By Leo Corcoran, CEO
January 15th, 2020
The customer experience (CX) is the impression customers and prospective buyers have when they engage with your business. Everything your business does impacts the impression people have of your brand, and it has become a fundamental element of a business’s growth strategy.
Customers expect their purchasing journey to be frictionless, even when it comes to insurance. To implement this strategy, you need to have a good understanding of who your customers are and an appreciation of the journey they go through when purchasing your product or service. As a consumer, you can probably recall both exceptional and disappointing experiences you have had when purchasing goods or services. However, the latter are the stories we tend to share more readily!
For me, Apple Pay is an example of a fantastic service that has raised the bar in terms of my customer experience and expectations of what is possible. I regularly use it to pay using my phone or watch, so the fear of forgetting my wallet is now a distant memory. Transactions are processed quickly with the touch of my fingerprint, and I would highly recommend it to anyone.
There is no denying that technology has improved the interactions with customers across all industries, and Apple is one of the leading brands in the world for delivering seamless customer experiences.
Technology and the CX
Although the insurance industry has been one of the slowest to join the digital revolution, technology has been crucial in digitizing the journey. It has had a significant impact on delivering on customers’ expectations, which are higher now than ever before.
Technology has expanded the number of touchpoints a brand has with prospects across multiple platforms. Seventy-five percent of people expect a consistent experience wherever they engage with brands, be it through social media, mobile, or even in person. Today, consumers do not just buy products or services; their purchase decisions revolve around buying into a brand and the experience they offer: And a great customer experience drives loyalty and revenue.
Why CX Matters to Insurers
Millennials, generation X, generation Y, and the ‘now’ generation have high expectations of the customer experience in the insurance industry today. They have grown up in a technology-driven world and expect their insurers to be efficient, flexible, and deliver quickly, just like other businesses they deal with. Research from Salesforce found that 84% of customers say that being treated like a person, not a number, is very important to winning their business.
McKinsey’s global research across industries shows that improving the customer experience can do far more to drive profitable growth when compared to advertising expenditure or lowering policy prices. For insurers, research has shown that in this profit-driven industry, the leading insurance carriers are delivering customer experiences that inspire loyalty and attract new customers frustrated by their experiences with their current carriers.
If that’s not enough to convince you, data-driven and market-based research from McKinsey has found that companies that deliver a great CX can increase their revenue by 10-15% and lower costs by 15-20%.
Legacy systems, with information spread across multiple places, is one of the biggest pain points for insurers today. Investing in a technology platform that stores all information in one central location, through integrations, allows claim professionals to easily access all relevant information in one place. At ClaimVantage, we use this approach, enabling our customers to implement a claimant-centric approach to claim management.
Delivering a Seamless CX in Practice
Allianz is an excellent example of an auto insurer that transformed its claims process with SaaS provider SightCall, which replaced on-site visits with live video assessments. Customers can choose to either share their camera in real-time or take a video of the problem area to provide their claim adjuster with a complete view of the issue. This saves time and effort for both the customer and the Allianz team in streamlining the process while providing a better CX.
Using technology to deliver exceptional claims customer experience improves efficiency by speeding up the process while making it more convenient for the claimant.
In today’s age, customers expect to be able to stay updated right from their phone. Whether it’s tracking a package online or monitoring the status of their claim, the answer should always be at their fingertips. ClaimVantage offers a Customer Portal that allows claimants to stay informed throughout the process from any device 24/7. Claimants can view the status of a claim, see a list of all required documents necessary to process a claim, when the documents were received, and if they were accepted.
The Impact of CX for Insurance Companies
There are several studies aiming to determine the impact a good CX can have on a business:
1. Increased Book of Business
A Deloitte study on life insurance underwriting suggests that the value of applying process acceleration to claims processing is the most significant opportunity for insurance companies. It indicates that prospects are 20% more likely to purchase a life policy as the underwriting and application process gets closer to real-time.
2. Competitive Advantage
The insurance industry is highly competitive, and in today’s world, customer loyalty is largely influenced by price. However, 81% of companies expect CX to be the key battleground in the race for competitive advantages, making life easier for policyholders and claimants.
3. Reduced Costs & Increased Revenues
As previously mentioned, McKinsey found that companies that deliver great customer experience have increased revenue by 10-15% and lowered costs by 15-20%.
4. Brand Recognition
Word-of-mouth referrals are invaluable to any business. If you can delight your customers, you’re more than likely to have a good reputation in the market. With 70% of consumers basing their opinion of you on the quality of the CX, this can help to ensure anything your customers have to say about you is positive.
Although delivering a superior CX requires significant investments, improvements, and collaboration across customer channels and business functions, it can also secure your position in this competitive insurance industry.
When was the last time you evaluated your customer journey? In our fast-changing environment, now is the time for you and your business to review customer feedback on their experiences. Request a demo today, to see how ClaimVantage can help you to deliver a better customer experience.