Studies show there is a significant correlation between time toclose and whether you have secured new business.

This isn't surprising, considering the importance of a fast andseamless customer communication experience, especially for the newgeneration of consumer who expects everything to be quick,effortless and intuitive.

In order to work toward creating an ideal environment forsecuring new customers, it's important to first understand wherethe most reoccurring points of drop-off are from a consumerstandpoint and what causes these issues:

1. When your data collection is slow

Courting new business is successful when a carrier shows twosides to their business: The benefits of your coverage and thesimplicity of working together.

That becomes difficult if the early stages of data collectionare slow, repetitive and poorly designed.

Some insurance companies still rely on manual, paper-based orarchaic electronic entry mechanisms that don't focus on thecustomer. Poor mechanisms such as broad questions without clearlydefined answers, neglecting additional follow-up questions based ona previous selection, and neglecting to provide sufficient guidancereflect negatively on both the carrier and the agents handling thepolicy.

Carriers should work toward creating documents that capture allrelevant information in one sitting, without the reliance onoutside reference or help. This could be the difference betweenshifting potential customer perception from a seeminglynever-ending process to a controlled one with a clearconclusion.

By adopting intuitive document design and streamlining theon-boarding process, carriers can greatly reduce the amount of timeto close.

A simple change of moving from paper to paperless, for example,in key areas of the on-boarding process can make a major differencein terms of cost per mailing and time between touch points. Moderncustomer communication management technology is allowing carriersto rapidly deploy automated intelligent onboarding forms thatdynamically guide the customer, facilitate add-on purchases, andeven add instructional video content. 

A recent Technavio study found that the global documentmanagement market is expected to grow at a compound annual growthrate of 14% over the next four years because of the paperlessprocesses — not only for environmental reasons, but to account forthe addition of preferred screens such as mobile and tablets.

Related: Customer loyalty begins with the insurance salesprocess

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2. When your response is slow

Drop-off can be high as a result of sub-par communicationbetween the agent and the insurer after the potential client isthrough the submission process.

Deborah Smallwood, founder of Boston-based Strategy MeetsAction, alludes to this in an interesting article comparing a poor communication systemto medieval times, highlighting the misunderstandings, wastedresources and antiquated practices between the "kingdoms" of agentsand insurers.

When a customer provides information to an independent agent fora quote, they will typically shop this information to one or morecarriers. This information is often conveyed either manually(paper, fax, email) or electronically. If it's electronic, theagency management system and carrier systems must communicate — butthis conversion is anything but a seamless process. When thecarrier responds to this information, it's the same process but inreverse.

With so many different agency management systems needing totranslate to carrier systems and vice versa, this process is oftenlong, confusing and tedious, which can lead to client fatigue.

A typical customer doesn't know or care how the process iscarried out, and will often mistake this delay as a carrier'sdisinterest in their business.

Related: New technology can help P&C insurancebusinesses stay competitive

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3. When they are filling out a frustratingapplication

We have all experienced the situation where we are completing anapplication for something, either on paper or online, and for somereason we cannot easily get through the process to a successfulcompletion. 

I remember filling out the mandatory Free Application forFederal Student Aid for my college-age daughter.  Aftermore than 30 minutes of entering every financial detail of myentire life, I was asked for the PIN that I had set up the prioryear.  Flash forward to the next day when I was able todig out my PIN only to find that I was forced to re-enter everypiece of detailed information all over again.  If I wasn'trequired to do it, I would have terminated the experience at thatmoment.  This nightmare plays out in voluntary situationsevery day.

The process of applying for insurance, if not simple, willcreate similar barriers to new business acquisition. The number ofquestions and level of detail can be very complex, and if theprospect does not have all required information — or if they cannotcomplete the entire process in one session — many will abandon theapplication. 

If the process was difficult, unintuitive or the informationfrom the first session was not retained for call back, in mostcases that agent or carrier has lost the opportunity to sell tothat prospect.

Related: Maximizing the first point of customercontact

(Photo: Thinkstock)

4. When you make the customer "work"

The simple truth is that customers like to do business withcompanies that are easy to work with.

We use websites that let us make purchases with fewer clicks, wego to the drive-thru because it is faster and more convenient, andwe pay with a wave of our mobile device. 

We like it easy and we want to buy our insurance the sameway.  Customers don't want to enter information that iseasily available from other data sources. For example, enteringinformation about their vehicle or driving record when thatinformation can easily be obtained from the DMV or when making achange to their policy and being asked to provide information aboutthemselves, their vehicle, property or policy that is already knownby the carrier or agent. 

There are numerous points during the process of securing newbusiness that can cause customer dropoff, but by focusing effortson these four areas carriers can drastically reduce their time toclose, improve customer perception of their company, and helpagents be a better asset to their clients.

David Squibb is the chief sales and marketing officer ofPeabody, Mass.-based Xpertdoc Technologies Inc.

Related: How insurance agents can stay relevant in an onlineworld