Tools & Strategies for Business Excellence

 

Developing a 
Customer Feedback System

Account retention is critical to improving bottom-line results, and its especially important in today's marketplace.  One of the most effective ways to maximize retention is to make sure the agency is truly providing world-class quality customer service.  To do this, you must know what it is your customer wants and needs—and how well you are meeting those expectations.  

Few agency's can articulate what constitutes quality customer service.  Even fewer know how well they are meeting the customer's expectations.  That's why it's imperative to  implement a comprehensive customer feedback system.. 

This feedback can be in person; handled by phone; use email, fax, or snail mail; or it can be some of each.  It could also be handled through customer focus groups or customer councils.  Whichever methods you choose, however, remember it must be formal. 

The results must be compiled and analyzed, and corrective action taken as indicated.  Furthermore, the program must be ongoing, It cannot be a once and done proposition.  After all, change is the one constant.   Change in your customers’ needs; their expectations; and buying habits.  Change in employees.  Change in the products you offer—as well as the way you provide them.  The world is changing at an ever-increasing pace.  And your customers’ perception of how well you’re meeting their needs can and will change too. 

Well-done customer surveys—whether written or verbal—can be very effective positive touch points for your clients.  Following are some basic do’s and don’ts when it comes to obtaining customer feedback. 

Do . . .

Don’t . . .

B    Include the performance measures that are important to the customer.

B    Don’t ask too many questions.  Keep it as short and sweet as possible yet be meaningful.

B    Personalize the survey as much as possible

B    Don’t specify when the survey must be returned, but do attempt to create an impression of urgency.

B    Include all customers in the process--if not all at once over a set period of time.

B    Don’t use customer satisfaction results as a club to beat employees over the head.

B    Make sure to include 3 key questions:

1.      Overall satisfaction level

2.      Intent to buy from the agency again.

3.      Would they recommend the agency to their friends and relatives?

B    Don’t discredit customer input because you disagree with it.  Perception is reality—for the customer, anyway. Attempt to find out what is behind the negative reaction.

B    Act on what customers tell you.  Use the survey as a strategic tool to transform the way you do business

B    Don’t leave your customers in the dark.  Tell them what you’ve done as a result of their input. 

Moments of Truth

There is no one right time to obtain customer input.  There are some key triggers, however.

Claims--Experiencing a claim is one of the most basic moments of truth in the customer service cycle for an insured.  After all, the reason they bought from you is to protect their assets in the event of a claim.  Make sure you know how your agency--and the carrier--is handling this critical moment of truth.  In fact, claims surveys can be a useful tool in company relationship management as well as customer relations.  Without naming names, show your companies where they stand in terms of claims handling satisfaction.  While there are no guarantees, it’s very likely that if they are not at the top of the list you’ll see marked improvement.  If nothing else, you have a bargaining tool to use in your next joint agency-company planning meeting.

Lost Business--If you want to know what you can do to prevent clients from leaving, ask the ones who have left.  Sending lost customer surveys after accounts have cancelled—even if it's for non-payment—can provide valuable insight into the reasons they leave.  If you know why you’re losing accounts, you may be able to improve the situation.  

Mid-Term--Before moving into the renewal cycle, it's important to know how well you've been meeting your customers' needs and expectations.  For your large commercial and VIP accounts you may want to conduct the survey by phone or in person.  Hard copy or email surveys can be very effective with your smaller accounts.  You'll also want to include a brief customer satisfaction survey on your website for clients to complete.  

See our sample customer satisfaction survey for some ideas on obtaining feedback from your clients.  Or, give us a call.  Transformation Advisors, Inc., will be glad to work with you to set up a comprehensive customer feedback program that is right for you.

 

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        ©Copyright Transformation Advisors, Inc., 1999-2006               Last modified: March 17, 2006