Saving operational costs while adding service


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Being great at Customer Service comes at a cost

There is no “free lunch” when providing a value added service. It needs to be funded. In an industry that’s super price sensitive like insurance, passing the cost onto your customers is not even a potential option. Instead you need to get creative. One of the lessons from Uncommon Service is that you can fund it through operational savings.

progressive immediate response vehicles

Progressive Insurance decided to offer a value added service to help customers during a an accident. Here is description of the service direct from their site:

Progressive uses Immediate Response® Vehicles (IRVs) — those white SUVs with the Progressive logo on the side — to give your car insurance claim a head start. If your vehicle is involved in an accident, our claims representatives use IRVs to travel to repair shops, tow yards, your house — even the scene of an accident — to inspect your vehicle and write a damage estimate.

IRV drivers are trained claims professionals who can resolve your claim efficiently. They discuss the accident with you, record all relevant information, take pictures of the scene, talk to witnesses and catalog damages to all vehicles. All this starts as soon as you report your claim.

Since 1994, Progressive IRVs have helped change car insurance. With one call to Progressive, you get fast, friendly claims service — wherever you are.

Funding it through savings

What happens when policy holders report claims faster? What happens when there is a friendly face at the site of the accident? Two things gets impacted. You reduce fraud and lawsuits.  15% of all insurance premiums go towards funding fraud and legal costs. Progressive saves here and helps fund the IRV’s.

Marketing Lagniappe Takeaway – Progressive finds a way to increase customer happiness while keeping nagging costs in check… that’s Progressive indeed.

Today’s Lagniappe (a little something extra thrown in for good measure) – a little feedback from the residents of NYC. They view car insurance like the police. Be there when I need you, otherwise stay away and don’t bother me:

Republished with author's permission from original post.

Stan Phelps
Stan Phelps is the Chief Measurement Officer at 9 INCH marketing. 9 INCH helps organizations develop custom solutions around both customer and employee experience. Stan believes the 'longest and hardest nine inches' in marketing is the distance between the brain and the heart of your customer. He is the author of Purple Goldfish, Green Goldfish and Golden Goldfish.


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