5 Stars: How agents can level-up their customer service
Any businessperson has the ability to stir emotion and create real connections with their customers. Independent insurance agents are no different.
You know that feeling when you go to a new restaurant, receive exemplary service and enjoy a delicious meal? Odds are, you can’t wait to grab your phone and give that establishment a five-star review.
But is it possible for customers to have that same level of passion when they engage with their insurance agent?
In my opinion, the answer is yes. Any businessperson has the ability to stir emotion and create real connections with their customers. Independent insurance agents are no different. And while emerging challenges are making it more difficult to deliver superior levels of client satisfaction today, great rewards await those agents who can overcome the hurdles and build a customer-obsessed culture.
It’s hard to ‘B’ better
Right now, I’d give the state of customer service in insurance a B. But I’m probably a little optimistic.
Another, perhaps more objective view, could be derived from the Net Promoter Score (NPS), a rating that determines whether an organization has more “promoters” than “detractors.” In general, an NPS of 0 or greater is good. Above 50 is excellent. Above 80 is world-class. The industry average for insurance is 35, according to Customer Gauge.
We, as an industry, can and want to do better. But many agencies fall short, because of external pressures that are making it harder than ever to win over clients.
For one, the hard market—and its accompanying double-digit premium increases—can translate to frustrated customers, who are already upset before they even talk with an agent. This creates an unfortunate byproduct: agents who are exhausted from dealing with disappointed customers.
Making matters worse is the recent shift in carriers’ risk appetites. Each time an independent agent is forced to rely on E&S lines for capacity, the likelihood of cost increases for their insureds rises.
Simultaneously, many agencies are in hyper-growth mode, signing new business at record numbers. This influx of first-time customers can overwhelm even the most diligent of customer service teams.
Customer service is an investment
So, how can independent agents level up their customer service in the face of these strong headwinds? Improved customer service will result from investing in people and implementing the technology that can help their employees spend more time with customers.
I believe that successful customer service begins with an agency’s culture. The premise is simple. If an independent agency takes good care of its people, then its people will take good care of its clients.
Technology, like virtual assistants and artificial intelligence (AI), can help automate back-end processes, which will ease the burden on staff and give them the time they need to forge deeper, more meaningful client relationships.
Best practices for better service
All agency owners should have their teams embrace a common business mantra — KYC, or Know Your Customer — to effectively build a culture of customer service. To this end, agency management should consider the following best practices:
- Segment your client base. Dig into your data and identify your highest-value clients. Prioritize those who drive the most revenue to your agency and those with whom you interact most often. Then, develop and execute a strategic plan that will govern the steps your producers and support staff will take to satisfy those clients. Once your plan starts to deliver results, that same level of service will trickle down to all of your clients.
- Establish and communicate standard operating procedures. This may sound obvious, but many agency owners sometimes miss this step. Set specific rules for phone etiquette, such as picking up all calls before the third ring, making same-day or next-day callbacks, and answering every call with a smile (this really does make a difference). If your agency handles both personal and commercial lines, establish processes for warm handoffs and service consistency.
- Seek to understand. Each client views customer service from their own, unique viewpoint. To meet those unique needs, agency owners should embrace frameworks that help them enhance their staff’s level of emotional intelligence. The DISC® Workplace Profile is one such learning instrument that’s proven to raise awareness of interpersonal communication and improve workers’ skills.
- Incentivize Google reviews. Ask your clients to rate your agency on Google. Then, consider incentivizing staff for securing positive client Google reviews with a nominal reward, such as $10 per review.
- Consider a committee approach. Larger agencies may benefit by establishing a Client Experience Committee. The most successful committees set achievable goals each quarter. For example, you might choose to implement a birthday card strategy, so each client gets a handwritten message on their special day. It’s one simple way to surprise and delight your clients.
- Choose technology and outsourcing vendors wisely. Employees and clients both want a sense of control. But while some technologies and outsourcing vendors can give them that control, others can take it away. For example, an agency that chooses to use a service center will lose some control over the customer service process. That may be OK, provided that they find a way to ensure the center delivers the type of service their clients expect. In addition, technology that records service reps’ calls and captures their keystrokes may help with professional development but may be a turnoff to some employees. Each agency owner must decide which technology will fit with their culture. Resources are available to assist independent agents in finding the technology that fits their agency’s unique needs. For example, SIAA’s TechFinder portal allows member agencies to search, compare and select solutions that make the most sense for their agency.
- Brush up on your customer service knowledge. Books like Jon Picoult’s “From Impressed to Obsessed” are filled with real-life case studies showing how organizations can turn their customers into lifelong fans. In addition, resources such as SIAA’s Training and Learning Center offer online learning to help member agencies meet consumers’ expectations.
Reach for the (five) stars
Independent agents shouldn’t let the noise of the hard market drown out the voice of the customer. By building a winning internal culture and giving your staff the time to focus on customer service, agencies can turn their clients into repeat — and happy — customers.
Ian Exelbert is the Chief Operating Officer of the Western Region for SIAA, where he’s dedicated to the creation, growth, and evolution of the local independent agency. Exelbert previously worked as a CEO and COO in the industry. He’s skilled in negotiating, budgeting, business planning, insurance, banking and sales. He can be reached at ian.exelbert@siaa.com.