Improving customer retention in the insurance industry can prevent billions of dollars lost. Research from CallMiner revealed that consumers switching to another insurance provider costs brands $2.59 billion in the U.S. alone.
Creating a strategy that reduces churn while also raising customer retention rate requires insurance brands to think outside the box. Specifically, they can make two major changes to the way they present, offer, and market products and services.
- Adopt a digital transformation plan
- Cultivate an online reputation
Increase Customer Retention in the Insurance Industry Method 1: Adopting A Digital Transformation Plan
Providing a 21st-century customer experience is a popular strategy for a good reason; it keeps customers happy and loyal. However, that is easier said than done. A report from PwC showed that the top obstacle to organization growth is the “speed of technological change.” The challenge for insurance brands is to adapt their products and services to modern technology that is easy to use from a consumer standpoint.
Whether it’s through an app or website, customers have to be able to file claims, research plans, or contact an agent in a matter of clicks or taps. Programs that require additional setup, contain confusing navigation, or have performance issues at startup can easily turn consumers away from your digital offerings and eventually from the brand itself.
In other words, take the time to evaluate your digital options and make each product a smooth experience at launch. This makes the transformation easier for customers, which can keep them happy and loyal.
Increase Customer Retention in the Insurance Industry Method 2: Cultivating an Online Reputation
Providing an ecosystem of personalized and digital insurance products is a boon for any insurer, but it won’t amount to anything without a robust online reputation. Ensuring that you have a team dedicated to monitoring and managing your online presence can bring about the insights needed to keep loyal customers.
Insurance brands can easily start that process by asking for reviews. The words of your customers can inform the team about the strength of your products and services. Heed the words of both long-time and new customers with equal weight.
Carefully respond to positive feedback and learn how to respond to negative reviews to increase retention. Personalizing each response – such as mentioning the customer’s name or specific details they mentioned in the review – goes a long way. It shows that each loyal customer is more than just another source of revenue; they are a vital part of the brand’s success.
Even when the feedback has criticisms, respond in a professional manner. How you react to naysayers can impact the perception of longtime customers, who could churn from one offending response.
Customers are looking for any reason to switch to another insurance provider. By meeting expectations and taking feedback into account, your brand can boost its retention rate while continuing to innovate on the customer experience with better products and services to meet consumer needs.