Context in Communication is King
Shawn Phillips 
November 7th, 2024
In today’s fast-paced world, effective communication requires more than just the right words; it demands the right context. What is the purpose for the communication? What is it trying to achieve? How does it fit into the series of other touchpoints with the customer?
Without a clear understanding of the communication’s context, the message can be as perplexing as a one-way street sign standing alone in an open field. Just as a bank statement that details transactions but omits the balance can leave a reader puzzled, any message stripped of its relevant context risks becoming confusing and frustrating, not to mention ineffective.
Fortunately, there’s a flipside. When businesses tailor their communications to align with the specific context of their customers’ experiences, they do more than convey information; they build trust and foster understanding. This approach demonstrates a commitment to meet customers where they are, acknowledging and addressing their current needs and circumstances. Such context-aware interactions not only enhance the clarity and relevance of communications but also strengthen the customer relationship, establishing a foundation of reliability and empathy.
Let’s dive into three real-world examples illustrating the value of context in communications, showcasing both the pitfalls and triumphs. As a person concerned with making sure customers understand and engage with the communications you send, these examples highlight what you can do with a Customer Communications Management (CCM) platform.
The Loan Application Process: Providing Timely Updates
When applying for a loan, whether it’s for purchasing a home, a boat, or funding education, the process often involves extensive paperwork and complex procedures. Especially for those navigating this path for the first time, or for those finding themselves reengaging with the process after several years, the sequence of steps can seem daunting and opaque. When I was tasked with improving the customer journey at the mortgage lending division of a bank, I observed that—while the loan application process typically required customers to provide between 10 to 25 different documents—the effectiveness of the mortgage bankers communications varied significantly.
The most successful mortgage bankers’ communications clearly outlined the stages of the loan process, the status of the applicant within these stages, and what was expected next from the customer. Others left customers in the dark, leading to prolonged processes, increased costs for the bank, and diminishing trust from customers.
We drew inspiration from our best communicators and developed a structured communication strategy to address this. Initially, the strategy involved creating communications manually, with scheduled updates rich in contextual information, ensuring customers always knew their position in the process and what was required of them next. As we refined our approach, we leveraged customer data and integrated workflows to automate these communications. This automation allowed us to provide clear, contextual, and timely updates throughout the customer journey.
Auto Claims: Connecting at Critical Moments
In another situation, working with an insurance company to enhance their auto claims process, we uncovered a pivotal factor: that a customer’s confidence in the insurer’s ability to effectively handle a claim impacted both the duration and cost of a claim. We found that customers with low confidence were likely to make 80% more calls to check on the status of their claim. They were also more prone to request re-assessments and corrections, which not only delayed the vehicle’s return but also escalated costs.
To address this, we implemented an initial check at the start of the claims process to gauge the customer’s level of confidence. If confidence levels were found to be low, we tailored the communications to those customers giving them more detailed updates and comprehensive summary information. This provided a clear understanding of where they were in the claims process—notifying them, for example, about a loss received, appraisal pending, appraisal completed, repair work started, and estimated completion dates. We also informed them about interim solutions like car rentals.
By identifying key pain points and critical moments along the customer journey, we automated the delivery of contextual communications, ensuring each update was informative and reassuring. This approach not only improved customer understanding of each stage but also visibly boosted their confidence. As a result, the process became smoother with fewer customer calls and revisions, vehicles were returned faster, and both parties saved money due to the reduced need for additional work and follow-ups.
Personalized Financial Advice During Sensitive Times
This final example is deeply personal and highlights a crucial aspect of customer communications management (CCM) that is often overlooked: the necessity of contextually aware communication, especially during sensitive times.
A few years ago, I faced the difficult task of handling my mother’s estate after her passing. During this challenging period, the financial advisor who had been working with my mother for over 20 years provided exceptional support. He visited us personally, introduced himself to my brother and me, took the time to help us navigate the complexities of the estate transfer, set up new accounts, and thoroughly explained each step of the process. His compassionate and graceful approach made a significant impact, reinforcing our trust and appreciation for him and the firm he represented.
However, six months after my mother’s passing, I received a letter from a vice president at the same firm. The letter expressed condolences for my mother’s death and offered assistance with tasks like setting up an online account—tasks that had already been meticulously handled by their advisor. This communication not only ignored the outstanding service we had received but also reduced our deeply personal experience to a mere transaction, seemingly flagged by an impersonal database.
This was a missed opportunity where a sophisticated CCM platform could have made a difference. By integrating context from previous interactions, the company could have acknowledged the services already provided and perhaps offered further support or simply a thoughtful message reinforcing their ongoing commitment to our family.
Effective communication in such emotionally charged situations must be empathetic and context aware. Without these elements, what could have been a stellar experience was diminished to a mediocre one, simply due to a lack of attention to detail and personalization in their communications. A sophisticated platform can make a world of difference in preserving trust and strengthening the customer relationship.
The Impact of Context in Communication
Contextual communication mirrors everyday interactions we use to relate to one another effectively. It’s what makes us human and successful in our dealings. Think of it like a street sign that points the way—clear, direct, and situated just where you need it to keep you on track.
As businesses, our goal should be to ensure our communications are just as clear and well-placed. If your current tools don’t support creating messages that meet your customers exactly where they are, it’s time to consider upgrading. Assess and refine your strategies, and if necessary, adopt new tools that enable personalized, context-aware communications. This approach will not only keep your customer relationships on the right path but also enhance their overall experience with your brand.
Contextual communications make communications more human. Be more human in your communications. If you can’t automate yet, do it manually; it is worth the effort.
If you’re excited about taking your communications to the next level with more personalization, we’re here to help! Reach out to us, and let’s chat about your specific needs. We’re eager to help you craft a tailored plan that perfectly aligns with your goals.
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Shawn Phillips
Shawn brings over 25 years of tech and customer experience expertise to his role as Product Manager for MHC NorthStar CCM. He is driven by a simple philosophy: great technology should make everyone’s day better—customers and employees alike. His practical, hands-on approach helps companies streamline how they talk to their clients, making every message count. Before joining MHC, Shawn was employed at Heart of the Customer, where he worked with Fortune 100 companies to improve how they connect with customers—everything from reducing pain points to enhancing key moments in the customer journey.
