At the recent PIMA conference, Chuck Christianson, Senior Vice President of Sales, Account Management & Client Solutions, shared thoughts on loyalty in the insurance industry. Here’s an excerpt from that conversation:
A growing number of companies are relying on Net Promoter Score, a leading customer loyalty metric, to gauge the overall loyalty of a brand’s customers. So, let’s take a look at some specific Net Promoter Scores. Where do you think insurance ranks on the industry list? Right now, the sad reality is that it ranks below financial services and travel/hospitality. Perhaps one factor for the low ranking is how negative customer experiences are handled. According to a study by RightNow, 92 percent of customers would be willing to return after a negative experience if they received an apology, a discount or proof of future improved service. These statistics prove how important issue acknowledgement, apology and remediation are to consumers. In fact, 86 percent of consumers said they’d actually pay more to ensure a superior customer experience.
Statistics specific to the insurance industry support the notion that customer engagement hangs in the balance. A recent Ernst & Young report showed that in the property and casualty insurance sector, 51 percent of consumers said their insurers made no effort to retain them. 62 percent said they would be more likely to renew if engaged by the insurance provider. Likewise, 35 percent of life and annuity insurance customers who are planning to switch would consider staying if offered an incentive.
So, how can insurance providers work on building lifetime engagement with their customers? The key is creating bonds with their customers through relevant, memorable experiences. Enabling those moments requires the elements of experience, the new four P’s:
- Clear purpose and unwavering passion to create a superior customer experience throughout the organization
- Knowledgeable people who understand their role in creating that experience
- Innovative products that provide value and instill trust