“The customer of today wants everything, and preferably right away!”, “Our systems cannot currently keep up with customer demands!” – statements by insurance industry representatives
Every insurance company has been affected by the consumption and purchasing behavior, as well as the expectations, that have been established through platforms such as Netflix and Amazon. This is because customers expect this flexibility in other industries too, and the insurance industry is no exception. For policy holders, the process of taking out insurance does not unfold as if they were going on a journey. Nevertheless, it is important that the broker appeals to the customer’s emotions.
Customers like to take out insurance where the process is quick and goes smoothly. Where they have the feeling of being unique and where their needs are addressed. To this end, communication and sales channels within the insurance company must be integrated by a system, and in a way that is clearly communicated.
Customers must not have the feeling of being on two different planets whenever they have a concern. For this reason, the broker’s focus must shift to customer centricity. Requirements for communication and the system landscapes must be adapted to the needs of the customer. Customer-centric processes and the technical implementation options they contain make the experience more like a journey. But how can the transformation be implemented, and in a way that creates added value?
A transactional sales model (or not)
Indirectly, customer centricity can be viewed as a transactional sales model. The customer-centric organization adopts the customer’s perspective and pursues the goal of generating a real added value in order to retain customers over the long term. Insurance companies have already identified the opportunities associated with making customers their main focus. However, the reluctance to intervene in existing compensation structures is large, as sales departments are generally not compensated for conducting business in a customer-centric way, and on the other hand, the technical requirements are not provided. The focus is on sales figures and these are dependent upon the broker’s earnings.
If the focus is shifted to customers instead, one can assume that the broker will be put in a less favorable position. However, positive word of mouth can increase the sales quote. Customers recommend experiences that are unique within this context. The goal must be to offer a smooth process that is adapted to customers’ needs. To this end, the technical requirements must be coordinated with the sales department in order to achieve the insurance company’s defined strategic goals. By using an integrated software that enables the sales department to adopt the customer-centric perspective, it becomes possible to please all parties involved.
Technical implementation for a customer-centric perspective
In the technical implementation, the following factors have a central role.
- Processes within a system landscape
The processes within a system or system landscape must be aligned with the demands of the market. They must offer a networked customer experience with maximum transparency and digital convenience. And everything must be from one source, so that customers and all of their needs can be served. This ensures security, stability and trust.
When first making contact with potential customers, the broker should focus not on offering products, but solutions. Once insurance has been taken out during the ongoing customer care interactions, the solution provider is in the position to address customer needs.
One challenge is that they are usually only compensated with a one-time acquisition commission. In order to find additional solutions for customers, the broker must be involved in the process so that they stay motivated while advising them. They must be part of the process. The broker must maintain an overview of the customer’s needs. This ensures that the broker remains a good point of contact for customers over the long term and is difficult to replace.
- Central workplace for applications, notifications for claims and other inquiries/requests
A central virtual workplace should provide a simple overview of all customer matters. The workplace should be flexible and transparent – regardless of whether one is submitting an application or a notification for a claim, one must be able to answer the question of “What is the status of my concern?” with one glance. The option of having a finely tuned workflow in the background, including a clear display, is essential for the user experience of customers, the broker and the insurance company’s employees. Stop having to write emails, play phone tag, or send faxes, and use a system that is both transparent and does not keep you waiting.
- Adapt the compensation system to customer-centric needs
If the focus is subsequently customer-centric, the broker can focus on their main business, which is specialized, motivated customer care. Satisfied customers who recommend the broker or company to others because everything is going smoothly will be the new means of achieving additional sales. The compensation can be adjusted to key indicators, such as the customer care rating and the recommendation rate. The key indicators can also be aligned with both customer and broker needs, yet these must also be seamlessly implemented in the compensation system, and also be flexible with respect to the technology that is used. Long processes and relying on the help of the IT department must be avoided. The goal is to have lean processes and a software that is operable.
The interplay of all components
Several screws have to be turned in order to achieve a holistic, and therefore successful result.
- A system landscape that is connected, transparent, and easy to operate
- An operable workplace that does not keep you waiting for everything
- Customer-centric compensation for brokers
The transformation of shifting the focus to the customer also means specifying the direction in which the insurance company must develop across systems and divisions. Key indicators can make this possible, however, the process must be supported by the system. The look and feel must be compatible. Customers must be warmly welcomed as they begin this journey, the broker must guide them, and the insurance company and its employees must be the solution for a successful and satisfying experience. This guarantees a successful customer journey when taking out a new insurance policy.
Would you like to learn more about how our in|sure software can help you master the challenges of digitalization? Then get in touch with our expert, Karsten Schmitt, head of business development.
