Within the insurance sector, competitors can quickly match features and price. As a result, customers may have very little loyalty to insurance companies (Transformation: Insurance). Thus, customer experience is becoming one of the primary drivers of differentiation and loyalty.
The unfortunate reality is that customer experience in insurance continues to fall short of expectations. The 2016 Capgemini and Efma World Insurance Report reveals that positive customer experience ratings have dropped 3.7 percentage points (globally), with North America in the decline lead (8.3 percentage points).
Accenture, a global leading professional services company, examined this trend and determined that the largest gaps exist between what customers expect of insurers and what they receive.
The good news? Insurance companies have an opportunity to identify these gaps and create a better customer experience.
What better way to start this initiative than by using Journey Mapping? Journey Mapping enables insurers to understand exactly how customers interact at each point in the lifecycle. This insight, paired with direct customer feedback through surveying or “closing the loop” interviews, provides insurers with an opportunity to identify and address systematic issues - enabling them to create better business practices, improve products, policies, services, and processes so every customer gets a better experience.
According to a recent Whitepaper, The ROI of NPS®, successful implementation can result in:
- Increased retention rates: Customers feel valued and supported; as their voice is heard and any unsatisfactory elements of their customer experience are dealt with in a timely manner.
- Decreased cost to serve current customers: Happy customers provide an increased opportunity for upselling & cross selling (Customer Champions).
- Lower marketing costs: This is due to positive word of mouth. In fact, loyal brand advocates (Promoters) account for more than 80 percent of referrals in most businesses (Bain & Company).
But, it doesn’t stop there. A strong customer experience, and similarly, customer relationship, creates greater potential to generate growth. With NPS®, or other surveys - like Customer Satisfaction Surveys - insurers can start moving the needle on customer experience.
If you’re looking for more information on this, contact us today!