February 1, 2013
98 Percent of insureon's Customers Would Recommend the Company to Friends and Family, According to its Net Promoter Score™.
CHICAGO – February 1, 2013
During the second half of 2012, insureon, the leading online agent for small business insurance, earned a Net Promoter Score™ (NPS) of 98%, a level considered superb by customer loyalty experts. NPS levels measure the percentage of customers who are likely to recommend a company to their friends and family. Elsewhere in the industry, USAA earned NPS of 74% for auto insurance, while StateFarm led major life insurance companies with a 28% rating.
In the last six months, insureon added more than 7,000 customers and consistently earned ratings of "excellent" or "good" from those customers. "Every business says it, but independent measures like this show the emphasis that insureon places on customer service," says Ted Devine, insureon's CEO. "We listen to what our customers say, and we're constantly making improvements to our products and processes based on their feedback."
Fred Reichheld, a bestselling author and customer-loyalty expert, introduced the NPS metric in a 2003 Harvard Business Review article as a way for companies to measure customer satisfaction and guide business decisions. The NPS asks customers to rate their likelihood of recommending a company on a scale of 1 to 10, with 10 meaning that a customer is "extremely likely" to recommend the company.
Through years of in-depth research on customer loyalty metrics, Reichheld determined that customers who rate a company 6 or lower on his scale are "detractors," those who rate a company between 7 and 8 are "passive," and those who rate it between 9 and 10 are "promoters." A company's Net Promoter Score™ is a measurement of the percentage of promoters minus the percentage of detractors.
A business's score can range from -100% (meaning all customers are detractors) to 100% (meaning every customer is a promoter). Scores of 50% and above are considered excellent, making insureon's 98% score among the best of the best.
Since the middle of 2012, customer responses have driven insureon to make a number of changes, including enhancing its website experience, streamlining its operations, and empowering its customer service representatives to make quick decisions that improve their responsiveness to customer queries.
Since its introduction in 2003, the NPS has surged in popularity among CEOs interested in improving long-term growth. This is because Reichheld's research shows that the single best way to measure customer satisfaction is the same regardless of industry: determine how likely a customer is to recommend a business to a friend.
"We're thrilled that 98 percent of our customers would recommend us to their friends," Devine notes. "But we're also working very hard to change the minds of the other two percent."
Insureon, the leading online business insurance agency for small business, specializes in serving the fast-growing micro-business sector, which includes the self-employed and companies with 10 or fewer employees. insureon allows small businesses to apply online for insurance and receive multiple quotes from leading insurance carriers — completing in minutes a process that otherwise would take a week or longer. For more information, please visit www.insureon.com and TechInsurance.com.