Six Key Ways to Establish Brand Loyalty in Policyholders
15-Mar-17
Six Key Ways to Establish Brand Loyalty in Policyholders Every insurance company puts considerable effort into attracting new customers. However, statistics indicate that it can cost between 5 and 7 times more to acquire a new customer than to retain an existing one. In addition, increasing customer retention by 5% can see a corresponding 25% increase in profit.[i] This dramatic profit leap can be attributed to the fact that customers, once loyal, will often purchase additional products from that company. Loyal customers will also be an excellent source of free advertising; many happy customers will share positive company reviews with friends (and, conversely, unhappy customers will share negative experiences). Therefore having a solid strategy for keeping policyholders loyal to your brand, is a lucrative business move for any insurance company. What can we do to keep our policyholders loyal to us? In a world of competitive pricing and enticing advertising, the relevant question is, “what can we do to keep our policyholders loyal to us?” Keeping policyholders happy is not perhaps as straightforward as it may first appear. While one might assume that simply offering a better price point than any competitors may be effective, in fact, acquiring customers in this way opens the company to the risk of the individual immediately moving on again when they find another company willing to shave a few more pounds of the price of the product. But there is good news; according to a report by customer strategists, Walker, the value customers place on their experience will be 50% by the year 2020; with 34% being placed on the product and a mere 16% based on the price. [ii] This clearly indicates that, while competitive pricing is beneficial, customers are far more swayed by a positive customer experience. How can this positive experience be achieved in practice? Know your customer Find out all that you can about your policyholder. Ensure that you are using their preferred ...
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