Why Great Customer Service is Vital for Insurance Companies

This piece is by Jessica Woodhouse, Chief Operating Officer at Homeprotect,< part of the Avantia Group

There are so many factors that go into delivering great customer experiences that result in brand loyalty, it can be difficult to know what to prioritise. But one area in particular tends to be directly linked to customer satisfaction, company reputation and overall success: customer service.

In short, how the customer views your business defines your brand. If a customer has a good experience with you, they’re more likely to keep their policy with you. And for any business, retaining customers is a far more cost-effective strategy than putting more of your efforts into acquiring new ones.

There are also multiple benefits to good customer service. Employees will be happier and more engaged when they know customers are satisfied with the service, and those customers are more likely to stay with the company longer. What’s more, as your teams are talking to customers (and potential customers) every day, they are likely to hear real-time customer feedback that can inform and bolster your contact and communication strategies.

Put in place an effective customer service strategy and you will see the benefits almost immediately.

Here are five ways in which you can achieve that.

Understand the industry challenges

In our industry, it’s clear that customer service has a massive impact on success. This is shown by a revealing statistic: 80% of satisfied customers are more likely to renew their insurance policy. This underlines the importance of getting customer service right.

However, we face unique challenges in insurance. Historically, insurance companies have taken a traditional approach to customer service, preferring a voice-based service. That’s because there’s a long-held view that we need to have direct conversations with customers due to product complexities, making it difficult for some firms to know how to transition to a more digital approach.

Added to that, response times across the industry are varied which would suggest there’s an inconsistency in customer service speed and efficiency.

Challenge your channel mix

While a traditional approach is understandable in some ways, solely concentrating on channels such as phone and email risks alienating customers who want answers delivered quickly and efficiently. In fact, clients today expect seamless interactions across all channels, such as phone, email, online chat, and mobile apps. Developing these can be time-consuming and complex – but in my experience, the ROI is worth it.

At Homeprotect we tackled this head-on. Our insight told us that customers wanted a human digital solution (as opposed to AI bots) and didn’t find email the most effective or efficient route. In response, we delivered a new CRM system, largely closed our email channel and grew our online live chat to approximately 80% of all digital contact centre interactions, whilst extending the chat operating window to better suit our customers’ requirements.

Off the back of rolling out the new CRM system, we also built and deployed a knowledge base and introduced system-based scripting. This was about getting to the heart of what the customer needs and responding effectively.

Focus on customer outcomes

Creating a customer-centric culture is no small feat. Insurance companies that are traditionally product-focused, for instance, may struggle to transform their operation in a way that truly prioritises customer preferences.

Beyond the insurance sector, the principles of customer-centricity are equally critical in retail. For businesses offering a diverse range of products, such as specialty tobacco retailers, ensuring customers can easily find and purchase their preferred items, whether it’s a specific brand of Swisher Sweets or a particular blend of pipe tobacco, directly impacts their satisfaction and loyalty. A seamless online experience, clear product descriptions, and efficient order fulfillment are all extensions of excellent customer service, building trust and encouraging repeat visits. By prioritizing the customer’s journey, retailers can transform a transactional purchase into a valued relationship.

At Homeprotect our contact strategy had to be driven by insight from our own customers. The scaling back of our email channel, growth of our chat interactions, and change to our operating hours to align more closely with what our customers wanted has helped to drive a 12% year-on-year uplift in our NPS score – so it’s clear that making changes like this can completely alter the experience customers have with your business.

The same is true if you can develop consistency in your service. One way to do this is by making client satisfaction and resolution your measures for success. By focusing on the actual outcome for the customer, you’re far more likely to win their trust and improve your service offering as a result.

Keep your team happy and engaged

Building an engaged team should always be a top priority.

Investing in training, in particular, can build a real sense of inclusivity, professional growth and team satisfaction. Particularly if you can find ways to improve how your people interact with the materials, such as shifting from PowerPoint to interactive, gamified learning.

For us, we trained all our colleagues in how to have a great conversation with our customers – and, as we’d created a number of new roles, made all new starters feel part of the change.

We’ve also moved to a 50:50 office and home work arrangement that’s been pivotal for staff retention and recruitment. We’ve seen engagement in company surveys climb by 39%, attrition halved, and staff absence fall by 4%.

A happy team is the best foundation you can have to build a better customer service and improved customer outcomes.

Look forward rather than back

We see it right across the industry – insurance businesses can be afraid to break away from traditional approaches. But when it comes to customer service, there are so many ways in which you can improve client outcomes, from investing in technology and training to building a unique team culture – but it should always involve putting the customer at the heart of everything you do.

By setting your sights on continuous improvement – and finding ways to measure that in the satisfaction and wellbeing of both your colleagues and clients – you will go a long way to creating excellent customer service.