Editor's Note: Larry Hogan is global director of Industry Marketing for Insurance at Thunderhead.com.

It is no secret that successful brands are built on superior customer service. This rings true for all product and service providers, including insurance.

To achieve maximum customer satisfaction, organizations must truly understand the concept of the customer journey and maintain consistent conversations across all communication channels and touch points even in the face of looming regulatory reform. Yet, managing communications across channels can create new challenges, so organizations must set new goals to optimize and personalize the customer journey.

Differentiation as a Revenue Driver

In order to compete in today's market, differentiation is a necessity, especially when the cost to acquire a new customer far exceeds the price of retaining an existing one. It's no surprise that recent research indicates insurance industry leaders are placing a top priority on initiatives which allow them to be more effective in managing the customer experience. Inquiries into the topic by research firm Gartner recently revealed the customer experience is among top-level executive concerns because it is a recognized revenue driver even in times of economic uncertainty and government intercession. Ignoring these realities is both remiss and detrimental to the bottom line.

Further proof is that we've actually seen a recent movement of government agencies intervening in other industry segments to legislate better customer communications with the same interests in mind. The Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD) mandated very specific requirements for more understandable consumer credit card statements. The Patient Protection and Affordable Care Act (ACA) of 2010 mandated a very detailed summary of benefits and coverage statements which describe healthcare benefits in terms consumers can easily understand.

Three Steps to a Better Experience

Understanding the customer—not just listening to them, but engaging with them on a level where it is possible to give them what they need before they realize it—is key to delivering personal and relevant communications, ensuring market differentiation and economic success. As consumer preferences broaden and change, brands need to not only understand the steps to keep up, but to capitalize on it and grow their business. Following are three steps to achieving differentiation through modern customer experience technology:

Ensure you connect in a relevant and personal way, regardless of channel—Consistent communications with customers across all channels is key in the digital age. It's even more important to create relationships with customers that are relevant, personalized and appropriate. Further, give the customer a choice at each interaction to change their preferred method of communication as proactively asking your customers how they prefer to receive information can provide great differentiation. Remember—it's not about “us,” it's about “them.”
Monitor those channels and engage in a manner that builds brand image and loyalty—Communicating in a way that is relevant, personalized and meaningful is key to building overall brand loyalty and image. Take advantage of the opportunity to engage and gain insight from customers—create a two-way dialogue. Engagement motivates customer participation by connecting with them in a way that drives purchase decisions and loyalty.
Empower Employees to be Successful—Employees must be able to meet the customer's needs in real-time and ensure a great customer experience regardless of channel. Many companies find themselves limited with rigid legacy solutions. Others have selected solutions without fully evaluating or understanding all of the requirements, only to find that the new technology can't scale to meet all the needs of the enterprise. If you want to enhance your customer communications, empower your employees with the tools needed to produce relevant, personalized experiences across all customer communications channels.

Embracing these changes isn't necessarily an easy task, but insurance organizations who deliver in these customer-focused areas can expect returns that include fierce loyalty, revenue growth and overall brand health. Staying focused on these goals is key and organizations that recognize this and plan accordingly will no doubt achieve differentiation and fare better than the competition.

Special Reports /

3 Steps for Enhancing the Customer Experience

Related Stories

Recommended For You