Retaining insurance customers after a crisis
The customer experience following a loss event is an insurer’s opportunity to retain or lose an insured.
Long-term business success hinges on a positive customer experience following a disaster. Until a home or business owner experiences property damage, the relationship between the policyholder and insurance provider is largely unknown.
When a crisis occurs, the agent and carrier are tested. Customers expect to be made whole promptly. They purchased a policy to cover their home (or business) from a reputable insurance carrier, likely based on the recommendations of an insurance agent they trust. This is your customer’s home, and it is personal to them. If things don’t go as expected during the restoration, you will have a dissatisfied customer, or worse, an ex-customer.
So, what factors go into creating a satisfied customer?
- Respect: The customer expects it from the first notice of loss to the final resolution.
- Great communication: Clear and regular communication is essential to a positive customer experience.
- Quick response: Clients need a fast and caring response when they have an emergency.
- Low hassle factor: A stress-free experience is a welcome relief.
- Trust: Professional, competent and efficient service delivery during all phases of the claim process.
Satisfied customers don’t shop around for a new insurance company after they have experienced a disaster; they stick with their trusted carrier and agent. Additionally, a positive claim experience can mobilize referrals. The policyholder will tell friends and family of the exceptional care and concern they received after their traumatic experience. Conversely, dissatisfied people are even more vocal about their experiences. Dissatisfied customers post bad reviews and make comments that drive away business.
Obviously, customer satisfaction is critically important. How can you be confident in a great customer experience? The best way is to partner with a quality restoration vendor. Be confident that the company serving your customer has decades of experience providing the highest quality service in the industry, and make sure they treat each customer as if they were a next-door neighbor.
Path to purchase
Recent findings from Trifecta Research’s 2021 Segmentation Study of homeowners who had experienced a property disaster revealed:
- 95% hired a remediation company.
- 73% percent preferred a local remediation company backed by national resources.
- First-time disaster victims were 50% more likely to rely on their insurance professional for a recommendation when seeking a remediation company.
Property disasters and mishaps happen more frequently than most people realize. According to the research previously cited, 80% of homeowners have experienced a disaster event that required remediation. Chances are, most of your customers will call you at some point in your relationship regarding a property emergency.
The first phone call a homeowner usually makes after a disaster is to their insurance agent. This gives the agent a wonderful opportunity to save the day! Getting help on the scene fast not only mitigates the severity of the loss and secondary damage but also reassures the policyholders that they made the right choice when they selected you as their insurance agent.
Having an experienced, professional remediation company on speed dial provides several advantages. They can have an experienced person on site quickly to assess damage and provide an estimate. They have qualified work crews ready who can clean and repair the damage. Their experience working with insurance agencies guarantees a smoother claims process, and they understand how to interact with a homeowner during a stressful situation.
Creating a positive experience for customers is critical for both companies’ future growth and success.
Choosing service providers
Selecting and vetting remediation companies before a disaster occurs takes the guesswork out of the process for agencies and carriers. Preferred vendors are often chosen after negotiations that result in a Service Level Agreement or SLA. The SLA sets expectations around such functions as on-site arrival time and cycle time.
Service providers that are part of a national network offer several benefits, including scalability. Regional disasters can create resource problems as contractors and building materials may be in short supply. Having a relationship with a local company that belongs to a national network means they can call for help when there is an area-wide event. Crews and resources from across the country can converge almost immediately, which is critical to policyholder care and satisfaction. They have resources, services and know-how that smaller companies may not have.
Your customer’s experience following a disaster is a pivotal point for your business. Finding the right partners will protect your client relationships and help your business thrive.
James “Jamie” Greco is director of national accounts for ServiceMaster Restore. He has over 25 years of experience in disaster restoration, residential construction, and vendor management. Contact him at james.greco@smbrestore.com.
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