Page 167 - India Insurance Report 2023- BIMTECH

India Insurance Report - Series II 155

4.5 Improve Customer Experience - Continuously improving the customer experience is crucial
to becoming a customer-centric company. Regularly gather feedback from your customers and use it to
improve your offerings. Use customer feedback to identify areas for improvement in your processes and
procedures. Continuously train your employees to provide exceptional customer service and ensure
they are up to date with the latest trends and technologies. In our company, we organize customer day
and invite our customers to the office to address their grievances head-on; this not only provides us with
an opportunity to improve ourselves but also helps us forge deeper ties with our customers.

5. Benefits of Adopting Customer Centricity

5.1 Increased Customer Loyalty : The adoption of customer-centric practices can increase customer
loyalty and retention. Customers who feel valued and appreciated are more likely to remain loyal to
their insurer, which can lead to long-term business relationships that result in greater profits. A customer-
centric approach is essential to maintaining a loyal customer base, as it demonstrates an insurer’s
commitment to meeting the needs of customers by providing them with customized offerings and
exceptional customer service.

5.2 Improved Customer Satisfaction : Customer satisfaction is essential for building relationships
with customers and developing a positive brand reputation. By placing customers at the centre of their
operations, insurers can deliver customized products and services that better meet the unique needs and
preferences of customers. As a result, customers are more likely to be satisfied with their coverage,
claims processing, and overall experience with the insurer.

5.3 Better Reputation : Customer-centric practices are more likely to lead to greater profitability.
When customers are satisfied with their coverage and experience, they are more likely to renew their
policies and refer others to the insurer. This translates into increased customer lifetime value and greater
profitability for the business. Additionally, adopting a customer-centric approach can lead to cost savings,
as insurers can streamline their operations by digitizing processes and automating tasks, which can lead
to lower overhead costs and higher efficiency rates.

6. Here are Some Ways to Measure the Success of a Customer-Centric Company

The rise of technology and digitization has taken customer-centricity to the next level in the insurance
industry. Insurers have also started measuring themselves not just in terms of grievances, which only
gives a picture of how many customers are dissatisfied; the insurers are proactively trying to analyse
how many customers are happy through NPS and other matrices.

6.1 Net Promoter Score (NPS) : NPS is a widely used metric that measures customer loyalty and
satisfaction. Customers are asked to rate the likelihood of recommending a company’s product or service
to others on a scale of 0 to 10. The NPS score is calculated by subtracting the percentage of detractors
(customers who give a rating of 6 or less) from the percentage of promoters (customers who provide a
rating of 9 or 10).