Creating delight in the customer journey is more than a 'nice to have’ | CX Chronicles

Insurance is not transactional. It’s about supporting people through some of their most vulnerable times. This relationship gives us the unique opportunity to turn one positive interaction into a lifetime of loyalty. Here’s what we’ve learned about investing in delight.

CX Chronicles, explained: This article is part of a thought leadership series inspired by a fireside chat I had with Fred Reichheld , creator of the?Net Promoter? system. In each piece, we’ll explore practical applications of these concepts, from the power of referrals to crafting seamless journeys that resonate with customers at every touchpoint.

Why it matters: What's more valuable: a repeat customer or a customer who actively recruits?new?customers for you? As Fred put it perfectly: 'It's not the repurchase that is the real benefit of delighting that customer. But if you delight the customer, they do tell their friends and neighbours right away.' This challenges the traditional focus on customer acquisition and highlights the immense power of delight-driven referrals.?

The dilemma: For organisations with a high frequency of touchpoints, the concept of delight can seem a luxury, or even impractical. All that delight takes a lot of time! On the flip side, some companies with infrequent customer interactions (like insurance, where customers might only interact during a policy renewal or a claim), see investing in customer delight as an unnecessary expense. They reason, ‘Why go above and beyond if we only see these customers every few years?’ The answer lies in trust-building and the ripple effect of referrals.

Delightful tactics:

1. Invest in memorable moments: Delight is about making key moments unforgettable. Research from McKinsey highlights that loyalty programs which focus on creating value through memorable interactions can significantly improve customer retention and drive repeat business. By investing in moments that resonate emotionally, brands can cultivate stronger, more enduring connections with customers, leading to higher loyalty and repeat engagement. At Zurich, this approach is reflected in our commitment to seamless claims handling, where we work not just to resolve the issue but to make the process as supportive and stress-free as possible; whether it’s a claim or a policy renewal, we consider how we can add value or reduce stress
2. Cultivate the 'flywheel' effect: A delighted customer is a brand’s best marketing asset. The compound effect of delight-driven referrals is what I call the flywheel effect –?each delighted customer can bring in three or four more. In our experience, this approach has driven significant returns. We’re able to grow customer networks organically, based on referrals from loyal, delighted customers rather than on conventional marketing. This continuous cycle of delight, referrals, and new customer acquisition is the essence of the flywheel effect, creating momentum that propels the business forward.
3. Focusing on quality over quantity: In CX, less is often more. Instead of overloading customers with interactions, quality should be the focus. For instance, Zurich is exploring ways to streamline communications, emphasising clarity and relevance. We believe that when customers see we’re respectful of their time and proactive with our insights, they’re more inclined to stay loyal.

Real-world parallels: Consider the case of First Service, a U.S.-based company known for its exceptional customer loyalty, particularly through its house painting business. Their teams go beyond the basics by paying attention to small, thoughtful details like putting on protective booties to keep carpets clean. Now, that’s something you’d tell your friends and neighbours about. This seemingly small gesture but delightful gesture has a profound impact on customer perception, often converting one-time clients into enthusiastic brand advocates.

Zurich’s perspective: At Zurich, we employ similar strategies, recognising that every interaction is an opportunity to show customers we’re invested in their wellbeing, even in ways that might seem minor or insignificant. But, totalled together, it’s these small, deliberate actions that create memorable experiences at scale and, in turn, inspire referrals.

The bottom line: Investing in delight is not about quick wins but about creating a customer journey that endears and attracts. It’s an approach we’re committed to at Zurich, where we understand that delighted customers aren’t just repeat customers –?they’re our advocates, telling their loved ones about what we do and how we do it. This investment in delight is more than just good business –?it’s the foundation of a strong, sustainable brand in a trust-driven industry.