The importance of digital customer communications software
Here's how a managed service provider (MSP) can help optimize customer communications.
As property & casualty insurers advance further into digital transformation projects, the need for integration of cloud and non-cloud systems becomes increasingly important. Nowhere is this more evident than the area of customer communications.
To foster a positive customer experience, an insurer must make it easy for clients to communicate and do business with them, whether through print, email, the web or mobile touchpoints. However, moving to omni-channel communications becomes problematic when an insurer has multiple customer communication frameworks across different departments and lines of business that are not properly integrated, or have frameworks that are not fully developed and optimized for the insurer’s objectives.
Customer communications management (CCM) solutions are complex software applications that support your efforts at improving customer experience. A full-blown CCM system extends much further than simply the ability to contact clients on a regular basis and through the media channel they prefer, though this is one valuable facet.
More broadly, a well-rounded CCM solution includes mapping your customers’ journeys as they move through your organization, integrating all channels and points of contact, noting all interactions and outcomes, and responding appropriately. In the most basic terms, a well-managed CCM solution can help you see your clients with a clearer focus and can even help you anticipate their needs.
Sounds like magic? In fact, many organizations — and certainly the largest ones in the P&C segment — already have the software available to implement an effective CCM strategy. These same industry giants often also have full-time staff dedicated to squeezing out all the capabilities these systems offer and are already enjoying the benefits. The most comprehensive CCM systems are not inexpensive or completely self-managing, so reaping the rewards and earning ROI requires knowledgeable and experienced personnel to operate them effectively.
For many small to medium sized P&C carriers, this is likely where the greatest challenges lie.
The MSP solution
As CCM solutions are being more widely accepted in the insurance industry, managed service providers (MSPs) specializing in CCM have evolved alongside them. Similar to the way a business might employ an MSP to set up and maintain a telephone or email system, a CCM MSP will deploy, develop, maintain and operate your CCM software to optimize its usage and help you harvest the benefits, including improved customer satisfaction and loyalty, more and perhaps easier cross-selling efforts, and a more level playing field in the industry.
CCM MSPs operate on a contractual basis, and these contracts can be flexible. In general terms, your organization will typically have existing CCM software in place, and the MSP will put its expertise to work to manage it for you. The MSP will assist you in developing a CCM solution, reach out to the various departments in your organization for necessary guidance and input, maintain your system per service level agreements, onboard new customers & content, fulfill your requirements regarding legal and regulatory compliance as well as internal approvals, and handle any new development, upgrades or changes to your CCM software. MSPs most often charge for services on an as-needed basis, and this may help reduce costs compared to hiring a full-time employee with a comparable level of knowledge and experience.
The MSP brings specific expertise to your organization. While your business has an existing IT department, the staff there may not have a strong background in CCM and operating or developing a CCM system is not their primary responsibility. In fact, in many organizations, CCM may occupy only 10 to 20 percent of IT professional’s duties, so it may not be regarded as a priority. IT staffers may not fully understand how to effectively develop, integrate and deploy CCM in your environment and may not have the time to learn these additional skills to take full advantage of your software’s capabilities in a timely way.
By contrast, a CCM MSP brings already well-developed skills and experience to your organization and can hit the ground running to get your CCM strategy operational. A CCM MSP can help you be proactive, introduce new and emerging capabilities, and do that quickly. Though your IT staff may lose some perceived control over the CCM solution, they stand to gain more time to focus on their core responsibilities.
Finding an MSP for your business
Because every CCM solution is tailored to your organization’s specific needs, in recruiting an appropriate MSP it’s recommended that you seek a provider with a background in the P&C insurance segment. This would be an MSP that understands the types of communications your company deals with routinely, is familiar with the legal and regulatory compliance governing P&C as well as the expectations of the clients you serve. These would be very different considerations for a P&C carrier or broker versus, for example, a retail business or even a health care insurer.
Additionally, be aware that “managed services” are different from “hosted services.” An MSP will work on the CCM system installed in your own building and behind your firewall and other security arrangements. No customer archives or other company records will need to be moved from your own servers, and communication templates and related data remain on your own premises.
On the other hand, a hosted service operates on software located usually either in a digital cloud or within the software developer’s proprietary facilities. Hosted services can be managed by the host or operated remotely by your IT staff. In either case the customer files and other data is temporarily and securely moved outside of your organization for processing, though you will have access to it.
In sum, a knowledgeable MSP can help you fully leverage the CCM software you already have in-house, even though you may not be making optimal use of it for the greatest ROI. You’ve already made the investment; an experienced MSP can help you how best to gain those benefits.
Doug Cox (Doug.Cox@belwo.com) is vice president at BelWo, a global managed services provider specializing in customer communications management (CCM). These opinions are his own. For information about BelWo, visit www.belwo.com.
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