By Henry Uche, [email protected]
In today’s business world, consumers and customers alike are increasingly becoming more informed and sophisticated in decision making and choices that give them maximum utility (satisfaction) from any purchase they make. Any business organisation that fails to meet or surpass the expectations of its market, would sooner than later lose its relevance significantly or wind down completely.
In financial industry, issues relating to the insurance sector is still taking the center stage of discourse at different fora. The main challenge giving stakeholders in the sector worry is low penetration and acceptability of insurance products. Rewriting this ugly narrative (negative perception) which people hold about the sector is a gradual process though but, requires doing something radical by the professionals.
At a recent conference put together by BusinessToday Communication, the Chief Executive Officer of Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, alarmed that for a low patronised sector like the insurance, a deliberate and conscientious efforts must be made to convince potential customers to remain loyal (customers loyalty) and committed to a brand, at the same time, such efforts must be geared towards attracting new market/s (prospective customers). These efforts he said must be done through a non- conventional and non – routine offerings.
According to him, most prospective customers can only be attracted through a strong conviction of what they stand to benefit should they patronize insurance business or products. The ability to sustain potential customers requires not only hard work in all fronts but a consistent trust and confidence building.
In his paper presentation titled: Consumer Satisfaction in Deepening Penetration in Insurance and Pension sectors”, Yusuf posited that it would take at least twelve (12) positive experience/ treat by any business or corporate body to correct one negative experience of a customer. And the opportunity to offer 12 times positive experiences to a dissatisfied customer may not be readily available, in fact the probability of getting to see that customer again to correct a first negative experience is zero (0) or half (0.5). Therefore, it’s imperative that businesses treats customers very well at first time transaction since, first impression matters a lot and last longer.
Yusuf who revealed that Morocco tops among other African countries with 4.5 percent insurance sector growth, Nigeria stands at 0.3 percent. On pension assets, Nigeria queues behind South Africa (SA) with $32.6, while SA has $154.7. But as a percentage to Gross Domestic Product (GDP), the giant of Africa – Nigeria has 7.6 percent, standing behind Namibia and SA who have 103 percent and 45.8 percent respectively.
The figures above show that Nigeria is not yet a giant in exploring the immense benefits embedded particularly in the insurance sector. However the sector is not hopeless as industry players are not leaving any stone unturned in ensuring that the sector increases its pace on penetration, growth and development.
He listed a number of expectations of customers from Pension Funds Administrators (PFAs) thus: “PFAs must be on-line in real time, minimize bureaucracy, deliver services as promised, maintain quality clients records, and show a good disposition to solve customers’ problems.
He added that PFAs must show empathy for customers, give them personal attention at convenient hours, show responsibility, transparency and accountability, and guarantee safety of their financial assets.
“Employees must have requisite knowledge to answer customers questions. They must be consistently courteous with customers, and display behavior that Instill confidence in customers. More importantly, we must avoid bloated promises, instead we should promise less and delivered promptly more than their expectations.
“While we position our brands to elicit customers’ confidence, our services must be tech -driven, and the ambience of our office must be welcoming.”
Equally, customers expect more from the insurance sector among which are: fair premium, quality products, prompt settlement of claims, quick attendance of customers’ complaint, simplicity of policy documents, timely and effective communication with policyholders on any change that may affect them (customers). More so, insurance companies must remember that maintaining a cordial staff – clients relationship is key while effective marketing communications to explain products and services and their benefits must not be relegated.
“The platinum rule in customers management are: we must treat customers the way they would like to be treated, not the way you think they want to be treated. There is a risk or making assumptions about your customers expectations. We must concentrate on those areas our customers found valuable and work on areas they don’t fancy.
“In all, we must develop visible customer- focused leadership and strive to gain true understanding our market. More so we must empower staff that interface with customers on daily basis with the requisite public relations stills. We must manage feedbacks and take tangible actions when and where necessary that would reinforce more patronage.
“We must make use of customers satisfaction metrics to identify areas of improvement and work on them. This would increase customer loyalty, improve sales and revenue, reduce customers churn rate (rate at which customers drop out) and enhance brand reputation for competitive advantage”