Is Your Agency’s Customer Experience at Risk with Paper Payments?

by Business Strategy

It’s Friday at 4:00 and you just ordered takeout from your favorite restaurant. Ideally, the ordering process was quick and easy, because your payment information was already in the system. Now, imagine instead that the restaurant would not accept your credit card and insisted you write a check.  Chances are you would look for another restaurant—not because you wanted to, but because this request made paying for your food such a hassle. 

You deserve a simple user experience (UX). And so do your insureds.

Here are 5 realities of today’s payment environment and why it’s important to offer digital payments instead of checks only. (Hint: it’s mostly about improving the customer experience, but also benefits your agency directly.) 

1) Catch a Rising Wave
The Federal Reserve has been tracking payment trends since 2001. Their most recent report states that debit and credit card payments have increased by 8.9%, while paper check usage has decreased by 7.2%. There’s no doubt which way the trend is heading.

2) Your Clients are Getting Younger
Think of the business owners you serve. Are they mostly 50+? 40-50 or 30’s? Under 30? These generations have very different payment preferences. And guess what? Checks are not the top choice of any group. Even the middle-aged Generation X are credit card-centric. Millennials and Gen Z consumers expect digital choices and the ability to pay from anywhere, anytime.

3) Checks are Expensive
Take a look at our blog post on the hidden costs of paper checks. Here’s a quick takeaway: Processing a check costs a business 10 times more than an ACH transfer, and receiving a check costs your agency five times more than an ACH payment. 
Contrary to paper checks, credit cards can actually benefit everyone involved in the payment process. Individuals (including business owners) often earn rewards for paying by credit card, and you can pass the processing fee on to the client using our payment platform. They are happy to pay it, because they are just happy to have the digital payment option—and the extra points can’t hurt!

4) Who’s Serving Whom?
We’re not avoiding the truth; people still do write checks—but it doesn’t mean they want to. It’s because some small businesses (including insurance agencies) are stuck in an old fashioned payment rut. Don’t be that small business! Be the agency that caters to your clients, or risk losing them to one that does.

5) Offer Instant Gratification
Insureds like to trace large payments. Checks are slow. They write and send (or hand deliver) the check, wait for you to deposit it, then wait for it to clear the bank. When submitting digital payments, a payment is confirmed immediately with an auto-populated confirmation, and typically an emailed receipt. ePayPolicy offers the same experience. Since our portal connects to most agency management systems, there’s automated documentation there, too.

 

Give the People What They Want
Insureds want and deserve superior service, and you want to offer it. That includes payment options that deliver convenience, speed, simplicity, and security. By accepting only checks, you’re denying clients all five benefits. You’re putting “that’s how we’ve always done it” ahead of the reality of your clients’ payment needs. Offering digital payments shows you’re serious about serving all your client groups, and technologically ready for tomorrow’s digital-only expectations. 

Your Time is Valuable: Maximize Growth and Boost Profits for your Independent Agency

by Business Strategy

Understanding The Opportunity Cost Across Your Agency

As an independent agent, your time can be rather divided. Between processing claims, building new business and nurturing your current clientele – there is little time to grow.. 

How are you spending your time?

When hiring support staff isn’t an option, you might have to buckle down and wear a few necessary but non-revenue-building hats. From prospecting to invoicing and everything in-between, you are down in the trenches, doing it all. 15 minutes here, 20 minutes there, and by the end of the week you have 5+ hours spent on… not growing your business. What if you could have those hours back?

Achieve Sustainable Growth

You may have considered investing in some InsurTech solutions such as a digital payment processor to speed up your receivables, but are hesitant. The upfront cost seemed too high at first, but have you crunched the numbers, determined the value of your time, and compared them apple to apples? You might find that the cost-benefits far outweigh the initial expense.
If you are still accepting paper checks, chasing payments, physically making deposits and reconciling your accounts, you are leaving money on the table. You might be saving $20 a month, but when you look at the opportunity cost to you and your team, it just doesn’t add up.

What is Your Time Worth?

Those tasks need to get done, and that’s a fact. However, assigning a specific value to your time can clearly show the ROI from a variety of InsurTech solutions.

If you streamline your workflows and automate repetitive processes—like accepting manual payments—you can allocate those hours towards more profitable activities that will grow your customer base and send value to the bottom line.

Here are examples of profitable activities you’ll have time for:
 – Build and expand your business
 – Deliver top-quality customer service
– Offer convenience and expedience
 – Gain insight and improve your company’s operations

And here are examples of the extra benefits you’ll reap:
– Reduce the time you spend on mundane tasks
–  Reduce missed payments
– Streamline and simplify accounting processes
– Eliminate data entry and accounting errors
– Automate payments and improve cash flow

Dreams Do Come True

You might be thinking that it sounds too easy, and in a way, you’re right. You’d be giving up a lot of inefficient busy work and giving yourself the luxury of time; time you can now use to improve the value of your business.

And the cost? Insignificant in comparison. Though your investment will rise a bit, the gains in revenue will more than makeup for it. 

It’s 2020. Time to grow and adapt to modern conveniences, time to strategize and invest in your agency. When you’re ready, ePayPolicy is here to help with payment gateway solutions to support your growth. Reach out today to schedule a demo.