Insurance comes across as one of the sunrise sectors in the service industry. The main reason behind the growth of this industry is not only the rise in the number of insurance service providers, but also a corresponding rise in the number of customers. At times you may have noticed that there are several insurance service providers who happen to offer the same policy at the same premium, but most of the prospective customers tend to head to one particular service provider only.
The reason behind this is very simple. These customers are more than happy with the services provided by that particular insurance company and thus aim to maintain the loyalty factor. In the earlier days, the sole motive of insurance service providers was to make a considerable amount of profit. However with the passage of time, profit happened to take a back seat as customer satisfaction began to surface at the top. Companies aimed to match the expectations of the customers which in a more sophisticated language was termed as customer satisfaction. However, after passage of some more years the competition began to rise at a rapid rate and thus matching customer expectations wasn’t enough. Companies now had to offer that extra service and do something bigger and better for their clients. The complete concept of going beyond the expectations of the customers in order to delight them came to be known as customer delight.
In today’s date, one negative word can bring down a business drastically while on the other hand one positive word can do miracles. This is where customer delight holds importance. If a customer is delighted then he or she will definitely spread positive news about a particular insurance service provider which will create free publicity for that company. You must be very well aware of the fact that what advertising cannot do word of mouth can and thus customer delight is of utmost value to insurance service providers.
A positive word of mouth is definite to attract a large number of other customers thus giving a push to the company’s customer database. It is but obvious that as and when the number of customers will increase it will help lift up the income level of the company and will eventually have a constructive effect on the company’s bottom line as well. Most importantly, as the the customer base would increase the company will have to recruit additional personnel which would eventually contribute towards the growth of the company as a whole.
Apart from the above mentioned benefits the insurance service provider will also be able to expand and diversify the line of operations. If this is done specialization coupled with customized services can be made available to the customers which would eventually push up their interest in the company. As we all know a good amount of funds of the company are generally spent on marketing activities such as advertising and promotional events.
However, if customers are delighted they themselves act as a medium of publicity for the insurance service provider which can eventually help the service provider to cut down on the expenditure that is usually incurred in various marketing activities. Thus, if we are to take into consideration the above mentioned advantages of customer delight we will easily be able to understand the worth that it holds in the insurance business.