In the modern financial services landscape, the link between business quality and customer outcomes has never been clearer, or more important. The introduction of Consumer Duty has placed the customer experience firmly under the spotlight. However, for many advisers and providers, the focus on delivering good customer outcomes is not new. It has always been at the heart of what they do.
The concept of business quality is often discussed in the context of provider relationships and profitability. Metrics like persistency, straightthrough processing, and complaints are seen as indicators of commercial performance. However, it is essential to understand that these same measures also reflect how well customer needs are being met. In fact, when you strip it back, business quality is a clear reflection of customer experience and outcomes.
Let us explore the fundamental areas of business quality and how they align directly with the quality of service and support provided to customers.
1. Persistency: The heartbeat of customer relationships
Persistency- that is, policies staying in force or being cancelled early- tells a deeper story about the customer journey. It reflects how well the initial conversation went, whether the adviser built a strong rapport, truly listened to the customer, and understood their needs. Did the customer feel rushed or pressured? Were they given the time and space to make an informed decision?
A high persistency rate suggests that the customer believes in the value of the product and understands its purpose. Conversely, early cancellations can point to misalignment, misunderstandings, or gaps in communication. By analysing persistency, advisers can fine-tune their sales process to improve not only business performance but also the customer experience.
2. Straight-through processing: A matter of transparency and accuracy
Straight-through processing( STP)- where an application is accepted without the need for underwriting intervention- is another key business quality metric. While not always a red flag, providers do pay attention particularly when high levels of STP coincide with high levels of complex products like critical illness cover. This raises questions about disclosure accuracy and whether customers fully understood the underwriting requirements.
If disclosures are incomplete or inconsistent, it could point to a need for better fact-finding, more thorough questioning, or clearer explanations. In short, ensuring that the application process is both smooth and accurate benefits everyone- t reduces delays, builds trust, and helps avoid claims disputes in the future.
3. Complaints: A valuable source of insight
No one enjoys receiving complaints. However, they are one of the most direct and actionable sources of customer feedback. Complaints provide realtime insights into how your processes are working, or not working, for the people you serve.
Rather than seeing them as a negative reflection, advisers and firms should embrace complaints as an opportunity to improve. Whether the issue is related to communication, clarity of advice, or service delivery, complaints help pinpoint areas where changes can enhance the overall customer journey.
4. Vulnerable customers: Getting it right when it matters most
Protecting vulnerable customers is both a regulatory requirement and a moral imperative. Providers increasingly monitor for patterns such as multiple applications followed by quick cancellations. These behaviours can be signs that a customer is confused, under financial pressure, or feels compelled to act without full understanding.
A high incidence of such cases suggests a need to slow down, and ensure that each customer truly understands the products being offered. Advisers must be vigilant and empathetic, making sure they tailor their approach for those who may need additional support or clarity.
5. Business mix: A reflection of advice quality A book of business heavily weighted towards
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