Two recent J.D. Power studies show that client satisfaction with life insurance and annuity products starts declining soon after purchase. This presents high-stakes challenges for carriers focusing on client retention. For long-term success, carriers can look to digital technology solutions.
A Broken Process
According to J.D. Power’s twin studies on individual life insurance and annuities, client satisfaction starts dropping quickly after they buy. This finding has major implications. A dissatisfied policyholder is less likely to buy more products. Or worse, the client may jump ship when a better offer comes around.
Managing client retention in our industry is no joke. Client acquisition costs more in the insurance industry than any other. It costs up to nine times more to attract a new client than to keep one.
Why does satisfaction decay occur with life and annuities? It could indicate clients do not have a good understanding of the value they get from these products. Or, it could be a lack of communication or follow up. Perhaps a poor experience full of inconvenient hoops to jump through.
At the very least, we know it means something is broken. The current way of doing things is not working for clients. Which means it doesn’t work for carriers either.
The Key to Clients’ Hearts
Digital solutions offer the tools to push back against declining client satisfaction. The same J.D. Power studies found another interesting tidbit. Clients who use digital channels to interact with their insurer are more satisfied. This fact should be encouraging. Today’s digital sales platforms provide practical ways to interact with clients before, during and after the sale.
Like robust post-issue support capabilities. Digital sales platforms can simplify change requests and other post-issue processes. So, clients can make changes quickly and electronically. It also frees up the advisor to focus on selling rather than manual service tasks.
We live in a world where post-issue management is known to be tedious. Which means you can stand out with a streamlined digital experience.
Some insurance platforms give you even more control of your post-issue experiences through embedded technology. You can offer post-issue support directly in your client portal or website. This allows you to service those requests when, where and how your clients want to do business. Convenient and positive interactions help keep clients happy long after the sale.
Speaking Your Client’s Language
Another key aspect of preventing satisfaction decay is communication. Traditional mail has the lowest level of overall client satisfaction. And yet, it is the most common form of communication used in our industry.
You have probably sensed a low-hanging-fruit opportunity here.
Today’s top digital sales platforms offer electronic delivery of information and documents. This avoids the cost and delays associated with traditional mail. It also meets the modern client’s expectation of a digital communication experience.
E-delivery brings your processes in line with modern life. It offers the level of convenience your clients are used to getting on a regular basis.
One way to ensure a fully digital communication process is with e-signature technology. There are several e-signature solutions. You can even get the technology as a built-in feature in some digital sales platforms. With built-in functionality, you can design a signing process suited to your unique needs. You can manage signatures in-person, remotely or on a mobile device.
E-signature doubles down on the benefits to the client experience. Clients receive a convenient digital experience with every stage of the process.
Plus, e-signature can offer heightened signer verification and an automated audit trail. Which means your clients get a streamlined and secure process. And, you ensure they are receiving the best in modern digital experiences.
Age-Old Problems. Modern Solutions.
Competitors are waiting with open arms, and client acquisition costs are staggering. You cannot afford to allow satisfaction decay to cost you your best clients. There are practical solutions to elevate your customer experience and keep your best clients happy for the long haul.
