As the auto insurance and collision repair industries adapt to changing customer behaviors, business leaders are seeking answers for what truly matters to customers.

A recent study by CCC set out to identify the "moments of truth" that drive customer satisfaction and retention throughout the claims and repair process. The findings suggest that some long-held industry beliefs may be inaccurate.

The study, which included 2,400 policyholders who filed first-party claims and completed repairs following accidents, revealed a surprising disconnect between what industry professionals think matters and what actually impacts customer perception. Many moments believed to significantly influence satisfaction turned out to be statistically insignificant.

Moments That Matter

Here are the top moments that do impact customer satisfaction:

So,What Doesn't Matter?

The moments that did not matter to insurer customer satisfaction are in black in the chart below. They include whether a rental was immediately available, whether they received their deductible back, and if they were underwater on a total loss. None of those had a statistically significant impact on insurer satisfaction.

Moments That Did – And Did Not – Significantly Impact Insurer Satisfaction

The moments that did not matter to repairer customer satisfaction are in black in the chart below. They include whether a rental or a loaner was immediately available and whether the quality of the rental or loaner compared to their own vehicle. None of these had a statistically significant impact on repairer satisfaction.‍

Moments That Did – And Did Not – Significantly Impact Insurer Satisfaction

Here's a closer look at some of the moments that don't matter.

For Insurers

• Rental Car Quality: Whether the policyholder received a rental car comparable to their own vehicle did not significantly influence their satisfaction with the insurer.
• Deductible Reimbursement: This was a particularly interesting finding. While common sense might suggest that getting a deductible back would boost satisfaction, the study showed it doesn't have a significant impact overall. However, additional analysis revealed that receiving a deductible back does significantly impact satisfaction for policyholders with lower incomes. This highlights the importance of considering individual customer circumstances and tailoring strategies accordingly.
• Being Underwater on a Total Loss: Being underwater on a loan for a totaled vehicle did not significantly impact satisfaction with the insurer.

For Repairers

• Rental/Loaner Quality: The quality of both rental and loaner vehicles compared to the customer's own vehicle did not significantly influence their satisfaction with the repair facility.
• Rental/Loaner Availability: Similarly, whether a rental or loaner car was immediately available did not have a significant impact on repairer satisfaction This suggests that customers prioritize the repair process and may be more understanding of potential delays in obtaining temporary transportation.

The Bigger Picture: A Shared Responsibility

The Moments of Truth study uncovered a number of interdependencies between insurers and repairers in delivering satisfying experiences to their shared customers, with both providers impacting each other’s satisfaction scores.

For example, consumers were more satisfied with their insurers when the repair quality was high, when they were satisfied with ability to get a loaner, and when they were satisfied with the length of time it took to schedule the repair and to get the repaired car back – all of which are responsibilities that generally fall to the repairer.

Conversely, consumers were more satisfied with their repair facility when they received clear communication about the claims process and when they were satisfied with the initial insurer contact – both of which are the insurer's responsibility.

These findings emphasize that insurers and repairers are inextricably linked in the consumer's mind, which means they must recognize that from the consumer's viewpoint, they are part of a value chain ecosystem working towards a shared goal: returning the customer to normalcy. This necessitates a platform approach, leveraging technology to create a seamless and unified customer experience across the entire claims and repair journey.

Key Takeaways

The Moments of Truth study offers valuable insights that both industries should consider.

1. Focus on the Moments That Matter: Continue improving all customer touchpoints for a better overall experience but focus on the 12 or 9 moments of truth that actually impact customer satisfaction scores. Relying solely on customer feedback can be misleading, as it may suggest that everything is important. A data-driven approach, grounded in analysis and ongoing research, is essential to identify and prioritize the moments that truly matter.
2. Embrace a Collaborative Mindset: Insurers and repairers need to move beyond siloed operations and actively collaborate to create a more unified customer experience. Communication and information sharing are crucial to ensuring a smooth and coordinated process.
3. Leverage Technology for a Seamless Experience: Technology can play a transformative role in streamlining the claims and repair process, improving communication and enhancing transparency. Both industries should invest in and adopt innovative solutions, such as event-driven architecture, which enables real-time responses to key events in the process. This architecture allows for immediate updates, better coordination between insurers and repairers, and faster decision-making, ultimately creating a more connected and efficient experience for customers.

These finding beg the question: Are you spending time and resources on the right moments – resources that could be better spent on the moments that do matter to your satisfaction scores?

By understanding and prioritizing the moments that truly matter, and by embracing a collaborative, technology-driven approach, the auto insurance and collision repair industries can build stronger customer relationships.

Want to learn more? Download our Moments of Truth report.