December 20, 2016 // By Magenic
Have you ever heard a customer list friction as a benefit of interacting with a particular company? Of course not. Yet many of our processes for dealing with our customers are loaded with friction points. And that’s unfortunate because when you look at the data, insurers that are able to remove or reduce friction experience real benefits through customer interaction and loyalty.
Focusing on every aspect of the process
Research from a McKinsey survey shows a 73 percent increase in customer satisfaction when customers reported they were pleased with the entire customer journey, not just specific touch points. “That means insurers have to stand on everything they do and can’t simply rely on a couple of positive interactions to transcend everything else,” says Heather Zimmerman, Magenic's financial service practice leader.
Can you stand on every point of your process? A thorough review will likely reveal opportunities to remove friction, perhaps at every stage. Your company stands to gain immediately, however, when you focus on the common pain points customers experience. Specifically, this includes complaints of unfair settlements, delays over claims and the number of people a person is required to speak with in order to resolve a claim.
Improving key process areas
Research from the National Association of Insurance Commissioners finds that 39 percent of all customer complaints can be directly tied back to concerns regarding unfair settlements and delays over claims. This makes these two categories an ideal spot to start when looking to reduce friction.
You can start by looking internally at your own processes to find areas that offer the opportunity for consolidation. A successful merger of any steps in the plan will eliminate delays as well as reduce the number of people a person is required to speak with in order to resolve a claim — two of the major causes of friction identified in the research. This consolidation may also help the you lessen expenses, thereby improving profits.
Insurers can also benefit their customers and reduce friction by improving their methods of communication. Remember that members understand very little about the process and sharing information in a digestible way — be it through blogs, website content, apps, whitepapers or videos — can help educate customers, reduce claims frustration and ultimately lessen the friction insurers and the industry as a whole face.
At Magenic we help insurers reach their customers and reduce process friction every day. We can develop applications to fit a specific need on any device or platform, and we have experience integrating older systems into newer platforms that are more customer friendly and efficient. Read our white paper, “Inside insurance: Why the industry needs a makeover” to learn more about how we can help your business thrive — without the friction.