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How transforming your communications ecosystem can grow revenue and profitability

Dave Zamorski, General Manager Broadridge, Customer Communications, Digital Solutions

Dave Zamorski, General Manager Broadridge, Customer Communications, Digital Solutions

Given the price sensitivity of insurance consumers, some insurers in the industry assume there’s no reason to invest in communications CX, believing that CX won’t move the needle.

The truth, however, is that many industries do not invest in their communications infrastructure with the focused intention to improve the customer experience. Instead, they invest to optimize operations, drive efficiency, and reduce costs. An improved CX is merely the cherry on top.

Consider the frequency with which you communicate with customers. If you’re only engaging policyholders episodically, say for renewalsand claims, you’re missing out on serious opportunities.

Regular communications—in the channels policyholders prefer—can make a big difference when it comes to revenue and customer loyalty. More importantly, the capability to systematically engage policyholders reflects that your operations and platforms are working for you – instead of against you. 

Below I share a few ways that driving digital adoption and turning routine communications into meaningful omni-channel interactions can help generate immediate cost-savings, simplify compliance, and create a winning customer experience.

Cost savings

Insurers operate on razor-thin margins, and many expect that the cost to improve their communications ecosystem will far exceed available budget and resources. The good news, however, is that you don’t have to build communications systems and platforms from the ground up.

New cloud-based technologies facilitate significant digital transformation without necessarily requiring an upfront investment.With the right end-to-end solution, you can create, manage, and deploy omni-channel communications all from a single platform. This centralization enables clients to realize immediate ROI.

Here’s how.

First, compared to other industries, insurance brings a lot of paper to the customer experience. So, by driving digital adoption, you can significantly reduce print and mailing costs. In fact, many of our clients see a cost reduction in this area of 25 percent or more in the first year alone.

Importantly, driving digital adoption requires more than simply inviting customers to opt for paperless. In our recent survey of 3,000+ North American consumers, we found that 75 percent switched at least one bill to paperless last year. Yet, the majority still prefer to receive some paper bills. Why? More than 25 percent said they “do not see how going paperless benefits me.”

Policyholders need to be confident that if they opt for paperless, they’ll enjoy a useful, relevant experience – with obvious benefits. That’s why we emphasizecreating an engaging omni-channel experience withcommunications that are easy to read and digest. Show your customers you can deliver on their preferences and engage seamlessly across channels, and digital adoption will inevitably follow.

Secondly, transforming your communications can also help reduce costs by alleviating strain on your customer service resources. For example, redesigning your bills and claims statements can help minimize customer confusion, which in turn can help lower call volume.

Some companies go further and digitizethe entire claims submission process. This drastically reduces the amount of time adjusters and intake representatives spend on the phone with customers.

By creating a more seamless digital experience for your firm and your customers, you unlock the potential to reduce costs, streamline operations, and drive efficiencies.

Risk Management

As one of the most heavily regulated industries, compliance is uniquely challenging for insurers. Compounding matters, many insurers maintain customer data across multiple legacy platforms and systems. Disparate, siloed data makes it extremely difficult to track and audit core business activity.

For these reasons, it’s essential for insurers to unify all customer data onto a single platform. A single data warehouse means one repository for all legal and compliance needs. It also means only one platform for which you’ll need to manage data security and privacy.

In short, data unification drastically simplifies compliance practices.

Customer Experience

Customer expectations are changing, indicating that CX might matter more than we think. Our recent survey found that 84 percent said consumers expect companies to make it easy for them to interact across multiple channels; and 41 percent said they’d leave their current provider if the CX fails to live up to expectations.

Given consumer price sensitivity, CX may not win new business, but a poor CX can lose business in a hurry. Customers simply won’t ask for a quote next time. On the flipside, strong net promotor scores could boost reputation and brand equity, which may translate into increased interest, traffic, and leads.

Perhaps unsurprisingly, there’s a straight line between the infrastructure you need to maximize compliance and the infrastructure you need to optimize the customer experience. Consolidated data is the bedrock of communications CX, empowering you to deliver the kind of experience your customers expect.

Policyholders especially value the ability to log on and access forms, policy declarations, claims, and bills all in one place. Plus, when you have a single view of every customer, it’s easy to automate communications, adhere to customer preferences, and send only the most relevant messaging.

In turn, you’ll find several benefits. First, a rewarding digital experience builds trust. Customers will be more likely to recommend you and more likely to consider other products. This is particularly true when you can deliver relevant cross-sell communications that drive engagement and clicks.

Seamless, omnichannel communications can also reinforce the value of your products and services. Tacitly you demonstrate value by making the experience frictionless and hassle free. But you can also explicitly showcase your value as well. For example, we always encourage clients to highlightyear-to-date policyholder savings in communications.

When it comes to the CX effect, show policyholders the concrete value you bring—and they’ll want more.

Weekly Brief

Top 10 Risk Management Solution Companies - 2021
Top 10 Risk Management Service Companies - 2021

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