Chapter 2 Flashcards
The customer experience
What does ESG stand for and how does it relate to customer service?
Environmental, social & governance
What a customer chooses to buy and where from is increasingly influenced by an organisations ESG agenda.
What are the two main categories of customers?
Private individuals
&
Commercial customers
Private and Commercial customers can be further classified how?
Geographically i.e where a customer is based e.g in the UK or not
Demographically e.g by age, income level or educational background
What 2 categories may customers fall into?
Explain them
External customers
A person or busniess who is not an employee of the company and who is in a position to buy or use the company’s products.
Internal customers
Employees of an organisation who recieve a service from other employees of an organisation.
In terms of generic needs and demands, what do all customers require?
- Clear and accurate information - easy to understand with no jargon. This applies to documentation, literature and communications.
-
Accessible, professional & well informed staff
-How easy it is to get hold of someone by phoning
-The phone systems used & use of direct dials
-The communication of contact numbers and email addresses
-Ease of contacting someone when using online systems e.g livechat
-How workflow is managed to ensure work goes to appropriate staff. - A positive customer experience high quality interactions and use of interpersonal skills such as rapport building and active listening. Electronic communications are personalised to the customer.
- An easy & straightforward transaction process The process may involved multiple departments but as far as the member is concerned, this should be seamless and will only want to deal with one point of contact
What 2 factors may concern a private individual more than a commercial customer when buying insurance?
Price & Accessability
Why may private individuals be more likely to be influenced by price than a commercial customer?
In comparison to disposable income, the price of insurance represents a significant amount of money for an individual (70% of people change their motor insurance at renewal).
A commercial customer is still influenced by price but is more likely to consider all elements of a package such as value added services.
What may commercial customers consider when looking at purchasing insurance?
More complex products
CCs will want to understand the detail of product being offered, how it wil protect their goods and liability and ultimatley, their balance sheet.
Customer relationship management
CCs are more likely to be involved in their insurance, meaning they will have greater interaction with the insurer throughout the year. They will want to understand the claims process and ongoing reserves.
Additional services
Such as risk management and technical advice.
Which 2 areas can the demographic of customers have an influence on?
Products offerred
Influenced by age or socio-economic demographic
Communication methods used
E.g if target audience is young backpackers, text message is more suitable than letters by post
What is the FCAs definition of a vulnerable person?
Someone who, due to their personal circumstances, is especially liable to be disadvantaged, particularly when an insurance company is not acting with appropriate levels of care.
What factors may make a customer vulnerable?
- Age
- Physical impairment
- Mental impairment
Where in the world a customer is located can influence their needs and demands how?
3 points
Time zones may alter opening times of the organisation to serve those customers
Language staff need to be appropriatley skilled to communicate effectivley as english may not be a customer’s first language
Cultural staff need to be aware of different values and beliefs.
What is customer experience management?
The process of making sure that the customer’s experience is the same, whichever part of the business is involved in serving them.
What is a ‘moment of truth’?
Anytime a customer comes into contact with any aspect of a business, however
remote, is an opportunity to form an impression
Customers will have expectations of their encounters with an organisation. The organisation has the opportunity to meet, exceed or fail these expectations.
Jan Carlzon
What are the benefits of creating a positive customer experience for the organisation?
Customer loyalty : More likely that a customer will continue to do business with them by renewing their policy or buying additional cover.
New customers are attracted : satisfied customers are free advertising for the company
Improved work envrionment : providing excellent customer service contributes to employee’s sense of job satisfaction whcih raises morale.
Increased productivity : as there are likely to be fewer complaints and errors to deal with
Improved profitability : from a growing customer base
What are the benefits of creating a positive customer experience for the customer?
- a fast and efficient service, free from errors and delay;
- speedy claims settlement;
- accurate and effective assistance and advice; and
- value-added benefits, such as a 24-hour helpline.
Which 2 are investiagetd when looking to improve moments of truth?
- The when
- The why
- The how
- The who
- The what
The what = ensuring processes work well
The how = how things are said, looking at rapport, empathy, questioning and listening skills
How can someone’s customer service experience influence their future buying intentions?
A positive experience with an organisation is likely to enhance customer loyalty and improve retention rates.
If someone has a negative experience, even with another organisation, it will not only influence their choice of purchase but may also influence their attitude when dealing with the organisation
How can someone’s brand experience influence their future buying intentions?
Positive experiences will make the customer more inclined to buy from other brands in the group
Define contract certainty
Contract Certainty is achieved by the complete and final agreement of all terms
between the insured and insurers before inception.
What are codes of conduct
Apply ethical considerations to the profession or industry concerned, guiding members on how to behave ethically in the context of that profession or industry.
These codes do not have the force of
law, but a professional body will have systems in place to discipline those members who fail to keep to their code
What are the CII Codes of Conduct?
5
- Comply with the code, all relevant laws and regulations
- Act with the highest ethical standards and integrity
- Act in the best interests of each client
- Provide a high standard of service
- Treat people fairly, regardless of age, gender, sex and race
Hint = CAAPT
Which 2 legal rules govern the sharing of ingormation with customers?
- Data protection act 2018
- UK general data protection regulation (GDPR)
Outline the data protection act
Concerned with the regulation of data transfer. It covers all information about private individuals, defined as ‘personal data’, that is stored in any type of
system. As long as the system is organised in a way that, broadly speaking, means the data can be interrogated by name, it falls within the scope of the Act.
