Focus on Consumer Service

The Insurance Corporation of British Columbia (ICBC) has partnered with Autoplan brokers in B.C. on an innovative program designed to improve customers’ experiences and perceptions of auto insurance. The program includes enhanced measuring, monitoring, training and recognition of broker efforts with customers at the point of sale. It may also positively influence other aspects of broker performance such as customer loyalty and retention, better coverage for customers and less price sensitivity.     

We all know expectations of customers are increasing everywhere. In industries and businesses outside of insurance, the most successful companies are ones that deliver more than just an efficient and satisfactory transaction: they leave their customers with an emotional connection to their purchase and the company.

The difference is clear when considering successful companies in other industries. Consider Apple, for example. Customers have unparalleled excitement surrounding any new product announcement or enhancement. When the new product comes out, they’re willing to wait in line for hours with the hopes of being the first to have what is coveted by so many. The patience required to go through this experience demonstrates a strong emotional connection to Apple and keeps customers loyal and coming back for more.

Disney is another great example of a company that is successful because of its focus on the customer experience. The company is renowned for an experience far more memorable than an assortment of exciting rides, as I personally discovered on a recent trip to Anaheim with my pre-teen daughters and their friends. 

We found ourselves waiting eagerly outside the gates prior to the park opening. Disney’s operations manager, sensing the excitement amongst my crew, waved us into the park before the gates opened to the hundreds that had assembled behind us.  

“You’re going to open the park today,” she told my girls, now speechless for the first time in days. “You’re going to lead the countdown to opening, then turn around and have first crack at any ride you want in the park.” What a thrill it was for my family, and I forgot about the incoming credit card bill immediately!

Disney earns its reputation as the happiest place on earth with their attention to the customer experience. It cost them virtually nothing to create that magical moment; for the rest of the day, I spent freely on souvenirs and five-dollar churros knowing that I was in the hands of true professionals.  

The purchase of insurance will not elicit the same excitement as Disneyland or Apple. But why not borrow the concept of creating experiences for our customers and apply it to our business to help improve the perception of our industry? 

Since 2008, ICBC has talked to thousands of customers through surveys,

focus groups and online panels to determine what customers expect when they purchase insurance. Customer satisfaction scores indicated that, on average, 95% of customers are satisfied with their auto insurance purchase, reflecting great work by brokers. Even so, scores for more emotional elements – such as how a customer wants to feel about a purchase – left room for improvement. Therein lies an opportunity for ICBC and brokers to do more to create better experiences for customers and to meet customers’ increasing expectations in this area.

We know from our research that all customers expect to feel certain emotional attributes – trusted, respected and valued, for example. They want to know they are getting good value for their money and that when they walk out the door, the product they have purchased is right for them. They want to know their loved ones are protected and have nothing to worry about in the event of a claim.

We dug deeper to identify behaviours that are key to delivering on those elements and what we can do to exceed customers’ expectations.

We found that activities such as reviewing the needs of the customer and providing advice were key drivers shaping customers’ experiences. This should come as no surprise, since this is the core of what brokers do. Most brokers in B.C. have been pleased to see ICBC confirm and recognize what brokers have known and been doing well for so many years. 

With this information in hand, a task force formed to bring the concept of customer experience to life. Representatives from ICBC and the two broker associations in B.C. – the Insurance Brokers Association of B.C. and the Credit Union Insurance Services Association – worked together diligently to determine training and coaching support for brokers. ICBC implemented an award program, called the Broker Customer Experience Award, to reward and recognize brokers for their efforts in improving customers’ experiences.

The program is unique in that it considers broker performance in part by customer outcomes. This is opposed to measuring broker performance by profitability, which is impractical in a “take-all-comers” universal system. Award amounts are a nominal part of brokers’ overall remuneration package; they are based on the transaction volume of each individual office.  

Annual customer experience targets are established. The targets are achievable, and are also considered “stretch” targets. The target is the same for both the broker and ICBC. 

The program involves a training component for brokers, consisting of three online, on-demand learning modules that communicate and test understanding of what we want to achieve in improving customers’ experiences. A small portion of the performance award is allocated based on how many customer service representatives within a broker’s office complete the course. Everyone is encouraged to do so.

ICBC staff coach brokers on an ongoing basis to help them improve their service to customers. They encourage brokers to learn from each other by sharing tips that are prominently placed on the ICBC online portal for brokers.

Monthly reports of customer survey results are made available to brokers so they can monitor their progress through- out the year and make any necessary adjustments to improve their service.

One broker, Lorne Perry of Port Moody Insurance, was disappointed with his early results. Consequently, he rearranged the office’s desk configuration and changed how his staff greeted customers. Many other Autoplan brokers have made changes, including handing out “claims cards” at the end of each visit. The cards outline the claims process that customers might undertake in the event of an emergency.

These may seem like small changes, but they show customers are valued and respected. As a result, clients may be more likely to trust a coverage recommendation, for example. As in our family’s experience at Disney, sometimes the little things make a big difference.  

The tips and concepts brokers are implementing and sharing are not new. But the focus on improving customers’ experiences represents a shift, leading to our participation in being measured, monitored and rewarded through this program. It has generated conversation in B.C., encouraging brokers to see the purchase of insurance through their customers’ eyes as both insurer and broker work together toward a common goal. Given this enhanced focus and additional training and coaching, brokers like Lorne Perry are actively changing the way they interact with customers to create better experiences for them in all aspects of business.