Please enter your username or the email address associated with the account so we can help you reset your password.
Customer experience is a staple of any successful organization, but there’s no doubt that some industries place more emphasis on CX practices than others. Some verticals, like airlines and hotel chains, are the first to come to mind when thinking of CX and customer loyalty. This is likely due to the fact that, because the services offered are so similar, they use these programs to differentiate from other brands in the space. According to J.D. Power, the next industry up may be insurance, if recent data is an indicator.
In the 2016 U.S. Home Insurance Study, the market research firm finds that while price had previously been the primary driver of loyalty in the insurance industry, steady premium rates have caused these firms to set this aside and focus primarily on differentiating service.
“Insurers have shifted their competitive focus to improving communication, process efficiency, and being easier to work with as a way to solidify and grow their business,” said Valerie Monet, director of the insurance practice at J.D. Power. “Improvements in processes and customer service benefit everyone—the customer and the insurer. When competing on price, it’s incredibly difficult to provide an outstanding customer experience. By pleasing their current customers, which builds loyalty and advocacy, insurers benefit financially. Customers don’t often just pocket the savings that result from stable premiums. If they are happy with their current insurer, they will frequently modify their policy by increasing their coverage or purchasing additional insurance with the savings, such as adding riders for high-priced items like jewelry, artwork and family heirlooms.”
This focus on customer experience is apparent in the report’s findings: Customer satisfaction is up 17 points both for rental and homeowners’ insurance providers, coming in at 825 and 804, respectively. Much of this is owed to improved communication, something the industry had been notably lacking in previous years.
Topping this year’s customer satisfaction rankings was Amica Mutual, with a score of 864 out of 1000. Amica beat out brands such as GEICO (826), Progressive (817), and State Farm (818) for the first-place honors
Thank you for signing up, please check your email for more information.