Following the recent recession, it is more important than ever for insurance companies to surpass their customers' expectations. Not only are many of these businesses experiencing financial strains, but so are the people buying policies. Consumers are becoming even more selective about their insurance, looking for the best deals possible.
So what can an insurance company do to make sure their customers don't switch policies? It's crucial that insurance providers remember that their clients are looking for services that can fit comfortably in their budgets, but this isn't all a matter of price. By implementing loyalty programs that surprise, delight and supply ample added value, customers are sure to feel confident about their decisions to keep – or even upgrade – their current policies.
According to a study sponsored by the CMO Council, providing insurance customers with just the right loyalty rewards needs to involve more than one strategy. The source pointed out that in this vertical, many customers want their service providers to serve as a critical educational resource. In fact, 21 percent of consumers who were sent information about extra products and services actually contacted their insurance company to buy or learn more. Plus, a mere 8 percent of customers said they would be content to never hear from their insurance provider.
The source noted that this desire to learn presents openings for insurance businesses to build loyalty by including informative and regular contact into their retention efforts. However, the CMO Council also asserted that marketers in the insurance industry often aren't properly leveraging these opportunities by implementing "robust retention, cross-sell, up-sell and monetization strategies." Thus, insurance companies that use these desires to their advantage are sure to stand out.
Additionally, the source emphasized that engagement strategies should delve deeper than just providing information. Insurance customers are also highly interested in receiving highly relevant loyalty rewards that give them the chance to save on retail and lifestyle products. With these savings, customers will not only be more likely to stay with their current insurance provider, but they may also be more willing and able to upgrade their policies.
HubSpot explained that another great way to encourage insurance customers to upgrade is by implementing tiered loyalty programs. People enjoy working toward achieving higher levels of membership, and this may make them more open to purchasing additional products or services. The source pointed out that tiered loyalty models are especially effective in "high commitment, higher price-point" industries such as insurance, airlines and hospitality.
With the help of a customized loyalty rewards program that focuses on building awareness while adding unmatched value through targeted benefits, insurance companies can keep their customers from switching policies.