The Importance of Technology Partners
Choosing a technology partner is increasingly becoming a more critical strategic decision for TPAs. In Accenture’s Technology Vision for Insurance 2020, 76% of respondents agree that “of the stakes for innovation have never been higher—getting it ‘right’ will require new ways of innovating with ecosystem partners and third-party organizations.” Meaning that identifying technology solutions that support the company mission and differentiate your organization from the competition is an important part of developing an effective business strategy.
Utilizing “The One Number You Need to Grow”
In a 2003 Harvard Business Review article titled The One Number You Need to Grow, Frederick Reichheld at Bain & Company introduced the Net Promoter Score (NPS). NPS measures the percentage of customers that would recommend a company’s services to others. It also appears to be a primary indicator of growth. Reichheld stated, “Remarkably, this one simple statistic seemed to explain the relative growth rates across the entire industry.” TPAs can use this metric to identify technology partners that deliver superior levels of service and are on a growth path.
Bill Macaitis, the former CMO of Slack and Zendesk, pointed out the NPS gap between the top tier of software providers and the rest. “Best in class companies achieve a score of 70 on a scale of 100, but according to Zendesk data, the typical B2B software company achieves only 29. NPS is a leading indicator of future growth.” Today, that average still hangs between 25 and 33.
However, as the survey firm Retently pointed out, what a score says about a company is not as straightforward as just looking at a lone NPS. Context is critical. What matters is how a provider’s score compares with those of other companies within the same industry. In the 2020 RMIS Report, Origami Risk posts a score five-times higher than our nearest competitor—a score that is 60% higher than the benchmark score for SaaS companies.
Including NPS scores when selecting technology partners can help identify best in class vendors with the most potential for long-term growth.
Employing Technology During the Sales Cycle
Technology partners directly affect how TPAs compete and grow their business. The ability to effectively demo customer-facing technology is another key differentiator. Research shows that most buyers want this to happen much earlier in the sales process than most organizations expect. In the 2016 study “Buyers Speak Out: How Sales Needs To Evolve”, HubSpot published data that showed that most businesses are giving demos at the wrong time. “Often sales organizations peg the demo as the final closing action. Our data shows that a third of buyers want the opportunity to see a product in action very early on. They want a very tangible understanding of what they’re potentially buying, and they want it right away.” To move up the demo process to early in the sales cycle requires a highly adaptable infrastructure.
Origami Risk provides TPAs with flexibility and the ability to quickly tailor the system for a demo and let potential customers see for themselves how their specific challenges are solved.
Moving to Best-in-Class
Technology partners are critical components for TPAs looking for a strategic edge. Metrics such as the NPS scores can help identify those partners offering best in class service and those most likely to be on a growth curve. Additionally, high performing TPAs need to be able to offer customized demos earlier in the sales cycle, when buyers prefer them. With these strategies, the technology ecosystem that high performing TPAs choose can become a competitive advantage. Learn more about how Origami Risk serves TPAs or request a custom demo today.