Managing expectations, showing empathy, ensuring convenient service and effective communication are key themes in enhancing overall customer satisfaction with the insurance claims process, according to the J.D. Power and Associates 2008 Auto Claims Satisfaction Study. These same factors also hold true for how the policyholder views the performance of the collision repairer involved in the transaction, says senior research manager Mark Garrett.
“The body shop has a definite influence on keeping the claim moving smoothly,” he notes. A satisfied customer will compliment your services to friends and family; if they’re unhappy they won’t.
“This drives word-of-mouth recommendations,” says Garrett, who presented a Wednesday NACE seminar on Improving Customer Satisfaction in the Claims Process.
The study finds that implementing 10 specific service practices has a considerable impact on overall satisfaction. They are:
• answering all customer questions;
• managing expectations regarding the settlement;
• expressing genuine concern;
• avoiding negotiated settlements;
• providing flexible appraisal appointments;
• returning phone calls;
• sharing information between representatives;
• providing proactive updates;
• ensuring customer is at ease with claims process; and
• giving customers a timeline and meeting it.
If these desires are met, 75 percent of the customers will renew their policies with that particular insurance carrier. “If you miss four of these service practices it drops to 20 percent,” Garrett says.
“There’s a lot of missed opportunity there,” he continues, describing how a breakdown in the repair scenario can drive future business away from your shop because many consumers lump the two entities together when formulating an opinion of how the aftermath of the wreck was handled.
“We see both the insurer and repair shop working together” to provide proper customer service. This is especially relevant when a direct repair program (DRP) comes into play. “The customer holds the insurance company responsible for the repair.”
DRP and non-DRP shops are equally in the hot seat regarding expectations of “getting all the repairs done with one visit. Satisfaction completely plummets when the customer has to go back to the shop.”
The research reveals that 10 percent of “non-complex” repairs are not done right the first time and 20 percent of “complex” repairs result in a comeback. (A non-complex repair is where the vehicle is driven to the shop; a complex repair results from when a tow truck becomes involved.)
“That’s on par with what we saw last year,” says Garrett when analyzing the numbers.
He issues this challenge: “Are you actually meeting your timeline” initially presented to the customer? If not, expect a client who is unhappy with both you and the carrier.
A lot of customer angst can be eased by effectively communicating with the person. “You really have to go out of your way to let your customer know what’s happening. So much of the claims process is holding their hand and letting them know what they’re getting into. It’s setting their expectations,” Garrett says.
“The customer wants to be informed. The customer shouldn’t have to pick up the phone and say, ‘What’s happening with my car.’”
The events that come after the client drives off your lot can also be an important indicator of the subsequent level of satisfaction, according to Garrett. This involves simply calling them to ask if they are pleased with the repair.
“Only half of the customers are being followed up with by either the repair shop or the insurer,” he reports. “Both the insurer and the shop should follow up with the customer after the shop visit – as long as somebody is following up.” When neither of you do it, people are disappointed with both entities.
“Work together to keep the customer informed,” Garrett says.
