As usual with my car insurance the insurance company sent through a notice showing my premium for the upcoming year. As usual I then jump onto a price comparison website and see whether I can beat that premium. I can by about 17%. As usual I call back my current insurance company and the conversation usually goes like this:
Me - "Hi I've just received a quote from you for next years insurance. Is that the best quote I can get from you?"
Call centre - "Let me just check that" (keys being tapped on the computer) "Yes, Sir. That's the best quote we can get without lowering your standard of cover"
Me - "I have been on the web and I have three quotes for like-for-like cover which substantially undercut you. So I'll ask you again. Is that the best quote you can offer me?"
CC - "Hold on one moment, Sir" (keys being tapped on the computer) "I can apply a discretionary discount which will bring the premium down by 15%. Is that good enough?"
Me - "Well, I don't know. I've called and offered you an opportunity to keep my business and only when I've threatened to leave have you made any move to try and stop me. What would you do?"
CC - "I don't know sir. It's entirely up to you"
Me - "Can you match the premium I am being offered by AlliantGeneralUnion Insurance?"
CC - "I'm sorry sir, we can't"
Me - 'Thank you. In that case I won't be renewing with you next year. Thanks for your coverage this year, though"
This has happened over the last 5 or six years - more so with the invention and popularity of price comparison websites. However this year was different. I am currently insured through a major consumer retail outlet chain. They quoted me an increase of 17% in my premium this year. Again I went on the web and found a number of lower quotes, although this year there were no exact 'like-for-like' matches. Each one that was lower required a higher excess (deductible) payment if a claim was made. I called my insurer anyway:
Me - "Hi I've just received a quote from you for next years insurance. Is that the best quote I can get from you?"
Call centre - "Let me just check that" (keys being tapped on the computer) "Yes, Sir. That's the best quote we can get without lowering your standard of cover"
Me - "I have been on the web and I have three quotes for virtually like-for-like cover which substantially undercut you. So I'll ask you again. Is that the best quote you can offer me?"
CC - "Yes it is Sir. Let me see if I can lower your premium by altering your excess" (sound of keys being tapped) "I can get a slightly lower premium by increasing your excess by another £100 per claim. But I'm not sure you would want to do that. Your excess has actually increased this year already over last years amount. We wouldn't want you to pay too much on a claim"
Me - "So what would you do in my situation?"
CC - "I understand that if you're shopping for the cheapest premium we may not match other sites. But we don't want to lose you as a customer. I have worked for this company for many years, I've worked in their retail arm and I believe them to be the best company in terms of overall customer service on the market. Can I also tell you about some of the additional benefits you will get with your existing cover which may not appear on some of our competitors sites..."
She then went on to detail a number of items which were indeed 'added value' items that other sites were not able to offer at that premium (For example a rental car for the whole length of your vehicle repair, not just for 48 hours - which is a standard on many insurers). She finished by repeating the two comments which actually swayed me "We really don't want to lose you as a customer, sir, but we do understand that it is your choice"
There was no 'hard-sell'. There was no 'Oh, we've magically found another 10% premium reduction now that you've bothered to call us about this' and there was no 'We can decrease the premium by dropping your level of cover, shall I go ahead and do that?'
As a result I have renewed with this company. This is the first time I have renewed with my existing insurer for about 6 years. As I did this I got to thinking about the 'process' behind all this.
For one thing the call centre was focused on providing me a good service. This wasn't just some 'let's find out what the problem is and solve it in 90 seconds' deal to keep the call centre metrics working. This was a genuine attempt at providing me with the service I needed. In other words this was customer focused rather than business focused.
This was a company which was happy to let me go to another company if I was only wanting to be driven by price alone. In other words they knew that price is not a driver for their customers (at least not a KEY driver). They were focused on keeping me as a customer without reducing their income. They did this by focusing on the intangible benefits.
Thirdly (and, in my mind most importantly), they spoke to me as a human being not as a credit card on the end of the phone. The lady on the end of the line actually worked for the company in question (rather than some offshore call centre outsourcer), and she was passionate about the company itself.
I know there are others in the process-sphere who refer to this as 'outside-in' process design - focusing on the 'successful customer outcomes' rather on what is needed internally for the company to work correctly. Whatever you call it, it certainly worked for me.
Could it work for you?
* MOT - A government mandated vehicle inspection required every year for all vehicles over 3 years old. A certificate is issued which is required for insurance purposes
** Tax disc - A yearly payment made to the government which is based on type of vehicle and size of engine. In return you receive a small circular sticker for the windscreen of your vehicle. Payment is mandatory and non-payment can result in police action.
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