February 2015

Friday 20 February 2015

50 Shades of Confusion…

Collective Dynamics Administration 02:25 No comments :

I am a great fan of RiskSA and an avid reader of all their publications. Great was my surprise when they included a link to a very confused and one-sided piece of writing in RiskSAWired (11th of Feb 2015) under the following headline:

“CPA: who is entitled to your call centre recordings?

Consumer Protection Act compels companies to provide customers with a copy of a written contract and all its terms and conditions. Telesales, however, is another story.”

In this article the assumption is made that a consumer may not be entitled to a copy of their voice recording, which represents the contract, as entered into by the policyholder and with the telesales agent binding the product provider. Based on this misguided “fact” and using the example of a badly executed sales call with inadequate disclosures, the writer warns consumers to be suspicious of all telesales. Not once does the writer make any mention of the due process that should have been followed by a responsible company/person performing an intermediary service or binding function, which should clearly have been the case in this example of selling an insurance policy

Fortunately, not all telesales are created equally, nor are journalists and their investigative pieces. Unfortunately, this article highlights the generalisation and misconception around telesales, especially in the financial services sector. There are companies or individuals who will take chances or cut corners to save costs or increase sales, whether it’s telesales or brokers. For precisely this reason, the Financial Services Industry is regulated to ensure that all policyholders are treated fairly and the FSB is very clear that it will not tolerate any deviance from the expected standards and regulations… there is not even 1 Shade of Confusion on this point!

Even in the most compliant and controlled environment, one would be foolish to expect that there would never be disgruntled or unhappy customers, this is applicable to telesales, brokers or in fact, to any non-financial services environment. The benefit of concluding these sales via the telephone, rather than face-to-face, is that the calls are voice-logged and referenced to the customer and the particular policy sold. We find that 90% of enquiries or disputes can be easily resolved by making these calls available to the customer which confirms what was presented and disclosed.

At CDA we are passionate about providing innovative solutions to the Financial Services Industry, which includes various Intermediary Services, Outsource Services and Binding functions. As a registered FSP we are bound (although not handcuffed!) by the same regulations and codes of conduct as all other FSPs. We know that if a sale is not compliant the repercussions could be severe, from dismissal of a telesales agent to fines imposed by the FSB and crippling reputational damage.

Whenever we communicate to any of our clients’ potential or existing policyholders, there are various controls and processes in place to ensure that we firstly, treat the customers fairly and secondly, represent our clients in a way that ensures that we remain compliant within the realm of FAIS and all other applicable regulations. Some of these controls include verification of sales calls by an independent team; ongoing product training and sales coaching; quality assurance checks performed by our clients, our Compliance Officers and Key Individuals.

Telesales Agents are not the rogues of the industry, who manipulate and bind customers with little else than “cable-ties”. Regardless of the many “perfect” sales made and valuable service provided every day in our industry, whether concluded by a telesales agent or a broker, any instance of non-compliance will be highlighted, investigated, written about and this is justified and necessary to protect the industry and the customer. It is important to remember that thankfully, these sales are the exception rather than the rule.

We have geared our business to function effectively and optimally within the stringent regulatory environment in which we have chosen to operate. We’ve been audited by the FSB; audited by our clients; we hold all the required guarantees and insurance policies; stand on our heads, lift our skirts (no we don’t, just keeping your attention!) and meet the very strenuous service levels as required by our clients and their stringent, unyielding compliance departments. Even in this apparent constricting environment, we have concluded over 500,000 sales of simple insurance policies to the middle to lower income-bracket consumer, who would traditionally not be serviced by a traditional broker.

Telesales as a distribution channel is a necessary and viable solution to reaching previously uninsured consumers and providing them with cost-effective and essential cover.

Friday 13 February 2015

Why Outsourcing Works

Collective Dynamics Administration 04:25 No comments :

Summarised in two words….PASSION AND MAGIC!

I have been privileged in my career to have worked for two Outsource Service Providers and one major international company. My key learning has been that outsourcing partners are generally passionate about the stuff that internal marketing and sales teams see as merely supportive functions. It is important to note that my comments are not based on my exposure as an employee only, but more so from dealing and discussing outsourcing services across the insurance industry with major local and international corporate companies.

At CDA, our passion for finding the best solution to any challenging project drives us to perform the way we do and when all the analysis and reports show the improvement in response ratios and persistency, magic happens…. Abracadabra……. our clients turn into happy smiling people!!!

We are seriously passionate about fulfilling that policy quickly, we are passionate about finding the magic in each call centre campaign to ensure its profitable for us and our clients, we are passionate about finding the right person to target your products to, we are passionate about ensuring that the customers you sell to are people who can afford and will pay the premiums. In a tightly regulated industry these simple functions are paramount in proving that our clients are servicing their policyholders in the most compliant manner possible. As a Registered Financial Service Provider, our internal processes and procedures have been specifically designed to meet our clients’ compliance requirements.

Effective remunerations structures are key to ensure that outsourcing is beneficial for both parties. At CDA we have adopted a risk-model approach, where payment is linked to and dependent on delivery. With in-house call centres and administration divisions, the cost is incurred regardless of delivery of sales and service. In fact, in most cases where we have compared costs on a call centre seat basis, the cost of an internal call centre seat is 25% to 100% more than ours. This is simply due to our relentless focus on expenses as our pricing is under constant scrutiny from our clients. We need to remain competitive in pricing, but also importantly, we need to constantly innovate and bring new ideas or improved services to our clients. The focus on innovation or re-engineering is not always the highest priority in internal administration divisions or call centres, innovation is often left to the “creative” marketers or product developers.

As in everything there are exceptions to the rule and many of our clients or potential clients have had really negative experiences with outsource service providers. Unfortunately you will always find companies who are inexperienced, ignorant or just simply dishonest and wanting to make a fast buck, often to the detriment of your client, the policyholder. If at any point, you are considering outsourcing any service (especially intermediary or regulated services) make sure that you extensively evaluate your partner based on knowledge, experience and triple check industry references. Ensure that they not only understand your business objectives and needs, but that they have embedded it into their processes, compliance and regulatory standards.

So if you are in the market for an outsource partner look for these things:

1. Do they understand your business?

2. Are they willing to take risk?

3. Do they have a proven track record with institutions of similar size and deliverables as yours?

4. Do they understand the regulation and compliance requirements around the services that they perform?

Last, but not least, listen carefully, PASSION can be felt in their very first sales presentation and the MAGIC can be seen in the extent to which they will go to fulfil your needs. If you can’t feel the passion and can’t see the magic, maybe they are not the right outsource partner for you.

Insurance in the Digital Space

Collective Dynamics Administration 04:24 No comments :

With the digital revolution taking over many industries the insurance industry is certainly one that

has not escaped a digital overhaul. This is a step in the right direction in terms of giving individuals the opportunity to educate themselves before committing to a product.

Insurance firms are now armed with the resources and assets that allow them to connect with customers in the evolving digital landscape.

The line between digital and physical is continuing to blur as customers are now so immersed within a digital world that they now use digital tools to analyze environmental variables before they make a decision in the real world. This can be as simple as where to park their car based on the weather forecast they get on their devices or as complicated as choosing to buy a self driving car over a manned vehicle.

In the insurance space where insurers have geared themselves to connect with potential customers, the key learning is, that the majority of consumers will still want to speak to someone before making that final commitment. This could make the life of broker or financial adviser easier or a lot more difficult, easier if they are well informed and up to date with latest product developments but a lot more difficult in overcoming objections on their specific product if they are not up to date with various products available in the industry. Based on the objective of the regulator to ensure fair treatment of all customers this consumer driven approach will automatically drive individuals in the insurance space to be better informed.

In the direct marketing space we at CDA have seen the speed to respond to client query directly impact on the ability to close the sale. A customer, who has done their homework around a product and shown interest, expects a speedy response to their request. So the key to maximizing your opportunity in the digital space is to have an efficient and focused sales force to service these clients within their expectations.

An insurer in this space needs to turn this first interaction into a positive first impression with the consumer. Tell the customer by the way and how quickly you respond to their request, that you are serious about turnaround times, that you want to service them and that you want their business.

There is a strong possibility that this customer has responded to another product provider, therefore one has to ensure that you are first to service them, not only because they are more likely to purchase your product because you are first in with an offer, but also because of the message this sends to your potential client.

The reality is a client is going to measure the long term relationship (that they are considering entering into with the insurer) based on the initial interaction.

At CDA our philosophy of “treat everyone as you wish to be treated” has driven us to design and develop a call centre based solution which allows us to contact or speak to the customer within one minute of the client responding whether to an SMS, short code or via the web.

Yes, it has helped that I am a rather demanding consumer myself, “Once I have decided I want something I want it now”, So we have simply built a solution that drives the treatment that I want as a consumer. Surely that is fair!! (Our development team may not necessarily agree with this statement….).

The power of this approach and focus not only improves closing ratios, but also delivers service excellence which will leave a lasting first impression.

Wednesday 11 February 2015

Year End Fun(ction)

Collective Dynamics Administration 23:53 No comments :

A subject that tends to linger in the minds of all employees... a full year of 9 – 5, demanding bosses and complaints from customers... October is over, November is passing and December is just around the corner.... and still no news of a year-end function.

Alas, the long anticipated invitation arrives... a bright yellow A6 invite with Hawaiian Leis on the design. Date: 15 December 2014. The party is on the 9^th Floor of our building, so you think quietly to yourself “What fun could that be? An open office with concrete and spare furniture.... sounds great”

So you wait anxiously for 2pm to arrive, it’s a Monday and you should really be off because the next day is a public holiday, you’re already in holiday mode and the day is just dragging. Finally, there’s some movement, everyone is getting a green wrist band and tokens. It’s 2pm, you shut down your laptop, shake off the office shackles and escape to the 9^th floor for the celebration.

The lifts are full so you take the stairs (I mean, what’s 7 floors?), finally you reach the 9^th floor, out of breath and feeling hot. You open the door to enter the floor and a much deserved gust of wind smacks you in the face. You walk into the open plan office and it’s the complete opposite of what you thought it would be. It’s a day and night party in one. The office has been split in two with a dark club vibe on your right and a bright outdoor vibe on your left. Wow (for real, wow!)

The tables are set with delicious fruit platters, crisps and Leis, the ceiling filled with colourful lanterns and people sitting everywhere. The bar which is situated between the two areas filled with ciders, beers and soft drinks is very well organised with 3 barmen ensuring no one stands around waiting for drinks.

We take a seat, the formalities begin with the director thanking everyone for their hard work during the year and wishing everyone a safe festive season and ending off welcoming the guests to eat as lunch was being served... delicious lamb and chicken with scrumptious potatoes and salads await us.

An announcement is made about a photo booth which has arrived, almost instantaneously there’s a queue for the photo booth (people must love photos), 4 pictures per session, fun props and you receive a print out of your photo’s immediately... what’s not to love?

Photo’s done, belly’s full and drink in hand. What next? Well, there’s this entire darkened dance floor and a DJ playing music... next thing, there’s a dance competition with quite an attractive monetary prize, so why not pull out some of the dusty old dance moves (maybe not the best idea.... but loads of fun anyway). Everyone, from Directors right through to our receptionist on the dance floor having some fun. (The Directors aren’t such scary, unavoidable people after all)

As the party draws to a close, we are reminded of the “Three grand essentials to happiness in this life is something to do, something to love and something to hope for” - Allan Chalmers. The culture at Collective Dynamics really does offer happiness in this life. We have something to do every day, we have a passion and a drive to achieve the best results and at CDA, our managers and directors offer hope for long term success.

A special thank you to Ray Finch from Health Cubed, who organised the event for us and his efficient side-kicks, Brent and Roy, who assisted with the decor and bartending duties.

Looking forward to another fantastic year at Collective Dynamics Administration.

Monday 9 February 2015

Load Shedding

Collective Dynamics Administration 07:03 No comments :

LSD …..

What does frizzy hair, road rage, missed appointments and unhealthy fast food have in common?

These are some of the less disastrous, but very common symptoms of LSD (Load Shedding Drama – not to be confused with another similar acronym!) triggered by the dreaded electricity shortage. We all have that “friend” who arrived an hour late for a meeting, absolutely frazzled with hair noticeably untamed and displaying severe caffeine withdrawal symptoms and with traces of greasy Egg McMuffin palm prints left on a shirt sleeve by a traumatised child earlier after arriving late at school…

No matter how unflattering, unnerving and disruptive LSD can be, if these are the level of symptoms and consequences you experience you have come off lightly (no pun intended).

Seriously though, load shedding is a reality and the far reaching implications are only now starting to become evident. Horribly expensive situations like burnt carpets due to hairdryers being left on, fires due to oil boiling on a stove and blown electrical equipment after power surges. Dreadfully sad situations for those with life threatening conditions and dependent on oxygen or dialysis. Terrifying situations with increased crime and vulnerability if security systems are affected.

Word on the radio wavelengths is that the Insurance Industry is one of the worst affected industries with claims pouring in as a result of damage to property and equipment and increased crime. Managing policyholders’ expectation and providing relevant and adequate cover whilst balancing the increased claim ratio is a priority for all underwriters, especially with the focus on TCF.

We believe in being pro-active and if we can’t find a brave (really, no-one?) underwriter to develop a specific product covering all risks associated with load shedding, to do the next best thing which is to educate and communicate with policyholders.

At CDA we have specialised communication tools and strategies to reach all or segments of policyholders efficiently and timeously. Our Automated Voice Messages (AVM) system can be personalised to confirm certain key benefits and features of existing policies or refer policyholders to their intermediary or insurer for further confirmation of cover. AVM can also be used as a super efficient IVR system, transferring calls directly to various brokers or underwriters. At this point it is obviously imperative that underwriters have sufficient “fuel” to keep the lines of communication open and client service centres operating to full capacity, even during load shedding! Using AVM during the claims process to keep policyholders informed or facilitate the collection of supporting documentation, all aids to improve the policyholder’s experience with the underwriter or intermediary.

After finalising the claim process, AVM is a powerful tool to obtain policyholder feedback and create opportunity to increase the exciting cover or provide additional services.

There is a clear expectation from underwriters that policyholders act in a responsible and diligent manner when protecting their property. We believe that regular reminders such as emails and text messages will keep suggested mitigating factors and potential implications top of mind. Most importantly, all relevant communication enhances relationships and indicates that underwriters care and treat their customers fairly!

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