Houston, we have a problem
When airlines banned non-removable lithium batteries from checked baggage in 2017, smart suitcase manufacturer Away knew it had a problem. The first hints of trouble broke over social media as passengers reported throwing their suitcases in the trash so they could board their flights.
Rather than panic, the Away team took immediate action to get on top of the situation. They expedited production of removable batteries and shipped out kits that allowed passengers to remove the batteries from their suitcases as an interim solution. Within 24 hours, the Away website had a page dedicated to the issue while the customer experience team went to work with emails and phone calls.
The sky is the limit
A change in policy driven by the FAA and viral social media coverage could have put Away out of business. Instead, thanks to a focus on customer experience, the company has not only recovered, it is thriving. In May 2019, Away raised raised $100 million and is currently valued at $1.4 billion. To date, the company has sold 1 million suitcases and estimates that revenue for 2019 will reach $300 million.
So what lessons can insurers take from Away’s handling of the situation?We can point to the expediting of removable batteries as a factor, but the real difference was their focus on the customer experience. Away put the customer at the center of the journey, came up with a solution the moment they realized they had a problem, and they opened multiple channels of communication to address customer concerns.
Communication is key
The Away story bears out what Gartner has been predicting since 2014. Customer experience is the new battlefield and insurers' communications can either be their greatest asset or worst enemy. So how can you leverage communication to ensure that your business delivers a great customer experience? Here are a few things to consider when it comes to your customer communications.
According to a 2016 Gartner survey, 89% of companies expect to compete mostly on the basis of customer experience, versus 36% in 2012. With 64% of consumers more likely to recommend a brand to others if it offers a simpler experience and communications, companies that invest in their communication solution will have an edge over the competition when it comes to customer experience
References:
Lagorio-Chafkin, Christine. (July/August 2019). They Told Me to Get an MBA. I Started a Billion-Dollar Company Instead. Inc. Retrieved on June 25, 2019 from https://www.inc.com/magazine/201908/christine-lagorio-chafkin/jen-rubio-steph-korey-away-suitcase-airline-rules-battery-mba.html
Sorofman, Jake. (October 23, 2014). Gartner Surveys Confirm Customer Experience Is the New Battlefield. Gartner. Retrieved on June 25, 2019 from https://blogs.gartner.com/jake-sorofman/gartner-surveys-confirm-customer-experience-new-battlefield/
The World’s Simplest Brands, 2018-2019. Siegel + Gate. http://simplicityindex.com/