It shouldn’t come as a surprise that the insurance industry faces growing challenges in keeping customers loyal. With many clients viewing insurance simply as a dull, necessary task, paired with certain insurers known for bad customer service it can be difficult to build a loyal customer base.
Like with any business gaining and maintaining customers is essential, otherwise the company can ultimately collapse. Building a base of loyal customers will almost guarantee repeat business, willingness to renew at a higher price and recommendations.
So, how do you build customer loyalty in the insurance industry to ensure your business stays successful?
1. Be transparent with data
Understanding the importance of customer data is key in successfully gaining their loyalty. In fact, more customers will be willing to share additional information with insurers if it was worth their while with exclusive benefits.
As customer data is a highly confidential thing, people also want to know how exactly their data will be used and how secure it is. By being completely transparent, reassuring the customer and showing your commitment to their personal data will help in building trust and, in turn, customer loyalty.
You can also maximise the value of the customer’s data by bringing it to life using third-party data such as demographic variables and transactional data to build a full view to show to clients. By analysing this data you can create unique strategies to drive renewal.
2. Offer innovative products
One of the biggest challenges insurers face when it comes to gaining and retaining customers is that the industry is highly commoditised. With so many products on the market customers are spoilt for choice, which means you need to stand out from the crowd and offer something innovative and unique to draw more people in.
Typically customers only contact their insurers when they need to either make a claim or renew a policy. As neither of these reasons are likely to excite the customer it is then down to the insurer to work hard and communicate well with them in a positive way. Positive communication, extra engagement and a personal touch will differentiate you to other insurers, putting you in the right direction to building customer loyalty.
3. Provide a personalised experience
Every customer likes to feel valued which is why providing a personalised experience is a great way to build customer loyalty. Introducing technology such as artificial intelligence and robo advice can be extremely beneficial. Not only can these tools help automate simple tasks, allowing you more time to connect with clients, but it can also aid client bases and strengthen relationships.
Creating and delivering a personalised customer experience should be seen as a marketing strategy rather than a sales, centric tactic. The idea is to increase engagement, loyalty and for customers to see the value in your business. Setting up things such as social media channels to engage with clients on a more personal level, posting regular content on a blog that customers will find helpful and maintaining friendly customer service will make you a more memorable company and one that will likely be recommended to others.
4. Reward clients for their loyalty
Investing in a unique customer loyalty platform to reward your clients and encourage new, potential clients is the easiest and most effective way of building customer loyalty. By offering exclusive discounts, rewards and offers to customers they’ll find plenty of benefits in using your services.
Some of the key benefits of a customer loyalty platform are:
- Retaining clients – a customer loyalty scheme gives your clients a reason to stay loyal to your business and ensures you stand out from the crowd.
- Increased profits – retaining clients is good for both your company’s reputation and profits as you renew existing policy.
- Win new business – loyalty platforms offer fantastic incentives for new customers to join, keeping you one step ahead of your competitors.
Take a look at our blog to explore the full benefits of implementing a customer loyalty platform.
Find out everything you need to know about the Stubben Edge loyalty platform