Omni-channel vs. Multi-channel
This may appear to be semantics, but the difference is important.
Early digital distribution implementations often concentrated on automated underwriting and self-service, but it's crucial not to overlook your existing distribution channels. The primary distinction between omni-channel and multi-channel lies in their level of integration. While multi-channel often represents the initial stage of digital distribution with one or more self-service options as standalone offerings, omni-channel adopts a more integrated approach, enabling customers to transition between channels seamlessly.
Omni-channel distribution not only incorporates but also enhances your existing channels.
The Significance of Omni-channel Distribution
Insurance customers may begin a self-service application but later require assistance. Conversely, an agent might initiate the process, but the customer may feel more at ease completing the medical questions independently.
RiskDX provides a smooth transition in both directions, essential for providing an optimal experience for customers and agents alike.
Digital Strategy
While the primary goal of a digital strategy is often to engage more customers efficiently, it should also aim to cater to their preferred methods of interaction.
There's clearly potential in targeting digital-native consumers—those who prefer online purchases. However, a multi-channel strategy focusing solely on this demographic may result in a subpar customer experience and risk alienating existing agents and the broader customer base.
A key success factor to going digital is NOT blowing up your existing business model.
Conclusion
To remain competitive, insurance companies need to find the right balance between digital and traditional distribution channels to deliver a positive customer experience. Embracing an omni-channel approach to digital distribution offers the best of both worlds.