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4 Steps to Prepare for a Pain-Free Legacy CCM Migration Process

By: Chris Murphy, VP Product Marketing at Smart Communications

Adapting to the always-connected customer has become a catalyst for digital transformation – especially now as we adjust to the new norms brought forth by COVID-19. When it comes to customer communications management software (CCM), more organizations are finding that their legacy print system models and applications are turning into roadblocks and preventing agility. These fragmented systems are unable to communicate efficiently across business units and company divisions. Nor can they easily integrate with marketing, eCommerce, and CRM systems to coordinate data and messaging, which leads to a disjointed customer experience.

The good news is, you don’t have to become victim to an outdated legacy system. Here are four key steps to follow to prepare for a seamless CCM migration and ensure you are well-equipped to digitally transform your customer communications.

1. Understand the Goal of The CCM Migration

Gaining consensus on the why of your CCM platform migration is crucial, but sometimes overlooked part of obtaining organizational buy-in and the successful fruition of any digital transformation project. Is the impetus of considering a new customer communications management strategy driven by compliance reasons, core system modernization, to reduce risk, to centralize communications across lines of business, to reduce costs, to instill more agility into communications strategy, to better empower business users, or maybe to provide an overall better customer experience?

While all these may be realized benefits of moving to a modern CCM solution, the primary driving reason will help to dictate not only the core buying and evaluation group that you’ll need to work with but also the key performance indicators and success metrics that you’ll use to quantify the success of the project.

Explore these real-world success stories of organizations that are mastering CCM migrations with Smart Communications. 

2. Determine Which Deployment Option is Best

As more organizations begin to adopt and develop a cloud-first strategy, it’s likely that your organization has already discussed the option of leveraging an enterprise application in the cloud. Before jumping head-first into a migration, it’s important to ensure everyone has a basic understanding of not only the options available but also the benefits of each approach in order to determine on the best approach for your company.

  • Software as a Service (SaaS): A method of software delivery in which software is licensed and then accessed online via a subscription, rather than being purchased for installation.
  • Platform as a Service (PaaS): A cloud computing model in which a provider delivers hardware and software (typically those needed for application development). The provider hosts the hardware and software on its own infrastructure, rather than requiring users to install in-house.
  • Cloud: Simply put, cloud computing is the delivery of computing services over the internet. These services are offered as either public or private cloud. With public clouds, all hardware, software, and other supporting infrastructure are owned and operated by a third-party service provider and users share those resources with other organizations or “tenants”. With a private cloud, resources are exclusively used by one organization either via an on-site data center, or a hosted data center. Either way, the services, and infrastructure are on a private network with hardware and software dedicated solely to one organization.
  • Hybrid Cloud: A combination of on-premise and public/private cloud, each performing distinct functions, with orchestration between the platforms.
  • Managed Service: A deployment model in which a third party manages a customer’s IT infrastructure and/ or end-user systems remotely, requiring hosting, management, and staffing costs.

3. Assess Your Digital Readiness

This might be your most important step in the process because it will show you exactly how ready your organization is to make the leap to a more modern, cloud-based service. As part of any CCM migration process, it’s important to consider whether or not to add digital channel production to your existing print operations. First, you’ll want to evaluate your print operations to see which document types can most easily be digitized. Begin by measuring print volume by department, categorizing types of printed collateral, and identifying types of customers receiving print documents. Start creating a content inventory list that covers basic metrics surrounding the total number of communication documents and templates you have, the total number or percentage of reusable content, volumes by document, and which department owns the content. It’s also important to start thinking about the complexity of the documents – are they easily converted to digital channels or are they very complex – these may up end up being prioritized later in the migration process. This process allows you to trace and quantify your current reliance on printed collateral while recognizing any knowledge gaps that exist so you can perform a CCM migration efficiently and effectively.

4. Know Your Existing Cost Model

Cost is always one of the biggest issues when it comes to justifying a migration strategy business case. When starting the cost evaluation process, most businesses realize they know a lot less about their full cost model than they thought they did. Depending on how many communication documents, forms, and templates need to migrate, and how they’re currently being generated, it can be confusing to put a figure on it. If you don’t have a comprehensive view of the current cost model, it can be hard to make a migration strategy business case look positive to key stakeholders.

While some of us are lucky to have a corporate decision that’s driving migration out to the cloud, having a clear picture of your all-in costs (don’t forget on-premise maintenance and operational costs, print and mail delivery costs, etc.) will only benefit you in the long run by setting realistic expectations upfront. Working with a vendor to establish a solid ROI calculation or looking at similar total cost of ownership (TCO) studies can also be an invaluable input into any evaluation decision criteria.

Let’s face it, change is hard. But, remember that your customers’ lives are changing, so to stay ahead of the game, your organization must be willing to change too.

Are you ready for a more simplified, pain-free legacy migration? Discover how our CCM migration solutions reduces cost, time, and complexity.

How CCM Software Can Bridge the Generational CX Divide: The Latest Research and Data

By Smart Communications

In today’s rapidly evolving business landscape, customer experience (CX) has become a pivotal factor for success. Staying ahead in this competitive arena requires adapting to the changing expectations and preferences of consumers, especially as different generations hold sway over the market going into 2024.  

To shed light on these demographic-led shifts and understand how they impact CX, we turn to our recent Benchmark Report. In this blog, we’ll expand on some of the research findings and explore why CCM (Customer Communications Management) software is an essential tool for bridging the generational CX divide. 

Understanding Demographic-Led CX Shifts 

Before we delve into the solutions, let’s first define what we mean by “demographic-led CX shifts.” In essence, this term refers to the changes in customer behavior and expectations driven by different age groups, such as Gen X, Millennials, and Gen Z. 

Consider the example of Gen Z, a generation known for its digital prowess. This demographic has grown up with smartphones and social media, making them accustomed to instant communication and personalized experiences. Such expectations have had a significant impact on industries such as retail and eCommerce, where brands need to offer seamless online and in-store shopping experiences and engage through social platforms to stay relevant. 

 

Our research also uncovered the importance of optimizing digital processes to ensure customer effort is low. As we mentioned above, Gen Z are averse to maladaptive processes and as digital natives, they’re the savviest customer demographic—with growing buying power. This means their influence amongst their peers and the businesses catering to them will increase, too. In fact, Gen Z is predicted to surpass Millennials as the largest consumer base in the U.S. by 2026. Data shows that they’ve already made an impact on industries like financial services and insurance, according to an article by Forbes which ranked trust and experience as two critical ranking factors when choosing a company to do business with. All that said, your brand needs to focus on providing a human element to ensure communications meet the right tone. On the flip side, automation can provide the necessary simplicity and efficiency these younger demographics expect when deploying communications across multiple channels.  

How CCM Software Helps Enterprises Account for Demographic-Led CX Shifts 

One of the most effective strategies for accommodating demographic-led CX shifts is personalization. According to recent data, a staggering 81% of customers believe that communications are somewhat or very important to their overall customer experience. This highlights the need for tailored interactions and messaging.

But how can organizations tailor products and services to meet customer expectations? This is where Customer Communications Management (CCM) software comes into play. Modern SaaS CCM solutions play a crucial role in helping businesses plan for and adapt to demographic shifts by: 

  • Creating highly personalized communications.

  • Communicating on the channel of choice for customers (regardless of their demographic) and adapting to channel preference changes quickly.

  • Understanding the tone, sentiment and reading levels of content used in communications to maximize impact and customer outcomes.

  • Adapting quickly to regulatory changes.

  • Being able to communicate rapidly in the moment, via digital channels, which reinforces trust that transactions have processed.

In a world where CX can make or break a brand, it’s imperative for enterprises to embrace these strategies and technologies. Staying ahead of the generational CX divide is no longer an option; it’s a necessity for survival and growth.  

That’s why understanding and adapting to demographic led CX shifts is paramount for any business looking to thrive in the modern marketplace. We’ve explored the importance of data analysis, personalization, and the role of CCM software in achieving these goals. 

Conclusion 

As we enter 2024, there’s no better time to take proactive steps to enhance your CX strategy. Smart Communications’ leading CCM software can provide deeper insights into how customers interact with your brand. It equips you with the tools needed to implement changes based on the reports from Aspire and other sources. 

Your future success depends on your ability to adapt to the ever-changing landscape of customer expectations. Don’t wait—download the reports today to gain a competitive edge by enhancing your customer experience. 

Outsourcing Communications: Can Non-Core Activity Cause a Meltdown? Yes.

By Scott Draeger, SVP of Product Marketing & Vertical Solutions at Smart Communications 

Many banks, building societies, insurers, and government agencies routinely outsource customer communications. These organizations consider the production of customer communications to be a “non-core” business activity. But when a service bureau experiences financial difficulties, these organizations scramble to contain the damage of a communication meltdown. Recent developments at Communisis, as covered by Printweek, are a cautionary tale for organizations that outsource too much of the valuable part of their voice to a third party. 

Suddenly, many leading organizations learned that lawyers, businesspeople, and consultants in other countries are important stakeholders in their customer communication supply chain. “More broadly, we [Communisis] have been working closely with our advisors, customers and stakeholders over the past few months to explore a number of strategic options which will enable Communisis to move forward independently on a positive and sustainable footing,” per a Communisis spokesperson as quoted by Printweek.  

For organizations outsourcing communications, chaos at a key supplier throws leadership teams into crisis mode for a supposedly low-risk “non-core” activity. We have evidence that has firmly established that communication is a core business activity. At a minimum, impacted organizations have been forced into wasting months of effort in crisis management activities, massively increasing the cost of a “non-core” activity. 

Organizations that internally manage the design, content, rules, and other IP associated with their customer communications are immune to situations like this. The design, content, rules, and other IP that form the customer experience layer of your business should be entirely within your control. Smart Communications' clients using SmartCOMM™ and/or SmartIQ™ have total control over their voice across all channels and interactions while retaining the flexibility to manage the truly non-core production process in any way they choose. 

Leaders have already been moving in this direction by shifting to digital communications. According to the Printweek article, “Its [Communisis’] transactional print business took a big hit with sales down 20% as banking customers accelerated their migration to digital comms.” This demonstrates the degree to which banks, and other industries, are regaining control over their digital communications. 

Take notice of this situation, as hundreds of millions of communications in the UK will experience a change in the supply chain. Hopefully, it will be invisible to the customers and recipients due to the heroic efforts of reactive leadership teams. For you, it is far better to avoid the chance of a “non-core” meltdown by retaining control of the design, rules, content, and other IP that support your customer relationships. Learn why Smart Communications has earned the only “Customer First” award for Customer Communications Management from Gartner. 

Discover how The Conversation Cloud makes it easy for highly regulated industries to maintain compliance and mitigate risk, or get in touch for a CCM Migration Consultation.
 

How Enterprise Risk Management Helps Enterprises Safeguard Their Reputation

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By Chris Murphy, Vice President of Product Marketing, Smart Communications 

In today’s digital world, regulatory oversight is on the rise, and it’s not necessarily a negative thing. From consumer protections to privacy safeguards to accessibility guidelines, constantly evolving regulations affect nearly every industry—particularly those that handle sensitive information, such as insurance, financial services and healthcare. This fact is great when we consider that much of the regulatory oversight was put in place to help protect consumers in marginalized or vulnerable groups. While compliance has traditionally been viewed as a business necessity that creates more work, in today’s enterprise landscape it actually presents an opportunity for organizations to show their customers that they care, earning trust and safeguarding the business’s reputation. Though it may be seen as a business challenge, it allows companies to be responsible in their actions and held accountable by developing a strong process for enterprise risk management and compliance. 

To stay aligned with ever-changing requirements, enterprises need an agile and scalable technology stack that makes it easy to keep up. Cloud-based solutions provide many of these benefits. For example, cloud-based solutions offer open APIs that make it easier to connect to core systems and use known data to deliver more transparent and personalized client experience. Modern Customer Communications Management (CCM) solutions can provide instant visibility into the content and language being used across the entire library of forms and communications so businesses can easily find and update even the smallest details. 

Shifting Regulations Present New Opportunities for Risk Management and Compliance Management 

In recent years, digitization has led to increased data privacy and consumer protection regulations. To stay compliant with regular updates, enterprises need to take a closer look at how they interact with customers. Cloud-native solutions offer the agility and speed that's required to meet these regulatory requirements while also offering an opportunity to better serve customers. This is especially true for the industries that are subject to the most scrutiny. Some examples: 

Insurance: Evolving requirements 

The global pandemic accelerated digitization in the insurance industry, impacting compliance requirements and other key areas such as data security and consumer privacy. In the US, 21 states have adopted the NAIC Insurance Data Security Model Law. On a global level, Insurance Capital Standard (ICS) development continues, with ICS 2.0, in a five-year monitoring period that began in 2020, while also being reviewed for compatibility in the US. As digitization grows, insurers will need to balance an increasingly long list of regulatory issues, making visibility into organization-wide documents and communications a top priority. 

Financial Services: Under the microscope 

The rise of open banking, growth of digital-first fintechs, and rising defaults and customer vulnerability coming out of the COVID pandemic have all sparked a new wave of regulations and penalties in financial services. Regulators like the FCA in the UK; the European Commission; and the CFPB, SEC and FINRA in the US are focusing on transparency and data usage. Keeping up with changing demands is difficult for even the most well-resourced compliance teams. Lending businesses are focusing especially on refining their default and collections business processes, while wealth and asset management firms are focusing on suitability and client reporting, all with an eye on making sure customers know more about costs and risks. Sophisticated, cloud-based systems are critical to staying one step ahead of both regulations and threats—which is critical to protecting the reputation of any financial services organization.  Having a full audit trail that shows who, when and how changes were made to forms or document templates is an absolute must.  

Healthcare: Privacy law updates 

The healthcare sector in the U.S. has long been subject to strict consumer privacy laws including the Health Insurance Portability and Accountability Act (HIPAA). Some states are implementing even more stringent regulations. The California Consumer Privacy Act (CSPA) along with new laws in Colorado, Connecticut, Utah and Virginia, collectively known as “2023 Privacy Laws,” will affect the extent to which entities maintain patient information and lay out complex exemption standards that vary by state and law. Healthcare organizations in affected states need to prepare to update data management processes and also to present relevant privacy policies to consumers. Legacy systems simply aren’t up to the task. 

WCAG Driving Change Across Enterprises 

Until recently, accessibility was considered a “nice to have” element in terms of digital presence and communications for most enterprises. But with European Union Directive and the Department of Justice’s recent assertion that websites (or outbound communications and other digital experiences) fall under “public places of accommodation” in the Americans with Disabilities Act (ADA) Title III, certain accessibility standards are now required. While specific requirements vary by country, the most recent Web Content Accessibility Guidelines (WCAG), which are the international standard for accessibility, focus on four principles: perceivability, operability, understandability and robustness. WCAG also lays out three levels of conformity with most organizations striving for the middle, Level AA. Failure to meet WCAG standards can lead to costly litigation – not to mention loss of reputation.  

Making websites and communications accessible helps enterprises reach a wider audience and also builds trust, because consumers today care about doing business with ethical companies. Digital forms and other customer communications should also meet accessibility standards. Some accessibility requirements are fairly straightforward — for example, including alt text on all images and transcribing audio files. But incorporating accessibility into the entire digital ecosystem at the enterprise level is complex. Updating things like font size and color, background color contrast, and screen reader accessibility require a sophisticated approach. Relying on outdated systems or manual updates runs the risk of error, costly fines and litigation. Modern solutions allow enterprises greater visibility into and control over digital assets at scale.  

Reducing Risk for Highly Regulated Industries 

For the most closely regulated industries and the public sector, the risks of failure to comply are costly. Healthcare organizations can face minimum penalties ranging from $100 to $50,000 per HIPAA violation, with a maximum of $1.8M for top tier violations. Failure to meet Service Organization Control (SOC) 1 and 2 requirements relating to data confidentiality can result in total lack of public trust. For businesses operating in the cloud, SOC 2 compliance has become table stakes. Similarly, the international standard for managing information security, ISO/IEC 27001, brings hefty fines for failure to comply. In the U.S., the SEC has leveled huge fines on asset managers who failed to deliver Customer Relationship Summary forms to clients, part of the Reg BI standards that call for brokers to act in their clients’ best interest. For this reason, prioritizing compliance has become a strategic imperative across the healthcare, insurance and banking industries. 

Protecting customer data and reducing errors are also critical to safeguarding a company’s reputation and should be at the core of any enterprise’s risk management and compliance efforts. Failing to show good faith in securing data or making content accessible can reduce an enterprise’s competitive edge and likely lead to revenue loss as well. Moving to the cloud gives organizations the visibility and agility that’s needed to maintain compliance and minimize risk, without driving up costs. Rather than manually searching forms and communications one-by-one to find what needs to be updated, modern-architected solutions compartmentalize the building blocks of communications into component parts. This creates a seamless process for searching entire communications libraries for language fragments that are used across communications and make instant updates across the board. Even things like font size and color can be updated centrally, making it easy to keep up with changing regulatory requirements. 

Choose the Right Solution Partner to Enhance Compliance and Regulatory Risk Management Capabilities 

Choosing the right cloud solution provider can help enterprises greatly reduce oversight-related risks by simplifying, and in some cases automating, compliance. Choosing a vendor-hosted SaaS solution with an established data security framework and built-in safeguards can help enterprises meet privacy requirements, prevent breaches and automate reporting. A cloud-based solution also provides deep visibility into nuanced vertical requirements and the agility to quickly update language, formatting and other content when regulations change—which they always do.

Discover how The Conversation Cloud makes it easy for highly regulated industries to maintain compliance and mitigate risk. 

About the Author
Chris Murphy is Vice President of Product Marketing for Smart Communications, the only provider of a customer conversations management platform specializing in helping enterprises – many in the world’s most highly regulated industries – to deliver smarter conversations across the entire customer lifecycle. Chris is currently responsible for the go-to-market strategy for its flagship product SmartCOMM™, a customer communications management solution. A frequent speaker at customer and industry events, Chris has over 18 years of industry experience and has held various positions at leading organizations including SalesLoft, IBM, and Silverpop.

Healthcare Member Communications Are Ripe for Transformation – Are You Prepared?

By: John Zimmerer, VP of Industry Marketing, Insurance at Smart Communications

As parts of the world begin to open up, it’s easy to think that life, for both businesses and consumers, can simply pick up where we left off. But to do so would ignore the opportunities for improvement that we were forced to explore during the worst of the pandemic. One key lesson at the top of our list? The need for healthcare payers and providers to focus on timely, relevant and personalized member communications. While the pandemic provided the catalyst to accelerate the implementation of better digital conversation experiences, there’s still a long way to go, as revealed by data from J.D. Power:

  • 54% of members do not understand if telehealth services are covered
  • 48% believe the payer has not shown concern for their health since the pandemic began
  • Only 25% view the payer as their trusted partner
  • Only 36% feel the payer acts in their best interest

Clearly, there are major gaps in the way healthcare payers and providers think they are communicating to members, and how members are actually receiving those messages. In fact, recent research revealed that 63% of businesses think they are delivering excellent or very good communications to their customers, but only 51% of consumers give the same ratings to the communications they receive.

In a recent panel discussion at the Cognizant Healthcare Conference, three Smart Communications experts shared their perspectives on how the healthcare communications landscape is changing, and what leading payers and providers need to do to transform member experiences. While we invite you to view the full recording below, this post also highlights some of the key takeaways from the discussion and some best practices for delivering two-way, digital conversations.

Key Challenges Accelerating the Pace of Communication Transformation

The J.D. Power statistics show us that trust is low, and key messages, like those around telehealth coverage, are being missed or fall flat. Historically, this has been caused by both technological and operational limitations:

  • Static, mass email blasts to all customers delivering the same high-level messaging regardless of individual circumstances
  • Disconnected communication experiences that force members to provide the same information again and again across channels
  • An over-reliance on print for communicating key messages instead of a multichannel approach based on a customer’s stated preferences

These challenges have been felt across the four key areas of the healthcare member experience where it is most important to get communications right: member acquisition and enrollment, onboarding, care management and claims. If customers feel like they’re having suboptimal experiences everywhere they turn, it’s no wonder their frustration results in lower scores on the most critical customer satisfaction metrics.

Creating SMARTER Member Conversations

The good news is that many of these challenges can be solved. Leading payers and providers are taking the steps necessary to overcome traditional challenges and build the technical and operational infrastructure needed to transform the future of healthcare communications.

One powerful example of how to achieve the dream state of SMARTER customer conversations comes from Blue Shield of California, as shared at INNOVATE 2021. In their quest for 95% of communications to be digital-first, they pursued the following principles for success:

  • Make it Simple – only deliver communications that solve or pre-empt members’ needs and expectations. Rely on dynamic templates that drive consistency across channels but also increase agility. Then, streamline preview and approval processes.
  • Make it Useful – only deliver communications that provide relevant information in every channel, based on a combination of stated preferences and insights derived from advanced analytics.
  • Make it Mine – only deliver communications that are personalized, while keeping security top of mind.

These guiding principles are an important starting point for the larger question healthcare payers and providers are focused on – where are the biggest opportunities for improvement?

Here are just a few examples of how digital optimization can make a huge impact, along with real-world results:

Collecting Open Enrollment Choices Digitally 

As the largest customer-owned health insurer in the U.S., supporting 140,000 employers across 5 states, Health Care Service Corporation (HCSC) realized the importance of transforming its open enrollment processes. HCSC had 250 manual, static forms which contained 20 unique sections with 3,000 different attributes that needed to be delivered to 26 downstream internal and external customers. The need for a highly scalable solution was especially evident here. HCSC worked with Smart Communications to eliminate manual forms in favor of a single, guided, digital interview process.

Using SmartIQTM, HCSC eliminated manual re-entry, reduced their support team training time and increased the amount of time employers had to make decisions, ultimately increasing productivity while lowering cost. Learn more about HCSC’s success in Transforming Manual Forms Processes into Exceptional Digital Experiences from INNOVATE 2021.

Streamline the Contract Generation Process

A leading managed healthcare and insurance provider sought to digitally optimize and improve their employer-sponsored plans. By working with Smart Communications, they managed to optimize a manual contract generation process involving multiple internal and external groups that took 2 weeks to just 1 business day—a 90% increase in efficiency. Additionally, when used in combination with SmartCOMMTM for Salesforce, they were able to generate a contract in only 30 minutes, a dramatic improvement from where they were.

Globalization and Optimization Across the Enterprise – at Scale 

The ability to optimize across multiple brands, jurisdictions and languages can vastly improve efficiency while reducing cost. By leveraging approachable technology, payers and providers can also optimize their workload throughout the organization, instead of being in a situation where certain tasks can only be completed by IT or specific subject matter experts.

With healthcare communications at an inflection point, taking proactive steps to align technology and operations for an optimal member experience is essential. And the cascading business benefits are measurable.

If you’d like to learn more about transforming healthcare member communications, check out our white paper “From Onboarding to Lifelong Relationships.”

Enhancing the Healthcare Customer Experience: The Guide to Medicare Advantage Plan Member Engagement

By: John Zimmerer, VP of Healthcare Marketing at Smart Communications

In recent years, the healthcare industry has undergone a slow yet significant transformation, driven by advancements in technology, changes in regulatory policies, and a shift in plan member demographics. As a result, healthcare payers have been faced with the challenge of managing an increasingly complex and demanding customer base. This is especially true for Medicare Advantage plans, where customer communications play a critical role throughout the enrollment process and beyond. Everything from Annual Notice of Change (ANOC) documents to the Appeals and Grievances processes, these communications and customer journeys are crucial in building strong relationships with customers and improving overall Medicare Advantage plan member engagement.  

The U.S. Centers for Medicare & Medicaid Services, or CMS, provides guidelines to help health insurers achieve compliance with US federal laws pertaining to Medicare Advantage (MA), Medicare Advantage Prescription Drug (MA-PD), Prescription Drug (PDP) and 1876 Cost Plans. CMS regulates a wide array of communications due to how broadly 42 CFR parts 417, 422, and 423 set the scope of that term. Because there’s a lot to keep track of here, compliance can be an issue for healthcare payers striving to protect member information while also enabling a streamlined, convenient digital customer experience. 

While it's great to have these guidelines and model materials from CMS, everyone in a health payer's operations or IT departments knows that managing Medicare materials is as much art as it is science, causing an internal struggle between agility and compliance. What both departments need is a sophisticated, cloud CCM solution that can streamline the design, production, and management of Medicare marketing and communications materials.  

In this article, we’ll focus on:  

  • The current state of customer communications for Medicare Advantage plan enrollees. 

  • The link between Medicare member engagement and payers’ administrative operations. 

  • How healthcare payers can bridge the gap between customer experience and agility to enhance Medicare member engagement. 

  • A subset of typical healthcare payer marketing communications. 

RELATED READ | ‘The Ultimate Guide to CCM Software & Strategic Solutions’ 

Customer Communications for Medicare Advantage Plan Enrollment is Ripe for Transformation 

Most payers are in the habit of printing and mailing materials every year. Many are also now posting these to their websites or member portals, most commonly as PDF files. It’s a rare payer that goes ‘all-in’ on digital delivery, even though, per 42 CFR subsections 422.2267(d) and 423.2267(d), all the materials listed above may be delivered electronically provided the enrollee has opted in. Even with this allotment, healthcare payers have historically struggled to manage customer communications effectively, leading to poor customer experiences and friction-filled member engagements.  

The following communication types, which we’ll expand on at the end of this post, are just some of the documents which must be filed with CMS using the HPMS Marketing Module: 

  • Annual Notice of Change (ANOC) 

  • Evidence of Coverage (EOC) 

  • Provider Directory 

  • Pharmacy Directory 

  • Drug Formulary 

  • Explanation of Benefits (EOB) 

  • Appeals and Grievances Notices 

One of the biggest challenges facing healthcare payers is the sheer volume of customer communications they must handle. With so many different channels and touchpoints, it’s tough to ensure every customer receives timely and personalized communications via their channel of choice. This is particularly true during the Medicare Advantage plan enrollment process, where customers are often bombarded with confusing and overwhelming information. 

In addition to the volume of communications, healthcare payers must also contend with the complexity of the information they are communicating. Medicare Advantage plans are notoriously complex, with many different rules, regulations, and benefits that can be difficult for customers to understand. As a result, healthcare payers must find ways to simplify this information and present it in a way that is easy for customers to digest while still providing pertinent information that is required by law, rule, or regulation. 

Healthcare payers currently fall short in their efforts to manage customer communications effectively, leading to frustrated customers who may feel disconnected from their healthcare plan and are less likely to engage with their payer in the future. This has proven to lead to increased member churn and lower overall plan satisfaction. What’s more is that any negative member experiences can impact Star Ratings, which we’ll go over in the next section. 

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Read more about this in the commissioned report from Forrester: ‘Disjointed Experiences Cost Insurers Members and Money: The Bleak Reality of Member Experience with US Health Insurers’ 

Cloud-based Customer Communications Software Enhances Medicare Member Experience 

To address these challenges, healthcare payers are increasingly turning to cloud-based customer communications management (CCM) software. This allows payers to manage all their customer communications from a single platform, providing greater visibility and control over the entire process and making possible a seamless omnichannel approach for members. With cloud-based customer communications management software, payers ensure that every customer receives timely and personalized communications on their preferred channel, while also simplifying the information they are presenting. 

By leveraging cloud-based customer communications management software, payers can improve member engagements, reduce churn, and ultimately provide a better healthcare experience that has the possibility to enhance Medicare Advantage plan member engagement. As the healthcare industry continues to evolve, and member engagement remains a growing area of focus for leaders, customer communications will only become more important. That’s why it’s essential to invest in the right tools and technologies to stay ahead of the curve. 

The Importance of Star Ratings and How CCM Software Can Help Medicare Member Engagement

When healthcare payers fail to engage with their members and make them feel seen and heard as individuals, it can lead to disenrollment and negatively impact Star Ratings. Additionally, the CMS Star Rating system is placing more emphasis on member experience and payer administrative operations rather than solely on clinical outcomes. These ratings have significant implications for healthcare payers as they can result in bonus payments for high-performing plans and influence the decisions of future members. According to a report from McKinsey, 56 percent of seniors reported that Star Ratings were one of the top features they considered when shopping for Medicare Advantage plans. 

Check out our short video below to see how Grace, a Medicare Advantage enrollee, engages with her plan throughout the customer lifecycle, and see how SmartCOMM™ and SmartIQ™, two products in the Conversation Cloud from Smart Communications, make life better for her and her chosen Medicare Advantage Organization (MAO).

Below, we dig into the use cases featured in the video.

 

Annual Notice of Change (ANOC) 

The Annual Notice of Change (ANOC) is a critical document for Medicare Advantage members as it informs them about any changes in their plan for the upcoming year. For health payers, managing the creation and distribution of ANOC can be a challenging, time-consuming task. Below are some of the common pain points, plus, how a leading cloud CCM solution can help alleviate them. 

One of the most significant challenges of delivering and managing ANOC is the repetitive nature of the content across different plan types. Modern customer communications management (CCM) solutions employ a layered model that separates content from styling and branding, maximizing the use of reusable objects. This allows payers to create the content once to use across multiple plan documents, simplifying the translation efforts and minimizing the effort to comply with accessibility standards. With this ability to create personalized ANOC documents that reflect the unique needs of their members, while also minimizing redundant content, health payers can ensure their Medicare members feel empowered to manage their plans. 

As many health payers have plans in multiple jurisdictions, which can complicate the ANOC process, having a solution that accounts for these variations is key. SmartCOMM’s Editions feature allows payers to create tailored ANOC documents for each jurisdiction they serve, ensuring that members receive accurate and relevant information as per their region. 

Finally, the ANOC process often requires reviews and approvals from multiple stakeholders, which can lead to delays and errors. With a built-in workflow feature, payers can streamline the process of managing and tracking reviews and approvals in a centralized system. Ultimately, this reduces the risk of errors without sacrificing agility, ensuring that ANOC documents are delivered on time. 

Though managing the ANOC can be a complex and time-consuming process, the right technology and tools help healthcare payers streamline the process of creating and delivering personalized, accurate ANOC documents to members. This helps improve the overall Medicare member engagement, leading to more renewals and higher Star Ratings in the long run. 

Evidence of Coverage (EOC)

Providing members with accurate and comprehensive information about their healthcare benefits is crucial for payers. However, managing the Evidence of Coverage (EOC) is a complex and lengthy process as relevant details and data may exist across multiple core systems. Even more frustrating is the limited access to real-time eligibility and coverage information coupled with the fact that data which is available could be incorrect due to data entry errors.  

The right cloud CCM software simplifies the process of managing and storing EOC documents as it enables easy access to member eligibility data, plan coverage details, and benefit limits in real-time. With the right integrations in place, customer communications management solutions can minimize errors and reduce administrative costs for payers. SmartCOMM, for instance, can seamlessly integrate with a wide range of core systems, such as policy systems and CRM, allowing for the easy personalization of information based on members' needs. 

We understand that complex tables can be a pain point when it comes to managing EOC documents. Modern CCM solutions easily create complex tables that span multiple pages, including repetition of header and footer rows. This helps members easily comprehend their healthcare benefits, including what's covered, what's not, the costs, and their right to appeal. 

Provider Directory 

It is crucial to provide members with a comprehensive Provider Directory that is easy to access and find information in. However, traditional directories present several challenges that negatively impact satisfaction. These include: 

  • The directory's size makes it costly and challenging to print 

  • It can be difficult to keep the directory current as provider networks change 

  • There’s a sub-par user experience especially when the directory is printed 

  • High customer burden as members must sift through numerous listings to find the right provider 

To provide the best possible outcomes and experience for members, payers should invest in a leading cloud CCM solution that enhance the Provider Directory for both members and providers. This means minimizing the number of directories that need to be printed, honoring member channel preferences, and creating one template that can be used for both print and digital versions which ensures consistency across all channels. 

Our technology allows you to integrate data from various sources to create on demand the most up-to-date and personally relevant version of the Provider Directory. SmartCOMM can potentially present only the providers that match specific criteria (such as specialty area or location) as HTML versions may differ from print versions. This allows for a tailored web experiences to meet members' needs, such as only showing, for example, in-network acupuncture providers within 10 miles if that is what the member is seeking. 

Pharmacy Directory 

A Pharmacy Directory is a unique list of participating pharmacies, including preferred pharmacies where members receive the best prices. It is typically organized by state and then sorted by zip code, like a phone book. Providing members with an accurate and up-to-date Pharmacy Directory is a great way to prioritize Medicare Advantage plan member engagement. 

Realistically, Pharmacy Directories present various challenges that can negatively impact member satisfaction. Just like the Provider Directories, members must wade through large documents to find out if their pharmacy is preferred, which can be challenging and time-consuming. 

Payers should provide different experiences per channel, such as PDF or print versus web or mobile. This flexibility allows members to access Pharmacy Directory information in a way that is most convenient for them, leading to improved member satisfaction. By improving the Pharmacy Directory experience, members are empowered to easily find the pharmacies they need, ultimately leading to better health outcomes and less frustration toward health insurers. 

Of course, this level of customization and personalization will require partnering with a CCM vendor who understands the nature of the health insurance industry. For more information on why Smart Communications is uniquely positioned to do so, read the report from Aspire, naming Smart Communications as a leader in Vendor Hosted SaaS Customer Communications Management (CCM). 

 

Drug Formulary 

Providing a comprehensive and up-to-date drug formulary to their members is a necessity for health insurers looking to enhance the member experience. The drug formulary is a high priority for the average Medicare Advantage, supplemental or prescription plan member, especially when they are on multiple maintenance medications. However, many common pain points can detract from the member experience, causing members to disengage altogether. 

Like is the case with Provider and Pharmacy directories, one major pain point with a drug formulary is the lack of access to the most up-to-date list of drugs. With drugs being added, deleted, and changing tiers, it can be challenging for members to stay informed about the latest formulary. Additionally, traditional drug formularies can be a terse volume that lists medications categories (e.g., NSAIDs under analgesics), making it hard for individuals to navigate and find the information they need. SmartCOMM solves these problems by integrating with back-office systems and triggering the automatic generation of a new version of the drug formulary as soon as a drug is added, deleted, or changes tiers. This is particularly important for the HTML version, ensuring that web visitors have an up-to-the-minute drug formulary to reference that is always correct. 

SmartCOMM also offers layout tools that make it easy to manage the large volume of information included in the drug formulary and create tables inside a PDF/print version. This creates a better member experience, making it easier for members to find the information they need quickly and without frustration. For health payers, being able to offer a customized drug formulary experience for their members, with easy access to the most up-to-date information in a user-friendly format can make or break the overall member experience. 

Explanation of Benefits (EOB) 

Payers know how critical the Explanation of Benefits (EOBs) are to a members' experience yet EOBs are often difficult for members to understand. This often leads to frustration, appeals, and grievances which are time-consuming and costly to the business. These bad experiences can also lead to a diminished brand reputation, lower Star Ratings, and even disenrollment. 

That's where SmartCOMM comes in. Our platform offers a solution that improves the information architecture of EOB documents, making it easier for members to understand the reasons behind the insurer's payments or non-payments. By integrating charts and graphs, our platform visualizes where the member is in their out-of-pocket maximum or deductible, providing a clearer picture of the financial responsibilities. Additionally, you can include related education materials when generating EOBs based on claims included, which further educates members on what was or wasn’t paid and why or why not. 

Moreover, our connected claims abilities will boost self-serviceability and help deflect calls from call centers, allowing Customer Service Representatives to focus on providing the highest level of service to members who need more attention. SmartCOMM's platform also offers various delivery options for EOBs, such as digital and print versions. This flexibility ensures that members receive their EOBs in the format they prefer, which can increase engagement and understanding. 

By leveraging SmartCOMM's technology, payers can enhance the EOB experience for members, reduce appeals and grievances, and improve overall member satisfaction. Health insurers can also use the platform to generate clear and concise EOBs, increasing transparency and fostering trust between members and the organization. 

Appeals and Grievances

For Medicare Advantage providers, Appeals and Grievances (A&G) are an inevitable part of the healthcare member experience. Members have the right to appeal how a claim was paid or file grievances for various reasons. Managing appeals and grievances can be a time-consuming and costly process for both the payer and the member. Not only do payers have mandated response times, which can be challenging to meet, there can also be a lack of transparency and high customer burden for members, including forms to fill out and mail/fax to the payer. For A&G employees, switching contexts between different tools can lead to reduced productivity and further delays. 

SmartCOMM streamlines the appeals and grievances process, reducing costs and improving member satisfaction. Our platform integrates with systems of record, such as PegaSystems, allowing for quicker processing times and reducing the need for third parties in the review process. 

Our flexible templates enable payers to generate all possible permutations of response, including acknowledgments, requests for more information, denials, and approvals, all based on input from a system of record or an A&G employee. This approach streamlines the communication process and ensures that the member receives clear and concise information about their appeal or grievance. 

We also honor the member's preferred channel for generating the communication, which can improve member satisfaction and reduce the burden on your A&G employees. Additionally, SmartCOMM can integrate within other applications (e.g., Salesforce, Pega), helping employees to stay in context and improving their productivity. 

Moving Medicare Advantage Communications to the Cloud 

In addition to the use cases highlighted above, SmartCOMM is a great solution for managing other Medicare Advantage materials and marketing communications, including ID cards, Summary of Benefits and plan booklets. In fact, many healthcare payers use SmartIQ, our forms automation software, to help manage provider and partner contracts, group plan development, and enrollment. 

By moving your communications to the cloud and utilizing SmartCOMM, you can transform your communications into engaging conversations that will help you meet your members' needs and reduce costs. From directories of participating pharmacies to drug formularies, from explanations of benefits to appeals and grievances, having the right systems and solutions in place can help health insurers save money, remain agile, and—most importantly—improve the medicare member experience. 

With SmartCOMM, health insurers can improve Medicare member engagement and streamline communication processes, all while meeting regulatory requirements and staying ahead of the competition. So, why wait? Make the move and start reaping the benefits today!

If you’d like to learn more about how to member engagement, visit our Medicare Advantage page. 

How Banks Are Transforming CX in a Volatile Credit Market With Digital Lending Technology

Times are certainly strange for lenders and credit servicing businesses. Economic data is telling competing stories about the health of the global economy and overall lending trends. Either way, consumers are still requesting new loans or lines of credit and manual processing isn’t cutting it. Could digital lending technology be a catalyst for lenders to future-proof?

In some markets, demand for credit has continued to increase. For example, Ally Bank reports a “25% jump since 2019 in [auto] loan applications from people with incomes above $50,000.” The Los Angeles Times reports that American consumers currently have auto loans totaling $1.4 trillion, double the amount from 10 years ago and now larger than credit card debt, citing the Federal Reserve Bank of New York. College loans have grown so fast that one in seven Americans carry student loan debt.  

Yet historically high inflation and recession fears are denting demand in other areas, as some borrowers pull back. Auto loan delinquencies are on the rise, particularly for young and subprime debtors, according to the Los Angeles Times. “Auto loans more than 60 days late were up 30% in May from a year earlier, although defaults so far remain below pre-pandemic levels, Cox Automotive said.” This means loan servicing and collections staffs are under more pressure than ever.  

What’s Driving Lending Demand Now?  

On the consumer side, many people have spent the savings they accumulated during the pandemic. This has driven an increase in credit card loans, with JP Morgan and Wells Fargo both reporting a 17% jump. This seems to be offsetting in some ways the weakening home mortgage demand brought about by higher interest rates. Further evidence of this trend: “Average loans for Citi’s personal banking and wealth management division, which includes cards, rose roughly 4% from a year ago.”  

On the commercial side, the war in Ukraine and the need to cover costs due to rising inflation seem to be driving the need for financing. In 2Q22, “JPMorgan, for example, saw strong growth in corporate and industrial loans, which grew 6% on higher use of revolving facilities and new accounts opened.”  

Shifting Regulations Put Pressure on Lenders to Stay Agile 

Additionally, changing government regulations are keeping lenders on their toes. For example, the UK’s Financial Conduct Authority (FCA) is launching a new Consumer Duty. It’s designed to improve the customer experience but will inevitably put extra pressure on lenders to ensure compliance. It calls out clear and understandable communications as a requirement, meaning that lenders must have robust content review policies and have technology capable of rapid changes at scale. The Consumer Financial Protection Bureau (CFPB) is also increasing scrutiny in the U.S., especially in the area of debt collections. 

Now’s The Time for Consumer Lenders to Invest in Digital-First Customer Experiences 

So, at the end of the day, what are lenders to do with so much curious, conflicting data and a rapidly shifting regulatory environment? What they should do regardless of external circumstances: focus on the customer and their evolving needs. Specifically, this means investing in creating fast, easy, digital-first lending experiences.  

In fact, banks are investing in improving digital lending as a key priority, according to analyst firm Celent. In its IT Strategy and Priorities for Retail Banking 2022 survey, Celent reports 56% of banks are investing in improving the digital lending experience — the single biggest product priority.  

We’re seeing this in our conversations with banks and lenders as well, speaking with transformation leaders who are finding a return on the investments that modernize the way they engage and communicate with borrowers as well as front office customer service staff and internal back office loan operations teams. 

Here are a few things consumer lenders can do to take advantage of this unique environment, while setting themselves up for success regardless of what the future holds.  

  • Double down on digital customer experience. As we revealed in our ebook, 5 Trends Shaping the Next Generation of Client Reporting, research from EY suggests that clients are willing to pay more for better digital experiences. You can grow rapidly and avoid price sensitivity by boosting your digital lending technology, particularly ensuring that mobile experiences are just as excellent as desktop.  
  • Automate as many processes as possible. As The Bancorp and many other leading financial services firms (who also happen to be Smart Communications customers) can attest, the more you automate the lending journey, the faster and easier it is for customers to work with you. That translates into big gains in terms of more originations and higher margins, while reducing costs like manually rekeying data, postage and printing, and other relics of the time before digital.  
  • Increase agility to navigate regulatory changes. For customers in collections, or in areas like student loans, make sure you have the business agility to make changes to your communications and forms processes quickly. For example, the UK’s FCA, US CFPB, or Australia’s APRA regularly issue new guidance that must be complied with, but it doesn’t have to derail your operations. The right technology gives you the power to quickly modify your communications at scale, even analyzing tone and readability scores.  

What’s Next for Lending? 

While everyone’s crystal ball is cloudier than usual, experts are making some predictions on what’s ahead. Though Morgan Stanley said it grew its loans by $7 billion year over year in 2Q22, their CFO still predicts consumer demand will soften as central banks around the world raise rates to ease inflation. Similarly, the research director at CFRA Research predicts “commercial loan growth would be flat in the second half” of 2022.  

Another major trend we expect to intensify is more focus on embedded finance and Buy Now Pay Later (BNPL) credit, with banks partnering with non-finance entities closer to the point of sale. Even if consumers don’t pursue large loan amounts, many will still take advantage of BNPL financing options on purchases big and small. The appeal of getting what you want now and dealing with the consequences later may rule the day as bank balances shrink due to higher costs of all types of goods and services. [We’re currently partnering with OneSpan on a survey around Embedded Lending trends. Contact us for details on the results.] 

How Can Digital Lending Technology Help Lenders Prepare for Uncertain Times Ahead?  

Though no one really knows what the future may hold, if you’re responsible for growing your loan portfolio, building loyalty or reducing credit default risks, here are some steps you can take to futureproof your business, come what may.  

  • Make the right technology investments now so you’re ready for what’s next. Don’t wait for a rainy day (or an invitation from angry shareholders) to invest in improving your lending customer experiences. Modernize every aspect of your digital lending journey, improving integration and agility with flexible cloud-based solutions wherever possible. Expand your use of digital channels such as SMS, chatbots, virtual meeting rooms or even home devices to communicate with customers. Don’t let your competitors leave you in the digital dust.  
  • Reduce inefficiencies and go lean. The tighter your operations are now, the better positioned you’ll be no matter what happens. Investing in digital lending technology that eliminates manual processes while delighting customers is a win for everyone. Reducing friction for the customer means improved conversion rates – and more revenue. 
  • Improve the personalization and consistency of your communications. Customers want communications that are relevant, timely and available on the channel and device they prefer. They expect you to know who they are and what other financial products they have with your institution, across every interaction. By choosing a robust customer communications platform, integrated with your core systems and e-signature platform, you’ll be able to orchestrate a truly omnichannel experience that puts the customer in the center of the lending journey.  

We hope this advice is helpful, but we’re just scratching the surface of digital lending technology. For a deep dive into the many ways lenders can modernize their digital lending experiences, check out our new white paper, 6 Ways to Change the Conversation in Lending.

About the Author
Karen Oakland is Vice President of Vertical Marketing, Financial Services for Smart Communications, focusing on thought leadership and solutions development for banking, investment advisory firms, and other financial services institutions. For more than 20 years she has been dedicated to helping enterprises transform the way they communicate and engage with their customers, partners, advisors, and other stakeholders, driving revenue and profitability. Karen previously held leadership roles with content and business intelligence software providers including Intelledox, dunnhumby, Thunderhead, FileNet and Epicor.

Drive Efficiencies and Cost-Savings: Migrate and Consolidate CCM Solutions

This is an image: female worker is in a cloud server room, looking at a large tablet

By: Chris Murphy, Vice President of Product Marketing at Smart Communications

During times of economic uncertainty, the only constant is change—which is why businesses need to be agile and always looking ahead. With markets shifting, inflation rising and jobs fluctuating, it’s a good time to focus on building a technology ecosystem that allows enterprises to meet both the near- and long-term needs of the business; not to mention, it also helps to future-proof in the face of unknown business needs. When it comes to customer communications management (CCM), legacy systems slow down operations, provide little to no business user control and can be quite costly. If this is a key challenge for businesses, CCM migration and consolidation should be a priority.

As enterprises around the world are being tasked with cutting costs and doing more with less, employees need the right solutions to support existing customers while also attracting new customers. The right systems and solutions enable better processes and more consistency. A consolidated tech ecosystem allows enterprises to increase operational efficiency and reduce overall costs—a critical focus in a down economy. Automating and digitizing processes reduces the burden on IT, further lowering costs while allowing for internal innovation. To achieve an improved CX and meet business goals, enterprises must consolidate technology and adopt a modern, pure-cloud CCM solution.  

Business Drivers for CCM Migration from Legacy to Cloud

There’s no shortage of reasons for CCM migration from legacy systems to a sophisticated, pure-cloud customer communications management platform. But the best way to start is by assessing existing communications processes and technology. 

If you’re currently using a multitude of applications to generate customer communications, consolidating into a single enterprise system will help streamline internal processes and workflows. Ultimately, the level of speed and agility a cloud solution offers simply can’t be matched by legacy systems. Connecting all mission-critical technologies into a single, flexible ecosystem allows teams to take advantage of new technology faster and accelerate response times for customers. 

Migrating to a modern customer communications management solution that integrates seamlessly with existing core systems offers further operational benefits by allowing disparate systems to communicate and diminishing the number of integrations that must be managed. With a sophisticated solution, automation and personalization make interactions more dynamic and productive. Best of all, moving to an enterprise CCM would make change management and future upgrades simpler.  

In keeping with widespread digital transformation initiatives, many organizations have implemented an enterprise-wide cloud strategy aimed at driving operational efficiency and competitive advantage. Moving to a cloud-native solution allows businesses to align customer communications with corporate strategy to reduce overall costs, reprioritize IT resources and maintain security and compliance. At the same time, modern customer communications solutions allow businesses to support enterprise-wide efforts to improve CX—meeting CSAT goals and building loyalty.  

RELATED READING TO DOWNLOAD | ‘A CCM Migration Roadmap’ 

Cost-Savings and Operational Benefits of Consolidating Legacy Customer Communications Technologies 

According to a recent Qualtrics XM Institute study, 60% of IT leaders are focused on increasing operational efficiency in their IT organization—and 89% say agility is extremely or very important for responding better to unexpected events. A modern CCM solution delivers speed, agility and scalability that powers efficiency at every touchpoint – and enables enterprises to keep up with evolving customer expectations and weather the unknown by building flexibility into processes and responding to change rapidly.  

For example, let’s say a large financial services institution needed to automatically turn on access for hundreds of new end users in order to account for an influx of customer inquiries. With instant-on provisioning —made possible through cloud technology — providers can make this happen within minutes instead of lengthy implementations and/or upgrades that would be required with legacy platforms. 

By making investments in improving operational efficiencies, enterprises in turn boost profits and drive overall growth, reducing the burden on costly call centers with a digital solution that supports self-service via guided digital interactions. A consolidated CCM reduces the total cost of ownership (TCO) compared with multiple disparate systems and reduces the amount of time and money spent on maintenance, updates and operations.  

Improving the customer experience and meeting customers where they are with an omnichannel approach helps to prevent churn. Not only does this bolster revenue, it reduces costs up front—because it’s significantly more expensive to win new customers than it is to hang on to existing ones. This makes enhanced CX a strategic imperative, especially when budgets are tight. To support growth, invest in the customers you already have.   

As customer preferences and business needs continue to shift, an enterprise CCM solution enables enterprises to pivot on demand without investing in new technology. Key benefits include: 

  • Updating customer communications strategies to keep pace with market shifts, changing regulations, and evolving customer needs, without relying on IT
  • Empowering business users, customers, and the business at large by consolidating the tech stack and migrating to a single, powerful enterprise solution. 

KEEP READING | ‘Building a Business Case for Change: How to Secure Stakeholder Buy-In When Purchasing Enterprise Customer Communications Management (CCM) Software’ 

The Purpose-Built Enterprise CCM Solution for Today’s Needs 

Moving to a pure cloud CMM solution helps businesses increase operational efficiency and decrease costs during times of economic uncertainty. While it may seem like a time- and resource-consuming undertaking, it doesn’t have to be. Migrating to a modern, purpose-built platform reduces TCO and accelerates ROI. At the same time, it allows enterprises to consolidate data, streamline processes and enhance the customer experience.  

The goal of any forward-looking enterprise should be to do more with less and use automation and data-driven insights to optimize every interaction. On the point of doing more with less, consolidation has several key benefits that can help businesses future-proof, such as:  

  • Maintenance is less burdensome and costly. With CCM Migration, there are fewer places to update things when changes are necessary. This, coupled with depreciating disparate solutions, organizations will save money and time.  
  • Reliance on IT is diminished. Consolidating means organizations don’t have to worry about battling separate IT upgrade schedules. And, working with a single cloud vendor who manages updates will often mean there’s no onus on the end-user to manage upgrades. 
  • End-user empowerment. A center of excellence and shared knowledge/resources can be developed to help business users handle projects faster and train new users quicker. 

Smart Communications is uniquely positioned to help enterprises successfully migrate without disrupting customer communications and focus on elevating the customer experience to improve efficiency, retention and revenue. We offer a suite of purpose-built migration tools that use automation to reduce manual steps by up to 30-65%, saving resources and accelerating the process. Our Professional Services team has helped hundreds of companies migrate successfully. We’re here to offer expertise and support for even the most complex projects.  

If you’re ready to future proof your business with CCM migration and consolidation, get in touch with us to learn how a pure cloud, enterprise customer communications management system can help. 

About the Author
Chris Murphy is the Vice President of Product Marketing for Smart Communications, a customer communications management technology leader focused on helping businesses engage in more meaningful customer conversations. Chris spoke about CCM and operational agility at the DSF '23 in Charlotte, NC.

 

What You Need to Know About Customer Complaints Management in Financial Services

By Karen Oakland, VP of Financial Services Marketing at Smart Communications 

Complaints management can be a costly affair, especially for regulated industries like financial services and insurance. Support staff and call centers are expensive, which is why improving digital self-service capabilities is an important priority for many financial institutions. Meanwhile customer expectations for fast response time and personalized attention are higher than ever. 

Apart from managing customer service costs, businesses now need to factor in the cost of reputational damage when customer complaints are aired in the digital arena. No company wants to be “flamed” online. Yet the trend has been for customers to voice complaints on social media rather than through traditional channels like contact centers or complaint letters, particularly among younger generations.

In financial services, customer complaints management is drawing the attention of federal and regional regulators. In Australia, regulators are taking a stronger approach to consumer protections that sets a precedent for rules makers in other countries, such as the Consumer Financial Protection Bureau (CFPB) in the U.S., and the Financial Conduct Authority (FCA) in the U.K. 

Here’s what you need to know, and some tips for how your business can more effectively manage complaints and credit disputes (even if you’re not operating Down Under). 

What are the Key Provisions of Australia's RG271 for Complaints Management? 

In Australia, financial services institutions (FSIs) are regulated by the Australia Securities and Investments Commission (ASIC), which acts in partnership with Australian Prudential Regulation Authority (APRA). In October 2021 ASIC issued Regulation Guide 271 (RG271) for Internal Dispute Resolution, or IDR.  

Some key provisions of RG271 include: 

  • Expanding the definition of "complaints" to include dissatisfaction with a company, its staff, products or services  

  • Expecting financial institutions to proactively address complaints, even those expressed on social media and not submitted directly or in writing 

  • Ensuring ease of complaint filing for customers and providing clear communication about the complaint process 

  • Requiring financial institutions to acknowledge a complaint within 24 hours 

  • Mandating a written response with the outcome of the IDR process to be delivered within 30 days (reduced from the previous 45-day timeframe) 

  • Requiring FSIs to record all complaints and regularly report to the company's board and senior management 

  • Introducing a new IDR data reporting framework, necessitating the submission of reports to ASIC every six months on complaints handling starting in 2023 

Different timeframes apply for resolving certain types of complaints, including those related to superannuation (or retirement fund) death benefit distributions; credit-related complaints involving default notices; and those involving hardship notices or requests to postpone enforcement proceedings. 

While these requirements may seem straightforward with the advancements in digital technology, regulators believe that many banks and other FSIs struggle due to inadequate capacity and resources to investigate and resolve customer complaints promptly. 

In fact, the ASIC found late last year that 20 percent of all superannuation funds were still not meeting the regulatory requirements for communicating with customers as part of a dispute resolution process. And it said that 80 percent of the funds were poorly managing systemic issues around complaints management. Most failed to ensure all complainants were kept informed within the required time frame. If your business wants to improve in this area, here are three areas to consider. 

 
1 in 5 super funds fail to adhere to ASIC’s dispute resolution guidelines – InvestorDaily 

How to Ensure Compliance with Complaints Management Regulations 

The Smart Communications Conversation Cloud™ (the combination of our cloud-based customer communications management solution, SmartCOMM™, and forms automation solution, SmartIQ™) platform offers capabilities that can help your organization achieve RG271 compliance for IDR in Australia, or simply enhance the effectiveness of your customer support operations, in the following ways:  

  1. Rethink your use of traditional forms to capture data on complaints. For many customers, forms are frustrating and mind numbing. Moreover, they often require manual work for internal employees to process and retype data into other systems. Our SmartIQ forms automation software supports digital and mobile interactions, while making it faster and easier for FSIs to process the information with connection to employee task dashboards and workflows. This type of guided interview can elevate your customer self-service and can be used in internal contact centers to improve efficiency. And with a low-code architecture, you minimize the burden on IT. (Take a closer look within our Ultimate Guide to Digital Forms Software.) 

  2. Utilize customer communications management (CCM) software to centralize your templates for complaints communications across output channels. SmartCOMM, our cloud customer communications management (CCM) solution, enables FSIs to be confident that every message and document is compliant, from automatic acknowledgements to IDR responses to regulatory reporting. Cloud-native, SmartCOMM provides prebuilt integrations to CRM, intelligent automation and ECM archives, giving you even more cost efficiency and flexibility to design the best customer journey. If you use a process automation solution like Pega or Appian, for example, you can use those solutions to trigger these dynamic communications to be sent via the customer’s channel of choice. With our Pega connector, customer service representatives have the ability to create ad-hoc letters and correspondence from within that user interface. 

  3. Improve insights into complaints using content intelligence. With our built-in content intelligence capabilities, you can understand where customers are missing questions in a complaint interview, or where customer communications can be improved across the lifecycle. With our Content Intelligence module, you can evaluate the readability, sentiment and tone of communications to make sure they are both empathetic and effective. 

At its core, resolving complaints and disputes requires a two-way conversation between the customer and your support team. Resolving them quickly means re-imagining that conversation in a digital-first world, improving the ability to self-serve. By leveraging the power of composable, cloud-based software platforms, you can connect all your touch points and remove points of friction. 

Case Study: Digitizing Credit Card Dispute Resolution for Improved Complaints Management 

Here’s a real-life example that illustrates this new way of thinking. We’re working with one of our largest banking clients in Australia to re-imagine the customer experience and digitize the process of resolving complaints such as credit card disputes. Like many services requests, the resolution process requires the customer to submit a form to start the process. 

Historically, that form was only available as a blank PDF the customer was required to download and complete on paper. Why was this a problem? 

  • It wasn’t an easy experience – and not mobile friendly 

  • The burden was on the customer to complete it correctly 

  • It required an employee to rekey data into another system – with the risk of NIGO errors 

  • That data needed to be input into another system before any process automation could begin 

With SmartIQ, the bank is now able to provide branded, device-responsive digital interviews from within its secure customer portal. Integrated with the bank’s CRM system, these guided “forms” are prefilled, making it easier for customers to complete and reducing errors thanks to real-time data validation. 

In addition, the data automatically generates acknowledgements and other customer communications as required by regulators – all integrated seamlessly with the bank’s e-signature and document archiving solutions. The incoming data further triggers automated processing via Appian, ultimately speeding up compliant resolution time and improving customer experience. 

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Enable customers to easily upload supporting documents and switch between mobile or desktop. 

Resolving Customer Complaints Faster Has Long-Term Impact 

Beyond the regulatory “bite” of potential fines and penalties, improving the way you manage complaints and disputes can deliver results in terms of greater efficiency and customer loyalty scores. Many organizations today are adopting the use of “Customer Effort Scores” as a key measure of client satisfaction, in addition to traditional churn metrics, according to analysts like IDC. 

Our benchmark research reveals that 81% of global consumers consider the communications they receive as important to their overall experience with a company. The increasing number of communication channels, coupled with customers’ ever-changing expectations, is putting more pressure than ever on financial institutions to keep pace across every interaction, not only in complaints management. 

At the same time, you’re continuing to face cost pressures and need to squeeze efficiencies out of every process to stay competitive in a volatile economy. Servicing is still primarily a cost center, not a profit center. That means it’s more important than ever to automate and streamline your complaints management processes while deploying your staff where they provide the most value. 

If you’d like to talk about ways to take your complaints and disputes management process to the next level, reach out and talk with us.  

The Future of Personalization in Insurance Claims

By: Ruth Fisk, VP Insurance Marketing at Smart Communications

Customers today have sky-high expectations. They expect to be able to do whatever they need digitally and expect around-the-clock access to services from any device. And they expect ease, speed and personalization in every digital experience—not just when it comes to online shopping or ordering food. Now more than ever, consumers want the same simplicity and on-demand availability they’ve become accustomed to with delivery services and similar apps in all aspects of their lives.

For insurers, this means radically transforming processes that have traditionally been manual and paper-based. As new players enter the field, providers need to catch up to the latest digital capabilities or risk losing market share. That’s why insurers are prioritizing overall efficiency, faster settlements and reduced policyholder effort. As part of this effort to become more efficient and effective, insurance leaders are focusing on one of the most common pain points: claims management.

Smart Communications, in partnership with Salesforce and Insurance Innovators, recently conducted a survey of more than 150 insurance executives and found that 95% agree that the claims experience is where insurers have the greatest opportunity to win loyalty—but also the greatest risk of losing it. In this post, we’ll take a deep dive into this new research and look at how insurers can:

  • Use personalization to reimagine the claims process for today’s consumer needs and priorities
  • Build brand trust and loyalty
  • Get to know their customers better
  • Drive long-term growth

All of the information below is from the report Hyper-personalization in Claims: Streamlining Processes to Build Loyalty and Trust, produced in partnership with Salesforce and Insurance Innovators.

The Current State of Personalization in Insurance Claims

Previously, filing an insurance claim meant a lot of forms and hassle. While the insurance industry has been on a somewhat slower digital transformation trajectory compared to other industries like retail or banking, recent world events threw that arc into overdrive.

When the global pandemic struck, sweeping stay-at-home orders brought about transformative change to countless activities, from how we work to how we get food. Suddenly, people were doing everything digitally — holding virtual meetings, doing mobile banking, even ordering groceries online and having them delivered right to their door.

Meeting consumer expectations is at the forefront of every claims manager’s mind, especially while insurers seek to exceed their claimants’ expectations — while still balancing the need to effectively investigate and settle claims. To do so, the claims experience requires digital solutions to support hyper-personalization and two-way customer conversations, while also providing easy-to-use interfaces and seamlessly delivering information across customers’ preferred channels and devices.

current state of personalization in insurance claims

The increased exposure to digital services in the past two years has broadly impacted consumer expectations. And insurers recognize this—85% believe that the level of live interaction customers experience with home deliveries has set a new benchmark for the insurance claims experience. Poor experiences include paper-based forms, tedious processes and having to repeatedly enter the same information. In a highly competitive market, just one bad experience can cost the loss of that customer’s business for life.

Insurers need to level up to meet these new expectations. Keep in mind, insurance interactions will be measured against the customer’s last best digital experience. That means insurers are being compared with big brands such as Amazon, Netflix and Instacart which calls for radical change. The good news is that change is definitely possible through the use of Artificial Intelligence (AI) which can enable insurers to better align their processes and software to meet customers’ growing expectations. Even better, the data below shows that (at least some) insurers are catching on:

Insurer AI expectations by end of 2023:

  • 88% will pre-populate FNOL forms
  • 83% will tailor scripts
  • 70% will adapt forms in real time
  • 67% will allow channel shifting
  • 43% will use AI for omnichannel orchestration 

There’s a real opportunity for insurers to meet the moment and rethink outdated processes. In addition to simplifying claims, protecting valuable customer data is also critical in today’s digital world. Not only are paper forms inefficient, but they also put sensitive data at risk. Digitizing forms helps improve processes and protect customer data, which enables straight-through processing to allow for faster claims.

Hyper-personalization: The Future of Insurance

According to our survey, insurers currently have three top claim-related priorities: significantly reducing time-to-decision, building trust with claimants and improving customer loyalty.

The industry believes hyper-personalization will result in:

  • Increased efficiency (89%)
  • Faster settlement times (84%)
  • Deeper trust and loyalty (94%) 

To deliver on all three goals, insurers will need to adopt modern technology platforms that can help them personalize customer conversations. This means pulling customer data into digital forms to save time and hassle and making the relevant forms, processes and information available around the clock.

It’s no longer enough to add digital experiences to a website. Today’s customers expect to engage across channels—from mobile apps to social media. And to switch channels when needed, without having to start over. Taking advantage of sophisticated technology solutions allows insurers to meet customers where they are.

omnichannel insurance claims

The research found that 83% of insurers agree that their ability to shift channels with customer needs and circumstances is a key factor in deepening trust and loyalty. Insurers can exceed expectations by providing seamless cross-channel experiences, which allow policyholders to fit interactions into their day without disruption. For example, they should be able to start a claim on a mobile app and follow up via web chat without losing the thread or having to answer the same questions again.

How Automation Can Help Insurers Meet the Moment

To meet today’s customer expectations, insurers need to focus on creating the kind of digital interactions that build trust and loyalty. They need to simplify and streamline processes, reducing the hassle factor when it comes to filing and managing claims. To drive the kind of customer satisfaction and retention that leads to long-term revenue growth, it’s time to bring hyper-personalization into the picture. 

Hyper-personalization is about pairing customer data with automation to tailor communications and experiences individually, and at scale. Pulling existing customer data into AI-powered smart forms reduces customer effort—a common claims pain point. And by streamlining FNOL interactions as well as status updates, decisions and settlements can be made faster.

Where claims handlers have traditionally spent significant time asking questions and collecting information, automation can now do the work instead. This saves time on both sides and frees up staff to provide personal support for the more complex, high-value cases when a human touch is really needed. Plus, customizing conversations makes the whole experience more personal, so customers feel seen and appreciated—a key component of building brand loyalty.

In the realm of insurance claims, hyper-personalizing customer conversations significantly increases end-to-end efficiency, resulting in a higher quality and more satisfying experience for the claimant.

Change the Conversation with Cloud Technology

The best way to deliver hyper-personalization in claims is for insurers to invest in and adopt a cloud-first strategy that focuses on optimizing the end-to-end customer experience. The Conversation Cloud™ helps insurers move beyond paper-based processes to implement a digital-first strategy at scale, optimize the end-to-end customer experience and make every interaction SMARTER.

The right digital platform works seamlessly with core systems including claims management tools — giving insurers a way to turn one-way, transactional messages into two-way, interactive conversations. Insurers can then put existing customer data to use and enjoy frictionless experiences when collecting new data. And with an omnichannel approach, it’s easy to meet customers where they are on their preferred channels and devices — bringing the convenience they expect into the insurance experience, too.

Investing in a solution that enables insurers to provide personalized claims experiences yields measurable returns, including:

  • 89% increased efficiency
  • 74% reduction in settlement time
  • 74% reduction in customer effort

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To take a deeper dive into the information shared in this blog post, check out Hyper-personalization in Claims: Streamlining Processes to Build Loyalty and Trust, an infographic produced in collaboration with Salesforce and Insurance Innovators.