Blog: Don’t make your customers pay for your bad technology solutions

From artificial intelligence to automation, technology holds major promise for businesses that are looking to cut back expensive manual processes and create better experiences for their customers. But get the technology wrong, and those customers will pay for the firm’s mistakes. And not once but twice: initially through inflated prices, and then again through a dismal customer experience.

In many insurance businesses, technology has already been introduced in various forms, but because functionality and user experience haven’t been given enough consideration, it fails. The result is an accumulation of technical debt that negatively impacts the teams working within the organisation, the supply chain and the end customer.

In many insurance businesses, tech has already been introduced but because functionality and user experience haven’t been given enough consideration, it fails. The result is an accumulation of technical debt that negatively impacts the teams working within the organisation, the supply chain and the end customer.”

Yet this frustration is only the start. The cost-of-living crisis makes it more important for the insurance industry than ever that you’re flexible and customer-centred in your approach to demonstrate your value to consumers – especially since acquiring a new customer can cost as much as nine times more as retaining one, according to Sean Harper, co-founder and CEO at Kin Insurance. So here are four simple ways to keep your digital ambitions on track:

1. Define the value that digital innovation can bring

It’s important to be clear about the precise benefits that digital change can bring. As defined by ISO standards, innovation hinges on “…realising or redistributing value” – note the particular emphasis on value.

There’s incredible technology out there, but rather than pursuing it because you think you should, the key is to define how it can add real value. A simple ‘lift and shift’ of what you had before, but with a new wrapper and ribbon bow, just won’t cut it.

You also need to make sure that this is adding value to the right people. Your digital evolution should be about delivering the very best experience for the end customer, while freeing up your teams from the pain of  legacy systems.

2. Select the right partner on the right terms

Your tech partner should never be given incentives to set you down a path that you can’t come back from, or to put all your eggs into one technological basket.

A partner that is motivated by upselling tech or consultancy for the sake of it can impede true innovation by tying you to a rigid plan, whereas an agile approach recognises that what the end customer wants now might not be what they want in a year’s time, and offers the flexibility to meet those needs.

3. Evolve and adapt your project together over time

Whatever solutions your tech partner implements, they should enable you to start small, reassess after a couple of months, and then pivot if the project isn’t heading in the right direction for your business.

Every digital project will throw up unexpected issues. However, the right partner will have the mindset of trying to solve the problem, so it becomes an opportunity to discover some amazing elements or applications you weren’t expecting – cut-throughs, not cul-de-sacs.”

Every digital project will throw up unexpected issues, even with the most robust scoping and planning. However, the right partner will have the mindset of trying to solve the problem, so it becomes an opportunity to discover some amazing elements or applications you weren’t expecting – cut-throughs, not cul-de-sacs.

4. Make sure your values align with your tech partner’s values

Finally, remember that company values are just as important as value. When your values are strongly aligned with your tech partner’s values, then this is when the end customer really benefits.

That doesn’t mean you should be seeking a ‘yes person’ though. A good tech partner will challenge your thinking, pushing back if they believe that aspects of the project aren’t in your best interests.

Some tough love, combined with flexibility and a sense of common purpose, can stop you – and ultimately your customer – from paying for tech you don’t need. So stop paying for bad tech. Your people and your customers will thank you.

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