Some moments in a claims and repair journey are key when it comes to businesses’ success in delivering customer satisfaction.
The Collision Industry Electronic Commerce Association (CIECA) recently hosted a webinar on CCC Intelligent Solutions’ “Moments of Truth” report, which brings forth findings regarding customer experience within the claims and repair journey.
The moments of truth concept in this instance, explained Maryling Yu, vice president of marketing at CCC, revolves around the practice of stringing together moments in a customer service journey. Some are more important than others, she explained, and they have to go well in order for a company have a good outcome. Outcomes of other moments don’t matter so much.
“Winning a moment of truth leads to a good outcome,” she said. “Losing a moment of truth can lead you to a not-so-good outcome.”
Data and Analysis
CCC produced its report using commissioned data collected by market research firm Magid, using a sample size of 2,400 drivers who had had accidents within the prior two years. Respondents had to have filed as first-party claimants with their own insurers. The firm also looked for people who took their vehicles to collision repair facilities with the intention of having them repaired. Respondents included those with cars that became total losses.
Analysis included moments important to customer satisfaction scores -- things like claim experience, repair center selection, repair center experience, repair center process, claim resolution, demographic/psychographic info such as whether respondents were first-time claims filers, and turning findings into quantifiable numbers.
The following outcomes, Yu said, were studied based on those results: satisfaction with repairer, satisfaction with insurer, customer propensity to switch carriers. Ultimately, consumers gave high satisfaction ratings to repairers and insurers with 4.4 out of 5 for both, and 17% of respondents switched away from insurance carriers after a claim.
Satisfaction with Repairers and Insurers
To reveal satisfaction with repairers, participants answered questions that then ran through a multiple linear regression model to derive subject importance. The model revealed nine moments of truth, which were then rank ordered from most to least impactful.
Some of those moments were: transparent and detailed explanation of repair needs, satisfaction with drop-off and length of time to get a repaired car back. These moments pushed the repairs satisfaction score up or down.
A model was then used to decode the repairer satisfaction score. It ran the nine moments through an equation that showed them in the best light to determine the best possible scenario -- i.e. winning the nine moments of truth and failing the other moments.
To reveal satisfaction with insurers, consumers answered another series of questions that ran through a multilinear regression model. Twelve moments made it onto the model. They included: clear communications about the claims process, satisfaction with ability to get a loaner and length of time to schedule a repair.
Respondents also answered questions about whether desire to complete the entire claims process digitally fluctuates by age, but there wasn’t significant variation.
In revealing propensity to switch from insurers, participants made it clear the main reason people switch from insurance providers is because premiums rise after accidents, Yu said. Most would have experienced an increase, so the question of why a mere 17% left was up in the air.
A menu of all moments ran through the regression model. It kept the ones that helped it predict an outcome and threw away the ones that didn’t help. Factors included ability to cover upside down loans in cases of total loss, injury and whether respondents were first-time claim filers. If all these things were true, consumers were three times more likely to switch providers, Yu said.
In cases of total loss, 40.4% of consumers switched providers, revealing that writing a vehicle off as a total loss is a real risk for defection.
Industry Interconnectedness
Numbers also revealed a high level of industry interconnectedness. Respondents answered that when deciding on a repair shop, their No. 1 reason for a choice was the shop was recommended by an insurer. Nearly 43% said an interaction with a repair facility changed how they viewed their insurer, with the majority saying it made them see their insurer more positively.
Putting 12 moments that impact satisfaction for insurers against nine moments that impact satisfaction for repairers led to four moments where repairers score points for insurers, and two moments where insurers score points for repairers. This finding, Yu said, suggests consumers aren't differentiating between who is supposed to do what -- just that there’s a single outcome they need from the industry. This makes for a value chain ecosystem where multiple entities are required to get a customer past the finish line after an accident.
The business implications here are that insurers and repairs can work together to find wins. Repairers should emphasize transparence in addition to speed, and also define what a good drop-off experience is, Yu said. On the insurance side of things, claims professionals can surface insights to the rest of an insurance organization to identify potentially unhappy claimants early and ensure offerings of proper coverages upstream to max customer satisfaction downstream.
On the whole, Yu contended, focusing on moments that matter and produce high scores in the repair journey will help the industry overall.
Elizabeth Crumbly