identify to the telesales operator the type of call he or she was receiving.
The operators were based in each of Direct Line’s four operating centres
and received extensive and continuous training in telesales techniques to
ensure that customers and potential customers received friendly, courteous
and efficient service.
On receipt of a call, operators would effectively complete a proposal
form via a computer screen which would prompt the operator through the
data required. Within the software, automatic back-up systems would
identify for the operator specific models of automobiles and the like, which
had been preprogrammed to cover underwriting risk. This database was
being continuously updated as new underwriting experience developed.
After completing data entry, the computer would generate automatic quo-
tations, for example dependent upon driver background, area and model
of car, with alternatives covering different degrees of risk. When a quota-
tion was made, if accepted by the customer, immediate cover could be
granted if required, or deferred to a time convenient to the customer.
Quotations remained in effect for a given period. The whole process took
usually no more than three minutes for motor insurance. In the event of
acceptance, the computer file was transmitted to a laser printer which
operated day and night to ensure that all policies issued during the previ-
ous day were sent out to customers within 24 hours. Details of all quotes
made but not accepted were also stored on the central database. This data
was used to compare success and failure so as to structure marketing
efforts. Failed quote prospects were also sent an unsolicited direct mail
quotation on the first anniversary of their original telephone enquiry. Only
10 per cent of the Direct Line Portfolio was for non-comprehensive insur-
ance compared with an industry average of 29 per cent. In addition, Direct
Line had a strict policy of not accepting fast or exotic cars or young drivers.
Claims were also dealt with as rapidly as possible, as Mr Wood believed
strongly that customer service did not end at issuing policies but rather
began there and that the real quality of an insurance company lay in its
speed in settling claims. In the case of smaller motor claims, Direct Line
telephone claims department could issue immediate approval to motorists.
In other, more significant cases, Direct Line’s own engineers aimed to settle
as quickly as possible and the company rather than the repairers guaran-
teed the quality of repairs if customers chose one of a carefully selected list
of automobile repairers around the country.
For both motor and household policy holders Direct Line provided 24-
hour helpline numbers. In motor these were staffed by friendly experts in
accident and claims procedures, plus a free Accident Recovery Helpline to
ensure that help was quickly provided following an accident. Vehicle
recovery costs and emergency breakdown care were also provided as
options on Direct Line policies.
Home policy holders were also provided with a free Household
122 Relationship Marketing