A company's service standards, when done well, are deeply imbedded throughout the firm, says Lisa Hall, as she outlines the best approach to customer interaction
People who spend their working life on the front line delivering or helping to deliver high quality customer service are often asked whether what they do makes any difference, or whether one of the realities of life is that only the price really matters. There are however, businesses in this industry that lead on service, so how does this work and why does this help to set them apart?
Let’s face it, tangibles are in short supply in insurance. There are brochures and bits of paper when a policy is effected, and a cheque if there is a successful claim. But other than that, the distinguishing factors between insurance providers are breadth of cover and quality of service.
And it is rare that a company creates a policy that offers cover not available elsewhere. When such a policy arrives, it is quickly dissected by competitors, who replicate its best features in their own offerings.
So that leaves service as the only true and lasting way to make qualitative distinctions. But how does a business best approach ‘service’? How can it ensure that its service is at a sufficiently high and consistent level to win and retain business, from customers and IFAs, to cement commercial relationships, and to make the company a progressive and popular employer?
Any discussion of service within the insurance context needs to recognise that it is about more than prompt payment of valid claims. ‘Service’ must encapsulate and demonstrate everything you need to know about a firm’s culture and outlook. It should be woven into every aspect of the business’s operations.
If not, it’s little more than a veneer slapped on top of a mechanical function. But a discerning customer will notice if the service is artificial, rather than locked into the organisation’s DNA.
forming positive judgements
If we look at our own experience in the service sector – for instance, when we visit a hotel. If someone greets us at reception with a lack of sincerity, goes through the formalities and then wishes you ‘a lovely stay’ – it would come across as an empty gesture. But if you are genuinely made to feel welcome and that the staff are alert to your needs and eager to make you as comfortable as possible, then you will form a more positive judgment.
More importantly, from the hotel’s perspective, we are more likely to book another stay or perhaps recommend it to friends or colleagues.
So an insurer needs to think deeply about service. And a group insurer using intermediaries needs to think particularly hard as there are a number of ‘customers’ in the chain: the broker, the policyholder, the claimant. All have their expectations and requirements. All need to be treated in certain ways. And, of course, as customers they all need to be treated fairly.
This makes the first step quite obvious: identify the types of customer you have and determine what they want. That might lead to a number of service ‘solutions’ depending on the issue at hand and who is involved. But the crucial point is that the principles underpinning the service solution are ingrained into the business and are referred to by all, at all times, within the organisation.
One guiding philosophy might be that the firm should ‘achieve service excellence in every encounter’. And that should mean every encounter, including those between employees – all employees, from the chief executive to the cleaner. How can a business expect to delight its external customers if it does not practice its beliefs internally?
This brings us back to culture. An organisation wishing to be the market leader in terms of service quality has to communicate its objectives to its people. And it has to imbue its people with awareness of its values and priorities. Most importantly, it has to broadcast the message that the strategy is driven by its customers’ preferences and requirements.
Building a service-oriented culture impacts on recruitment, because some individuals are better suited than others to working in this environment. The employer thus might decide not to recruit exclusively on the basis of technical knowledge, but on attitude and awareness of the importance of customer satisfaction.
Emphasis might also be given to achieving a mix of people, from experienced practitioners to recruits straight out of school. Customers are not all the same, so why should the group of people serving them?
The service-led business will therefore train its recruiters to spot the sort of person who is most likely to empathise with its ideals and be able to contribute to its service proposition.
promotion and pursuit
Once people are on board, the task is to equip them to promote and pursue the service agenda. Each individual should be aware of the expectations placed upon them and the timetable they have for achieving their goals. Formal training plays its part, but it is critical that development work is tailored to the needs of each member of the team.
It is incumbent on the business to monitor and assess every employee to ensure they have the understanding and capability to contribute to the overall objectives.
Training never comes to an end. The business as a whole, and each individual within it, should be constantly on the look-out for ways to improve. In a competitive market, standing still means going backwards.
Again, it is important that employees are aware of this approach and are empowered to contribute. Management can only decide the strategy; it is the people on the front line who implement it. It is they who operate the business processes, so they should be responsible for making them relevant and effective. If an individual spots a weakness, he or she should be able to report it or even change it forthwith.
If members of the team know what they are doing, customers can feel it. Pride in the business shines through – and vice versa. A company’s people are its ambassadors, both to customers and to potential recruits. They reveal to outside observers a great deal about the way the business works.
Maintaining a service culture obliges the business to measure, review and improve on a constant basis. Every scrap of information should be valued and fed back into the system. The company should listen to the conversations taking place between individuals and their customers. It should examine how the parts of the business are coordinated in pursuit of the grand ideal – for example, does the back office know what the front office is doing, and vice versa? And it should engage with customers to assess their perception of the merits or otherwise of the service they receive.
Valuing customers’ opinions
There should be no embarrassment or awkwardness about telling customers you are trying to find ways to do things better. If customers know their opinions are valued and that they can make a real change to the way things are done, they will feel positive about their involvement and will happily contribute to satisfaction surveys and service questionnaires.
In addition to formal assessments of customer attitudes, the company should take every opportunity to find out what customers are thinking. Key account managers should talk to brokers and policyholders and relay the information to help propel further work on the development of the service proposition.
The overarching context when considering the importance of service is the commercial reality. Does commitment to service excellence in every encounter help a business succeed in the unforgiving and unsentimental marketplace? In short, does it contribute to the bottom line?
If done properly, then yes it does. Clearly, a business cannot throw an infinite amount of resource at developing its service culture because resource is not in infinite supply. But if the values are strong and the attitudes and actions of the people are aligned behind the objectives, then the service culture should become self-sustaining.
This boosts customer loyalty and policy retention. It should also improve relationships with brokers and it makes the organisation a better place to work.
There is no quick fix to building a service culture – you can’t buy it off the shelf. It calls for passion and belief and a restless desire for improvement. Get it right, obtain buy-in from all parties and ultimately you will reap the rewards.
But beware, even in the modern media driven world of the 21st century. When we deal with the same customers over many years, we are judged on what we do, not on what we say we do. If we do not deliver on our commitments we will be found out and then too, we will reap the appropriate rewards.
Lisa Hall is healthcare customer services manager at Groupama Healthcare
