Tangible Results

Knowledge Management Applied to Customer Relationship Management

Kathleen McEndySenior Vice President, Customer Service

CIGNA Group Insurance

May 9, 2001

Tangible Results REVENUES - grew by 20%

PERSISTENCY- increased by several percent

CUSTOMER SATISFACTION- outperformed all major competitors in 9 key categories

EMPLOYEE TURNOVER - 20% (half the industry average)

CIGNA

CIGNA Corporation: Leading provider of integrated employee benefits

Revenues of nearly $20 billionCIGNA Group Insurance:Operating division of CIGNAProvides Life, Accident and Disability

insurance to 20,000 employers and 20 million employees

Service

Product

Shift in Customer Focus

Service Product

Shift in Customer Focus

Service

Product

Shift in Customer Focus

Shifts in Expectations

Service as a clear differentiator Adds value Employers less paternalisticEmployees taking controlService drives bottom-line results

Raising the Bar

BUSINESS WEEK

What do Customers Want?ResponsivenessSpeed in answering callsStandardized terminologyQuality responses

American Productivity & Quality Center

• “… QVC named best online general merchandise retailer… poll of 100,000 Internet consumers…”

-Forrester Research

Customer Relationship Management

Understand customer needsPeople, process & technology alignmentBuild tighter bonds with customersDrive bottom-line results

Building a Service Strategy

Determine customer needsBenchmark best-in-classRestructure organizationCreate core competenciesDynamic process

Understanding Customer Needs

Attitudinal SurveysFocus group research

Employer - reduce administrative hasslesEmployee - provide tools to select right coverage

Interviews with CIGNA managers

Benchmarking

Visited “best-in-class” leadersSimilar challenges, same service issuesDeveloped clear set of metrics

Learning Strategy

Accelerated Competency SystemCollaborative effortExcite and engage peopleDrive employee ownership

Core Competencies

CommunicationCustomer First

Seeks feedback Understands customer needs Sense of urgency

Adjust language to fit customer Simplifies complex ideas Gives right info at the right time

Learning Strategy

Action oriented modelContinuous learningDesigned to attract and retain employees

17%

35%

0%

10%

20%

30%

40%

Annual turnover

Group Insurance reps F /T call center agents *

* Range is 30 - 40 % according to LIMRA and Purdue University studies

It costs $75 Billion to replace the 6.5 million employees who leave

Employee Turnover

Develop M

etrics

Tracking Results

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