Let’s jump right back into the thick of this topic. In the first part of this blog series, we discussed why insurers should be empowering their customers to complain in fairly general terms. Check out the link to our Decision Maker’s Guide to Complaint Enablement for more background on this topic.
This post dives deeper into a few key metrics: retention rates, customer lifetime value, and quantity of feedback gathered. To do so, we’ll take a look at the financial impact of non-complainers. While you read, it may also be helpful to consider whether you are currently measuring or utilizing any data to achieve similar goals.
Before getting to specifics, here’s a quick recap of what was covered last time:
D. Power’s 2018 research tells us that the industry average score for providing a satisfying purchase experience is 839 out of 1,000.1
Here’s an interesting fact from a Forbes article published earlier this year, regarding end-consumers in the insurance industry:
“91% of non-complainers just leave”1
This tells us that there are two types of customers in the insurance world: complainers, and non-complainers. Among non-complainers, more than nine out of ten actively choose to take their business to another company. The insurer they leave behind must deal with the following consequences:
Loss of future revenue streams
Lack of insight into why the customer chose to leave in the first place
The significance these metrics have on bottom line revenue can’t be understated. These are customers that were already paying for a service – that had already gone through a decision-making process, chosen one insurer, and were so dismayed with some aspect of their service that they chose to begin this entire search process again.
But there’s a simple…
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