers to adopt digital communication channels.

Doxim has the CCM technology and expertise to help your insurance organization bridge the customer relationship gap. CONTACT A DOXIM 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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