Le compagnie di assicurazione sono a rischio “churn”: vediamo come Zurich Insurance ha deciso di affrontare il problema.

A recent market study demonstrated that up to 40% of personal insurance customers were in danger of churning. This is an especially shocking statistic, when read alongside a recent blog post we published that shows the value of customer loyalty.

With this in mind, what are the reasons for these consumers considering a change of insurance providers? Well, one of the main answers given by consumers who were queried, was of course, receiving a keener quote from a competing company. However, another very common answers, one that is much more surprising, is that 80% of consumers who took part in the survey, said they would switch insurance providers if a competing company offered a better, more personalized customer experience. Alongside this, 41% of consumers indicated that they would be happy to pay a higher price for their insurance products, if they received a better, personalized customer experience.

However, providing this kind of personalized customer experience can be difficult for many companies in the insurance market. These companies often have a large number of customer touchpoints that effect the customer journey, and personalizing every one of these touchpoints is potentially a major CXM project in itself.

Additionally, multiple business units and departments will often be involved across this multitude of touchpoints. This means that inter-departmental communication needs to be improved to pave the way for a personalized customer experience.

Zurich Insurance has recently made public the results of just this kind of Customer Experience Management exercise. Now this was quite a major project, if we consider that Zurich Insurance operates in 40 different countries around the world. So that means the customer journey needed to be personalized in 26 different languages.

The results have been impressive. For example, in Turkey, Zurich managed to raise its overall Net Promoter Score (NPS) by a massive 20 points. Looking into things in a little more details, Zurich Insurance has discovered that its promoters actually spend on average 27% more on insurance products, and they are also five times less likely to churn.

These are two very positive examples of how Customer Experience Management can provide major benefits to companies that work in the insurance sector. In many ways, alongside telecommunication companies, they stand to gain the most from the adoption of CXM as an enterprise word business methodology.

By Mac Wheeler