It goes without saying that great customer relationships are key to your success. We all know that a one-time sale is nothing compared to loyal, long-term customers. We also know that one of our most common interactions with customers is the payment of premiums. So how good are these interactions for you and your clients?
Are they a smooth and seamless customer journey that results in happy clients and invoices paid on time? Or a slow, frustrating and costly process for both parties?
Not every insurance broker out there has a state-of-the-art digital payment system. As a result, they're losing money through inefficiencies. And losing customers from the high friction processes. So, let's break down why outdated premium payment tech is causing such a problem, and find out what can be done to turn the tide.
The unseen cost of keeping things old-school
As we look to attract, convert and retain both new talent and win customers, low-friction technology that drives efficiency and experience can only make things better for us all.
Outside of the insurance industry, would you think that merely providing a bank account number on the bottom of an invoice is a great payment experience? Customers want seamless, convenient and even enjoyable payment interactions everywhere they do business - and their insurance premiums are no different.
Did you know that 92% of invoices received electronically with a ‘Pay now’ button are paid on time compared to just 45% where invoices are issued via mail or email and payment is asked for separately?
Even worse, when a late payment occurs and you have to intervene, it takes up valuable time that could be spent focussing on client care or new business. Not to mention the potential damage to customer relationships.
Imagine the impact of a 47% increase in on-time payments to your business. It could be huge.
A bumpy customer journey
We live in a world where we can order food, book holidays and do our banking at the click of a button. So, when your customers are faced with a slow, difficult, or confusing premium payment experience, disappointment and frustration are almost guaranteed. The global management company Bain & Company working with Harvard Business School Professor Earl Sasser, found increasing customer retention rates by just 5% increases profits by 25% to 95%. With the cost of finding a new customer being five times higher than retaining a current one, the investment in digital premium payment experiences that drive smooth renewals, endorsements and flexible payment options seems like a smart move.
Who’s paid for which policy?!
Multiple payment options and systems almost inevitably mean more difficult processes that require time-consuming manual reconciliation. This results in delays between receiving and posting payments, miscommunication with clients and errors. Time and energy spent to reconcile, allocate and simply understand where the cash is, can be a significant hidden cost and risk to your business.
If you’d like to explore a better way, see how the Simfuni Revenue Control Hub™ makes matching a payment to a policy and a person a simple, transparent task.
Could tech be the answer?
Insurance premium payments are unique transactions. Add to this endorsements and renewals, it makes for a complex and fragmented customer payment experience.
A techology partner like Simfuni can offer speedy, secure and easy-to-use solutions that make life easier for you and your customers. The Simfuni platform automates routine tasks, reduces errors, provides real-time reporting and enhances the overall operator and customer experience.
In a world where the best customer experience wins, Simfuni welcomes the challenge of building the best insurance premium management experience in the world.
References:
The Benefits of E-Invoicing with Pay Links (merchante.com)
Customer Loyalty And Retention Primer - Independent Insurance Agents of Dallas, Inc. (iiadallas.org)
https://hbswk.hbs.edu/archive/the-economics-of-e-loyalty