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How to lose a customer.

  1. How to lose customers An effective way to alienate customers with simple, everyday comms.
  2. A loyal domestic insurance customer retired and asked his existing insurer for a motor policy. Here’s what happened...
  3. Dear Sirs 
 Here is proof of my NCD, earned on a motorcycle policy.I think that in the proposal I said that I have 10 years NCD. My current schedule shows 9 years but I think that I actually have about 14 years, but I have no way of proving this. 
 I also attach my current motorcycle insurance certificate. I hope this is OK and would be grateful if you would confirm this. I look forward to hearing from you. 
 A Customer The customer sent what he thought was proof of NCD...
  4. Here’s how the insurer replied...
  5. Dear Mr Customer 
 We are contacting you because we have received a document from you as evidence of your Proof of No Claims Discount. Unfortunately, we are unable to accept this for the reasons listed below: 
 The No Claims Discount appears to be currently in use on another policy with another insurance company. 
 We will accept Proof of No Claims Discount from the following policies: 
 Aprivate car, company car and mobility car. We will also accept No Claims Discount from motorbike policies but the policyholder must be aged 22 or over. 
 Please note: company car evidence must have been earned in the last 6 months, be provided on company letter headed paper and signed by a Director or the Fleet Manager. Bolt-together standard paras - always make the customer feel as though he's just another number. Use a“Robocop” tone of voice. Always use a whole page of solid text - makes it MUCH harder to read quickly - particularly on a smartphone.
  6. We will accept proof of No Claims Discount provided: 
 - The policy was issued by an insurance company in the UK. 
 - The No Claims Discount was earned in the policyholders name. 
 - It was earned within the last 24 months and is not currently in use on another policy. 
 Please resend the correct documentation so we can update your policy. If your No Claims Discount does not meet our criteria stated above please contact us by email or call us at your earliest convenience. Call costs may vary depending on your service provider. 
 If we do not hear from you your NCD may be reduced or your policy may be cancelled. Don’t bother with pesky apostrophes. Don’t clarify what ‘correct documentation’ means. Hide what the customer has to do half way down the page. Make sure to sound threatening not helpful.
  7. Until we have received and processed sufficient proof of your No Claims Discount your policy may not be fully validated which may affect any future claims. 
 In addition to any premium quoted we reserve the right to charge an admin fee of up to £30.00 should a change or correction be made to your policy by a member of our team. This includes reduction of NCD entitlement. 
 Yours sincerely 
 Amy Insurer 
 Insurer NCD Team Never use customer- friendly language. Avoid good will at all costs.
  8. ✓ 350 words. Solid text. ✓ Reads like an email from Robocop. ✓ A series of bolt-together standard paras that don’t fit. ✓ Call to action hidden half way down. ✓ Text four times harder to understand than an average article in The Times. ✓ A 150 word, legal-language disclaimer.
  9. The customer tried again… Same sort of reply. And again… And yet again… If we do not hear from you your NCD may be reduced or your policy may be cancelled In addition to any premium quoted we reserve the right to charge an admin fee of up to £30.00 If the document is not received your discount will be reduced or your policy will be cancelled. Same sort of reply. Same sort of reply.
  10. Finally, the customer was so angry… The customer was so angry with the tone of the replies he gave up, cancelled his policy, wrote to the ABI and went elsewhere. It wasn't what the insurer had done - the customer understood how important proof of NCD is - it was how they did it and their written tone of voice. He felt the insurer just didn't care.
  11. What could the insurer have done? 1. Audited their standard paras library and scored them objectively. 2. Developed a customer-friendly tone of voice. 3. Written new standard paras using it. 4. Trained their teams to communicate with customers in a more human way. Rubuss
  12. Here’s how one business saved £300,000 by doing this. Rubuss Mark McArthur-Christie 07775 856154