Category Archives: Customer Services
As I continue to counsel insurers about master data, they all agree immediately that it is something they need to get their hands around fast. If you ask participants in a workshop at any carrier; no matter if life, p&c, health or excess, they all raise their hands when I ask, “Do you have broadband bundle at home for internet, voice and TV as well as wireless voice and data?”, followed by “Would you want your company to be the insurance version of this?”
Now let me be clear; while communication service providers offer very sophisticated bundles, they are also still grappling with a comprehensive view of a client across all services (data, voice, text, residential, business, international, TV, mobile, etc.) each of their touch points (website, call center, local store). They are also miles away of including any sort of meaningful network data (jitter, dropped calls, failed call setups, etc.)
Similarly, my insurance investigations typically touch most of the frontline consumer (business and personal) contact points including agencies, marketing (incl. CEM & VOC) and the service center. On all these we typically see a significant lack of productivity given that policy, billing, payments and claims systems are service line specific, while supporting functions from developing leads and underwriting to claims adjucation often handle more than one type of claim.
This lack of performance is worsened even more by the fact that campaigns have sub-optimal campaign response and conversion rates. As touchpoint-enabling CRM applications also suffer from a lack of complete or consistent contact preference information, interactions may violate local privacy regulations. In addition, service centers may capture leads only to log them into a black box AS400 policy system to disappear.
Here again we often hear that the fix could just happen by scrubbing data before it goes into the data warehouse. However, the data typically does not sync back to the source systems so any interaction with a client via chat, phone or face-to-face will not have real time, accurate information to execute a flawless transaction.
On the insurance IT side we also see enormous overhead; from scrubbing every database from source via staging to the analytical reporting environment every month or quarter to one-off clean up projects for the next acquired book-of-business. For a mid-sized, regional carrier (ca. $6B net premiums written) we find an average of $13.1 million in annual benefits from a central customer hub. This figure results in a ROI of between 600-900% depending on requirement complexity, distribution model, IT infrastructure and service lines. This number includes some baseline revenue improvements, productivity gains and cost avoidance as well as reduction.
On the health insurance side, my clients have complained about regional data sources contributing incomplete (often driven by local process & law) and incorrect data (name, address, etc.) to untrusted reports from membership, claims and sales data warehouses. This makes budgeting of such items like medical advice lines staffed by nurses, sales compensation planning and even identifying high-risk members (now driven by the Affordable Care Act) a true mission impossible, which makes the life of the pricing teams challenging.
Over in the life insurers category, whole and universal life plans now encounter a situation where high value clients first faced lower than expected yields due to the low interest rate environment on top of front-loaded fees as well as the front loading of the cost of the term component. Now, as bonds are forecast to decrease in value in the near future, publicly traded carriers will likely be forced to sell bonds before maturity to make good on term life commitments and whole life minimum yield commitments to keep policies in force.
This means that insurers need a full profile of clients as they experience life changes like a move, loss of job, a promotion or birth. Such changes require the proper mitigation strategy, which can be employed to protect a baseline of coverage in order to maintain or improve the premium. This can range from splitting term from whole life to using managed investment portfolio yields to temporarily pad premium shortfalls.
Overall, without a true, timely and complete picture of a client and his/her personal and professional relationships over time and what strategies were presented, considered appealing and ultimately put in force, how will margins improve? Surely, social media data can help here but it should be a second step after mastering what is available in-house already. What are some of your experiences how carriers have tried to collect and use core customer data?
Recommendations and illustrations contained in this post are estimates only and are based entirely upon information provided by the prospective customer and on our observations. While we believe our recommendations and estimates to be sound, the degree of success achieved by the prospective customer is dependent upon a variety of factors, many of which are not under Informatica’s control and nothing in this post shall be relied upon as representative of the degree of success that may, in fact, be realized and no warrantee or representation of success, either express or implied, is made.
Whether you are establishing a new outsourced delivery model for your integration services or getting ready for the next round of contract negotiations with your existing supplier, you need a way to hold the supplier accountable – especially when it is an exclusive arrangement. Here are four key metrics that should be included in the multi-year agreement. (more…)
Earlier in the week we talked about the first steps to “How A Single View of Your Customer Helps You Better Manage your Customer Service”
Now we will be continuing our steps by taking you from point of delivering your product/service all the way through to renewal/returns. (more…)
Yes!! Only if you are an Informatica customer who has access to our latest Support videos.
Informatica Global Customer Support is delighted to announce the launch of its Support TV with access to over a hundred videos in HD quality. These self-help videos will help you learn more about the products and troubleshoot issues easily, effectively .
We are always looking for new ways to enable customers to better help themselves and the launch of Support TV is a big step in that endeavor.
Watch, Learn, Resolve. This is our motto. (more…)
I attended Forrester’s Customer Experience conference a couple of weeks ago to get up to speed on how different companies are changing their processes and culture to truly put the customer at the center of their world. Concepts such as voice of the customer, the buyer’s journey, and moments of truth were tossed around like popcorn. The high bar set at the conference was to achieve empathy with the customer in order to deliver true customer experience innovations. Beyond such lofty concepts, there was also a lot of discussion about the underlying practical matter of gathering the relevant data about customers in order to build the knowledge and understanding essential to creating that empathy. (more…)
There’s been a lot written about the importance of customer adoption and success to the software as a service (SaaS) model – there’s even a manifesto and a Bill of Rights! Last month, Informatica Cloud received the Bronze Stevie Award for customer support. One of the drivers for this achievement was not only great front-line customer service from a world-class support organization (they even support trial accounts!), but also the establishment of a customer success team, which is run by Bryan Plaster. I sat down with Bryan to discuss his views on the importance of customer adoption to any cloud computing application, platform or infrastructure initiative, as well as some specifics on how Informatica Cloud approaches customer success. (more…)
This week we had the privilege of participating in two significant conferences taking place in San Francisco. I was on a CMO panel at the B2B Digital Edge Live conference (#DELiveSF), while my colleague Daniel West presented at the Forrester Annual Enablement Forum (#tse12). I found it intriguing how both conferences focused on the same end-result … the “Customer”.
In some respects this is quite surprising given one normally associates Enablement with the process of training sales on how to sell, while marketing always talks about promoting thought leadership into the social network or generating leads from prospects. So why the change?
I think the answer here relates to how both disciplines are moving forward in this modern era driven by social networking. No longer is it just a one-way dialog between vendor and customer – you know, where the vendor promotes products & services via a web-site, or advertises in a magazine. It is now imperative that there is a two-way dialog. Customers are no longer silent! They talk, and they discuss - both good and bad. Vendors need to focus on ensuring their customers are successful. This means focusing on “listening” to their customers and understanding what total customer success means to them – whether it is online, in user groups, at events or in one-to-one meetings. Interestingly, this is one of the fundamental tenents of cloud computing through which service is paramount in order to drive repeatable subscription revenues.
Hence the focus of enablement must shift from simply training sales, and move to enabling sales to foster relationships with customers in order to deliver solutions that really deliver on key business imperatives. The entire value delivery chain (from first contact through to sale, implementation and ongoing success) must be aligned and working for customer success - because vendors are now visibly under the microscope and increasingly being compared and discussed in public. Several comments jumped out at me from the live conference twitter stream (#tse12):
- Certify sales people on talking to buyers, not talking about products.
- 86% of business buyers engage in web research independent of sales cycle.
- 8 months ago, enablement was nice to have, now it is recognized as a must have
- Sales Enablement = Make your customer a hero. That’s why I use “future advocate” and NOT “prospect”.
Strong words indeed which then align with the role of modern marketing teams – Engaging with customers through their chosen social networks to discuss their needs and help position solutions for their success. The role of marketing then becomes increasingly focused on finding the early stage researchers as they engage on social networks and leverage online assets. The role of marketing has now moved to that of engaging online, embracing customers and engaging in ongoing dialog. Again, several topics jumped out from the live conference twitter stream (#DELiveSF):
- Enable B2B salespeople to do what they do best, with digital at the core: data, content, mobile, social, CRM.
- B2B marketing: Start with audience design. Target the influencers of the influencers & create content in places they seek it.
- Marketing direction for digital: brands need to become publishers. Content is king!
- Digital Edge Live: Control social mess before it controls you.
That last point is key - a significant problem is that this modern world of online proactive marketing has become complicated. At the B2B Digital marketing conference, we were asked by the moderator, Kate Maddox, on what our greatest challenges were in digital marketing. Three topics that interested me:
- Joining the dots between out-bound email marketing with social media to nurture customers and prospects efficiently.
- The cultural change associated with evolving from an old-fashioned traditional organization to a leading social enterprise.
- Understanding where user groups now exist – on traditional web-sites – or beyond in the social network of linkedIn, Facebook and other networks.
Marketing and Enablement are evolving rapidly into adjacent displines linked with a common goal of embracing the customer and ensuring that the entire value delivery chain is focused on their success – because without their success we are simply fooling ourselves into believing we are building a sustainable and successful business model.
What do you think?
Remember the last time you were home in the evening, there was little in your kitchen to eat but you didn’t want to go out? Then you had an idea – that you could concoct a delicious meal made from a variety of completely unrelated and forgotten frozen and semi-fresh food coupled with rarely used spices and other odd ingredients. That’s a lot like predicting the future. If you stay safe and conservative, you’re going to get close to what you expect. But, if you get all crazy (think stir fry Top Ramen and turkey jerky), your prediction will sound cool, but has a low probability of working out (unless you are on Top Chef). (more…)