Nationwide tops car insurance customer experience survey – M&S ranked worst
Some of the country’s biggest names in insurance have been revealed as the winners and losers in a survey conducted on behalf of leading global customer experience company, Webhelp.
The survey, which combined face to face and email interviews with 1,000 car insurance customers, was conducted by Bright Young Things in March 2016 and looked at how customers rated their experience in terms of the price of their policy, the services offered and their engagement with the insurer.
Topping the league table were Nationwide, Direct Choice and RAC, with overall scores of 4.2, 4.1 and 4.0 (out of 5.0) respectively. At the other end of the scale, were Churchill, Legal & General and M&S, who lagged a long way behind with an overall score of just 2.4. Churchill and Legal & General were joint second from bottom with an overall score of 3.1.
The good news for car insurers is that, according to the survey, the majority of respondents were happy with the price they paid for their insurance. That is clearly still a major battle ground for insurance companies, however, it is not the only way for an insurer to compete for the loyalty of their customers, as chief customer solutions officer at Webhelp, Helen Murray, explains:
“In a number of sectors we are seeing a shift in customer behaviour away from traditional methods of contact, such as the telephone, and onto more digital channels like webchat. What is surprising is that the insurance industry is not adapting to this change in the way that other industries, for example, retail and banking, are. These industries are leading the way in offering customers omnichannel opportunities to connect with the brand and are investing heavily to offer the option to contact them in whatever way the customer feels most comfortable with.
“A company’s engagement score had a marked impact on their overall ranking in our customer experience survey. Churchill is a good example. While they scored well, and much higher than M&S, on price satisfaction (3.5 for Churchill v 2.0 for M&S), they were only marginally ahead of M&S in terms of engagement (2.4 for Churchill v 2.3 for M&S). It was the lack of customer engagement that ensured Churchill came in joint second bottom of our customer experience league table, despite customers being quite satisfied with the price they had paid for their insurance.
“And a good customer experience score isn’t just a vanity exercise. Our survey results indicated a positive correlation between those providers who adopt a multi-channel engagement approach and improved customer advocacy. Only 15% of the providers covered in the survey offered voice, email, twitter and live chat contact channels, but 77% of their customers were likely to recommend their insurer to a friend. The survey average for the same question was only 44%.”