IMPROVING RETENTION BY 40%
An insurance provider has transformed its customer retention as a result of a managed analytics project. The client tasked Ember with examining the effectiveness of five different offers in its retention toolkit – and the way that agents were using them. The analysis revealed that if advisors adhered to a two-step approach, more than 40% of potential cancellations could be saved: insight that the insurer is now putting into action to increase renewals and retention rates.
In a highly competitive market, where price comparison sites have become better known than many leading brands, customer churn is an ongoing challenge for insurers.
As part of its strategy to tackle this, a leading insurer had developed a retention tool kit of five components. Its contact centre team were then trained to use these appropriately for all calls to its dedicated renewal and retention line. But despite this effort, the impact on retention rate appeared minimal.
The client wanted to investigate further, and asked Ember to design and implement a speech analytics solution specifically for the retention calls. It wanted to assess how much effort advisers were putting into the retention process and understand which of the tool kit components had the greatest impact on retention.
We created a dedicated language library for retentions, with a separate category for each of the five tool kit components. We then added a further three categories for context, flagging if the customer had specifically requested to cancel, or was seeking further information.
The final configuration deployed enables Ember’s team to track each element of the tool kit separately, to give the client a view of each item on every call. It also examines how these items are combined.
Most importantly of all, it also tracks the outcome: whether the customer was saved. These categories now run automatically on every appropriate call so the client can see how its agents are performing and improving on a day-to-day basis – as well as providing a detailed insight into the most effective approaches to retention.
RETURN ON INVESTMENT
Initial analysis has shown that the optimum approach involves the agent discussing the “Features & Benefits” of the product to highlight additional benefits that customers may not be aware of or competitors can’t match and offering the customer a “Discount” on their renewal premium. Where these two elements of the toolkit are used together, at least 40% of calls result in retention.
This insight is now fed into agent training and performance monitoring, to secure a lasting increase in retention rates for the insurer.
The analysis has also helped identify which toolkit items are best aligned to different policy cancellation reasons, so that advisors can tailor the conversations appropriately.
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