ROI Case File No.257 | 'European Insurance Company's Customer Retention Strategy'

Chapter One: Rising Cancellation Rates—The Invisible Hearts of Customers

The week following the resolution of MoveFlow Middle East's OODA Loop case, a consultation arrived from Europe regarding insurance business customer retention. This case, the 257th episode of the twentieth volume "Integration of Practice," concerned the challenge of visualizing customers' true feelings and enhancing loyalty.

"Detective, we're a Swiss insurance company with 100 years of history, but despite high satisfaction scores, cancellation rates are rising. We can't see what customers truly feel through conventional surveys."

Klaus Müller, customer strategy director at SwissGuard Insurance from Zurich, visited 221B Baker Street unable to hide his confusion. In his hands, he held survey results showing high satisfaction scores alongside contradictory data of rising cancellation rates.

"We provide life and non-life insurance across Switzerland. Annual satisfaction surveys show 85% rating us 'satisfied' or 'somewhat satisfied,' yet contract renewal rates continue declining."

SwissGuard Insurance's Contradiction: - Founded: 1923 (100-year company) - Policyholders: 450,000 - Annual Premium Income: ¥85 billion - Customer Satisfaction: 85% rate "satisfied" or above - Contract Renewal Rate: 92% → 85% (7-point decline over 5 years)

The numbers showed surface satisfaction. However, deep doubt was etched on Klaus's face.

"The problem is that customers who answered 'satisfied' cancel the following year. True emotions seem hidden behind the word 'satisfied.' Customers won't tell us their real feelings."

Limitations of Conventional Satisfaction Surveys: - Satisfaction: Switch to other companies even after answering "satisfied" - Reason: Respond "satisfied" as superficial courtesy - Predictive power: Weak correlation between satisfaction and retention - Competitive comparison: Only absolute evaluation of own company, relative attractiveness unclear - Improvement guidance: Can't see what to improve from "satisfied"

"We can't measure customers' 'true feelings.' We need a metric that measures genuine trust, not formalistic satisfaction."

Chapter Two: Measuring Trust with NPS—The Ultimate Question

"Mr. Müller, what questions does your current customer satisfaction survey ask?"

Holmes inquired quietly.

Klaus explained while showing the survey form.

"It's a typical satisfaction survey. Questions like 'Are you satisfied with our service?' and 'Was the response appropriate?' rated on a 5-point scale. However, this doesn't reveal customers' true feelings."

Conventional Customer Satisfaction Survey:

Sample Questions: - Q1: Are you satisfied with our company's service? (5-point scale) - Q2: Was staff response appropriate? (5-point scale) - Q3: Was the insurance claim process simple? (5-point scale) - Q4: Will you continue using our company? (Yes/No)

Problems: - Too many questions create response burden (35% response rate) - "Satisfied" customers still switch to competitors (low predictive power) - Improvement priorities unclear (everything appears important) - No comparison with competitors (absolute evaluation only)

I noted the difference between satisfaction and recommendation.

"Being satisfied and recommending to others are different things."

Klaus responded with a serious expression.

"Exactly. Satisfied but not actively recommending. We can't measure that temperature difference."

⬜️ ChatGPT | Catalyst of Conception

"Just one question. 'Would you recommend to a friend?' That answer tells everything."

🟧 Claude | Alchemist of Narrative

"Whether they'd recommend or not. That's where customers' true feelings appear."

🟦 Gemini | Compass of Reason

"NPS is the thermometer of trust. Clearly separating detractors, passives, and promoters."

The three members began their analysis. Gemini deployed an "Insurance Industry-Specific NPS Analysis" framework on the whiteboard.

NPS (Net Promoter Score) Structure: - The Ultimate Question: "How likely are you to recommend this company to friends or colleagues?" (0-10 points) - Promoters (9-10 points): Enthusiastic supporters, bring customers through word-of-mouth - Passives (7-8 points): Satisfied but without enthusiasm, easily flow to competitors - Detractors (0-6 points): Have complaints, spread negative word-of-mouth - NPS Score: Percentage of Promoters - Percentage of Detractors

"Mr. Müller, let's accurately measure SwissGuard's customer loyalty through NPS."

Chapter Three: Quantifying Customer Voices—Emerging Truth

SwissGuard Insurance's NPS Implementation:

Phase 1: Initial NPS Survey (1 month)

The Ultimate Question: "On a scale of 0-10, how likely are you to recommend SwissGuard Insurance to friends or colleagues?"

Shocking Results: - Promoters (9-10 points): 22% - Passives (7-8 points): 58% - Detractors (0-6 points): 20% - NPS Score: +2 (Promoters 22% - Detractors 20%)

Truth Discovered: Of the 85% who answered "satisfied" in conventional surveys: - True promoters: Only 22% - Passives: 58% (satisfied but no active support) - Detractors: 20% (answered "satisfied" out of courtesy only)

Industry Comparison: - Insurance industry average NPS: +15 - Top companies: +45 - SwissGuard: +2 (significantly below industry average)

Phase 2: Identifying Causes Through Follow-up Questions

Asked each score tier "reason for that score" in free text.

Promoter (9-10 points) Voices: "30 years without a single problem. The sense of security is different" "Response during insurance claims was wonderful" "Staff are genuinely caring"

Passive (7-8 points) Voices: "No particular complaints, but don't think it's especially good either" "Never compared with other companies, so I think this is normal" "Would give 10 points if price were a bit lower"

Detractor (0-6 points) Voices: "Insurance claims were complex and time-consuming" "Digital response is slow. App is hard to use" "Explaining to new staff each time they change is troublesome" "Other companies offer same coverage 15% cheaper"

Chapter Four: Starting Improvement Cycles—Strategy to Raise NPS

Phase 3: NPS Improvement Strategy (6 months)

Strategy 1: Eliminating Detractor Complaints (Emergency Response)

Insurance Claims Process Reform: - Online application: Complete within 24 hours - AI assessment: Same-day judgment for simple cases - Progress visualization: Real-time processing status confirmation - Result: Claims processing period 14 days → 3 days

Digitalization Promotion: - New app development: Design emphasizing user testing - Contract confirmation: Always viewable in app - Chatbot: Immediate answers to simple questions - Result: Digital satisfaction 2.8/5 → 4.3/5

Strategy 2: Converting Passives to Promoters (Value Enhancement)

Personalized Services: - Fixed staff system: Same staff provides continuous support - Annual reviews: Policy review proposals matching life stages - Preventive services: Health checkup discounts, safe driving support - Result: 25% of passives moved to promoters

Strategy 3: Leveraging Promoter Voices (Word-of-Mouth Promotion)

Referral Program: - Referral benefits: Discounts for both referrer and referred - Success story sharing: Promoter testimonials featured on official site - Community formation: Customer interaction events - Result: 35% increase in new contracts via referrals

Results After 12 Months:

Dramatic NPS Improvement: - NPS Score: +2 → +32 (30-point improvement) - Promoters: 22% → 45% (more than doubled) - Detractors: 20% → 8% (less than half) - Passives: 58% → 47% (moved to promoters)

Business Results: - Contract renewal rate: 85% → 93% (8-point improvement) - New contracts: Referrals now 28% of total (previously 12%) - Customer lifetime value: Average 1.8x increase - Revenue: +12% annual growth through improved retention

Changes in Customer Voices:

Former Detractor (Score 5 → 9): "Claims completed in 3 days. Used to take 2 weeks. I felt their seriousness about digitalization."

Former Passive (Score 7 → 10): "Having a fixed staff member who understands my situation changed everything. No reason to switch to competitors now."

Chapter Five: The Detective's NPS Diagnosis—Reading Customers' Hearts

Holmes compiled his comprehensive analysis.

"Mr. Müller, the essence of NPS is 'visualizing customers' true feelings.' One question: 'Would you recommend to a friend?' That answer reveals truths invisible in satisfaction surveys. Whether they'd recommend—that's where true feelings appear."

Final Report After 24 Months:

SwissGuard Insurance became an industry-leading NPS company.

Final Results: - NPS Score: +2 → +48 (Top 3 in industry) - Contract renewal rate: 85% → 95% (industry-leading level) - Annual premium income: ¥85 billion → ¥115 billion (35% growth) - Employee satisfaction: Customer satisfaction became employee pride

The letter from Klaus contained deep gratitude:

"Through NPS, we shifted focus from 'superficial satisfaction' to 'genuine trust.' Most important was not fearing customers' true feelings but facing them head-on. Detractor voices were painful, but they were the treasure trove of improvement. Now customers bring their friends themselves. There's no greater proof of trust than that."

The Detective's Perspective—An Asset Called Trust

That evening, I contemplated the essence of customer loyalty.

The true value of NPS lies in its simplicity and predictive power. Complex satisfaction surveys have low response rates and don't reveal true feelings. However, one question—"Would you recommend to a friend?"—draws out customers' genuine emotions.

To recommend means to guarantee with one's own reputation at stake. Whether one has that resolve or not. That's where true trust appears.

"Satisfaction is the minimum line. What we truly aim for is becoming a company customers proudly recommend."

The next case will also depict the moment when customer understanding opens up a company's future.

"Trust appears in the action of recommendation. NPS is the purest metric measuring that trust."—From the Detective's Notes

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