Studies show there is a significant correlation between time toclose and whether you have secured new business. This isn'tsurprising, considering the importance of a fast and seamlesscustomer 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 recurring 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 its business: The benefits of your coverage and thesimplicity of working together. That becomes difficult if the earlystages of data collection are slow, repetitive and poorlydesigned.

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 any 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 allows carriers torapidly 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 document managementmarket is expected to grow at a compound annual growth rate of 14%during the next four years because of the paperless processes—notonly for environmental reasons, but to account for the addition ofpreferred screens such as mobile phones and tablets.

2. When your response is slow

Drop-off can be high because of sub-par communication betweenthe agent and the insurer after the potential client is through thesubmission process.

Deborah Smallwood, founder of Boston-based Strategy MeetsAction, alludes to this in an article comparing a poor communication system to medievaltimes, highlighting the misunderstandings, wasted resources andantiquated practices between the "kingdoms" of agents andinsurers.

When customers provide information to an independent agent for aquote, they will typically shop this information to one or morecarriers. This information is often conveyed either manually(paper, fax, e-mail) 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 oftenconfusing 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.

3. When they are going through a frustrating applicationprocess

These are situations in which customers attempt to complete anapplication for something, either on paper or online, and cannoteasily get through the process to a its final stage.

I remember filling out the mandatory Free Application forFederal Student Aid for my college-age daughter. After more than 30minutes of entering every financial detail of my entire life, I wasasked for the PIN that I had set up the prior year. Fast forward tothe next day when I was able to dig out my PIN, only to find that Iwas forced to re-enter every piece of detailed information all overagain. If I wasn't required to do it, I would have terminated theexperience at that moment. This nightmare plays out in voluntarysituations every 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 prospectsdon't have all of therequired information—or if they cannotcomplete the entire process in one session—many will abandon theapplication.

If the process was difficult or unintuitive, or if theinformation from the first session was not retained for call back,that agent or carrier most likely has lost the opportunity to sellto that prospect.

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 same way.Customers don't want to enter information that is easily availablefrom other data sources. This includes entering information abouttheir vehicles or driving records when that information can easilybe obtained from the DMV, or providing 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 drop-off, but by focusing effortson these four areas, carriers can drastically reduce their time toclose, improve customer perception of their companies and helpagents be a better asset to their clients.