The mutual and mid-market landscape is highly competitive, and managing costs is critical to success. With costs fluctuating and the cost of living on the rise, it’s becoming increasingly challenging to keep expenses under control while still delivering high-quality products and services to your customers. To help you address cost objectives and stay ahead of the competition, we explore three tips for mutual and mid-market carriers to consider when navigating these challenges.
- Identify Your Ideal Customers
One of the most important steps to take when trying to address cost objectives is to identify your ideal customers. By understanding who your ideal customers are, you can create products and services that meet their specific needs and preferences, which can help increase customer loyalty and draw new customers in the long term.
To do this, you’ll need to conduct market research to gain insights into your target audience. You can use surveys, focus groups, and other market research tools to gather data on customer preferences, purchasing habits, and other relevant factors. Once you have this data, you can use it to tailor your products and services to meet the specific needs of your ideal customers while keeping costs under control. Additionally, if a customer requires a product outside of your “sweet spot,” consider contacting us for suggestions as to potential carriers to collaborate with to fulfil that particular need while retaining the customer yourself.
- Support Diversity
Another important factor to consider when trying to address cost objectives is the support of diversity, equity, and inclusion initiatives. Many mutual carriers were founded within culturally diverse populations to meet the specific needs of a community that wasn’t being served by national providers. By recognizing and servicing your communities, you can build a loyal customer base, enhance your reputation, and control costs associated with constantly seeking out new or different customer bases. Adapting DE&I initiatives can also help you in retaining the employees that serve those critical customers.
- Consider Partner-Sourcing
One of the most effective ways to address cost objectives is to consider outsourcing to a claims management business partner, like Gallagher Bassett. Outsourcing certain functions can not only reduce fixed costs but also free up resources so you can focus on the core areas of your business. Whether addressing seasonal variability, ramp up time for new lines of business, or staging of new states, partner-sourcing through GB offers a variable cost model rather than a fixed, non-flexible model.
When selecting a claims management business partner, it’s important to consider a partner with a strong RMIS platform and award-winning, innovative decision-support tools. A strong partner can help you access the tools you need to stay ahead of the curve in today’s rapidly changing environment. They can also provide the expertise and support you need to help optimize your operations, benchmark your results against others and recognize areas to reduce loss costs and improve your bottom line.
Managing costs is critical to success in the mutual and mid-market landscape. By identifying your ideal customers, supporting diversity, and considering partner sourcing, you can position your business for long-term success and stay ahead of the competition.
Need help addressing cost objectives this year? Contact me today to find out how we can help you stay ahead of the curve.
And if you’re attending industry conferences next month, set up time with Amy, Caryn and our other Carrier Practice experts in advance or stop by at RIMS (Booth 1927) and TMPAA (Booth 36).
