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Kathy Burger
Kathy Burger
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Embracing Technology Consumerization to Improve the Customer Experience

The convenience, ease-of-use and personalization that come with the consumerization of the ways policyholders, prospects, distributors and partners interact with insurance carriers are examples of a winning service experience.

Believe it or not, service is more important than low prices for consumers. That's according to a new report from marketing information services company J.D. Power and Associates: "Beyond Satisfaction: J.D. Power 2012 Customer Service Champions — Brands That Deliver Service Excellence to Maximize Business Results." This is a direct consequence of the recent recession, the report said, noting that the cost cutting and automation that many organizations adopted as part of their survival strategies "had the effect of raising the importance of people in the service experience."

"While value is important, consumers want more than simply the lowest price," said J.D. Powers' Gina Pingitore, chief research officer, in a press release. "They expect a superior product that is delivered in a compelling presentation, through fast and easy-to-understand processes that are supported by responsive and concerned people. In addition, the price must be perceived as fair and competitive."

This should be very good news for insurance companies that have invested in the wide array of interactive, collaborative and mobile technologies that contribute to a satisfying customer experience. Increasingly, that high-quality experience incorporates significant aspects of technology consumerization. The convenience, ease-of-use and personalization that come with the consumerization of the ways policyholders, prospects, distributors and partners can interact with insurance carriers are examples of the winning service experience the J.D. Power report describes.

All 50 companies on the 2012 Customer Service Champions roster score highly in five areas identified as the "J.D. Power 5 Ps": People, Presentation, Price, Process and Product. It's encouraging that the roster includes five insurance companies: Amica, Auto-Owners Insurance, Erie Insurance, New Jersey Manufacturers and USAA. This strong showing reflects how far the insurance industry has come in terms of how carriers define the customer experience and provide policyholders with service. And it all has been driven by an aggressive deployment of emerging (and sometimes unproven) technologies.

[For more about Erie's efforts to improve the customer experience, check out the company's recent tech-focused personnel moves.]

Inevitably, these positive developments come with a number of risks. Service can be a nebulous concept, and what satisfies customers today might not be enough in the future. There are numerous security challenges involved in supporting mobile communications, social media-based marketing and customized product offers. And definitions of appropriate and necessary privacy protections are fluid. One false step and the reputation of a service leader can quickly deteriorate.

Katherine Burger is Editorial Director of Bank Systems & Technology and Insurance & Technology, members of UBM TechWeb's InformationWeek Financial Services. She assumed leadership of Bank Systems & Technology in 2003 and of Insurance & Technology in 1991. In addition to ... View Full Bio

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