Insights
Learn, ideate and collaborate on the biggest innovation opportunities

Realising memorable experiences with RACQ

Memorable customer experiences and exceptional service have been the ethos of RACQ (Royal Automobile Club of Queensland) for over 117 years. The Australian-based motoring club and insurance company believes that each of its Memorable customer experiences and exceptional service have been the ethos of RACQ for over 117 years. The Australia-based motoring club and insurance company believes that each of its members and customers should receive the best possible service. And that includes everything, from the digital and brand experience down to the way they treat customers and employees. This report aims to dig deep and uncover the secrets behind RACQ and how it has succeeded in its customer-centric initiatives.

“Providing exceptional service and delivering value to our members is at the heart of everything we do. We’re always looking for ways to improve the experience for our members, whether it is through innovative digital solutions or personal interactions with our team.”
-David Carter, CEO of RACQ

Digital Experience

An intuitive interface, strong engagement and deep personalisation are factors that come as no surprise for RACQ. Embodying these aspects, the Australian-based company has mastered the art of digital experiences, ensuring its platforms are easy to use and accessible for everyone. From reducing wait times to streamlining its customer service processes, here are some of the initiatives that RACQ has implemented to ensure a seamless digital experience:

Customer data platform (CDP):

Collecting and consolidating customer data from various sources, such as transactional data, social media, and third-party data providers, is vital for RACQ in today’s digital era. This meant that RACQ needed to uncover a method of collecting customer data in a streamlined and accessible manner. The decision proved to be a no-brainer for RACQ, leading the company to integrate a CDP and imprint a significant impact on the customer landscape, leading to an established customer view that is both comprehensive and unified.

The company now has an easier time understanding customer needs, providing more opportunities to deliver personalised and targeted experiences across all channels.

These improvements have elevated further with data analytics and machine learning. For example, with machine learning algorithms, RACQ can now develop more accurate predictive models for roadside assistance, enabling dispatch services to function quickly and efficiently. As a result, these improvements reduced the dispatch service by up to 35% and increased customer satisfaction scores. The company plans to continue investing in its CDP to enhance its capabilities further.

Mobile app:

RACQ’s investments in improving its mobile app have helped to drive increased engagement and customer satisfaction. The app, which allows customers to access a range of services, including roadside assistance, i

The company is also aware of in-built mobile applications and their ability to change how businesses track and measure engagement. With that in mind, RACQ has doubled down, investing heavily in its mobile app for better customer satisfaction and engagement.

And the results – they speak for themselves, as seen with its hyperfocus on accessibility and ease of use. Customers can now access various services, including roadside assistance, insurance, and banking, all with a few clicks in a single app. The decision to streamline its multiple services has led to a far easier and more intuitive user experience, as users now take less time navigating various services.

Additional features like push notifications and in-app messaging further enhance the experience, keeping customers informed and engaged. The ease and simplicity that comes with RACQ’s mobile app have paid off in spades, with the company experiencing a 70% increase in usage over the past year. Not only have customers reported higher satisfaction, but they’ve also become invested members of the RACQ mobile app.

Online booking system:

Long-time customers had their wishes fulfilled when RACQ upgraded and enhanced how their online booking systems work. Considering most of its customers were using its booking systems for roadside assistance, RACQ strived to embellish them by adding the ability to track their vehicles in real-time, complete with repair notifications.

Now, customers can easily book their inspections, fill in their vehicle details, choose from a range of available service times and pay immediately via the RACQ app or website. On top of that, customers can view estimated completion times and receive real-time updates on when their vehicle is ready for pickup. Its new system resulted in a massive success, with customers now experiencing reduced wait times and improvements in the overall service.

RACQ has also gone above and beyond to ensure that its systems are not only operational but accessible across all devices, satisfying many of its customers with a user-friendly, intuitive and accessible online booking system. One thing is clear; RACQ has transformed how members book appointments today.

Digital Onboarding process:

First impressions are everything today. This rings especially true for a company’s digital onboarding process. A well-designed digital onboarding process must succeed in delivering two aspects: making the customer feel welcomed and valued while being profitable and sustainable.

And RACQ acknowledges the weight that digital onboarding bears in determining a successful customer experience, as it continuously enhances its processes to make joining RACQ simple and seamless. From signing up to selecting your desired services, the Australian-based company aims to be with you through every step of your customer journey. The end goal is to achieve a level of customer ease and convenience that eliminates the need for a physical visit.

The RACQ Card:

The journey doesn’t end there, as the company’s recent inclusion of its digital membership cards seeks to provide various benefits and services that customers can access on the go. The best part – they’re digital. This means new members can receive their memberships immediately, leading to zero buffer room for their journeys to begin.

The RACQ card aims to be the all-in-one stop for members to access their benefits and services with ease. The digital membership covers various services and benefits, which include the following:

RACQ Card advantages
Exhibit 1: RACQ digital membership advantages
Source: RACQ, twimbit analysis

Customer Service

In 2019, RACQ launched a customer service training program to upskill the staff’s soft-skills capabilities. The company engineered the program with rigorous training modules and customer simulations, teaching employees the necessary know-how to handle difficult customer situations while providing personalised solutions.

The goal was to transform every sour customer interaction into a net positive for both parties. Since then, RACQ has continued reinventing its customer channels for increased effectiveness, providing customers with more options for high-impact interactions.

Complaint Handling Process:

The lack of promptness and efficiency severely affected RACQ’s ability to address customer complaints. Red-hot in the driver’s seat, the company needed to act quickly, ideally uncovering a process that would handle customer complaints at the first point of contact.

Thus, the decision was unanimous for RACQ to digitally enhance its existing customer support channels and introduce new channels. Chatbots have also significantly helped reduce unresolved complaints because of their integration into call centre technology. The outcome – reduced wait times, improved call handling efficiency and freed up human support to handle the tasks that matter most.

However, it did not stop there. RACQ continued to enhance its training programs with state-of-the-art technology, ensuring its staff constantly improved their soft-skill capabilities. A more profound sense of empathy and the ability to innovate new solutions on the fly were some of the primary skills its agents needed to master. Thus, the training eventually resulted in the creation of a dedicated team to handle complex complaints.

Now, RACQ confidently measures its success in complaint resolution rates. It strives for perfection, turning as many negative customer interactions into a net positive outcome. Moreover, it maintains all of this momentum while retaining its ethos of human interactivity – empathy and relatability. The result is evident, with average call wait times for its roadside assistance now reducing to 45 seconds.

The company also introduced a new “Customer Promise,” expressing its commitment to exceptional customer experiences with its member-focused strategy. Now, the member acts as the beating heart of their operations, with RACQ pledging to be transparent in their communication in honour of the customer’s time. These new initiatives increased the company’s NPS score by 12.5%, from 64 in 2020 to 72 in 2022.

Measurement of Customer experience, through customer service
Source: Khoros, RACQ, twimbit analysis

Employee Experience

If your employees feel valued, they are more likely to contribute more than required for the betterment of the company as a whole. RACQ has ensured that no stone is left unturned, prioritising its employee experience to be the employer of choice with personalised employee programs.

These programs include the following initiatives:

Employee recognition programs:

Employee recognition awards
Exhibit 2: RACQ internal awards
Source: RACQ, twimbit analysis

Professional development opportunities

  • Leadership development
  • Mentoring
  • E-learning courses

Flexible work arrangements

  • Work-from-home capabilities
  • Job sharing

Employee wellness programs

  • Wellness portal with resources and tools
  • Flu vaccinations
  • Healthy eating initiatives

Employee feedback mechanisms

  • Feedback surveys
  • Focus group discussions (FGD)
Employee engagement/experience score
Exhibit 3: Employee engagement scores
Source: RACQ, twimbit analysis

By offering flexible work arrangements and various opportunities to develop, RACQ has created a positive work environment with programs that value employee contributions and empowers innovation and creativity.

Brand Experience

Knowing how your customers feel about your brand, from its offerings to its services, is data you cannot put a price on. Winning 20 Mozo Experts Choice Awards and the Canstar Award, it’s clear that RACQ acknowledges this fact by heart, promoting its values and commitment to its customers, differentiating itself from the rest of the pack. But most importantly, it is to create long-lasting emotional connections with its customers.

The “More Than a Roadside” campaign:

The campaign seeks to offer various services and perks to meet members’ motoring, travel and lifestyle needs, such as:

  1. Roadside assistance – Access 24/7 support for breakdowns, flat batteries, tires, etc.
  2. Finance – Purchase personal, car and house loans along with other financial needs
  3. Insurance – Attain car, house, travel and pet insurance
  4. Travel Services – Book lodging, insurance and cars

RACQ has reminded all Australians about the ownership of their issues, rushing forth to assist the community in its darkest times. For instance, the 2022 Queensland floods were difficult for many of its citizens. This moment is where the company truly rose above and beyond the call of duty, giving back to its community in various ways.

Emergency response

  • Running 24/7 emergency services and responses to natural disasters
  • Started the “Lodge on Behalf (LOBO) program” to assist flood victims
  • Approved AUD 2.1 million worth of grants to groups impacted by floods.

Sponsorships

  • Supporting the Mater Foundation via RACQ International Women’s Day Fun
  • Raised close to AUD 6 million since 2013

Road safety programs

  • Educate children on road safety and driver’s education

Exhibit 4: Progress on claims lodged through the “LOBO” program for April 2022 floods while dealing with continuous flash floods up until November 2022.
Source: RACQ
*Data as at 16th September 2022

Overall, RACQ’s strong brand reputation and customer satisfaction ratings indicate its success in building positive customer brand experiences.

Key Takeaways

RACQ’s bold and fearless attitude of placing the customer first is the core reason enveloping its success across all of its four key pillars. From its digital experience to the brand experience, the company has prioritised the customer, ensuring all pillars serve to enhance the customer experience. This has led to a positive outlook for the future, with the company being ever ready to adapt to changing customer demands. Therefore, for up-and-coming business leaders and organisations looking to take note of RACQ’s success, here are the top 5 key takeaways that businesses can learn from.

  • Enhance your technological infrastructure with chatbots and online booking systems to reduce wait times and provide customers with quick, easy and personalised solutions.
  • Build trust and forge emotional bonds with your customers to increase retention and create valuable word-of-mouth marketing.
  • Be timely and transparent in your communication, ensuring your customers are always informed about all your latest developments.
  • Upskill your employees to improve their soft-skills capabilities, communication and problem-solving skills for frequent high-impact, high-value customer interactions.
  • Be one with your customers and understand them to make a positive high-value impact on the world.

Subscribe