In the December 24, 2001 Fortune magazine, Michael Schrage wrote an interesting article titled “Make No Mistake?” that noted how customers are more satisfied by companies that fix mistakes than by companies that make no mistakes at all. Chris Burand offers problem-resolution strategies you can use to boost your customers' satisfaction.
His example was that of a hotel which discovered that, although its guests enjoyed everything going well, when something went wrong, they were even happier to see the hotel make things right, quickly and efficiently. Schrage wrote, “Guests who had experienced a problem that was quickly and politely resolved rated the hotel service higher than guests who had had no problems at all. What's more, more guests with happy resolution of their hassle said they were likely to recommend the hotel than did the trouble-free guests.”
The hotel is now trying to identify what kinds of problems they can inflict on their guests (provided that they can fix the problem immediately). This is an enlightening discovery! Schrage explained the situation well. Customers don't want hassles. They want everything perfect. But because they realize that they don't live in a perfect world they give high marks to companies that handle mistakes in a prompt, courteous manner. In many situations, people expect problems — so a company's ability to handle these problems is often highly effective. In other situations, total quality prevails. For example, people don't want their new cars to break down because getting them repaired is a major inconvenience.
I'm not suggesting that you purposely sell customers the wrong coverage only to pay losses out of your own pocket when a claim occurs (although many agencies occasionally do so). However, this is one area in which insurance agents have an advantage over most other businesses — because customers often don't pay attention to their insurance until a claim occurs and when it does the claim can serve as a proxy for a mistake. Are customers who've never had a claim or a billing problem — and thus don't get to enjoy your agency's great service — likely to rate the agency as high as customers who have a claim and receive first-class service? If you service your own claims, this is a great opportunity to shine and make a long-lasting, positive impression on your customers.
However, this option is limited because many agencies turn over all claims to their companies. In many cases, customers contact the carriers directly. Although this makes financial sense, it means that agents must find alternative ways to impress their customers. Fortunately, most insurance customers don't expect much from their agent (in this area), so the opportunities to exceed expectations are ample. Here are some ideas that firms, other than agencies, have already implemented.
1. One accounting firm offers a service for helping homeowners recover from losses, rebuild, collect claims, and get emergency housing and clothes. They do this on their own initiative, without depending on the insurance company to take action. Do you lead or follow your insurance companies when taking care of your customers?
2. Another firm sends flowers to their Personal Lines clients who have auto accidents that result in injury. What do you do for your clients who experience a loss?
3. Other businesses have arranged contingency plans with professionals such as grief counselors, public relations firms, and disaster recovery experts to help their Commercial Lines clients when they suffer employee deaths, negative publicity, or other disasters.
Even though these types of perks are inexpensive — and some are free — few agencies use them. We know that customers want to feel special, to be cared for when claims arise, and are likely to refer more people after you've fixing a problem expertly than if nothing had happened. What are you waiting for?