Opportunities and pitfalls to avoid in the era of digital transformation
Over the past few months, businesses have been forced to change how they engage with their customers. Leaders in successful companies have realized that their industries are already being disrupted by digital technology, and even more so, are having to fast-forward the implementation of this strategy during the COVID-19 pandemic.
According to the Quarter 2 2020 Customer Loyalty Report by Ajua, the insurance sector has taken the lead in digital transformation across 12 industries including Banking, Retail, Telcos, Mobile Money Lenders and Pharmacies, just to name a few. Up to 58% of insurance customers have noted that COVID-19 has affected how they interact with their insurers.
The drastic change from physical service to online service, reduction of paperwork to paperless transactions and promotion of cashless transactions are just some of the ways that Kenya’s insurance companies have managed to improve their customer experience during the pandemic. In addition, digital stickers, online insurance covers, home delivery of stickers, cards and online self-services, as opposed to service with the help of an agent, are some of the changes insurers have made in engaging with their customers.
Some insurance companies have even allowed customers to print their own car insurance stickers. Speaking on the changes, one insurance customer shared with Ajua, “Before COVID-19 came I would make regular visits to the Amaco offices to pay my premiums and collect my sticker but as at now I do pay premiums via Mpesa after my car has been assessed and the sticker delivered to my doorstep, I have also opted for comprehensive cover lately to minimize interaction with the Amaco officials.”
However, businesses should also note that it is critical to monitor the transition to digital to avoid compromising on their customer experience. Customers who are dissatisfied with the digital transition cited delayed response, poor communication and lack of clarity on issues especially those that need to be discussed at length as the main reasons for dissatisfaction with digital transformation. One customer shared, “We have to avoid visiting the Branch, only over the phone and avoid too much contact with the office staff, hence bringing along inconvenience of clarity.”
Observation of COVID-19 guidelines has also affected customer experience negatively. Some customers who made claims complained of poor service. “In case of an accident compensation can take longer since we have to observe COVID-19 rules. No or less valuation in case of an accident.” One customer said, “Since people are adhering with the MOH guidelines, going to their offices to make claims isn’t easy. Therefore when they are contacted through their phones, it takes much time to get response.” Another added.
It is important to note that although digital transformation has the potential to impact virtually every aspect of your business, it will likely have the most significant impact on Customer Experience. So if your business hasn’t taken the steps toward adopting new technology yet, it likely won’t be much longer until you need to make some adjustments to keep up with your competition and most importantly your customer demands.
Top performers in Ajua’s Quarter 2 Customer Loyalty Benchmark:
Ajua is Africa’s first Integrated Customer Experience company for businesses on the continent. We exist to bridge the gap between businesses and their customers. Ajua’s technology integrates with businesses at the points that matter most to their customers to measure and optimize their Customer Experience. Our plug and play platform has enabled leading brands of various sizes and industries on the continent to create actionable strategies that drive business growth.
Ajua officially rebranded from mSurvey on July 31st, 2019 to reflect our growth, ambition and African Identity in our corporate brand.
To learn more about the quarterly Customer Loyalty Benchmark and how to move your business to next level through Digital Transformation to meet your Integrated Customer Experience objectives, please contact the Marketing team at [email protected] or Leonida Kombo – Communication & Content Manager, Ajua | [email protected] | +254 726 024 751.