43% of respondents believe the industry is behind in rewarding its customers.
The insurance industry emerged from the recent financial crisis much more positively than other financial services sectors and remains a stable and trusted source for consumers. Consumers want to be loyal to insurers.
However, insurance falls behind other industries in quality of service, rewarding customers and actively retaining business.
|Life/annuity ||Property/casualty |
|The insurance industry is behind in quality of service. ||36% agree ||36% agree |
|The insurance industry is behind in rewarding its customers. ||43% agree ||45% agree |
|How much of an effort did your provider make to persuade you to stay? ||74% - little or no effort was made ||73% - little or no effort was made |
|What would have encouraged you to reconsider switching providers? ||45% - more frequent communication and contact ||54% - more competitive price |
39% - rewards for my continued business
Consumers want to buy multiple products from existing providers, citing trust in the provider (48%) and convenience (44%) as the main factors driving repeat purchases. Consumers also want to be sold products by insurers that are designed to meet their specific needs at different times in their lives.
However, only 11% of consumers surveyed bought more than one product from the same provider – yet, 52% indicated they would be interested in doing so.
These statistics present a real opportunity for insurers to build on goodwill and trust. Insurers can increase loyalty and win over new business by delivering consistent, great customer experiences that align to their brand promise and rewards loyalty.
Know your consumer
- Make investments in data analytics, predictive modeling and service-related technology to help identify product leads and develop tailored messaging and personalized offers.
- Reach out to consumers proactively to renew coverage and offer products that are designed to meet their needs at different times in their lives (e.g., getting married, having children, buying a home).
Reward your consumer
- Simplify products and be more transparent about them.
- Develop and offer cross-selling opportunities that are convenient and beneficial to the consumer.
- Invest in technology to promote cross-selling, especially in fast growth markets.
- Offer discounts for loyalty and multiple purchases. 40% of property/casualty insurance customers surveyed said they'd like to see improvements in discount offerings.
- Build appropriate rewards programs for purchasing and holding multiple products from the same insurer. This includes referral programs which can be significant value adds, as family and friends continue to serve as key influencers.
- Create a multi-channel strategy that matches customer expectations by combining clear product information to new buyers and a simplified renewal process for returning customers.
<< Previous | Next >>