Does your agency really meet the needs of its customers? What are your customers asking for, and what are they saying about the service you provide?

The criteria for outstanding service 25 years ago is no longer the standard by which today’s insurance customers measure service. As technology is changing the way insurers and agencies do business, customer service expectations are evolving at the same rapid pace. Customers expect a personal touch, but at the same time they demand speed, accuracy, and cutting-edge technology at their fingertips.

How do we exceed customer expectations and stay ahead of our competition?

I believe the answer is research. No one should know your customers better than you. You may think you’re going the extra mile, but how often do you ask your customers what they want from you? If you are asking your customers on a regular basis what they’re looking for, what do you do with the details they provide? Do you use this information to improve your service model and delivery?

Here are some topics to explore when researching the needs and preferences of your customers and prospects:

• What coverages are you looking for?

• What other exposures do you have?

• What services are you looking for?

• How do you like to do business—online or in person?

• When do you like to conduct business—dur­ing normal business hours or at your convenience?

• What is the one thing that would cause you to look for another agent or insurance company?

The answers you receive to these and other questions can give you the advantage you need to make a new business sale or retain committed, loyal customers. Then, by staying current with your research, you can be proactive in providing what your customers are asking for.

When conducting customer-focused research, how you ask questions is just as important as the questions themselves. It’s also essential to use effective listening skills.

Ask. Too many agencies and companies assume that they know their customers. Take the time to do the research. Make sure you’re asking the right questions. Try using several kinds of questions to get the information you need.

• Open-ended questions allow the customer to provide detailed feedback about personal experiences and preferences.

• Directing questions guide the customer to respond to specific queries.

• Probing questions afford you insight into the customer’s thought process.

Listen. When asking your customers about their needs, make sure you are hearing what they say. Try using these simple listening skills:

• Give your full attention to the person who is speaking.

• Don’t interrupt the speaker.

• Listen to everything that is being shared.

• Be alert for main ideas and key points.

The criteria for outstanding service 25 years ago is no longer the standard by which today’s insurance customers measure service. As technology is changing the way insurers and agencies do business, customer service expectations are evolving at the same rapid pace. Customers expect a personal touch, but at the same time they demand speed, accuracy, and cutting-edge technology at their fingertips.

How do we exceed customer expectations and stay ahead of our competition?

I believe the answer is research. No one should know your customers better than you. You may think you’re going the extra mile, but how often do you ask your customers what they want from you? If you are asking your customers on a regular basis what they’re looking for, what do you do with the details they provide? Do you use this information to improve your service model and delivery?

Here are some topics to explore when researching the needs and preferences of your customers and prospects:

• What coverages are you looking for?

• What other exposures do you have?

• What services are you looking for?

• How do you like to do business—online or in person?

• When do you like to conduct business—dur­ing normal business hours or at your convenience?

• What is the one thing that would cause you to look for another agent or insurance company?

• What problems have you experienced in the past when purchasing an insurance policy?

The answers you receive to these and other questions can give you the advantage you need to make a new business sale or retain committed, loyal customers. Then, by staying current with your research, you can be proactive in providing what your customers are asking for.

When conducting customer-focused research, how you ask questions is just as important as the questions themselves. It’s also essential to use effective listening skills.

Ask. Too many agencies and companies assume that they know their customers. Take the time to do the research. Make sure you’re asking the right questions. Try using several kinds of questions to get the information you need.

• Open-ended questions allow the customer to provide detailed feedback about personal experiences and preferences.

• Directing questions guide the customer to respond to specific queries.

• Probing questions afford you insight into the customer’s thought process.

Listen. When asking your customers about their needs, make sure you are hearing what they say. Try using these simple listening skills:

• Give your full attention to the person who is speaking.

• Don’t interrupt the speaker.

• Listen to everything that is being shared.

• Be alert for main ideas and key points.

• Ask questions to clarify a point or probe for more information.

• Rephrase what you think you heard if you are unclear about something.

• Seek clarity from the speaker; don’t guess at the meaning of that person’s message.

It’s easy to think you understood what was said when what was actually shared was totally different.

Survey. Use surveys to collect customer information. Put this information in a database where you can track your progress and follow up. Here are some ways you can gather information:

• Web sites: You can gather information from sites like Google, Facebook, and Yahoo.

• Online surveys: Survey applications are an excellent tool for conducting customer research. Here are a few of the popular online survey tools you can use:

—Survey Monkey (www.surveymonkey.com). Survey Monkey offers a popular online-hosted tool that works well for basic surveys. It offers a free version that might be useful for small and informal surveys.

—Zoomerang (www.zoomerang.com). Zoomerang is similar to Survey Monkey in many respects, but it offers a more powerful package for a commensurate price tag.

—FormSite (www.formsite.com). FormSite offers a tool for building Web site forms—everything from a simple “contact us” to evaluation forms. FormSite also offers a basic set of survey features and may be useful if you want to collect many different types of information via Web forms.

• Face to face: Technology is terrific, but the best way to get to know your customers is to meet them face to face. Try forming a customer focus group and include representatives from each of your carriers.

Improve. Using the information you obtain through research, create a service plan that responds to the needs and concerns your customers have expressed.

Begin by creating a customer service mission statement. Make sure that your mission statement clearly states your purpose. A mission statement should also be measurable.

List your customer service values, which could include:

• Your customer service objectives

• What kind and quality of service your customers can expect, and how you will treat them

• Deadlines for providing various kinds of services

Try incorporating best practices into your customer service plan. These practices should help your staff provide consistent, specialized service to every customer.

Implement. Make sure that your customer service plan is easy to implement and use. Try a pilot period by testing a mix of small and large accounts. Be sure to test a large enough segment of your customer base so that you can work through any issues. Find out what is working well and what adjustments might be needed before introducing your new service plan to all of your customers.

Don’t forget that customers still want that personal touch. If your agency is highly automated, for instance, consider giving customers a way to make contact with an actual person if they wish.

Educate. Educate your staff about the findings of your customer research, and help them understand the importance of following your service plan. Let them know that they play an essential role in making your plan successful.

Encourage your staff to take ownership of your customer service plan. Find ways to incorporate into the plan the valuable information your CSRs receive while speaking with customers on the phone or in person. You might want to offer rewards or incentives for additional ideas or suggestions for improving your plan.

What lies ahead for the customer service industry? One thing is certain: Research must play a major role in service. Who knows how far we could go, how much money we could save, or how great our improvements could be if we did our research before delivering our service?