Mastering CX: Best Practices for the Insurance Industry
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August 1, 2024
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5 min read
Are your customers truly content with the service they’re receiving? When was the last time you asked them for feedback?
Join Cris Schulz, Director of Business Development at ClearlyRated, and delve into CX best practices and insights to elevate your customer experience game.
Drawing from proprietary data into satisfaction drivers for insurance firms and Net Promoter® Score (NPS) benchmarks, this session is a must-attend for insurance providers looking to unlock the full potential of their client relationships. Don’t miss this opportunity to learn CX best practices to drive exceptional customer experiences and business growth.
What you’ll learn:
The latest insurance industry NPS® benchmarks
Highlights from ClearlyRated’s proprietary research into what drives satisfaction for insurance buyers
The connection between client and internal employee experience and business growth for insurance firms
Presenter
Cris Schulz, Director of Business Development
With 25 years’ experience in sales and marketing for B2B companies, Cris brings a pragmatic approach to ClearlyRated’s industry-leading research for insurance companies. As a former President of the American Marketing Association’s Oregon chapter, Cris is adept at translating research trends into sales and marketing techniques that help insurance companies outgrow their competitors. Backed by data from more than 7 million verified ratings and two decades of B2B industry research into what drives client satisfaction, Cris’ sessions are fact-based and high energy, with tangible steps to immediately impact the firms she works with.
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Insurance providers, much like other B2B service firms, place significant reliance on client satisfaction and service quality to both retain their clientele and stand out in a competitive landscape. Particularly during economic downturns and industry challenges, the significance of service quality and client satisfaction becomes even more pronounced in determining business success. This partially explains the widespread prioritization of customer experience (CX) by business leaders across various sectors in 2023.To gain a comprehensive understanding of your service's performance year after year, it is imperative to employ a feedback tool that not only collects valuable insights but also simplifies tracking. Moreover, you need a metric that facilitates straightforward comparison with your competitors' performance. This is where the Net Promoter Score® (NPS®) comes into play—a metric that gauges service quality and customer satisfaction. It stands as a leading indicator of revenue retention, growth prospects, and brand distinctiveness.
What is NPS?
Your NPS starts with a single survey question that asks clients how likely they are to recommend your firm to a friend or colleague. The most forward-thinking firms are also asking their employees, hoping to boost their employee experience (EX) too. Responses land on a scale of 0–10, ten being extremely likely and zero being not at all likely. From there, people have the option to offer more specific feedback.To calculate NPS, we subtract the % of detractors (those who respond with a 6 or lower) from the % of promoters (those who respond with 9 or 10).
Why is NPS Uniquely Useful?
NPS offers a standardized measurement to track and report on client satisfaction and service quality—one that can be applied across every level, from the industry as a whole to the brand-level. Each company can also drill down within their organization, including by lines of business, department or account manager. This means that you can compare your firm to others while also pinpointing the shining stars and any areas to improve within your organization. Learn more about how NPS can help drive business growth.
Insurance NPS in 2023
ClearlyRated’s Annual Survey Benchmark Study includes an industry focus on the Insurance industry NPS. The 2023 insurance industry NPS has declined 6 points from 2022, landing at 36%. This decrease comes after last year's benchmark of 42%, which was the highest since ClearlyRated first measured industry satisfaction in 2011. While many drivers of insurance client satisfaction were at or above last year's levels, an increase in the number of Detractors (0-6 out of 10) led to an overall industry NPS decline.
Insurance Industry Satisfaction – measured as NPS
Year-Over-Year Insurance Industry NPS
Insights on 2023 Ratings
The insurance industry's NPS is down 6 percentage points from 2022, however it is still one of the highest NPSs for this industry since 2011. For reference those wider NPS standards only classify organizations as excellent once they’ve earned a 50% NPS. A 70% NPS would classify them as world-class. What does it look like to have a 70%+ NPS? Consider Starbucks and USAA, recognizable service leaders with an NPS of 77% and 75%, respectively. Then compare them to Comcast, a notorious service laggard, whose clients give them a -25% NPS. While the Insurance industry improved this year, we hope this trend continues. And as firms achieve better service levels, clients’ expectations will rightfully get higher, meaning any firms that don’t keep are likely to flounder. Click here to learn more about the NPS methodology.On the other hand, this presents a huge opportunity for the Insurance industry that capitalizes on their NPS momentum year over year (with the exception of 2023 and 2020), continuing to improve their customer satisfaction and service. Firms that manage to deliver an outstanding CX and earn a high NPS as a result will more easily outshine their competition. Get tips on how to improve your CX based on customer feedback.
How does your service stack up?
The extent to which your firm feels the effects of a slowing economy may depend on the quality of your CX. An NPS survey program can help you measure, track and improve both.If you’re not already leveraging NPS at your firm, we hope you consider this article a call-to-action. Not only do client satisfaction and service quality represent opportunities to differentiate in an increasingly commodified service industry, they are fuel for firm growth. Remember the adage: “You can’t manage what you don’t measure” – and you certainly won’t be able to improve it either. Up against a reluctant firm culture? Get some tips on how to overcome common objections to survey programs to help build buy-in and get started.
Next steps
Ready to get started with NPS?Contact the ClearlyRated team for insights, best practices, and a tour of our survey platform (designed specifically to support professional services firms).
At ClearlyRated, our mission is to help business service providers put the customer and employee experience at the heart of their growth strategy. And we’ve had the privilege of working with insurance firms to this end for 8 years. This year, I’m very pleased to announce that the ClearlyRated team has launched “Best of Insurance”—an annual award program that will recognize industry leaders in customer and employee satisfaction!
Best of Insurance is an unbiased, transparent industry award where customer satisfaction and service ratings are the sole drivers of whether a firm earns the Best of Insurance designation. Participating firms invite feedback and service ratings from their customers (and, if also seeking an award for employee satisfaction, from their internal employees) utilizing ClearlyRated’s research-backed Net Promoter® Score (“NPS”) survey. This online survey provides the basis for the ratings that will dictate whether a firm wins the award, as well as critical information about the health of your customer relationships.First time hearing about NPS? Here are a few resources for you:
After meeting a minimum response rate requirement, your firm’s Net Promoter Score is the single factor that dictates whether you will earn Best of Insurance.
Our goal with this program is to set a high bar: winning firms must earn at least a 50% NPS (considered an “excellent” service rating) to qualify for Best of Insurance. When it comes to validating survey responses and satisfaction ratings, ClearlyRated’s research team acts as a third party to calculate and validate all customer feedback. All customer and employee feedback is available to participating firms in real-time. So is your Net Promoter® Score, so you’ll be able to track your progress and will know at the end of your survey program whether you have earned the Best of Insurance award. Learn more about the ClearlyRated survey process here >>In February of 2022, ClearlyRated will release the inaugural list of winners of the Best of Insurance award! Our Product team provides winners with a robust marketing toolkit to help make the most of their win, including a set of award logos as well as a press release template with industry and firm-specific metrics to help you tell the most compelling story possible with your service ratings. Our Marketing team also goes to great lengths to ensure that the list of Best of Insurance winners is put in front of the public, with a dedicated press release as well as email and social media announcements from ClearlyRated and our partnering organizations.
What can participating firms expect from Best of Insurance?
Like all of our other industry award programs, Best of Insurance is so much more than a simple designation of excellence. We built this program to function as a customer intelligence platform, a reputation engine, a marketing and business development tool, and an award program—all in one. In addition to competing for the Best of Insurance award, firms that survey their customers through ClearlyRated are also able to:
Quickly identify at-risk revenue, as well as upsell and cross-sell opportunities, with real-time access to customer feedback and satisfaction ratings.
Get a customized Financial Impact Report that provides insights and guidance about which customers to follow up with in order to secure the greatest revenue impact of your customer feedback.
Capitalize on positive customer feedback through our automated testimonials tool which helps firms exponentially grow their catalogue of approved customer testimonials.
Invite customers to help recognize internal service champions through the ClearlyRated Shout Out feature.
I’m thrilled to invite you to participate in our inaugural year of Best of Insurance!
The past 18 months have brought about wide-scale disruption, unprecedented uncertainty, and a heightened aversion to risk across the business landscape. I am incredibly proud that the ClearlyRated team was able to focus our efforts towards bringing Best of Insurance to life at a time when our insurance industry customers need more ways to differentiate from the competition and provide credible proof of service to their prospects and customers.
I hope you’ll consider joining us for this inaugural year of Best of Insurance! For more information on the program, you can:
