Creating the ultimate customer experience is characterized by exceeding customer expectations and delighting them with excellent service and quality. The concept of customer experience has been put forward as the new marketing paradigm and successful applications have been demonstrated by various firms.

One of the key elements of creating customer experience is generating consistent interactions across customer touchpoints. At these moments of truths, firms have to live up to their expectations.

However, imagine a firm’s situation, in which getting in touch with your customers is hard. For instance, for financial service providers like insurance firms, the average amount of contact moment is 1,5, on a yearly basis.   

The moment those customers contact you, it is often a moment in which the customer just has experienced a negative event, for which they need to contact their insurance company. In these instances, it’s critical that you help out the customer in the most convenient and flexible manner.  Of course, insurance companies know this and focus their attention on having well functioning contact centers.

Nevertheless, how to pursue consumers in buying your insurance product and promise them a positive customer experience when needed, when the market develops towards a commodity market, in which it becomes less important from which company you buy your product.

In the current insurance market, the most important criteria on which consumers choose their product is price, demonstrating that consumers perceive insurance products as commodities, with insufficient product differentiation. Increased price transparency on the internet facilitated by easy-to-use aggregators is helping consumers in making price comparisons.

So here comes the question, how to create customer experience when consumers only perceive price as the single differentiator? Lower your prices? Focus on a solid brand message and experience and preventing yourself from the price trap?

How to create Experience with Price?