Unlocking $1.5M in Annual Savings: A Blueprint for Successful Offshoring
05 Oct 2023
In today's fast-paced insurance landscape and demanding customer environment, AB Phillips (ABP), a market leader in Australia's risk, insurance, and financial services sector, found themselves at a crossroads. Soaring customer demand, a stretched local team, and a tough hiring landscape required a fresh strategy to maintain growth and keep customers happy.
25%
Enhanced Productivity
70%
Retention Rate
$1.5M
Cost Savings
$2M
Increase Annual Revenue
The ABP and Intogreat partnership successes include:
● Streamlined ABP’s operations and significantly enhanced productivity by 25%
● Delivered a remarkable improvement in the customer experience with a retention rate of 70%
● ABP reaped substantial financial benefits of $1.5M in cost savings and a $2M increase in annual revenue
An Intogreat Solutions Success Story: AB Phillips
The Initial Challenges
In 2018, ABP was in a period of robust growth, servicing over 10,000 businesses and individuals with a locally based team of just over 100 staff. This rapid expansion led to operational strains and difficulties in recruiting, training, and retaining a reliable workforce.
ABP's Executive, Tania Anderson, once said
“Our processing team was certainly an area where we were finding it hard to attract candidates. And when we did attract candidates, we were finding it difficult to retain them, which led to instability and inconsistency in that processing function for us that led us to considering an offshore solution.”
ABP recognised that if they didn't act swiftly, they risked losing both customer satisfaction and their competitive standing. Offshoring emerged as a potential solution to these challenges.
Setting a New Direction: The Intogreat Partnership
Intogreat was engaged in 2018 to formulate and execute an offshoring strategy that would alleviate administrative burdens on account managers and brokers and institute an end-to-end workflow improvement strategy. The partnership consisted of two main stages:
Stage 1:
Laying the Offshoring Foundation:
Business Preparation and People Services
The partnership between Intogreat and ABP serves as a benchmark for strategic offshoring, delivering impressive gains across financial, operational, and employee engagement metrics. The relationship kicked off with an in-depth ROI analysis by Intogreat, projecting additional annual revenue of over $1.5 million for ABP. This was achievable by freeing client-facing staff from 70% of administrative tasks, allowing them to focus on core business activities. To realise this, Intogreat provided a range of services including a dedicated Project Manager, exhaustive recruitment processes, SMART KPIs, secure IT setups, and comprehensive training plans that also included cultural integration through New Ways of Working (NWOW).
Beyond this initial setup, Intogreat assigned specialised Service Managers and implemented customised development programs for ABP's offshore teams, which span multiple domains such as insurance, marketing, and finance. Key initiatives like monthly GROW coaching, structured performance evaluations, and cross-skilling training schemes have significantly contributed to team stability and individual career growth. Additionally, Intogreat also rolled out an in-house "Train-the-Trainer" approach to employee development, free soft-skills courses, and specialised market academies. Employee engagement was further nurtured through regular staff activities and quarterly surveys.
The Offshore Team's Rapid Expansion
In 2018, ABP started their offshoring journey with just two staff members. Fast forward to today, and they boast a 30-member offshore team managed by Intogreat. This highly specialised team is broken down as follows:
● 1 Service Manager: Overseeing the entire offshore operation
● 1 Finance Manager: Directing all financial activities offshore
● 3 Team Leaders: Spearheading Claims, Ops and Compliance, and Support Services
● Claims Team: 3 highly skilled individuals
● Finance Team: 3 financial experts
● Ops Compliance: 3 members (1 Senior Specialist, 2 Compliance Admin)
● Support Services: 13 members (11 Processing Support + 2 Broker Support)
● IT and Marketing: 4 members (1 in Marketing, 3 as Software Developers)
Stage 2:
Elevating Customer Experience (2022)
The collaboration between Intogreat and ABP in 2022 aimed to elevate customer experience to new heights by adopting a comprehensive and strategic approach. Recognising that exceptional customer service is not just a feature but a competitive differentiator, the partnership focused on creating a customer-centric culture. This was in alignment with ABP's broader business objectives, including client retention, sales growth, and overall customer satisfaction. A key initial step was a collaborative workshop that mapped out ABP's existing customer journey, shedding light on inefficiencies, pain points, and areas ripe for innovation. As a result, the partnership gleaned crucial insights into how to streamline processes and remove operational obstacles. This not only led to increased staff efficiency but also to higher customer satisfaction and sales. The focus then shifted to establishing the customer 'Happy Flow,' an optimal path designed to minimise unnecessary interactions and spotlight those that add real value to customer relationships. Implementing this more efficient and satisfying customer journey was a critical factor in securing client loyalty, encouraging brand advocacy, and creating opportunities for cross-selling and upselling. After these improvements were applied, customer experiences soared and the retention rate hit 70%.
To ensure these improvements in customer experience were sustainable, new processes were meticulously documented and translated into specialised standard operating procedures. These procedures enabled a smoother onboarding process for new hires and allowed existing staff to better contribute to an enhanced customer experience. Overall, the multi-phased strategy demonstrated how a dedicated focus on customer experience can become the cornerstone of a successful business, driving not just satisfaction but also tangible financial growth of $2M for AB Phillips.
The Offshore Team's Rapid Expansion
Stage 1 Benefits:
Revolutionising the Customer Experience
● A 25% boost in productivity, leading to a $2 million increase in revenue.
● A growing offshore team in Manila, generating bottom-line savings of approximately $1.5 million annually, or around $50k per staff member.
● Additional benefits, including reduced costs for recruitment and training and a decline in lost productivity.
● Staff attrition rates reduced significantly, as employees found more satisfaction in fulfilling their designated roles. This directly translated into better productivity and improved quality of work, turning ABP's offshoring venture into a growth engine.
● Implementation of a centralised knowledge management platform enabled both onshore and offshore staff to work consistently, resulting in reduced errors and processing times.
Stage 2 Benefits:
The Financial & Operational Change
● Customers now experience a seamless claims process, fully understanding each step involved.
● A reduced frequency of customer interactions, achieved through effective customer journey mapping and the introduction of service level agreements.
● Improved workflow between the claims team and account managers enhanced the focus on quality customer service.
● Use of a third-party service provider to handle complex claims led to quicker turnaround times and freed up the team's capacity.
● Portal lodgements increased, minimising manual entries, and ensuring higher productivity and performance.
The Power of Strategic Partnership and Customer-Centric Transformation
The journey embarked upon by ABP and Intogreat has evolved into a story of transformative success that exceeded all performance and financial expectations. Initially aimed at cost-saving and staffing solutions, the offshoring strategy has matured into a full-fledged growth engine that has propelled ABP to new heights in a fiercely competitive market.
But the potency of this partnership transcends mere financial metrics. By adopting a holistic approach, the collaboration has delivered extraordinary gains across the board—whether in productivity, employee satisfaction, or customer experience. These aren't just standalone victories; they are interconnected triumphs that compound the value delivered by each.
The advancements in productivity are compelling, evidenced by the $2 million increase in revenue and the 25% boost in overall productivity. Likewise, employee satisfaction has shot up, yielding not only happier staff but also impressive bottom-line savings of approximately $1.5 million per year. However, one of the most impactful transformations has been in the realm of customer experience.
An end-to-end focus on this crucial business aspect has empowered ABP to optimise their operational processes and significantly enhance customer satisfaction levels. The ripple effect of this is manifest in robust client retention rates, expanding sales opportunities, and an outstanding overall customer experience. Happy customers aren't just one-time clients but ambassadors who generate repeat business and wield considerable influence through positive word-of-mouth.
In essence, customer experience at ABP has metamorphosed from being a segmented department or an isolated strategy to becoming the very foundation on which the company's future prosperity is built. This 360-degree transformation has created a virtuous cycle where improvements in one area invariably uplift the others, enriching both the company’s revenue and reputation.
The success story of ABP and Intogreat serves as a compelling blueprint for how businesses can shift from merely surviving to thriving in today's hyper-competitive landscape. By strategically embracing offshoring as a multifaceted lever for growth, companies can position themselves for sustained success, much like ABP has done. In an era where every advantage counts, this kind of holistic, customer-centric approach isn't just an option—it's imperative for long-term growth and sustainability.
Learn more about Intogreat Solution’s process and how we can work with your business:
Phase 1:
Business Preparation Services
Intogreat carried out an in-depth Return on Investment (ROI) analysis, revealing potential for over $1 million in additional annual revenue. These figures stemmed from the projection that freeing client-facing staff from 70% of their administrative tasks would enable them to focus on core business activities. Intogreat provided ABP with the following during the transition process:
Dedicated Project Manager
Our skilled project managers keep you in the loop at every stage, tackling areas such as recruitment, IT setup, KPIs, training plans, and New Ways of Working (NWOW), along with cultural alignment. We navigate risks and challenges so you can focus on your core business.
End-to-end Recruitment Process
We offer a pool of qualified candidates, rigorously vetted to fit both the role’s requirements and your company culture. This assures a seamless integration into your team.
KPI and Training Plan
We coordinate closely with Subject Matter Experts and your team to establish SMART KPIs and training initiatives. Our goal is to provide each member of your workforce with the skills and expectations needed for peak performance.
Secure IT Set-up
With data security as a priority, Intogreat provides the complete IT hardware suite, protected by stringent security protocols. We align our technology seamlessly with your existing systems to ensure data remains within your infrastructure.
NWOW and Cultural Training
Our training modules are designed to bridge any cultural gaps and offer best practices for managing a global team, aligning seamlessly with your New Ways of Working strategy.
Phase 2:
People Services
Intogreat assigned dedicated team leaders to manage offshore teams, implement KPIs, and tailor development programs to each staff member's needs. By the end of 2021, the claims team was already functional and had expanded their services to handle complex, multi-faceted claims. ABP's offshore team grew to include various functions such as marketing, compliance, IT, and finance, further cementing the value proposition of the offshoring arrangement. Here are the details of what we have provided to ABP over the last 5 years:
Dedicated Insurance Service Manager
With Subject Matter Experts (SMEs) specialising in Australian insurance broking, our dedicated Service Managers offer incomparable guidance for ABP’s offshore staff. Their expertise is continuously leveraged to hone staff performance and maintain peak operational efficiency.
Proactive Staff Management
Real-Time Coaching: We conduct monthly GROW (Goal, Reality, Options, Way Forward) coaching sessions to ensure staff members are consistently aligned with key performance goals. This ongoing feedback loop is vital for addressing performance gaps and is transparently communicated to ABP.
Performance Milestones & Continuous Assessment: All new hires go through a structured evaluation period at 30, 60, 90, and 150 days, involving both staff and client participation for a well-rounded performance review. Post-probation, bi-annual reviews keep performance standards high. For those who need extra support, we implement monthly review cycles.
Strategic Team Development: ABP's offshore operations have significantly stabilised, thanks to our targeted cross-skilling training programs. These initiatives also serve as a robust retention strategy, ensuring staff skill enhancement and career growth.
Comprehensive Learning and Development
Train-the-Trainer Approach: ABP leads in implementing our innovative in-house training system. It allows for designated offshore SMEs to conduct new hire training, saving valuable time for the onshore teams.
Free Soft-Skills Courses: Every ABP team member has access to our portfolio of soft-skills courses, including customer service, stress management, critical thinking, and decision-making.
Intogreat Academies: We offer specialised courses in Australian accounting, insurance, and mortgages. This allows us to onboard staff with limited Australian market experience and equip them to be immediately productive.
Fostering High Engagement
Employee Experience Initiatives: We conduct monthly staff engagement activities at no extra cost to ABP, ranging from team-building exercises to annual celebrations.
Quarterly Employee Surveys: Regular surveys ensure that employee voices are heard, gauging their engagement with both Intogreat and ABP. Survey insights are shared transparently with ABP.
Annual Performance & Salary Reviews: Any adjustments to salaries based on performance metrics and market standards are fully coordinated with ABP to ensure alignment with their budget and goals.
Adaptable Work Models
Recognising the changing landscape of workplace dynamics in the post-pandemic era, we offer multiple work arrangement options. ABP currently utilises a hybrid work model, affording employees the benefits of both remote and in-office work, thereby promoting enhanced job satisfaction and work-life balance.
By strategically aligning people services with ABP's core objectives, we've built a highly skilled, engaged, and adaptable offshore team that adds undeniable value to ABP's operations.
Phase 3:
Continuous Improvement
Intogreat initiated the development and deployment of various tools, including automated workflows, internal tracking systems, and resource management platforms. These strategic implementations helped maintain focus on high performance, productivity, and output quality. We have not only focused on offshore processes, but also assisted on elevating the ABP customer experience by applying these measures:
Mapping the 'As-Is' Customer Journey
To create a strategic framework for customer experience transformation, a collaborative workshop was held with key stakeholders. In this workshop, we dissected ABP's current customer journey, identifying pain points, inefficiencies, and potential areas for innovation. This exercise was crucial as it offered a real-world snapshot of what customers encounter, informing the next steps for refinement. Understanding the existing customer journey is vital for achieving a seamless customer experience that enhances both client retention and brand loyalty.
Eliminating Waste and Redesigning Processes
The next step involved a meticulous review of current practices to identify and eliminate redundant or ineffective steps. By streamlining processes, we reduced the operational drag that often frustrates both staff and customers. Efficiency in this phase translated into quicker response times and more effective service, directly contributing to increased sales opportunities and an uptick in customer satisfaction.
Orchestrating the Customer 'Happy Flow'
To elevate the customer experience further, we focused on the 'Happy Flow,' which is the optimal path that customers should take when interacting with ABP. This involved minimising unnecessary touchpoints and focusing on moments that add genuine value to the customer journey. When interactions are simplified and enjoyable, customers are more likely to stay loyal to the brand, recommend ABP to others, and become more open to cross-selling or upselling opportunities.
Implementation and Knowledge Management
For the gains in customer experience to be sustainable, they must be systematically implemented and continuously monitored. All newly designed processes were rigorously documented. This not only served as a one-stop reference for staff but also dramatically reduced the time required for training new hires. Tailored training modules were then developed and rolled out across the organisation, ensuring that both new and existing staff could proficiently contribute to the enhanced customer experience.
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