SIMSBURY, Conn.--(BUSINESS WIRE)--Insurers that earn jeers from their customers are falling further behind the ones that earn cheers.
That’s the conclusion from customer experience advisory firm Watermark Consulting, based on its latest analysis of stock market returns for insurers that lead in customer experience versus those that lag.
Watermark’s Insurance Customer Experience (CX) ROI Study focused on model portfolios of the Top 5 (“Leaders”) and Bottom 5 (“Laggards”) publicly traded insurers in J.D. Power and Associates’ annual Insurance Satisfaction Studies.
“The headline here is simple: Insurers that lead in customer experience are rewarded handsomely by consumers and investors alike,” explained Jon Picoult, Founder and Principal of Watermark Consulting.
With nearly a decade of data examined, the study found that a portfolio of property-casualty insurers which excelled in customer satisfaction far outperformed the industry index (which, in turn, outperformed insurers with the weakest satisfaction). The Leaders generated average annual returns which were more than double that of the Laggards.
Picoult added: “What was most striking was that the margin of outperformance between the Leaders and Laggards has widened considerably over the past couple years. The competitive edge enjoyed by Insurance Customer Experience Leaders is not just real, it is strengthening.”
The results suggest insurers should consider investing more in their customer experience. “This is an industry that is far more enamored with acquiring new customers than it is with delighting the ones they already have,” Picoult commented.
Carriers that impress policyholders reap tangible rewards in the form of increased loyalty, greater wallet share, stronger word-of-mouth and a more competitive cost structure – all of which makes them more appealing and valuable in the eyes of the market.
A white paper describing the study, and the secrets behind the Leaders’ dominance, is available here.
About Watermark Consulting
Watermark Consulting is a leading customer experience advisory firm that helps companies impress their customers and inspire their employees. Watermark has worked with some of the world’s foremost brands, helping organizations capitalize on the power of loyalty, both in the marketplace and in the workplace. To learn more about Watermark’s consulting services, educational workshops or conference keynotes, please visit www.watermarkconsult.net.