Growing Customer Loyalty and Satisfaction Pays
Customer satisfaction measures how your products and services meet, exceed, or fall flat of customer expectations. Customer experience, on the other hand, sums up every experience customers have with you over time. It is more about how they feel, what they think about you, and who they talk to about it—which brings us to loyalty.
Traditional loyalty programs don’t usually work well for insurance brokerages. With a limited number of customer interactions and the lack of a regularly needed product (think Starbucks card), the most efficient way to foster loyalty, or retention, is to meet or exceed customer expectations.
To determine whether you’re fostering loyalty, find out how your customers talk about you. Are they unenthusiastic and vulnerable Passive customers, unhappy and potentially brand-damaging Detractors, or happy and loyal Promoters who continue to purchase and help grow your business with referrals? You can find out how your customers fall into these categories by using a simple survey tool called the Net Promoter Score.
Determine Your Net Promoter Score With One Simple Question
Look at your own customer base. How many promote, are passive to, or detract from your brand? Getting the answer is easier than you think. Just ask your customers: “On a scale of 1 to 10, how likely are you to recommend this brokerage?”
The answer is used to calculate your Net Promoter Score (NPS), which successful companies use to direct their marketing, and even product development.
Promoters (score 9–10) recommend you to others
Passives (score 7–8) are vulnerable to competitive offerings.
Detractors (score 0–6) can impede growth through negative word of mouth.
Subtracting the percentage of Detractors from the percentage of Promoters yields your Net Promoter Score, which can range from -100% (all customers are Detractors) to +100% (all customers are Promoters). NPS software programs allow you to fully automate the process of reaching out to your customers, so you can find out how they feel about your agency and learn more about their needs.
If you are looking for more specific feedback, ask your insureds who score anything less than a 9-10 why they feel that way
Quantifying The Value of Promoters vs Detractors
How valuable are satisfied customers?
According to 2014 study by Zurich Insurance that compared the value of Promoters vs Detractors, Promoters:
- Pay 27% more in premiums monthly.
- Are five times less likely to leave your company.
- Actively refer new business.
Do your insureds stick with your insurance brokerage because they are loyal and satisfied? Or because you offer the cheapest premiums? It’s totally possible that you have customers who stick with you but still bad mouth you to their friends. Moving a Detractor to Neutral or Promoter is one of the most cost effective things your brokerage can focus on. Keeping reading to learn more.
How Do You Up Your Net Promoter Score to Turn More Customers into Promoters?
To turn customers into Promoters, you can maintain a presence on the digital channels they use, simplify their engagement with you by limiting the steps needed to get things done, provide value as a trusted resource, and develop strategies with your staff to provide a consistent, easy-to-follow experience based on what matters most to clients. You can use the score itself to build loyalty by sharing the information you learn from the survey in your blog, by email, or through social media to open new channels of feedback and communication, illustrating your commitment to consistently improving service.
The customer experience can be defined as what WOW’s your customers. Making use of the NPS will help to hold you accountable to the level of service and overall client experience being delivered.
Director of Client Experience