What are two 'facts' most customers 'know' about insurance? One, it costs too much. Two, if they make a claim, their policy gets canceled.
This negative view of the insurance industry doesn't apply to all clients, but it does seem to be a prevailing attitude among many. And it needs to be changed. One obvious way to change it is by giving excellent service, but there's another way to bolster a positive view of the insurance industry - through 'customer literacy': educating customers. Insurance consumers need to understand what they are buying and why.
Customer literacy helps build long and profitable relationships. It's when clients don't understand what they bought or how their coverage actually applies that misunderstandings occur. But when clients are insurance literate, they'll appreciate the agency's services better, they'll stay longer, and they'll tell others about their positive experiences working with you.
Go beyond telling about coverage and selling price by educating your clients.
SHAPE customers' expectations early. Tell them exactly what you as their customer service representative (CSR) will do for them and what you won't or can't do for them. For example, you will assist them in requesting coverage changes or reporting losses. You won't, however, submit falsified bills or inaccurate information.
EXPLAIN the reasons for buying insurance. As best you can and as realistically as possible, explain how and why to buy insurance (not just why customers should buy it from you) - i.e., they are purchasing financial protection against major types of disasters.
DEFINE what customers want. Help them know what they're getting, then make sure they get what was promised. This encourages longevity in the relationship. On a regular basis, clarify exactly what the prospect or customer does not want to be without in the event of a loss (cars, home, building, employees, etc.).
ACCLIMATE customers. Within a few days of the prospect making a buying decision, offer to meet him or her individually. If you have a group of clients with similar concerns - say, churches or dry cleaners - conduct a short, educational seminar for the group. Also, introduce clients to others in the agency who may work on their protection plan during the upcoming year.
SHOW customers examples of forms and other insurance-related items such as a:
- certificate of insurance
- policy
- billing statement or invoice
- loss notice
DEMONSTRATE how to fill out certain forms and offer to answer any questions.
ROLE-PLAY: Walk customers through a couple of possible scenarios they may encounter. For example, what do they do in the event of a loss? What information will the agency need when they call for certificates of insurance?
PREPARE clients to be better businesspeople and better risk managers. Explain how they can protect their property by storing and locking it appropriately. Teach them how to have healthy and safety-conscious employees and family members. Show them good business practices. Be a consultant.
FOLLOW UP six to eight weeks after the instruction. Ask, by mail or by telephone:
- if they've been able to use the information you gave them
- if there's anything else they would find helpful that you could provide
- if they know of others who may benefit from your consumer education program
A positive response indicates that you're on the right track. A negative response uncovers flaws in the customer literacy plan - which enables you to modify the plan.
Educating and following up with clients lets them know you care about their well-being. At the same time, it provides a measure of the value and effectiveness of your efforts. Customer literacy goes beyond the basics of insurance knowledge; it demonstrates the full array of service and expertise your agency has to offer.