In today’s competitive insurance environment, customer experience is becoming one of the primary drivers of differentiation and, ultimately, high performance. Despite this, a recent survey of American insurance buyers by Accenture revealed that customers see a large gap between the experience they believe insurers should provide and what insurers are currently delivering. This week I’ll examine what this gap looks like and the impact it has on insurers. In the coming weeks, I’ll take a closer look into what defines optimal customer experience and recommend steps for reaching this goal.
Significant gaps in customer experience
The greatest gaps include:
- Not providing clear and easy to understand information on policies
- Not providing prompt and effective service and answers
The gap is negatively impacting insurers, with 62% of those surveyed reporting that they left due to poor customer service. This finding has remained consistent over the last several years.
Why should insurers care?
The impact of poor customer experience is not limited to retention. Increased customer complaints, complex problem resolution and damage to brand and reputation drive up costs.
Similarly, a great customer experience can increase customer satisfaction and dramatically improve retention. In fact, one technology company used proven customer experience measures to reduce churn by 12% in its highest value customer segment and grow revenues by $120 million.
Join me next week when I’ll explore how to shift to a customer-centric viewpoint.
To learn more, download: Delivering Exceptional Customer Experiences.