Many service organizations have tried to capitalize on repeat-business strategies. These strategies appear in the forms of Frequent Flier, Frequent Guest, or Priority Customer programs.
In the Insurance Industry, the best repeat-business strategy that agencies can adopt is to provide customers with excellent service. Retain and regain customers' business through applied strategies for 'satisfaction recovery,' or, to put it more simply, effective problem-solving.
The best way to keep customers satisfied is to uncover an error before the client does. However, if the client discovers an error first, there are steps to take to maintain congenial relations. Consider this scenario:
- Problem-policy issuance: A CSR calculated an estimated premium which was presented to a client. But the policy was issued for a premium amount higher than the amount quoted. In addition, the client's name was misspelled.
There are two issues in this scenario that require satisfaction-recovery skills. Ideally, both errors will be caught by the agency's established verification-of-policy-accuracy process. If this is the case, a note or postcard notifying the client of the error and the steps being taken to correct it may eliminate a complaint call.
If an error is missed, act quickly. Make the customer's problem your problem. Implement standard procedures in the agency to address client needs, such as the following:
- The client calls with a complaint. Assure the customer of a follow-up call from the agency within 24 hours.
- Access the in-house documentation (worksheets) showing the calculations and the application (for name spelling).
- Get all the facts. Review the quotation worksheet for rating territory, classifications, additional endorsements, and other factors that may have been erroneously figured. Identify whether the miscalculation was made manually or by rating computer. Check with others who may be involved: an in-house rater, data entry administrator, or any participating company representatives.
- Determine all possible solutions for satisfaction recovery. The name spelling can be easily corrected by endorsement request.
The premium difference may require more effort. First, determine whether the CSR, the agency, or the company caused the error, Next, list all possible options for correction (e.g., endorsing the policy to correct the error; taking a reduced commission to atone for the error; explaining and justifying what turned out to be an honest mistake).
Then consider the advantages and disadvantages of each. Choose the two most appropriate solutions.
- Obtain (if necessary) confirmation from a manager, supervisor, producer, or company representative that the problem has been addressed appropriately.
- Contact the insured. Advise the client of the two best alternatives for solving the problem. For example: The client can choose to pay the higher premium if the coverage initially discussed is desired, or the policy can be endorsed for reduction in coverage which will bring the premium back to the estimated amount.
- Let the client choose the most acceptable solution.
- Complete the appropriate documentation for policy corrections with confirmation of satisfaction recovery by the client.
The most crucial element when following the steps above is to take the burden off the client. Accept responsibility for the error and take appropriate steps. Don't force the client to continually remind you of unfulfilled promises.