Over our lifetime we're now likely to be saving with multiple differnet providers for our pensions, the importance of their customer service is key for retention.
In an industry where it costs 13 times more to acquire a new customer than to retain an existing customer, where a 5% improvement in customer retention can cause an increase in profitability between 25% and 85% (Reichheld and Sasser 1990) and where only 37.6% of customers think their insurer made a great or fair amount of effort to retain them, life and pension companies might consider shifting some of their sales and marketing investment from attracting new customers to maximising customer value through persistency and improved customer retention.
Aegon, the global insurance company, sought to create a world-class customer service experience for its customers. To accomplish this, the company first needed to simplify and streamline manual legacy business processes that often included multiple steps to verify information regarding user identities, policies, compliance, and checklist requirements.
Today, Aegon agents are able to quickly access all relevant customer information. Pega enables agents to utilise scripts and knowledge management capabilities, which allows them to focus on the needs of the customer. Enhancing the contact center capabilities of Aegon resulted in significant performance improvement, including an increase in first call resolution (FCR) rate from 50% to 80%. The changes are also credited with significantly improving the quality of customer interaction and reducing training time.
We are thrilled with the results from the business transformation programme so far. Using Pega has already helped us improve the efficiency of a number of high volume, high importance operations by more than 50%. Martyn Johnson ,Manager, IT BPM Delivery Centre at Aegon