Customers expect quick delivery, seamless user experience, real-time report for purchases
There has been a significant shift in consumer behaviour in the form of changed social interactions. Globalisation and widespread use of internet and social media has changed customer behaviour. Customers today expect every organisation to deliver products and services at lightning speed, with a seamless user experience. The tolerance level towards turnaround time is dwindling by hours and minutes and no longer by days. Customer expects delivery of services immediately and a real-time report of their purchase.. They expect all service providers to have automated access to all the data they provide and are not comfortable with submission of supporting documents and proofs during repeated transactions.
In view of the changing times, the financial sector is taking quick strides towards digitisation, ensuring services and products are available to consumers online at the comfort of their homes.
Convenience is the key which appeals to customers today. Online transactions provide ease and simplicity of buying and engaging into insurance processes sitting at home. However, digital shopping does not begin with the customer buying the product. The entire process of developing the portal, procurement, distribution and payment is enabled by digitisation.
Demystifying digitisation: Digitisation does not mean mere automation of an existing process but extends to simplifying complexities in sales process and enriching customer experience. Businesses are increasingly dependent on transactions enabled by digitisation and online procurement. Companies are accelerating the digitisation of their business processes to keep pace with growing industry and expectations of the customers. This also includes reduced documentation and developing automated decision making. For instance in the financial sector, paying insurance premiums, redeeming funds and retrieving tax statements can be done from the mobile phones In fact, the whole process has evolved for the financial planner with the help of tablet-based sales process. Pre installed information in tablets gives relevant information and recommends suitable plans based on the age and life stage priority.
Demystifying digital: Digital is the operation which is performed by users. Organisations orchestrate the interactions with customers, distributors, regulators and internal teams with the help of digital platforms and tools. Simplified operating interfaces are derived for customers for the ease of accessing the life insurance buying. All future initiatives focusing on operational efficiency and seamless processing will ride on the “technology wave”.
Benefits of digital include:
Optimisation of cost: Technology has enabled standardisation and customers receive instant and comparable information. The erstwhile high operating expenses in advertising for both visual and print media has been reduced substantially through digital marketing. This saving in cost can be passed on to the customer. In the life insurance space, online term plans are becoming popular due to the low premiums. There is a direct interface between the customer and the insurer in the absence of a broker
High stakeholder engagement: Customers navigating on the internet view a website which is informative and simple to understand. The website/app should aim at helping the customer by providing more than just information. Today, tech savvy customers compare available products and services before making a decision. Hence the website should provide a solution to all the benefits that the customer is looking for
Adherence to compliance and regulatory: Digital sales rules out the element of mis-selling as the customer has to go through the buying process herself or himself. The customer can compare the products available in that category. The recent guideline on making Aadhaar mandatory will enable data sharing. This will further help in instant verification of information. To maintain the confidentiality of customer information, customer payment information is routed through payment aggregators and hence credit and debit card data is not stored with businesses.
Increased brand awareness: Digital marketing portals aim at triggering the buying decision by focusing on the needs of the target audience. This is possible by maintaining a website which contains quality and informative content. The same can be achieved via email marketing and/or social media channels.
Accuracy: Customers enter accurate information and the data gets verified instantly. Any discrepancy is flagged due to data sharing and linkage with various government and regulatory agencies.
Integration of digital and digitisation: Marrying both digital and digitization gives rise to digitalisation which uses technology to provide an interface with the user and give solutions to address their needs in real time. It is only with the help of digital technology that digitalisation has been able to transform a business unit model into a digital one which adds value in terms of revenue and future opportunities.
Digitalisation is compelling businesses to keep evolving with the ever changing digital landscape through breakthrough innovations using the combined power of analytics, cloud technologies, social media and mobility. These transformations which provide a customer centric real time experience are largely driven by customers.
No doubt incremental use of technology has transformed the way businesses are conducted. Leveraging the benefit of digitalisation along with manual process has become the way forward for organizations to maximize returns to customers, distributors and organizations. Artificial intelligence, big data analytics and digital learning is ever evolving and will push efficiency, deliver transformative and differentiating customer strategies, relationships and customer convenience.
CONVENIENCE IS KEY
- Customers expect quick delivery, seamless user experience, real-time report for purchases
- Online transactions provide the ease of engaging in insurance processes from home
- Digitisation simplifies sales process enriching customer experience
The writer is director-sales, Canara HSBC Oriental Bank of Commerce Life Insurance Co Ltd
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