Modern-day customers expect more from businesses. This doesn’t only mean freebies and discounts, but rather how well organisations support consumers, how easy it is to get in touch, and how much the public trusts them. Gaining this trust represents a clear opportunity for a mutually-beneficial relationship between consumer and provider, offering organisations the chance to take their customer journeys to the next level.
The Financial Conduct Authority’s recent investigation into insurance companies charging loyal customers disproportionately more than new customers has brought the theme of consumer trust into the spotlight. The findings from the investigation reflect the broader dissatisfaction with the sector’s customer engagement strategy, and the importance of gaining, and keeping, customers’ trust.
For insurers, this obstacle represents a very real cost. 20% of insurance customers switch their insurer after their first year’s contract is over . This figure represents a massive loss, impacting on customer retention and brand loyalty. So, how can insurers keep the first-year customers from jumping ship?
Insurers hold a unique position; they have access to a plethora of information about their customers. As it stands, organisations may not use this information to its full potential, to enhance the customer journey or maintain a steady stream of helpful, relevant advice. Leveraging this data to identify bespoke deals and personalise interactions, insurers can create a closer bond with customers, ensuring that we trust our insurers to bring us the best deals.
For instance, if there is a big storm on the way, why not send out a Facebook message advising customers how it might affect them individually and offering helpful advice? Or if there has been a rise in car thefts in a certain area, why not send out SMS messages to local customers with simple steps they can take to protect themselves? Maintaining a dialogue with proactive communications not only increases brand loyalty, with customers more likely to renew, but creates a better customer experience for all end users. Insurers have a great opportunity to improve how they engage with customers and are already equipped with the data to make this kind of proactive communication a reality.