Can modern technology beat the recession?

We are seeing a huge rise in the advent of technology within our industry as organisations look to make savings in troubled financial times.

Technology has long played a role in the industry and many organisations are being left behind by sticking with their old systems. Many use older software houses which have their own hardware platform or a preferred vendor, which locks the customer into costly initial hardware purchases and upgrades for the life of the system.

Thinking about changing or making the most of your existing technology can help conserve cash. Those who haven’t already done so should look into the industry standard ‘off the shelf’ hardware, which is both cheaper to buy and to upgrade. There is also a range of ‘open source’ software available often at little or no charge. This includes most office applications, resulting in potentially big savings.

Wherever possible switch to email for all routine correspondence as it is effectively free of charge. Check if your software supplier can support ‘electronic documentation’ for customers, dispensing with the need to post hefty policy wordings.

Instant communication is a powerful tool in retaining business. For example, if a customer’s direct debit bounces the finance company will inform you straight away. It is vital to reach the customer immediately to obtain payment and keep their business. Sending an SMS text from your computer is superb for renewal reminders, an attention grabbing ‘Your policy expires today, call us at once’ text is effective, and at 10p, cheaper than post.

Similarly, utilise available technology to increase income. Using the internet is a most powerful way of increasing income. From enabling online shopping for your customers to providing links to your website where customers are able to purchase complimentary products on their own are just some of the ways of harnessing the power of the web. If the majority of business is online, you don’t need to pay high street rents and your staff can be based in cheaper locations.

Cross selling of products can increase income, and again technology can play a vital role by using the bulk mailing feature of your software. To maximise the impact, direct customers to your website and deal with the quotes even out of office hours. Furthermore, many software systems have data mining software which can be applied to your customer records to identify potential new business leads, for example anyone with children nearing the age of 17 may be in the market for first time car insurance.

Technology can make an instant and effective difference to your business. With the right software and knowledge, an organisation can escape the jaws of recession.

Adrian Waters, director of CETA Insurance Services.