Innovative Ways to Improve Customer Retention through Digital

February 20, 2019

Your organization puts a significant amount of time, effort, and resources into acquiring prospects, partners and employees, and then onboarding them so they can start to use your services. Once they’ve signed up, how can you build up their lifetime value (LTV) and boost your return on investment by retaining them for as long as possible?

The answer is creating industry-leading service experiences to delight your customers, keep them engaged and ensure they continue to renew year after year.

Here are a few ways we find enterprises across every industry bringing digital transformation to their customer service operations to boost customer loyalty.

Why Customer Retention and Loyalty Matters

Customer retention is an essential part of your strategy for one simple reason — it’s well known that it’s less expensive to retain existing customers than to acquire new ones. That’s especially true across the banking, financial services, insurance and healthcare industries, where acquisition and marketing costs continue to rise.

Once you’ve acquired a customer, you want to boost their LTV as much as possible, through cross-selling, upselling and ensuring they continue to spend money on your products and services.

Customer loyalty has a major bottom-line impact. A joint study by Bain and Company and the Harvard Business Review found that a 5 percent increase in customer retention can increase a company’s profitability by 75 percent.

This is especially true in the financial services industry. Another study by Bain and Company found this: “Abundant evidence shows that customers who shift to digital banking have greater loyalty to their primary bank, cost less to serve and are more profitable. True, they shop around more for additional banking products, but once landed, they tend to engage more with their bank, which leads to a higher Net Promoter Score.”

In insurance, responding to a claim is often the most important “moment of truth” in the customer’s experience. That’s why USAA has a claims innovation team focused on shrinking the claims process down to days—or even hours. For some low-severity incidents, USAA members can interact with the insurer digitally to request a service, and in many cases get back on the road in under half an hour without ever having to speak to a representative.

“We recognize that our members’ expectations are changing,” says Harris, “And that we really need to be where they are. In many cases, an entirely touchless digital channel, like text or chat, is what makes the most sense for our membership.”

How Your Organization Can Transform Customer Service and Boost Retention Rates

Every service experience is a moment of truth for the customer. Get it right and you’ll help people feel valued and build loyalty, get it wrong and you’ll create mistrust and drive customers away.

Here’s what your customers want when they interact with you, whether on a mobile device, via the call center or agent channel, or in a branch:

 

 

This all needs to be delivered in a friction-free way across multiple devices, especially via mobile today. This applies to all types of customer service:

 

  • Insurance claims: enable customers to file a claim or change beneficiary information
  • Banking applications: easily request a payout, update a direct deposit or request additional financial products like loans.
  • Health insurance: keep up to date with premiums and payments.
  • Government services: renew a license or file a change of address.

 

Smart data capture, intelligent routing and automated creation of customer communications are all part of handling customer requests efficiently, in real time. You can optimize every part of the customer service interaction, so many moments of truth are fast, efficient and personalized. And, you can leverage data to deliver relevant upsell and cross-sell offers.

Intelledox works with enterprises to help them resolve issues faster and deepen customer relationships. Learn how enterprises are transforming the customer experience and contact us today.

To see an example of streamlined digital customer service for insurance, check out our webinar replay: Digital Transaction Management for Total Loss Claims Process.

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