Oct. 22 2026 07:22 AM

What highly regulated industries can learn from your last takeout order

    status

    Think about the last time you ordered food through a delivery app. You watched the driver pick up your order, take a wrong turn, correct course and pull up at your front door. You knew exactly where your food was the entire time, and if something changed, you heard about it before you had to ask.

    Now think about the last time you submitted an insurance claim, applied for a loan or updated a healthcare plan. How much were you kept in the loop?

    That contrast gap has been widening for years. Consumers have been quietly trained by retail and entertainment to expect visibility as a default. Real-time tracking, instant confirmations and proactive updates when something changes are now the norm. None of it feels remarkable anymore because it has become the baseline of what good service looks like. The challenge is that regulated industries have not kept pace.

    The gap between what a customer experiences ordering dinner on a Saturday night and what they experience filing a claim on a Monday morning is real, measurable and increasingly difficult to justify.

    The compliance checkbox problem

    Most customer communications in regulated industries were not designed around the customer. They were designed around the organization's need for documentation. A form is submitted, an acknowledgement goes out, and weeks pass. Then, a decision arrives. From the organization’s perspective, the process worked. The right boxes were ticked and the right records were created.

    From the customer's perspective, however, they were asked to wait in the dark with no idea how long a decision would take, or what to even expect next. Readers likely know where these gaps exist in their own organization’s journeys. They don’t know, however, what it’s costing them.

    According to Smart Communications' 2026 benchmark report, unclear communications are the single most common reason consumers contact customer service instead of completing a process digitally — cited by 43% of respondents across all industries and age groups. Every one of those contacts is a call center interaction that didn't need to happen, and at scale, that adds up to a significant and largely invisible operational cost that rarely gets traced back to the communication failure that caused it.

    Status-as-a-Service

    What I am describing has a name that I think captures it well: Status-as-a-Service. The concept is that real-time progress updates, contextual guidance and continuous visibility are not premium features to be offered selectively. They are what a service experience should feel like as a baseline.

    This doesn’t mean flooding customers with notifications. Nobody wants that, and organizations that interpret proactive communication as high-volume communication tend to make things worse rather than better. What it means is designing the experience so that the customer always knows where they are, what is happening, and what comes next — without having to initiate the conversation themselves.

    In practice, this looks like a claim tracker that explains not just which stage has been reached but what it means in plain terms, proactive updates when timelines shift, clearly signaling when AI is supporting a process and when a human adviser is involved, and systems that carry information forward so the customer is never asked to repeat themselves. Every time a customer has to re-explain their situation from scratch, they are absorbing friction that your organization created and they did not ask for.

    Where implementation goes wrong

    The technology to make Status-as-a-Service work at scale exists today in a way it genuinely did not five years ago. But technology is not where most implementations fail. Where they fail is in treating automation as the goal rather than the means.

    Automation applied poorly does not close the gap between customer expectation and organizational delivery. It widens it. A stream of generic, templated status updates that arrive on schedule but say nothing meaningful can leave a customer feeling less informed than silence would. It makes customers feel like a case number, not a person. The distinction that matters is between designing communications that feel like conversations and designing communications that feel like broadcasts.

    The business case

    Regulated industries are markets where products frequently look identical on the surface, like two insurers offering comparable cover or two banks offering similar rates. In those markets, communication becomes a primary differentiator. Customers notice when it falls short, and they act on it. They switch providers, share their frustrations and become more receptive to competitors who promise something better. Our own research supports this: 63% of consumers say they are likely to switch away from a company if communications do not meet expectations.

    The organizations that treat communication as a cost center rather than a competitive asset tend to find that out when the churn numbers arrive and nobody can quite explain where the problem started.

    Where to start

    For CCM leaders trying to figure out where Status-as-a-Service fits into an already full roadmap, the answer is not to start with the technology. Start with an honest audit of your current customer touchpoints. Not the version that looks good in a presentation, but the real one. Map the moments where the customer goes dark, where they submit something and hear nothing, and where they are expected to wait without knowing why.

    Then ask yourself one question: if this were happening to me, would I know what was going on? If the answer is no, you have found your starting point. The customer journey belongs to the customer, and the organizations that understand that are the ones building the kind of trust that holds when everything else looks the same.

    Scott Draeger joined the customer communication industry by designing statements and marketing materials at an innovative service provider before joining the CCM industry. With over 20 years in CCM innovation, Scott has traveled the world to improve the way insurers, financial services organizations, health insurers, and other heavily regulated industries communicate authentically with their customers while complying with regulations.
     

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