Category Archives: RACV

RACV misses second chance, will there be a third?

In a recent post If you treat me like a number I’ll behave like a human I shared a story regarding the RACV being ‘happy’ for me, a long term customer, to ‘try out’ their competitors for $70. For many years I have spent thousands each year being insured through the RACV, for both personal and business purposes.

Having discovered the their competition’s ‘normal’ price was 25% better than the RACV’s ‘discounted price’ on vehicle insurance, and the RACV’s reluctance to see me as a human being with whom it has a long term relationship, I sought the assistance of an insurance broker to help me find a business insurance policy to replace one that was due to expire with the RACV. The one I have now purchased was just under 10% cheaper than the RACV policy.

My assumption is that RACV uses a sophisticated Customer Relationship Management System (CRMS). Such a system would have a significant amount of information about me including my entire history of insurances with the RACV.

As a result of recent events this system should include two critical pieces of information

1. I received a quote for a new vehicle insurance through my business that was not activated
2. One of my business insurance policies expired and was not renewed

I have been waiting (and wondering) if the RACV would contact me to discuss our business relationship. My assumption was that these two pieces of information would cause some sort of a ‘warning’ within their CRMS that something had gone wrong with our relationship.

Yesterday I received a courtesy call regarding the business insurance renewal. I explained that I had gone with another provider. To my surprise the RACV representative could not end the call quickly enough. There was no request to know why I had chosen to leave, just a polite “Thank you, good-bye”. Should I have been asked I would have been happy to politely share my story, to off the RACV the gift of my feedback.

I couldn’t help but think that the RACV is losing a long term customer and it either doesn’t know, can’t see the signs or simply doesn’t care.

As each of my insurances fall due I will continue to see what the market has to offer. Already I have saved multiple hundreds of dollars through moving two policies.

Prior to my recent experience the last time I had investigated what the ‘opposition’ had to offer (as far as my insurances are concerned) was in 1993. Since then I had been paying my renewal notices under the illusion that I was a valued customer of the RACV. I was the classic ‘loyal customer’.

The $70 improved rate that the RACV refused to provide me on the new car insurance has already cost it two policies worth several thousand dollars. Does that make any business sense at all? If the RACV had provided that $70 differential, which is clearly within its profit range because it does provide that extra 5% discount to people, then I would have continued to be a loyal customer and not researched what the opposition was offering. When I discovered the huge differential I could not help but wonder whether I had been lulled into a sense of getting a good deal through my loyalty, when in fact my discounts were being applied to uncompetitive rates. In a strange way the RACV has done me a favour through its poor service as I am now saving money by going to their competitors.

How is the RACV using its CRMS to help maintain strong relationships with its clients?
In the long term can they afford to treat loyal customers in similar ways that I have experienced?

I wonder if I will be contacted at any time to discuss our relationship?
Will the RACV do anything to try to recover this situation?

If you have a CRMS how do you use it? Does it help you to maintain healthy relationships with your customers? What would you do in this situation if you were the RACV?

Gary Ryan enables individuals, teams and organisations to matter.
Visit Gary at

If you treat me like a number I’ll behave like a human!

Why would any company let a member and long term customer worth $1,000s of dollars to them every year try out the opposition for $70?

Yet that is exactly what the Royal Automobile Club of Victoria (RACV) did with me recently. I have a full range of personal and company insurances held with the RACV. Upon contacting them to set up a new policy for a company asset I was informed that only my company business mattered in terms of this new policy.

Technically the RACV consultant was correct even though she informed me that she could see all of my information, both personal and business on her screen. When it was clear that ‘nothing can be done’ I reluctantly searched for contact numbers from the RACV’s competitors.

When I then contacted a competitor I discovered that not only could they beat the price that I had been quoted by the RACV but they were able to beat it by over 25%!

The reason that I was even talking to a competitor was because the RACV was not able see me as a human being. Rather I was two membership numbers. One for me as a private person and the other for me as a company. Despite their admittance that they understood the individual ‘me’ and the ‘company me’ are one in the same they refused to provide me with the same level of ‘discount’ that I normally receive as an individual.

The actual dollar figure I am talking about in this example is $70. If the ‘normal’ discount that I receive was applied to this new policy, my new policy would have been $70 cheaper than I was quoted. I know that it isn’t much, but it is the principle of the matter that counts. In one experience I very quickly went from being a human with a long term relationship dating back to 1986 to two sets of numbers. When I explained that it seemed crazy to me that the RACV was happy for me to speak with their competitors for a matter of $70 which could potentially lead to the defection of policies worth $1,000s of dollars over the next 12 months, the consultant, while sympathetic told me that there was nothing she could do.

Upon going to their competition, in this case AAMI I was provided with a quote that was more than 25% better than the price quoted by the RACV. 25%! Can you believe the difference? I couldn’t. So I accepted it.

Gary Ryan enables individuals, teams and organisations to matter.
Visit Gary at