201309 LOMA Policyowner Service and Contact Center Workshop
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The document presents findings from a seminar discussing the current challenges in insurance and customer service, focusing on evolving consumer expectations and technological advancements. Key points include the need for personalized service, addressing diverse consumer demands, and the importance of emotional connections in customer relationships. The document emphasizes the necessity for companies to adapt their service delivery models to enhance customer experience and retention, ultimately driving revenue growth.
201309 LOMA Policyowner Service and Contact Center Workshop
- 1. LOMA 2013 Policyowner Service Seminar and Contact Center Workshop Conference Survey & Current Topics THE NOLAN COMPANY Presented to: September 10, 2013 Presented by: Steven Callahan, CMCŠ ChFC, CLU, FFSI, FLHC, FLMI/M, ACS Practice Director
- 2. Introduction The Nolan Company ⢠Management consulting firm celebrating 40th Anniversary serving Insurance, Healthcare and Banking clients. ⢠Focus on solving complex operational and technical business challenges seeking improvements in client competitiveness, effectiveness, and performance. www.renolan.com 2 Policyowner Service Seminar and Contact Center Workshop www.linkedin.com/in/stevencallahan September 10, 2013
- 3. Session Overview Current Challenges Survey Results 3 Policyowner Service Seminar and Contact Center Workshop September 10, 2013 Group Topics
- 4. Industry Faces Challenging Times Investments Life Insurance Ownership Claims Severity Regulation Competition Market Exits Technological Advances 4 Policyowner Service Seminar and Contact Center Workshop September 10, 2013
- 5. Demands on Service Amplified More Diverse Consumers Five Generations of Consumers, Large New Wave The Digital Generations Coming (% of Total Population) - powerful consumers Surge in New Service Mediums 5 Policyowner Service Seminar and Contact Center Workshop September 10, 2013 Greater Ethnic Diversity
- 6. Diversity Adding To Expectations 80 70 60 M n illio s 50 40 30 Increasing Customers Demands ⢠Immediacy / 24x7 access ⢠Transparency ⢠Personal service relationships ⢠Language differences ⢠Benchmarks within and outside the industry 20 10 0 GI Swing Boomer Low Tech Gen X Gen Y High Tech Agent > Mail > Phone > Fax > Email > Website > Chat > Social (FB, Twitter) 6 Policyowner Service Seminar and Contact Center Workshop September 10, 2013
- 7. Putting the Pressure On Newâ & Oldâ Technology Service Operations Expanding Service Methods 7 Policyowner Service Seminar and Contact Center Workshop September 10, 2013 Diverse â & Aging âWorkforce
- 8. With Less Room for Error Key sources of service frustration and probability of switching: 78% Incorrect product or service provided Unfriendly or impolite service staff Multiple attempts to get problem resolved Business policies that inhibit delivering⌠Staff unable to answer question Long hold times when calling service Having to repeat same information over⌠Attempts to cross sell when calling for⌠0% 77% 73% 71% 70% 65% 64% 62% 10% 20% 30% 40% 50% Best way to prevent switching? ⢠First contact resolution ⢠Reward & recognition for doing more business ⢠Preferential treatment 8 Policyowner Service Seminar and Contact Center Workshop September 10, 2013 67% 54% 44% 60% 70% 80%
- 9. Todayâs Customer has Great Power Tens of thousands of positive service touchpoints a day, and yet one bad interaction⌠Before Social Media âReducing customer attrition by 5-10% can increase annual profits by as much as 75%, according to a study by the Wharton School.â Eight Strategies for First Rate Customer Service, Cisco Innovators 9 â⌠a modest increase in customer experience will increase customer loyalty and boost revenues by approximately $298 million for a $10 billion insurance provider.â Forrester Research âNationwide Insurance found that a 1% increase in customer retention increased annual premiums by $1 millionâ Insurance Tech Datamonitor And suddenly your company is at the top of the tweets list telling thousands followed quickly by a Facebook âUnlikeâ Fan Page. Policyowner Service Seminar and Contact Center Workshop Todayâs Customer September 10, 2013
- 10. Yet Strong Service Delivers Revenue Red = Lost Revenue / Customer Turnover Yellow = Incremental Revenue, Existing Customers Dark Blue = New Customer Revenue Light Blue = Net Change in Revenue Strong Customer Experience Management = Improved Revenue Net Up $273M Net Up $84M Net Down $43M Best-In-Class 10 Average Policyowner Service Seminar and Contact Center Workshop Laggards September 10, 2013
- 11. And Companies Are Acting Area of Focus Respondents Expanding Accessibility 100% Accelerating Service Delivery 96% Increasing Hours and Days of Service Availability 82% Creating Different Levels of Producer Service 82% Consolidating Similar Functions Across Divisions 75% Creating Different Levels of Customer Service 63% Aligning Operations with Customer Markets 63% Consolidation of Call Center Operations 57% Aligning Operations with Distribution Channel 57% Consolidating Physical Locations 50% 11 Policyowner Service Seminar and Contact Center Workshop September 10, 2013
- 12. Evolving the Service Delivery Model Evolving Model One Size Fits All § Same service for all segments § Over invest in some, under invest in others § Segmentation of needs and value § Service matched to segment needs § One model to manage § Differentiation created at company vs. segment levels § Easier to match capabilities § Appropriate service investment in each segment § More challenging model to manage but also ⌠§ Harder to replicate by the competition 12 Policyowner Service Seminar and Contact Center Workshop September 10, 2013
- 13. Based on Differentiated Customers Potential Future Value of Customer Survey Data Purchased Data 13 Policyowner Service Seminar and Contact Center Workshop High Predictive Analysis and Modeling High value, Low conversion, 2nd Priority High value, Medium conversion, Top Priority High value, High conversion, Top priority Medium Web Log Data Potential Value Good value, Good value, Low Medium conversion, conversion, Low Priority 2nd Priority Good value, High conversion, Top Priority Low Text Data Psychographic Data Scoring of prospects based on conversion and value, marketing strategy developed to match Low value, Low value, Low Medium conversion, conversion, Low Priority Low Priority Low value, High conversion, 2nd Priority Low Medium High Propensity to Convert September 10, 2013 13
- 14. Using Life time Value Post Purchase Future Activity â Increases in Value predictive value over time as behavioral patterns develop Predictive Analysis Customer behavior shifts focus from current to future value Current Time of Purchase Value Demographics Loses predictive value over time as relevance is superseded by inforce behaviors 14 Policyowner Service Seminar and Contact Center Workshop September 10, 2013
- 15. Leveraging Technology to Deliver From: Process = Requestà Process à Resolution To: Phone Paper Email Text BYOD Web Transfer Dialer Service Delivery Process Chat Video Self-Service ⢠Real time availability becomes key ⢠Interactive online rules, forms and data needed Note: Social Media is a transport 15 Policyowner Service Seminar and Contact Center Workshop September 10, 2013 Resolution
- 16. With a New Service Paradigm ⢠âCustomer Satisfaction Doesnât Countâ The emotional connection payoff âŚThrough extensive research, Gallup has developed a measure of customer engagement (CE11) that quantifies the strength and nature of a customerâs emotional connection to a company. Gallupâs 11-item metric assesses the critically important emotional bonds of Confidence, Integrity, Pride, and Passion that together reflect the true health of any companyâs customer relationships. The payoff is a far stronger link to business results than any satisfaction measure can hope to provide. âŚGallup has found that without a strong emotional bond, satisfaction is meaningless. Gallup Management Journal, March 2003 16 16 Policyowner Service Seminar and Contact Center Workshop September 10, 2013
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- 24. The One ChangeâŚ.. New phone system and experienced people that can train on the reports that are produced and to help trouble shoot problems with Call Monitoring & Witness. Systems Integrated and faster technology platform. Our CRM is slow and limited in functionality and we have multiple legacy systems. CSR sit on the clock a lot. Option of immediate feedback/survey provided by the customers at the end of a call More advancement in social media within our company. Better measurement of contacts per policy/agent so we could see who's calling a lot to try and anticipate their issues and help prevent phone calls. A comprehensive Customer Relationship Tool with extensive tracking capabilities A more sophisticated phone software which would enable real-time reporting and monitoring. social media and automatic processing More effective management of the call. Setting better expectations for callers. Less dependency on the back office. Implementing a CRM Hiring appropriate levels of staff for the Contact Center and for backingup the Contact Center Knowledge distribution systems (on-line documentation, field-level helps, etc.) Adding a Customer Service Center to allow them to handling simple changes. Adding a documentation system to allows us to track all phone conversations. Building a survey for our customers so we know how were doing. Create 2 groups. One dedicated to the telephone calls and another dedicated to processing changes, etc. Therefore, a better focus towards each tasks. Separation of call center and processing center; however, our group is currently small Improved systems (i.e. mainframe legacy system) Having a console that worked with all of our admin systems to provide complete information to the reps without having to utilize multiple systems. We need a more complete one-stop-shop. Moving off of multiple claim systems onto one platform. 24 Policyowner Service Seminar and Contact Center Workshop September 10, 2013
- 25. Common Issues and Challenges ⢠⢠⢠⢠⢠⢠Misalignment of service strategy and corporate strategy Focus on technology solution and ignore process Customer service positions viewed as entry level Customer service training often early casualty of budget cuts Static solutions prevent dynamic changes Failure to revise key metrics to reflect dynamic service environment 25 25 Policyowner Service Seminar and Contact Center Workshop September 10, 2013