In short: Obtaining customers through dubious or outright deceptive behaviour can be measurably effective in the short term, but has consequences for the customer service team and your customer relationships.

In Australia it is compulsory to hold third party insurance on all registered vehicles, hence the name Compulsory Third Party (CTP) Green Slips. You can choose from any CTP provider, and you need to provide proof of CTP insurance when registering your vehicle each year.

Today I received a letter from AAMI that looks very much like a bill I need to pay.

At first (and second) glance I assumed it was my normal CTP renewal. Here's the issue though: I already have a CTP green slip, with a different insurer.

This is not a bill I have to pay, it is an offer for me to switch to AAMI. They have done a number of things to make this look just like a normal bill:

  • Put a big fat "Date Due" at the top even though of course it's not money I owe them.
  • Used a fake stamp-look "Unpaid Green Slip" that implies it needs to be paid, which again it does not.
  • Used all the details they have from my existing comprehensive insurance to pre-fill it all (so it looks more like a renewal).
  • Mimicked the look of their actual renewals very closely.
  • Included a "policy number" for what is actually a quote

They did include a letter which says "It's easy to switch your CTP Green Slip to AAMI" (and which correctly uses a Quote Number, not a policy number), but the letter is folded underneath the invoice so it's not immediately visible.

I am sure that's not accidental. I have no doubt all that is effective at gaining business, but it's also intentionally deceptive. I'm not the only one to notice.

Measuring the response to the offer is easy, but it is harder to measure the effect on customers who either work it out before hand and don't respond, or who switch without intending and later realise they were conned.

Some recipients won't notice at all but it's not just customers who are affected by behaviour like this.

The impact on customer service

I would bet that the AAMI customer service team are not fans of this policy of deliberate deception. Now when they talk to a customer, it might be someone who is already pissed off that they were tricked into paying a bill.

Customer service is a hard enough job, starting from that position just makes it tougher. Not to mention the impact on the way that they treat the customers. If you work for a company which clearly has no problem being sneaky and tricking their own customers, how much less likely are you to go that extra mile when it's needed?

Chances are the best customer service people leave for places where they can provide better service and avoid ethical grey areas.

Lessons for AAMI (and us all)

  • Sales and marketing efforts have impacts beyond their immediately measurable results (see also My Origin Story).
  • You shouldn't expect your customer service teams to act ethically if the rest of the company does not treat ethics as important.
  • Tricking people is a terrible way to start a business relationship.

Next time my comprehensive insurance is up for renewal, I'll be looking for a better option.