How to Retain Insurance Customers 5 Things to Know
No wonder policyholders are leaving Insurance customers are more empowered than ever. They have more information and channels to evaluate insurers. New, non-traditional entrants are gaining market share as they capitalize on the technological shifts of the digital age. How to gain and secure your customers? Here are 5 steps things to know about insurance customer retention.
Earn trust one customer at a time Insurance is a product based on trust, which needs to be earned on an individual basis. Understanding your customers enables you to personalize interactions, securing greater policyholder loyalty. How to build trust? Listen to the customer through different channels like social media, which provide insights on trends and behavior.
Don’t count on your brand Your brand has less influence on loyalty than you think. But you can leverage your brand loyalists, who openly share information. How to leverage the value of your brand? Stimulate brand enthusiasts to capitalize on insights that can benefit others.
Clarity attracts confidence Transparency leads the customer to understand and feel comfortable with the product (and their insurer) even when it is complex. How to become more transparent? Usage-based insurance (e.g., pay how you drive) is one way customers can see how rates are based on their personal risk and influenced by their personal behavior.
Give value, receive value Customers will stay if the product purchased is clear, the involvement feels genuine, and the price is fair. Policyholders need to believe that they’re receiving personal value. How to create new value? Explore new business models generated by the Internet of Things that allow insurers to deliver personalized offerings and value added services based on prevention.
Enable constant access We live in the age of mobility, where customers need to connect in all aspects of life. Providing access throughout the customer lifecycle provides opportunities to increase customer loyalty. How to best reach your customers? Be faster and easier to reach. Expand the mobile offerings outside of searching and buying.
Ready or not — are you capturing the hearts and minds of your customers? • Do you know who you’re talking to? Are you tapping into the new world of social that can spur insights to improve customer retention? • Do you customize your offerings according to your customer’s interests and needs? • Do you engage your customers on an individual basis? Find out how insurers are building their customer retention strategies through the new IBM Institute Business Value study, based on a survey of 12,000 consumers in 24 countries, “Heart, mind and market share — Customer retention for the connected insurer”: https://ibm.biz/insuranceretention