ESSENTIAL "E's" FOR SUCCESSFUL CUSTOMER SERVICE

Rough Notes, Apr 2005 by Husk, Mary I

Because insurance and risk management products and services are intangibles, the role of customer service is extremely important. Every organization should ask the question, "How do we succeed at providing excellent customer service to our clients?" The answer lies in the five E's:

* Expertise

* Efficiency

* Energy

* Ethical behavior

* Empathy

Expertise. Whether the business is an agency, insurer, risk management firm, or any other insurance industry organization, its employees must have expertise. Thorough understanding of products and services leads to successful sales and service, thereby increasing profitability and growth. Insurance consumers expect the person they contact, whether it's the producer, customer service representative, or receptionist, to have the knowledge necessary to understand and address their needs. An unlicensed receptionist may not have the training to quote insurance products to an applicant or client, but he or she should have enough knowledge to be able to refer the party to the person in the organization who can provide assistance.

Many training programs are available for employees at all levels to develop their skills and knowledge. The National Alliance for Insurance Education & Research, for example, offers programs such as the CISR, CIC, CRM, Producer Development Schools and other programs to develop and enhance the skills and professionalism of insurance and risk management personnel. The benefits that come from raising the level of employee expertise through training far exceed the costs associated with that training.

Efficiency. Efficiency is defined as acting or producing effectively with a minimum of waste or effort. When a customer calls with a special need, employees must respond with due diligence. Prompt action must be taken to identify the client's needs, determine if those needs can be immediately met, and advise the client of the action that will be taken. Sometimes it is not possible to meet the client's needs. In such cases, the client must be promptly notified. When a promise to take an action is made, every effort must be made to meet the time frame. The worst possible scenario is failing to get back to a client within that projected time frame. Not only does the employee lose credibility with the client, but so does the agency or company. Efficiency also includes the ability to prioritize tasks. Stacks and stacks of service items lead to a messy desk, missed deadlines, potential errors and omissions claims, and unhappy clients.

Energy. Without energy in an employee's voice or attitude, a client will feel unappreciated. Customers should be treated as the tremendous assets they are. An agency may have excellent products and services, but if the client is treated with indifference, he or she will likely not remain a client very long. A "smile" does come across the phone line. Today, many business transactions are carried out over the phone or Internet. Sometimes parties conduct business without ever meeting in person. Every contact with the customer, whether by phone, Internet, letter, or in person, is an opportunity to show that the firm is "energetic," that employees are ready and committed to be of service. Additionally, every contact with customers should include a statement of appreciation for their business. One national fast food chain has a motto that is an example of this "energy." After handing customers their food at the drive-through window, employees say cheerfully, "Thank you and see you tomorrow."

Ethical behavior. Customers prefer to transact business with agencies that demonstrate ethical behavior. It may be tempting for a producer to misclassify a risk or underestimate payrolls and sales figures to acquire or retain a customer's business. It may be easy to reduce or eliminate coverages on a policy to reduce the premium when competition is knocking at the door. Moving a piece of business to a company that is offering a trip as a bonus for increased production, without a benefit to the client, is another example of unethical behavior. Ultimately, the customer will suffer. These actions always create problems for the client and the agency when the facts finally surface. The law of agency also establishes duties owed by the agent to the insurance company. At the top of the list is the duty of loyalty, closely followed by the duty of honesty. Operating ethically at all times, even if it means losing the client's business, is far more productive and rewarding for any business entity.

Empathy. Although agents make every effort to write profitable business, claims do occur. At the time a claim is reported, whether by the policyholder or a third party, the claimant should be treated with utmost respect and caring. The claimant should feel that his or her situation is important to the agency or company. When claimants are handled with empathy and sensitivity, the claims process will progress more smoothly. The size of claims may even be minimized by taking extra care to show empathy at the time of loss.