‘Vitally important’ stat you may be missing

The head of a major firm called it ‘vitally important’ but are you aware of this metric for your business?

‘Vitally important’ stat you may be missing

Insurance News

By Jordan Lynn

Referrals have always been important for brokers but some may be missing a key metric which allows a customer’s experience to be fully monitored.

The net promoter score is a metric which measures how your customers experience your business.

Customers fill in a simple questionnaire, the crux of which is to understand whether they would recommend your business to a friend or family member. They are then split into three categories along a one to 10 scale. If a client is rated from one to six, they are considered a detractor, seven to eight are considered passive, while nine to 10 are considered promotors.

The final score is calculated by subtracting the percentage of detractors from promoters.

For brokers and the wider industry, which prides itself on customer service, the net promoter score offers a chance to utilise client feedback on service in a way that can be monitored and formalised.

John Nagle, icare group executive of workers’ insurance, said that the net promoter score is not only “vitally important” for their business, but for the wider insurance industry.

“As a customer centric organisation, we can only move forward based on the information that our customers are telling us,” Nagle told Insurance Business.

Brokers would be able to use a net promoter score to gauge their current offering to clients and monitor what changes they could make to improve their customer service and boost those all-important retention and referral rates.

The recent Vero SME Index found that 52% of SME owners turn to a friend, family member or colleague for risk-based advice and brokers that utilise a net promoter score would be more likely to benefit from referrals in such instances.

With an increased focus on net promotor scores, icare has sent out more than 200,000 questionnaires to clients and has seen its net promoter score improve from -4 to +10.

As brokers seek to remain trusted advisors to clients, using a net promoter score could be the difference between winning and losing their business.

Related stories:
There’s a new most valuable insurance brand in the world
Opinion: The tortoise and the tortoise

Keep up with the latest news and events

Join our mailing list, it’s free!