Service seems to be a catch-all word for whatever seems to be lacking in our agencies. Most of us have identified service areas as most important in making our agency run.
Service applies to two areas in the insurance agency business. The first area is convenience to customers. Here are some examples of convenience:
- Banking while purchasing groceries.
- Having one's car picked up to be serviced, then delivered to your home.
- Having one's clothes dry-cleaned, doing the laundry, and eating lunch all at the same place.
- Purchasing one's life, health, and disability insurance at the same place one purchases homeowners, auto, and commercial lines insurance.
All of these are examples of one-stop convenience!
If your agency is selling homeowners and auto only, or life and health only, or commercial lines only, then you are missing the boat.
The other key to service is coming into contact with the customer. Jan Carlzon, chief executive officer of the Scandinavian Airlines (SAS), revolutionized service by identifying customer contacts as 'moments of truth.' In one short year, Carlzon turned SAS around to make it one of the most profitable airlines in the industry. A moment of truth occurs any time any SAS employee come into contact for any reason with any customer.
From answering telephones to making sales calls, to delivering a meal, to picking up the garbage, to helping someone off the plane all of these are considered moments of truth.
Moments of truth in the insurance industry are not a lot different. At a recent Life Insurance Marketing And Research Association conference, we discussed convenience and the moments of truth we all face with customers. It was determined that there are six areas in which we face clients or potential customers when convenience and moments of truth are important:
- Prospecting and sales customers expect salespeople to be friendly. They expect us to speak in plain English. Simple, understandable policy information is very important. They want to know that the price of what they are purchasing is competitive.
- Billings and payments-How could there be a problem with something as a simple and academic as sending or receiving a bill and making a payment? Yet there is. Customers want their bills presented in simple, easy-to-understand terms. if their rates go up, they want to know why. They want the easiest possible way to make a payment.
- Changes in the policy-When there is a change, customers expect it to be hassle-free. Whenever a change is necessary, they do not want to deal with the home office. They want to deal with the agency. Customers feel there is too much red tape in dealing with the home office. They feel like just another number in a computer. Customers want the agency, not the company, to make things easy and convenient.
- Keeping in touch-many of us see customers only at renewal time. When you continue to keep in touch by phone, a letter, a card, or a meeting in the office, customers want to be treated like human beings. If there is a new way to save money, they want suggestions. They don't want to see us just when we are in the mood to sell them another policy.
- Meetings and communications-To communicate with our clients, they need to see our name in front of them all the time. This can be in the form of a newsletter or a special magazine to larger customers, a personalized birthday card, or Christmas card. We must occasionally meet with them in our office, in their home, or in the customer's office. Whatever it takes, it should be consistent.
- Claims-In a recently conducted survey, 40% of clients were less than completely satisfied with their insurer. Remember, when you sell that policy, you sell a promise.
What do you think clients are looking for when they have a claim? Promptness, our getting back as we promised, and courtesy, letting them know that we're glad they are our client even when they just had a claim. They want to know how long everything is going to take, and if we truly care about their situation. They want their claim to be handled in a hassle-free way. Simple!
Customers want convenience, and they want to be treated like kings and queens. It's the same way you want to be treated when you go to the bank, clothing store, or grocery store. It's a win/win strategy. You win and your customers win.