Corporate stock photos be damned; Customer Experience isn’t all hugs n’ high-fives. For P&C insurers, there absolutely is an ROI for Agent & Policyholder Experience. Consider the following:
A $1 billion insurer stands to generate an average of $370 million additional premium over three years with a modest improvement in customer experience.
– Source: The Tempkin Group
Nearly 2 out of 3 policyholders are at risk of non-renewal with only a neutral and/or negative customer experience.
– Source: J.D. Power
Profitability & Growth
The close link between customer loyalty and profitability is widely acknowledged and accepted. Loyal customers devote more resources to their insurer, stay longer with that insurer, and are more likely to recommend it to family and friends. All of these factors, in turn, lead to increased profitability for the company.
– Source: Cap Gemini
A Forrester Research index of customer experience-leading companies has posted an average ten year stock return of 213% vs. the S&P 500 average of 75% from July 2004 – July 2014.
– Source: Forrester Research
At CXIS, we’ve developed a Program for Quantitative Agent & Policyholder Experience that is designed to blend into a P&C carrier operation:
- Continuous & real-time aggregation of agent & policyholder experience, operational, & social media data.
- Modeling & analytics to identify impacts on policy growth, retention, net promoter score, conversion ratios, quote volumes, etc.
- Facilitation of a Continuous Improvement Program – i.e. actually using the data; operationalized by insurance executives.
So is Customer Experience all “fluff”? Ask companies like USAA, Southwest, & Amazon. Or just ask us, because we actually know insurance too… firstname.lastname@example.org.