Company: Toco Warranty, Los Angeles, CA
Company Description: Toco Warranty offers month-to-month breakdown protection against vehicle breakdowns. Toco’s easy, affordable, & stress-free solutions shield customers from unpredictable disruptions, protecting their assets, families, and budgets. Toco's emphasis on customer satisfaction, company culture, and community outreach create an industry-leading experience and legacy that goes beyond the point of sale.
Nomination Category: Customer Service Department Categories
Nomination Sub Category: Customer Service Department of the Year - Financial Services - Up to 100 Employees
 Nomination Title: Toco Warranty
- Which will you submit for your nomination in this category, a video of up to five (5) minutes, explaining the achievements since July 1, 2020 of the nominated department, OR written answers to the questions? (Choose one):
Written answers to the questions
- If you are submitting a video of up to five (5) minutes in length, provide the URL of the video here, OR attach it to your entry via the "Add Attachments, Videos, or Links to This Entry" link above, through which you may also upload a copy of your video. If you are submitting written answers to the questions for this category, provide them in the spaces below.
INTRO:
You owe me $3,285.” How do you want to pay for that?
This is what it sounds like to be hit with an unexpected car repair bill.
Most of us do not have that kind of money lying around. What would you do?
This is not a sales pitch, but a real question. Inflation tightens everyone’s budget, reducing discretionary spending and forcing difficult sacrifices. Most Americans would go into debt over a $500 expense, let alone having to purchase a new vehicle or fix a used one.
Toco Warranty, founded in 2012, offers Vehicle Service Contracts ("extended warranty") that prevent out-of-pocket expenses for customers seeking car repairs. Some customers buy Toco for peace of mind, family protection, or budget planning. Many buy it to avoid getting taken advantage of by mechanics who oftentimes overcharge or prescribe unneeded repair work. Others see it as an alternative to buying a new car in an already inflated market.
"We are regular people looking to help others and be a force of good. Our belief is that unexpected and expensive car repairs cause grief, stress, and frustration. Our goal is to be the Easy, Affordable, and Stress-free solution to these issues and provide customers a partner in making sure that repairs are performed efficiently and effectively." - Paul McGee, VP of Employee and Customer Success
Toco is regarded as an innovator in the VSC marketspace, being first to market with month-to-month contracts, employee benefit plans, and the Toco claims and concierge services.
Build it or Buy it?
Have you ever felt like you go the run-around when dealing with your health or auto insurance claim? VSCs are like health insurance for your vehicle and like health insurance, they also have a history of customer frustration as a result of not knowing what is covered, unexpected overages, and claims being denied to the benefit of the insurance company. Rather than trying to find a way to avoid paying a claim, Toco looks for every reason to do so.
Toco is historically a third-party marketer, selling contracts white labeled for Toco customers but administered by another company. Toco’s limited control of the claim process led to customers having denied claims without any explanation, empathy, or options. Last Year, Toco took claims in-house, building and Administration department, becoming the administrator & obligor of the contract, and owning every customer touchpoint.
In 13 months, Toco migrated 87.56% of its customer base from the old administrator to Toco Administrative Services, providing complete control over the customer experience and award-winning Customer Care.
- Reference any attachments of supporting materials throughout this nomination and how they provide evidence of the claims you have made in this nomination (up to 250 words):
Total 91 words used.
Conclusion:
Thank you for reviewing Toco's submission for Achievement in Customer Experience.
We believe this submission provides a high-level overview of Toco's company and products, mission/values/vision, YOY achievements, employee & customer experience, industry comparison, and supportive hyperlinks/ metrics/ attachments as evidence of our success.
Attachments Include:
- Toco Stevie Submission PowerPoint (Please review Notes Section of Presentation)
- Toco Mission/Vision/Values
- Employee and Customer Experience
- Competitor Comparison
- Toco Warranty Introduction Video, introducing the product, how it works, and how it affects our customers.
Thank you for taking the time to review Toco Warranty’s submission.
- Briefly describe the nominated department: its history and past performance (up to 200 words):
Total 200 words used.
History
Toco's Customer Care department, a multi-time Gold Stevie award winner, embraces change and efforts to evolve to the marketspace and customer needs. This last year Toco improved Call Center metrics, reduced customer attrition, increased one-call resolutions, and maintained the highest overall customer satisfaction ratings in this market space. The department is made up of three divisions: Onboarding, Retention, and the NEW Claims Concierge team.
Toco’s onboarding team sets customers up for success by anticipating any future issues and addressing them at the onset of the contract. Ensuring that customer information is accurate and understood prevents issues at the time of a claim. Transparency and customer education drive long-term customer satisfaction and retention.
Toco’s Retention team seeks to understand the conditions for a customer cancellation request and consults customers on their options available with an empathetic and therapeutic approach. Financial cancellations require the team to understand individual circumstances and find creative solutions to complex problems.
The concierge team helps customers navigate their claims from the first call through the entire claim and customer satisfaction process. Toco found that even in the face of bad news over a denied claim, customers value being made aware of each step in the process.
- Outline the department's achievements since July 1 2020 that you wish to bring to the judges' attention (up to 250 words):
Total 110 words used.
Achievements
Business Metrics
- Claims Loss Ratio Reduced from 107% to 75.67%
- Customer Past Due Rate 4.70%, a -4.2% reduction YOY
- Customer Retention Rate 98.32%, increase by 2.6% YOY
- 87.56% Customer Migration from old Administrator to Toco Administrator
Exceeds Global Call Center Metrics
- Under 20-Second Hold Times
- 3%> ABN rate (approx. 1200 weekly incoming calls)
- 92.31% One-Call Resolution Rate (incoming calls)
Reviews
- Highest Overall Rated Provider in the VSC Marketspace (Competitor Comparison Attached)
- Toco BBB: A+ Rating, Accredited, 39.13% reduction in complaints as new administrator
- Trustpilot: 4.6/5 stars and 455 reviews
- Consumer Affairs: 4.9/ 5 star rating and a Top Pick
- Explain why the achievements you have highlighted are unique or significant. If possible compare the achievements to the performance of other players in your industry and/or to the department's past performance (up to 250 words):
Total 168 words used.
Customer Retention
Customers who were denied claims by the previous administrator were given the news after the claim was closed out and oftentimes in a very curt way. This surprise news left customers feeling like they had been taken advantage of, frustrated, and unwilling to listen to allow our team to assist. The Toco Concierge team navigates the customer through the claim, explaining the process along the way so that there are clear expectations and accountable actions. This has had a direct result on reduced customer attrition and increased customer satisfaction (even when a claim is denied).
“I had a very fine experience talking with Dillon today he was very helpful in having me elude the practice of shop repair costs and for those individuals and repair shops to stop trying to gouge me and he told me how to get things done and explained to me the process, where is the shop didn’t want to tell me that and they was skipping steps.” – Donnie J.
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