Esurance and Competitive Advantage: Technology OR People
What do your customers prefer to interact with - people or technology? High tech or high touch? The answer is usually... it depends.
I like how Esurance is tackling this head on, with their trademarked tag line: Technology when you want it. People when you don't. Their value proposition is twofold: 1) tons of discounts, and 2) two ways to get 'em. Since insurance discounts alone is not a market differentiator, they position themselves via the "technology or people" ways to work with them. Here's a link to their ads and campaign, created by Duncan/Channon.
When should you provide technology as your customer service solution and when should you provide real people? From the customer perspective, it depends how potentially complex or emotional the issue is. For example, if you need to change travel reservations due to a death in family, or deal with medical devices for a sick patient or family member, you want a live customer service rep to help you. Assuming of course your level of bureaucracy allows your reps to be effective. In contrast, getting a simple update on a due date or balance inquiry, technology will do.
But most important is how tuned you are into what customers want and need in customer service. Because with both a technology-based customer interface as well as a live human interface, the goal is to understand and solve the customer's problem.
The more customer intimacy, the better the customer service, the happier the customer.









