Insurance customer membership programmes are failing with evidence of no brand loyalty at renewal. But Power2Motivate U.K. have a solution.
It's getting tougher to find and maintain a loyal customer base for your business. In an industry like insurance, where it remains difficult to compel customers to stay loyal in the face of discounted competition, this fact is even more evident. Data in the form of trackable customer membership would be invaluable - but even getting customer feedback can be difficult.
Customers who interact with their insurance providers more frequently are more likely to stay brand loyal.
A Bain & Co. publication recently asserted that customers who interact with their insurance providers more frequently are more likely to stay brand loyal. Introducing a customer membership programme allows you to interact with your customers more readily and track engagement. This in turn allows you to offer incentives and discounts for customers to stay with your brand. However, insurance providers often don't make the best out of their existing customer membership programmes, or don't use them at all - meaning they cannot drive brand loyalty.
Do customer membership programmes drive loyalty?
U.K. General Insurance has one of the highest customer churn rates of any industry nationwide, according to Service Solutions Consultant Aditya Sarda in a recent LinkedIn article on brand loyalty. This is due to a variety of unavoidable factors:
The insurance industry's low-touch nature means that people naturally have very little involvement with the product they purchase - this makes it difficult to sell the benefits of your brand come renewal time.
Insurance policies generally cover the same things, meaning it can be difficult to make your policy or other product stand out from the crowd.
Regardless of these factors, customer engagement in the insurance industry is still generally poor, and providers have been widely identified as doing very little to encourage greater customer interaction. Addressing this issue with customer membership programmes can make insurance holders more interested in their policies and encourage them to interact with your business in order to gain points and incentives. This interaction will in turn drive greater loyalty to your business and make customer's policy renewal more likely.
Bain & Co. identifies that insurers who concentrate on building loyalty gain considerable ground on competition - as much as a 20 per cent increase in Net Promoter Points (a metric, corresponding to increased revenue, that measures customer loyalty to a brand) over a three-year period.
Keeping your customers loyal to your brand is easier with a quality customer member programme.
Customer membership programmes that work
Driving greater brand loyalty and stopping customer disengagement can be halted by addressing three key areas, using Power2Motivate U.K.'s customer membership programmes:
Lack of online access to programmes: Power2Motivate offers a comprehensive and interactive online portal for customers. You can check on your membership benefits from any device, access vital information about how your insurance policy affects the points you earn and contact customer services to address any membership issues.
Lack of personalisation options: Our customer membership programmes offer the chance to personalise your experience however you want - prioritising how you earn and spend points, and the kinds of rewards and recognition you receive. Our Rewards Gallery has a massive array of prizes, from electronics to luxury accommodation. 44% of U.K. customers said they wished their membership providers offered more rewards personalised to their tastes, according to a Deloitte U.K. report, showing the value of a personal touch.
Having online access to customer membership programmes is a big help.
Lack of forum for customer-insurer interaction: Many customers simply leave their insurers come renewal time for a deal with a competitor - without providers ever hearing why. Giving your customers the opportunity to feedback on their insurance policy and membership programme will drive greater brand engagement. Power2Motivate U.K.'s online discussion platform allows users to voice concerns and queries that feedback directly to one of your business agents.
The value you gain from your customer members should not be underestimated - not only is it repeat customers that drive business sales, the customer data you receive is invaluable in adapting operations to better suit your market. To engage with your customers, offer industry-leading customer member benefit programmes that work. For more information, contact Power2Motivate U.K. today.