World Business Capability Conference Creating an Iconic Customer Experience

Transcription

1 World Business Capability Conference Creating an Iconic Customer Experience Helen Burt December 2012

2 Topics The Vero Journey Vero Customer Framework Intermediary Segmentation Customer Claims Keys to Success Discussion

3 Introducing Vero... New Zealand s second largest general insurer Began trading as Sun Alliance in 1878, 134 years old A fully owned subsidiary of Suncorp Provides corporate, commercial, rural and personal insurance Insurance intermediaries are our key distribution channel Key competitors are NZI, Lumley and QBE

4 The Vero Journey We were highly successful and highly profitable The New Zealand insurance market was driven on price but we chose to shift the paradigm and compete on quality to ensure our ongoing success We set our Vision to be World Class as a point of difference We researched the market and then selected the Performance Excellence Framework (based on Baldrige) to help us identify attributes and disciplines of World Class organisations and measure our progress Then our 10 year journey ( ) began...

5 Sustained achievements Years of staff engagement results at around 78% Finalist for 5 of the last 7 years in the Best Places to Work Survey (Large Workplaces ) Winner of the Insurer of the Year Award (6 out of 9 years) Customers satisfaction with claims - 86%+ Business Excellence Awards: 1998 Bronze Award, 2004 Silver Award, 2008 Gold Award

6 Where to from here? Continuous improvement embedded in Vero and we still use the Baldrige Criteria as a guide We are part of the Suncorp Group and our strategic direction has now been aligned Four strategic goals: Capital, Cost, Culture, Customer The Vero Customer Framework drives the customer strategy Our goal To deliver an Iconic Customer Experience to our partners and customers

7 Vero Customer Framework

8 Vero Customer Framework A strategic business framework to guide and support the creation and delivery of value to targeted customers at a profit, that integrates with other internal processes and functions

9 Vero Customer Framework Built on Baldrige principles and global best practice customer disciplines Helps define, map and direct our journey to achieve our goal Primary goal - a Mutual Exchange of Value Supported by tools for our people to use Integrated throughout the organisation

10 Vero Customer Framework Organisation Customer Strategy Customer Experience Target

11 The Target We must consistently meet or exceed the wants, needs and expectations of our customers which is integral to achieving our goal of an Iconic Customer Experience However we cannot pursue this objective without ensuring commensurate value or return for Vero So the core and fundamental objective of the Vero Customer Framework is to ensure we deliver Mutual Value to both Vero and our customers

12 Our Organisation Our Organisation Three key areas - Drivers, Enablers and Support Critical to the success of delivering an Iconic Customer Experience at an aligned organisation wide level There are Executive Owners and strategies for each of these areas which all include customer requirements

13 Customer Experience Customer experience Daily interactions and relationship with our customers and intermediaries to deliver an Iconic Customer Experience Directly impacts customer facing employees and ensures support service teams are aligned Where customer strategies are turned into the Customer Experience Operational focus rather then strategic management

14 Customer Strategy Customer Strategy Provides the critical link between the Organisation and the Customer Experience Customer best practices, strategies and initiatives are identified and then deployed at an operational level Includes six key customer areas: Insights Analysis Segmentation Proposition Management Measurement

15 Vero Customer Framework Organisation Customer Strategy Customer Experience Target

16 Intermediary Segmentation

17 Segmentation Definition (Customer Framework) The subdivision of a market or customer group into clearly identifiable segments with defined similar needs, wants, or characteristics using a combination of segmentation strategies which enhance customer value and drive customer propositions.

18 Our initial segmentation approach Relatively simple and based on Revenue Geographic areas Type of business Progressing down the track of determining cost to serve Partially deployed throughout the business How to move forward to the next level?

19 Project Verify A significant independent qualitative research project Greater understanding of the needs of insurance customers Fully explore and understand the wants, needs and expectation of insurance intermediaries Identified customer segments linked to underlying motivations and behaviours Profile competitors over the segments

20 Rational axis approach to their business Intermediaries - Underlying dynamics Work ON the business The business is bigger than me More professionalism in servicing of clients or business Managed as an entity, rather than a personality Typically more sophisticated and savvy strong growth focus Mediator Traditional model operate independently and mediate between insurer and customer Emotional Perceived role and way of operating in the market Advisor See benefit of working together Acknowledge interdependency between insurance and brokers Work IN the business I am the business It s all about personality One man bands Servicing of clients can be ad hoc

21 A dynamic model, intermediaries can shift Work ON the business Smart & Savvies Heavyweights Mediator Chasers Old School Traditionalists Upcoming Potentials Advisor Work IN the business

22 Broker Segment Attributes Typically older, long time in business; sell insurance products Relationships is the cornerstone of doing business Solid day to day relationship are key to establish goodwill (care, feel valued, looked after) Typically wary of insurers, high sensitivity to perceived unfair play of insurer But desire to be friends with everybody to remain competitive Desire to remain independent, so apprehensive about initiatives beyond relationship (people) involvement Old School Traditionalists Chasers Typically younger, smaller brokers with strong sales focus. More life-style oriented, want to manage their size, eventually plan to sell off More transaction and short term orientated rather than strategy Want life made easy i.e. responsiveness, turn around time, easy to do business with Added value can be delivered on tactical level i.e. marketing support, website to grow business

23 Revised approach to intermediary segmentation Combined these findings with our initial segmentation work Completed a simple flow chart for Vero relationship managers to determine which the segment for each intermediary The Sales Management Team reviewed the strengths of the Vero Relationship Managers and over time have realigned Relationship Managers using these multiple variables Customer Management Plans and Reviews drive tactical activities and results Relationship Manager survey and KPI s measure successful performance

24 Future Plans Develop segment specific propositions that are aligned to the overall Vero proposition Develop a full and robust analysis of Cost to Serve Review Intermediary Service Models to achieve strategic goals Develop more comprehensive Customer Management Plans

25 Customer Claims Experience

26 Claims from Customers Insurance is an intangible grudge purchase and all customers get is a piece of paper It is better for customers not to have to use our services We only sell a promise to be there if you need us Claims is THE make or break experience Is often the only time we work directly with the end customer, rather than the intermediary

27 The ideal claims process at a practical level One stop phone call, or online 24/ number Minimal paper work - if at all Have the process explained and given an indication of timelines Given a reference number and someone to call during the process Set and manage expectations, follow through, provide regular updates Speedy resolution of claim and prompt payment Able to choose preferred supplier if repurchasing or repairing The ideal claims process starts early - if possible OK the claim on the spot Source: Project Verify

28 The internal dialogue during the claims process is intense and emotional Expensive e.g. having to pay for taxies if you have an accident in the car Anxious and on the defensive, getting ready to fight for rights? Upset and irritated just pay the damn thing Messy, time consuming - you ve got to go through a lot to put a claim together Am I going to be believed, do they think I m honest? Worried, stressed, upset Angry about the loss Source: Project Verify

29 Claims isn t just process attitude is key Empathy, sympathy, understanding of the position I am in Don t make me feel like a criminal Value me as a customer Take into account my claims history Be seen to be trying hard to make the claim work Let me feel I am in a negotiation process and will be heard Have a positive attitude towards claim resolution Source: Project Verify

30 What does a different experience look like? Differentiating Proactive support Ongoing interaction Help me to help myself how can I make things better Treat me with respect, show me you value my custom and want to keep Hygiene They ll be there for me (during claims) Perceptions of variable service across brands seen as hygiene but experienced as differentiating Value for money (Price + cover) Show me that you understand my needs Insurance companies seen as similar here

31 Our Response to this need We understood this need instinctively but now knew it explicitly research and customer comments bought it to life for our people Reviewed and aligned to role descriptions, competencies and behaviours Integrated into training, performance measures and team goals Shared this information with intermediaries and developed plans Changed our customer satisfaction survey approach and content

32 Current situation Multiple individual and groups deliver the claims experience (internal and external) We were not able to split out the performance of each of these people or suppliers Our survey measured on hygiene factors only not differentiating We used the survey tool to measure results rather than manage delivery of the customer experience Minimal link to individual KPI s, hidden results, not shared with suppliers or intermediaries or within claims teams

33 Changes to the Satisfaction Tool Fully automated the end-to-end process Full reporting across many variables Added an advocacy measure Lifted the bar emotional plus operational needs of customers Allocation of responsibilities for management of feedback

34 Benefits Alignment between claims functions and roles and shared view of customer feedback Real time access to feedback, self managed reporting and long term trending available by many variables, Clear accountabilities for management and staff for managing feedback with excellent KPI reporting at team and individual levels Separate database for tracking and resolution of follow-ups Improvements can be pre-populated into Impact and Pinnacle Results used for the BSC and partner / broker reporting

35 Delivering an Iconic Customer Experience Key Success Factors

36 Key Success Factors Understand organisational readiness and don t try to do too much Start with the front-line teams they are most engaged and have vested interest Don t try and make everyone a customer expert Keep it simple and show the benefit to people s jobs Keep advocating Mutual Value for universal acceptance Strive for integration throughout the organisation; strategies, processes, performance and measures

37 Discussion

38 Other cool stuff Customer Framework - Self Assessment Customer touchpoints Customer experience mapping Customer Management Plans REAP strategies Winback programmes IMPACT