Service points

Glenn Caton on how insurers need to sharpen up their customer service

With most of us having experienced indifferent or even rude treatment by a company, corporate claims of ‘great customer service’ can sometimes ring hollow. But the ubiquity of these claims makes the views of Hiscox’s UK Marketing Director, Glenn Caton, refreshingly honest. Glenn believes that Hiscox is at the top of the industry in terms of service. That statement, however, has a sting in its tail. “That means that we are merely the best of a bad bunch,” he says. “Insurers don’t excel in service delivery.”

Those in the industry may secretly acknowledge that customer service is not its strong point, but it’s surprising to hear it put so bluntly – especially by someone from a major insurer’s communications department. Glenn, however, sees it as a challenge. “Typically, the industry’s approach doesn’t meet customers’ needs. We have some way to go to become world-class,” he says.

This realisation is a necessary starting point for any company that strives to change and improve, namely because service is a key differentiator when people are deciding with whom to spend their money. “Consumers don’t categorise their service experience,” says Glenn. “They don’t compare the service they receive from financial services companies with their rivals; they make comparisons with other sectors and brands such as Ocado and Amazon.”

Digital demands
One of the biggest challenges is the internet. Given the rise in online purchasing, the bar of what constitutes great service is constantly being raised. And as an industry, insurers have been slow to catch up.

That’s why Hiscox takes as its examples companies such as First Direct or Amazon, which are consistently rated top for customer service, regardless of sector. To put these lessons into practice, Hiscox has launched an ‘Insight Team’ – akin to Amazon’s Customer Review Team – whose research into household and small-business clients forms the basis for better service delivery.

The team interviews customers who took out insurance policies from the Hiscox website and, importantly, those who didn’t. “We ask how they arrived at the Hiscox site, how they sifted through our competitors to come to us and where they looked for information for their search for a quote,” Glenn explains. “We also do regular customer satisfaction surveys for customers who contact us both by phone and online. That way, we can identify if there is anything that has made them unhappy and address it immediately.”

Brokers have a powerful role to play, too. Given that they are closest to customers’ needs, they can capitalise on personalising the product. To ensure this is happening, Hiscox carries out annual tracking research with its brokers, making sure they’ve seen relevant marketing campaigns and asking them how Hiscox compares with its competitors.

Whether a customer is happy or unhappy, listening to them is key, not only for maintaining the loyalty of current clients but also attracting new ones. Saying that you strive for great customer service is easy, but the reality can be more challenging. Glenn sums it up well when he says that building a great brand is not about great advertising, it’s about what you do and how you do it. “Our company will be defined by how we behave, not by what we promise. Or as George Bernard Shaw said: ‘The greatest problem of communication is the illusion that it has been accomplished.’”