Insurance beyond NPS®: Leader's blueprint to delivering great CX

A while ago we organised a webinar, where 2 global insurance leaders and our partners form Medallia sat down for an hour-long discussion on what’s happening in the insurance world at the moment. Among the topics were successful employee engagement initiatives, measuring CX impact on business and organisational metrics and how the industry is doing after COVID-19.

Changing customer behaviours during the pandemic >
Employee experience: crucial for delivering a consistent message >
Addressing customer feedback through text analytics & predictive capabilities >
Assessing & prioritising best actions to impact customer NPS >
Analysing insurance customer lifetime value to drive strategic decisions >

I.

Changing customer behaviors during the pandemic

CREATING A CLOSE-THE-LOOP CULTURE

The need for contact encouraged customers to share their experiences and worries. Reach-out actions showed trust and empathy, decreasing the number of potential churners. Hence, creating an organisation-wide close-the-loop mindset and culture nudged employees to proactively follow-up with clients from all segments and tiers, and ask about their current experience and concerns. Predictive algorithms armed customer satisfaction professionals with information that expanded beyond the survey data, they were already owned.

EQUIPPING YOUR TEAM FOR SUCCESS

Companies, which already had a monitoring customer experience system in place, saw in real time the growing needs of both customers and employees. This allowed for faster response to equip agents, sales and claims handlers to handle incoming cases remotely. The unprecedented situation put a strain on the insurance business. Companies faced overwhelming volumes in incoming claims. This led to the need for restructuring and redistribution of workforce to handle it all.

REASSURANCE IS THE BEST INSURANCE

82% of the customers declare that the trustworthiness of a company is best shown in a crisis situation like the pandemic. What significantly changed was not so much the decrease in purchasing certain types of products, such as travel insurance, but the ever-growing need for reassurance. When there was a lack of reassurance, the urge to switch to a different company skyrocketed.

II.

Employee experience: crucial for delivering a consistent message

CREATE OPERATIONAL CLOSE-THE-LOOP

Engage as many employees as possible. Each function within the organisation must have a part in the overall delivery of consistent customer experience, thus making everyone responsible for close-the-loop performance outcomes. To be effective, C-Level must clearly communicate the strategy as a top priority on an operational level and involve themselves in delivering on the subject. Monitoring the process allows for making adjustments if any gaps occur throughout the entire communication cycle with the client.

PROMOTE SUCCESS STORIES

Good practices and feedback show that encouraging CX champions and team leaders to communicate success during regular meetings affects the overall performance. Such data is easily accessible through VoC platforms most companies already have in place.

KEEP YOUR CX PROGRAM ALIVE

Insights show once you stop a customer experience program, it takes about 12 months to relaunch and re-analyse the available data. Closing-the-loop will be harder, thus leading to a massive resource waste until you get it back in track.

The insights from detractors correlate closely to the incoming complaints. Catching those before they occur saves a lot of resources and reduces reputational risk.

III.

Addressing customer feedback through text analytics & predictive capabilities

PREDICTIVE NPS ALLOWS YOU TO GO BEYOND

Knowing the type of information you already have can save you the trouble of spending time to re-analyse it from the start. Effective management of the text analytics capabilities gives volumes, helping for better pinpointing customer pains.

PROMOTERS BRING MORE BUSINESS

Get the real satisfaction score of a 100% of your customer base at any given moment through predictive NPS, and plan your CX initiatives accordingly. Recent industry insights show promoters enhance existing referral programs, ending in brining more new business.

PNPS IMPACTS FINANCIAL RESULTS

Measure your close-the-loop actions and prioritise the proper initiatives to get the best out of your CX program. The essence still lays in improving overall customer experience performance and delivery. You can do both simultaneously through predictive analytics.

IV.

Assessing & prioritising best actions to impact customer NPS

COMPARE KEY DRIVERS

Comparing key drivers in terms of importance is possible through regression analysis. It allows comparing how does the performance of a particular KPI or service/product delivers against NPS. Hence, enabling teams to take proper actions and resolve the issues that occur.

FIRST NOTICE OF LOSS POINT

The first notice of loss point (FONL) is the initial moment, when employees must deliver a consistent message and reassure the customer about the positive outcomes of their case.

REDUCE OPERATIONAL COSTS

Use existing customer insights and identify drivers of dissatisfaction to reduce operational costs. Determine what is the current experience and prioritise on the proper enhancement improvement initiatives.

V.

Analysing insurance customer lifetime value to reach revenue targets

DON’T ANALYSE SINGLE CUSTOMERS, ANALYSE THEIR NETWORK

More and more often, insurance leaders analyse the customer lifetime value when taking a broader look into their network. It’s common for a household to share the same insurer, but still have different insurance policies. Analysing the customer’s network rather than them as a singular profile allows to include the likeliness of a client to recommend a company, based on the data gathered from his network.

LINK CX TO FINANCIAL OUTPUTS

Using a dedicated customer experience platform allows for better and deeper understanding of what’s the attributed value of the VoC program. The more the program matures, the higher the operational efficiency and the revenue stability.

UNDERSTAND THE IMPACT OF CHANGE

Another way to understand the link between cost and NPS score is to introduce your premium tier to the actual value of the product they are getting. That, combined with the impact of the actions based on customer feedback, encourages for efficient operational improvements and new product developments.

Re-watch the entire webinar session?

AVAILABLE ON DEMAND

Enjoy a conversation with insurance leaders from Generali, AIG & our trusted partner Medallia, and get the key takeaways on how to build sustainable CX strategies with actual business impact.