In today’s competitive market, customers have increasingly high expectations for streamlined, digital-first experiences. With 54% of U.S. consumers saying the experience provided by most companies needs improvement, you should seize the opportunity to optimize every customer touchpoint.
Trends in Insurance Customer Experience
Recognizing that expectations for seamless customer experiences (CX) have skyrocketed, thanks to non-insurers like Amazon and Netflix raising the bar regarding CX, many insurance companies have adopted new technologies. As a result, spending on technology in property and casualty (P&C) rose by more than 36% over the past decade.
Yet despite increased spending on technology, 30% of insurance customers are unsatisfied with the available digital channels.
So, if customers are unsatisfied with their experiences despite digitization efforts, how can you improve their overall experience and perception of your brand? One solution is to capitalize on an insurer's most reliable customer touchpoint–billing.
Though traditionally viewed as a simple transaction, reimagining billing as a significant customer interaction can positively impact brand perception and customer loyalty.
Humanizing billing
In the P&C insurance industry, where you only interact with customers once or twice per year, every invoice is a possible conversation starter. Personalizing billing statements with customized messages, special offers, or tips on how to lower premiums can make customers feel valued, turning a recurring obligation into a meaningful interaction.
To infuse the billing process with a human touch, don’t underestimate the power of transparency. 59% of companies experience significant customer friction due to billing errors and discrepancies. Being transparent and including details, such as a breakdown of premiums, coverage, and any applied discounts, promotes trust and credibility while building loyalty.
Agents and brokers can also play a role in adding a human touch to your customer journey. McKinsey indicates that over 70% of insurance customers prefer to speak to an agent or other representative to resolve issues. Providing your agents and brokers the ability to view granular billing and invoice details can help them efficiently answer questions and resolve customer issues.
Differentiating through billing
According to Salesforce, 90% of customers say the experience a company provides is just as important as its products or services. Improving the billing experience and implementing flexible, friction-free processes can actually be a competitive differentiator. Here are a few billing practices that can give customers more control and flexibility, thereby improving experience:
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Offer various payment plan options (and make it easy to change plans!): You can provide customers financial flexibility by offering various payment plans, such as monthly, quarterly, or annual payment options. An added bonus would be to provide an easy self-service way for customers to update their plan.
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Introduce usage-based billing: Some insurers, such as Nationwide, offer usage-based insurance programs that provide customers with personalized rates and potential discounts. SmartMiles, designed for low-mileage drivers, offers a pay-by-mile-driven plan for car insurance. Programs that allow customers to only pay for what they need foster trust and loyalty.
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Provide digital payment options: Allowing customers to pay by credit card, EFT, or even mobile wallet makes paying their premiums seamless, increases customer satisfaction, and decreases the likelihood of delinquencies. A pro tip is that Guidewire customers can leverage our extensive partner ecosystem to enable digital payment methods.
Leveraging technology
With advancements in technology, billing can be more than just an automated process; it can be a dynamic interaction. For instance, implementing artificial intelligence to analyze customer data can allow you to offer just-in-time discounts, payment plans, or rewards that resonate personally with your customers.
You can also leverage cloud technology, like Guidewire BillingCenter on Guidewire Cloud Platform, to power your billing processes. A cloud-based billing system has several advantages, including enhanced security, scalability, and cost efficiency. Cloud technology's lower upfront investment and maintenance costs enable you to allocate more resources toward building functionality that will improve customer experiences, such as digital payment methods and self-service tools.
Examples of Effective Customer Engagement through Billing
Some P&C insurers have successfully used digital billing capabilities to enhance customer engagement, improve customer retention, and drive revenue. For example, Guidewire customer CAA Insurance leveraged its Guidewire InsuranceSuite instance to launch Canada’s first pay-as-you-drive insurance product–MyPace. MyPace provides drivers with a base rate that increases in 1,000-kilometer increments. The financial flexibility that MyPace provides led to a 30% increase in sales with new and existing customers.
Conclusion
Rethinking billing as an integral part of your customer experience is a necessity in the age of customer-centric business. Transforming your billing processes into positive interactions can enhance brand perception, unlock new opportunities to connect with your customers, and turn billing into a competitive differentiator.