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San Francisco Conference Blog 2012

2 Posts tagged with the insurance tag
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Sanjay Mehra of MetLife discussed how they used Net Promoter as a tool to help assess the effectiveness of new direct channels for purchasing life insurance, and how this program within one division has served as a proof point interally to support a broader rollout and adoption of Net Promoter across the MetLife organization.

 

As background, Sanjay explained the challenge facing his division. Historically, ownership of life insurance has been declining since the 1970's. MetLife set out to understand how to make the life insurance purchasing process more customer-centric to grow in a declining market. They built and launched a new direct product for term life insurance in late 2009, and have used Net Promoter to track their progress.

 

When they started this program using Net Promoter, there were a few other pockets of NPS experimentation within the company. But their story has received particular visibility because of the importance of this new initiative and success they have had. After starting in late 2009, the business quickly grew in 2010, their first full year of operation with the new product line. Then in 2011, they tripled sales over 2010.

 

How have they done with Net Promoter?

 

From a starting point of 5, they made a variety of improvements to move up to 25 and are continuing to focus on further improvement in an industry which typically garners quite low scores. In addition to feedback following specific interaction points during purchase, they also follow up for feedback 6 and 12 months later to understand the ongoing policy ownership experience.

 

Sanjay offered some perspective on how they used closed loop processes to identify improvement opportunities. In their first year, they focused primarily on detractors to identify process and customer experience improvements. Every single customer who comes in through the direct sales channel gets a survey within 2 weeks of purchasing the product. They survey by email with a completion rate around 15%. When they have detractor responses, they are routed directly to a customer retention representative who calls back within 24 hours.

 

But before calling, the rep does research in their CRM system on everything the customer has done throughout the purchasing process, combined with the feedback provided on the survey. In addition to the primary focus on resolving the customer issues, the representative also documents what was learned. This database gives them a rich catalog of learning to define and implement improvement opportunities to drive better experiences.

 

They have also focused the organization on creating more promoters, and leveraging the promoters to drive growth. Internally, they have run quarterly contests in the sales department to award agents who get the most 10's. And from the customer perspective, they have introduced the option for promoters to "like" them on facebook after completing a survey, and they have found that 65% of promoters click on it.

 

Finally, Sanjay described how the U.S. business is now rolling out this process across the business, with the following goals:

 

  • to create a state-of-the art closed loop VoC process with Net Promoter as the key measure of success
  • to identify and act on "quick hits" to enhance the current U.S. customer experience

 

The new system will include all customers and intermediaries at all touchpoints, moving way beyond the initial pilot in the life direct sales channel.

 

Thank you, Sanjay, for sharing your experiences with the group. We wish you continued success as Net Promoter rolls out across the U.S. business at MetLife.

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USAA is a mission-driven company with about 8.8 million members and 23,000 employees. It was founded by army officers about 90 years ago and now offers a full range of services across insurance, banking and investments. A USAA member described the company as his “wing-man”, which exemplifies the member focus that the company is built on. Wayne segued to today’s social environment and how it is disrupting our society. Consumer behavior and expectations are changing radically. Wayne checked out the USAA Facebook page –there is an amazing level of engagement and love shown by members there.


USAA’s mobile interactions increased by 130% in 2011 over 2010. It expects this tremendous growth to continue. This puts a lot of pressure on the company to deliver their services to customers through the channel and on the device they want. Digital/Human interactions will be 20:1 soon, so suddenly electronic interactions become key to the customer experience. USAA is using 3 principles and adapting them to mobile—1. Know our members—their products, behaviors and feedback 2. Organize around our members—timely conversations with members in their lifecycle and uniformity of service across all product lines 3. Make about a bigger mission—23K employees come to work at USAA passionate about serving those who serve.


USAA is focused on driving toward a member segment of one and delivering a personalized service to each member. They looked internally last year and decided to reorganize around the member by bringing marketing, sales and service together in one group. They started looking at how to better serve their members and did a lot of road shows on the bases and leveraged military bloggers to test out the new experiences and then blog about them.


Wayne took us through some of the pace of change in mobile and the ever increasing demands of his members. USAA is trying to bridge on-site and off-site conversations with members across USAA.com and social media sites. There is a big opportunity to leverage geo-location going forward. But across this entire pace of change there is still a need to focus on the bigger mission. Last year, 2011, was a year of huge storms across the country. USAA was able to leverage members’ cell phones to expedite payments of claims and processed 12% of initial loss reports online. Members value the fact that USAA pays quickly and fairly, but more importantly, they value the genuine care that USAA employees show them. Wayne suggests we all have to remember why we are doing what we do and that is what will make a material difference to how customers perceive us. Amen.