A critical but often unnoticed function within many organizations is compliance. Typically, the only time compliance is moved above other priorities is when disaster strikes or a legal process has been necessitated. A growing concern for many financial services and insurance companies is centered around regulatory compliance. There is constant change in regulation, and it can be difficult to cope with adherence in such a dynamic environment.
Think of a scenario in which these companies leverage compliance and use it as a competitive advantage. This type of scenario is known as Customer Communications Management, also known as CCM.
CCM technology empowers organizations to deliver authentic and effective communication to customers in the form of letters, bills, statements, and notices. Earlier, this was done through a print material, but with the advent of digital technology, such information has shifted to electronic means including mobile, email, SMS, and social media.
Today, customer experience is a critical element for businesses and a factor that separates good companies from the best. A good customer communication experience is partly defined by how a customer is engaged with the company’s offerings. However, care must be taken as to what message are going out, the language of those messages, and the target audience. This becomes even more critical for insurance and financial services. There are compliance teams in place who take care of these nuances and ensure customer communication compliance.
The compliance risk for financial institutions and insurance companies is very high. Companies are constantly striving to keep up with changing regulations. There are huge penalties for non-compliance, even for simple tasks like sending out a loan statement, which is what one co-op bank had to face when it was penalized nearly $700 million for sending out loan statements three days late.
Using customer communication compliance to a competitive advantage is not a one-day task. In fact, there are multiple reasons organizations are not ready for CCM compliance. Three primary reasons are:
- Lack of control
- Lack of time
- Lack of compliance oversight
Often, content or marketing managers, who are responsible for creating messages to customers, consider compliance as an obstacle that needs to be overcome. Sometimes, it is just a matter of changing the approach in which companies need to make compliance a part of the process of designing, developing, communicating, and creativity.
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