Customer journey mapping for a CIO

Customer journey mapping for a CIO

If you’re like most CIOs, your firm has embarked on the latest craze – customer journey mapping.  I’ve blogged about this before.  It’s a terrific exercise – intended to identify how customers engage with your firm through every type of interaction – personal, machine, or paper.  Most are focused on optimizing the interactions between the policyholder and the insurer; some include optimization of the agent experience, and some are starting to look at expanding the experience to look at how to embed the insurance experience in non-insurance aspects of an insureds life.  (See FIGO for a great example).

Some firms have hired third party consultants to help with this exercise; some have even put a new position in place – a Customer Experience Officer – someone who looks across the traditional siloes of underwriting, claims and finance to craft a holistic experience. 

As carriers go through this exercise, demands are being placed on the IT team. Here’s a few ways you may be asked to participate:

  • Data and reporting– Part of understanding the customer journey is tracking it.  Understanding where the biggest interaction points are, and where the biggest pain points are is the first step in improving the experience. You may be asked to install tracking software on the website (if it’s not already there).  Third party data and AI may play into new segmentation schemes as teams are looking at new ways of doing dynamic segmentation (See my report on this topic)  You may be asked to add new reporting or analytics tools as the team looks at using predictive modeling to identify next best action. And you’ll be asked to measure the progress of the new journeys through new reports and new metrics such as a customer friction factor.
  • Workflow and Task Automation – Much of customer journey mapping is figuring out how to operationalize the new journey.  Once the customer experience has been defined, the hard part is to deliver on it.  If you are reliant on people to deliver a consistent experience, you leave yourself open to error.  Your team may need to spend much more time defining business rules and implementing workflows to deliver the experience. If you are one of the insurers that has not yet automated this, you may need to consider adding some additional technology.  (This has actually been one of the major drivers of core system replacement).
  • Customer Communication – Insurers are looking at eliminating the jargon and simplifying the message. This may mean redoing forms or creating new forms.  That’s not a huge deal.  But where we see more effort is finding new ways of communicating with customers.  Text, mobile applications and video are all growing ways of communication.   Here’s a great example of automated video communication to deliver a personal touch with no people involved.  Push communications, text or phone messages letting the claimant know their check has been issued, for example, can reduce calls to the call center while improving customer satisfaction
  • Omni-channel access – Smartphones are on track to bypass desktop computers as the number one way to access websites.   You’ll need to make the website mobile-friendly.  But you also may need to put in a call center – especially for those insurers who are looking at adding a direct or semi-direct channel. 
  • Cool stuff – As insurers start going down this path and get more comfortable being creative, they often look to add more ‘cool stuff’.  Gamification is one of the newer areas – using game techniques to drive engagement and to drive behaviors.  Drones are reducing the need for scheduling inspections.  Video chat for first notice of loss can reduce fraud and improve satisfaction.  There are many tools – and many InsureTech startups playing in this space. One last area that can be kind of cool – the user interface.  If you don’t have formal skills in this area, definitely use an outside consulting firm to help with this. UI design is fairly complex and makes a huge difference in the customer experience.  All of this cool stuff requires integration. One note, while the partners out there likely all have open APIs,  your team may end up spending more time than anticipated making sure your own systems can integrate and send data and service calls back and forth.
  • An agile organization –  As insurers become more skilled at understanding how to tweak and enhance the customer journey, speed becomes even more important.  Creating an innovative, agile organization  is a critical aspect of delivering quickly.  If you haven’t chatted with Mike Fitzgerald on innovation, or Colleen Risk on shifting to an agile development process, now might be the time.

In a highly fragmented industry with excess capital and declining rates, insurers are looking to building a solid customer experience to drive growth and retention.  Journey mapping is one of the tools being used.  Time to step into the fray and get involved. 

Karlyn Carnahan About Karlyn Carnahan

Karlyn Carnahan is the Head of The Americas Property Casualty practice for Celent. She focuses on issues related to digital transformation. Karlyn is the lead analyst for questions related to distribution management, underwriting and claims, core systems, and operational excellence. She is a widely recognized expert on these topics who has written market-leading reports and presented at numerous conferences. Her consulting work for insurance carriers includes more than 40 system selection projects as well as distribution channel analysis, process analysis, organizational assessments and a wide variety of other strategic projects. She joined Celent with an extensive career in the insurance industry and holds an MBA from Stanford Business School and a Certified Property Casualty Underwriter (CPCU) designation. She can be reached directly at kcarnahan@celent.com.

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