Insurance & Technology is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

News & Commentary

01:48 AM
Nathan Golia
Nathan Golia
Connect Directly

The Real ROI in Customer Experience

Research shows insurance customers willing to pay more to stay with a company they like.

Hopefully you got some good information out of my customer experience feature from yesterday. The truth is, there were a couple "nots" I couldn't quite fit in. I'll be doing some reporting on the topics down the road, so we'll be covering them — but there is still a lot for insurers to learn, probably some things you haven't even considered.

If you're a CIO who's wrestling with the business side to get the budget necessary to improve the customer experience on your sites, apps and contact centers, perhaps some new research from Peppers & Rogers group can provide the kick in the pants you need. The Stamford, Conn.-based consultancy reported that customers "pay on average $30 a month more to do business with a health insurer that they trust. Some respondents report that they would pay up to $100 a month."

While their research singles out health insurance specifically, it stands to reason that this is true of other insurance lines of business as well. Why would someone want to switch an auto carrier who gave them a good claims experience? If you're not upset about something that happened in your relationship, your eye isn't going to wander.

This is where the real ROI comes in from your customer experience efforts: Loyal customers are willing to pay a premium (no pun intended) for a high level of service, once they're accustomed to it. Remember in addition to the extra money they'll be willing to spend, e it costs far less to retain a customer than to acquire one.

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio

Register for Insurance & Technology Newsletters