blog, loyalty program
Why 18% Cost of Acquisition Rise has Insurance Companies Reeling
Signing up for insurance or making any insurance claims isn’t the most joyous activity for many people. Regardless, everyone needs insurance.
Since insurance companies often offer the same plans as any other competitor, many find it difficult to differentiate themselves. So rather than spending the time to retain their customers, companies focus on gaining new customers every year. When does this become a problem?
It all comes down to the costs of acquiring new customers. It costs nearly 7 – 9 times more for a company to acquire new customers rather than retain current ones. And with the costs of gaining new customers rising by nearly 18% this year, it’s probably best for companies to work on different retention strategies to ensure they keep their customers around. With that in mind, here are a few strategies you can work with to ensure your customers stick around.
Building Customer Loyalty
Don’t sell the insurance industry short – there are tons of ways to build a strong relationship with customers that don’t rely on discounted prices. Here are a few ways to generate customer loyalty:
1. Exceptional customer experience
From the first interaction in-store to the message turnaround, customer experience is very important to the modern customer. It’s so important that 86% of customers will have no problem leaving a brand once they experience two or more poor interactions. Every touchpoint matters to make a lasting impression.
2. Personalised interactions
Customers want to feel like they are more than just a number to companies. That’s why creating personalised moments or gifts shows that you genuinely care about customers. Personalised moments include everything and anything from a happy birthday message to a personalised gift to give for the holidays.
3. Loyalty Program
These programs are specifically developed to retain your current customers. Discounts, rewards, surprise and delight gifts – customers love to feel recognized by brands and loyalty programs help achieve that. It’s also a great way to collect data and increase touchpoints with customers.
Data Collection and Customer Loyalty
The strategies above only take full effect when you use data collection to guide them. 57% of customers are willing to share more about themselves with their insurance providers if they can receive some kind of benefit in return.
The use of big data and analysis can help insurance companies upsell or cross-sell various services and provide more tailored suggestions and plans. Rather than wasting time trying every way to appeal to customers, customer data can help insurance companies understand what customers are truly looking for.
As an example, Stampix works with different brands worldwide, providing a unique way to increase NPS and engagement within loyalty programs. By offering customers their own photos, printed and delivered for free as a reward, brands drive affinity while collecting valuable data.
Whether you’re a car or health insurance provider, every insurance company can benefit from taking customer loyalty seriously. The more you can invest in strategies that allow your company to form an emotional connection with your customers, the more likely they will stick around for the long run.
