Insurance coverage, from car, home, personal and more are typically not the most popular or exciting topics of conversation among the majority – it’s unfortunate, but it’s true. For insurance companies, while you can’t change the narrative around insurance itself, you can change the way customers feel about working with you and your insurance company.
"Insurance hoping" was always the best way to find better deals every year as insurance companies would present attractive packages for new customers. But with new insurance regulations, like in the UK, companies can no longer up-charge returning customers for insurance renewals. With prices off the table, a new door opens to for insurance providers to differentiate themselves in their relationship with customers and inspire loyalty.
It costs 7 – 9 times more money to attract new clients than to keep your current clients around. On top of that, more than 55% of customers say that they would stick with one insurance provider only if they were offered personalized services and rewards in return for their loyalty. This could take the form of loyalty points, personalized birthday cards, gifts and so much more. It’s time for insurance companies to reward their loyal customers and strengthen the emotional connection between clients and your brand - the four reasons below will explain exactly why.
Adding a Human Touch
Customers often use their emotions to guide their purchasing decisions. The deeper their emotional connection with your company, the more valuable they become as a customer. In fact, 71% of emotionally invested buyers are more likely to refer your services to others. By showing your clients that you care about them outside of a transaction you’re encouraging them to stick with you and seriously think twice before jumping ship.
Stand Out Amongst Competitors
Chances are that another insurance company can provide pretty much the same insurance packages (as) you. So maybe pricing isn’t the best way to outshine your competitors. However, offering personalised gifts, experiences, or services to loyal customers helps differentiate you from the crowd and keep your brand top of mind. To better personalise rewards and cross-sell products, it's really important to collect reliable data in a seemly way - offering specific rewards can help you do this.
Increase Customer Satisfaction
Designing and implementing a loyalty program can drastically increase your net promoter score (NPS). When clients feel appreciated by a company or receive tailored and meaningful services, they’ll be the first company on their minds when the yearly renewal period comes around. Not only this, but when friends or family are looking to switch providers, they’ll be more likely to genuinely refer your company.
Every client and business relationship requires trust. Highlighting your values and what you stand for as a company – and sticking to them in actions - is a great way to build trust with consumers. A great way to materialise this is to show up not only when needed for your customers, but in the moments they’d least expect it - like a birthday or important key moment in their lives.
Loyalty programs or initiatives can be the factor that you need to take your customer experience to the next level and to connect with your clients like never before. You don’t want to just show up when yearly insurance renewals come around – you should have several touchpoints with your clients throughout. And that is why the rewards you offer are a game-changer.
Rewards take shape in many forms and for many moments – birthday, loyalty milestones, Holidays, etc. For insurance companies it's very important to leverage those moments in order to increase the number of touchpoints, collect valuable data and offer personalised solutions and experiences for each consumer.
TAKE YOUR LOYALTY PROGRAM TO THE NEXT LEVEL
Learn more about how Stampix can help
insurance companies increase up to 30 NPS