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. 

The new customer experience – or how so many carriers are getting journey mapping wrong

The new customer experience – or how so many carriers are getting journey mapping wrong

Journey mapping, the process of defining the customer experience, is an activity that has been gaining in popularity over the last two years.  Carriers are using this technique to document the existing customer experience in order to identify areas to improve.  The underlying assumption is that a superior customer experience will drive retention and perhaps improve new business.  Which makes sense.  After all, it’s pretty evident that customers are demanding a different relationship model from their insurers.  They are looking for more transparency and simplicity. They are increasingly self-directed and financially literate.  And they are demanding increasing participation. 

Their expectations are increasingly driven by experience in non-insurance categories.   I can see where my uber car is real-time – why can’t I tell if my claim check has been issued.   I can custom assemble a new pc online with instant knowledge of all the options available and the price associated with them – why can’t I tell what additional insurance options are available and what they cost.   I can get recommendations from Amazon on what I might like and what others like me are purchasing – why can’t I get  good recommendation from a carrier to help me compile the best package of coverages, terms and conditions to suit my profile. 

While efforts have been made to drive effectiveness for insurance processes from an internal perspective, there are still many areas where improvements are possible from a customer perspective. So carriers are working to define an extraordinary experience for customers. They’re defining personas, mapping the new business acquisition process, the billing process, claims, complaint handling, customer inquiries, and all the major processes that occur when customers interact with carriers. 

But that’s the problem. Carriers are focusing on optimizing all those places where the customer and the carrier interact.  Now don’t get me wrong. There is nothing wrong with this.  Carriers should make sure that interactions are optimized.  Focusing on automating decisions, automating correspondence, and using workflow to assure tasks are completed in a timely manner can have a dramatic effect on delivering a consistently good experience.  Omni channel, real time, digitization – all those trendy words – are very relevant here. But it’s not enough.

If you really want to build loyalty, think about the customer experience when they aren’t interacting with you. Let me give you an example. 

Allstate has a target market of motorcycle riders, and has a mobile app for them called GoodRide.  The app is available for both Allstate customers and non Allstate customers.  It helps riders keep track of all repairs and maintenance.  They can plan a ride –  checking weather, locate gas, and even find others to ride with as it is integrated to social media. They can track their ride by adding notes, adding photos and tracking miles ridden. There’s even a gamification element that awards badges.   And by the way, they can report a claim, check proof of insurance and pay their bill.  So this application really looks at what motorcycle riders are looking to do outside of the insurance interaction and embeds the insurance interactions within the full context of the customer’s life and where insurance itself plays a role rather than simply looking at the interactions discreetly.

In the commercial lines world, a similar application could be industry based and provide tailored risk management materials, an “Ask an Expert” corner where customers can check in with risk management consultants,   create a Facebook-like collaboration mechanism for customers to talk to each other,  arrange discounts on products relevant to the industry.  and of course, access their policy online, pay a bill, pull a loss run or handle other interactions. 

Expanding the customer experience beyond the pure insurance interactions makes a carrier more relevant to a customer by engaging in their everyday lives and looking for ways of adding value within context.  And it creates a way to have an ongoing conversation with a customer – building personal loyalty. 

So – is customer journey mapping a good idea?  Of course.  Are carriers thinking big enough? That is a different question.

What I will say, is exactly what I told a carrier earlier today –  The secret to organic growth?  Deliver a customer experience that your competitors can’t match.