Summary
Customer Experience (CX) has become the defining competitive differentiator for modern businesses. Unlike customer service — which addresses individual interactions — customer experience encompasses the entire end-to-end journey a customer has with a brand, including every touchpoint and the emotional impact of each. Research shows that companies investing in CX can see revenue increases of up to 70%, while 74% of senior executives link customer loyalty directly to the quality of the experience they deliver. For insurance carriers, MGAs, and agencies, understanding and elevating CX is no longer optional — it is a core business strategy.
Forbes recently stated, “Customer experience is today’s business benchmark.” It’s no surprise that a focus on the customer experience is the new trend, as it is quickly becoming the primary differentiator for a brand. More and more, consumers expect to have a positive experience with the brands they choose to patron; no longer is a transactional relationship sufficient.
Customer Experience vs. Customer Service: Key Differences
Organizations often confuse customer experience with customer service, but these terms are no longer the interchangeable terms they used to be.
The customer experience is defined by more than just a solitary touchpoint between a brand and a consumer; it is the entire end-to-end journey for the customer, including how they’re impacted emotionally. And as the customer experience moves closer to the center stage due to its impact on reduced customer churn and higher revenue, more and more executives are making it a priority as part of their overall business strategy.
The Business Case: Revenue and Loyalty Impact
A global study performed by Oracle showed an estimated 74% of senior executives believe that the willingness of a customer to remain loyal to a brand is directly tied to their customer experience. Coinciding with that, another study published by the Temkin Group showed that a company might see an additional 70% increase in revenue solely by investing in improving the customer experience.
“It is imperative that customer satisfaction becomes an attainable goal rather than a slogan.”
Today’s constantly evolving marketplace has changed for everyone. Technology has allowed companies to connect with their customers in new ways. It’s not that customer service isn’t still important. On the contrary, it’s as important as ever. But it’s no longer the only focus of the customer experience. The new reality is that customer experience has become the top brand differentiator and its importance continues to grow year over year. When research shows that customers spend 140% more with, and stay loyal for a period of up to 6 years to companies they rate with a high customer service score, it stands to reason that a company would be focusing resources and delivering a positive customer experience for such a high priority metric. Yet when Bain & Co. asked organizations to self-report their quality of customer experience, 80% of all polled believed they are delivering a superior experience. Their customers saw it quite differently – only 8% of customers thought they were receiving a great customer experience.
Bridging the CX Delivery Gap
So what’s to be done to bridge that divide? The first step is to create a clear vision of what the customer experience exactly entails from your organization and have a clear understanding of the entire end-to-end journey, down to the finer points of how interactions at each point are received, all of which can be communicated to every member of your organization as guiding principles and eventually become a part of your organization’s DNA.
How AI and Digital Tools Can Elevate CX
The next step is to leverage the power of artificial intelligence, apropos of the digital transformations so many companies are currently undergoing. AI can save up to 30% in customer support costs while speeding up response times and answering up to 80% of frequently asked questions, leaving the more complex queries to be handled by a human agent for effective resolution.
“The willingness of a customer to remain loyal to a brand is directly tied to their customer experience”
The world has irrevocably changed, and the expectations that customers have set for those with whom they choose to conduct business have never been higher and resulted in further empowerment for the customer. This has only strengthened the importance of the customer experience.
Building a CX-First Culture
Constant nurturing and care towards the customer experience will contribute directly to higher customer retention rates and a more positive impact on customer loyalty, ultimately leading to increased revenue growth. It is imperative that customer satisfaction becomes an attainable goal rather than a slogan. Explore what's next in customer experience.
At Input 1, we believe the billing and payment experience is one of the most powerful — and often overlooked — drivers of customer loyalty in insurance. Our digital billing and payment solutions are designed to reduce friction, provide policyholders with 24/7 self-service access, and give carriers and MGAs the tools they need to deliver a standout customer experience at every touchpoint. Ready to see how it works? Explore our resources and guides, or request a demo today.
Citations:
- forbes.com, The importance of Customer Experience in the age of instant gratification
- qualtrics.com, ROI of Customer Experience
- oracle.com, Global CX Study
- blogs.sap.com, The Customer Experience Edge
- customercontactweekdigital.com, CCIQ Presents: EXecutive Report on Customer Experience
- media.bain.com, Closing the Delivery Gap
- mckinsey.com, The CEO Guide to Customer Experience
- invespcro.com, Chatbots in Customer Service
FAQs
Customer service refers to support provided at a single touchpoint — such as resolving a complaint or answering a question. Customer experience (CX) is broader: it encompasses the entire end-to-end journey a customer has with a brand, including every interaction, channel, and the emotional impact of those moments. While great customer service contributes to CX, a company can have excellent service in one area and still deliver a poor overall experience.
Customer experience directly impacts revenue and retention. Research from the Temkin Group found that companies investing in CX can see revenue increases of up to 70%. Separately, a global Oracle study found that 74% of senior executives believe customer loyalty is directly tied to the quality of the experience they deliver. Additionally, customers who rate a brand highly for customer experience spend 140% more and stay loyal for up to six years longer compared to those who rate it poorly.
Artificial intelligence can significantly enhance CX by automating routine interactions and freeing human agents to handle complex issues. AI-powered tools — such as chatbots and automated response systems — can answer up to 80% of frequently asked questions and reduce customer support costs by up to 30%. For insurance companies, AI can also enable faster response times, 24/7 availability, and more personalized communications, all of which contribute to higher satisfaction scores.
The gap is substantial. In a study by Bain & Company, 80% of organizations believed they were delivering a superior customer experience — yet only 8% of their customers agreed. This "delivery gap" highlights the risk of relying on internal perception rather than objective measurement. Companies that proactively gather customer feedback, track satisfaction metrics, and benchmark their CX against actual customer sentiment are far better positioned to close this divide.
For insurance policyholders, billing and payments represent the most frequent touchpoint with their insurer or agency. A seamless, flexible payment experience — including options like ACH, credit card, and e-check, combined with automated notifications and 24/7 account access — reduces friction and builds trust. When billing is confusing, inflexible, or error-prone, it directly increases cancellation rates and erodes loyalty. Investing in a digital billing and payment solution is one of the most direct ways insurance companies can improve their customer experience and retention metrics.
