The art of managing client relations

Leopold Malan, Executive Director at BrightRock

Ask any successful business owner how they manage to create a positive customer experience, and the answer will very likely be that they “always put the customer first”. Another popular answer is that the “customer relationship is always at the centre of what we do”. But what, exactly, does it mean to put your customer first, or at the centre of what you do?

Forging a positive experience

In business language this approach to the customer relationship is known as customer centricity – an approach that creates a positive experience before and after the point of sale. And while it is very clear that many insurance products are putting the customer first before the product is sold, it is not always that obvious after the policy kicks in.

The long term insurance industry’s approach to customer centricity does not always factor in the fact that policyholders’ needs change. If we claim we are customer-centric, we, as product providers, have a responsibility to anticipate and match these needs over time. Part of this responsibility is to acknowledge that no-one’s needs change in the same way, and this should be inherent in the design of long term insurance products. This, in turn, will enable good, honest, needs-matched advice, which will empower financial advisers to follow a customer-centric approach.

Taking centre stage

The role of the financial adviser has always been crucial to following a customer-centric approach, because the financial adviser is responsible for bridging the gap between the product and the customer.

In an industry where basic long term insurance products are outdated and have inefficient product structures, it has become increasingly difficult for advisers to bridge this gap. Regulatory changes like the Retail Distribution Review (RDR), which requires unbiased, ongoing advice, have added even more pressure to find and sell products that are truly customer-centric.

Newer is better

There are newer, forward thinking product providers that offer sustainable solutions with transparent, premium efficient cover that matches clients’ needs. This new generation of life cover providers harness technology to reduce the paperwork between the client and the adviser through client-friendly quoting interfaces, smart forms that auto-populate client details, tele-underwriting and electronic signatures that save time and reduce the schlep factor.

They also embrace Big Data, which provides a wealth of information becoming available about consumers and their behaviour. Thanks to this, customer-centric product providers are gaining growing insight into exactly what consumers’ needs are. They also have sophisticated technology and incredible processing power at their disposal to create products that are intuitive, flexible and customisable to match clients’ needs very precisely. Big Data also allows customer-centric insurers to pick up those life changing events that typically prompt customers to review their insurance cover.

Adapt or die

There are many life cover providers that claim the customer is central in everything they do. This, unfortunately, is not the case with traditional life cover products filled with complex jargon, heaps of paperwork and unsustainable premium patterns.

The life cover providers that are truly getting it right, are the ones that match customers’ needs before, and after the policy is sold. And they do not just match these needs by incorporating flexibility and accessibility into their product design thanks to technological advances. They can match truly unique, individual needs and are able to change with these needs on a personalised basis – and that is where true customer centricity comes into play. This, in turn, empowers you – the financial adviser – to provide the best, ongoing advice and to bridge the gap between the customer and the product.