How to improve customer experience and loyalty in insurance?

An insight into customer loyalty.

Year in, year out, customer retention has long been a challenge for insurers. For a deeper dive into consumer bugbears, we researched the key factors impacting consumer loyalty across the UK's insurance sector with a survey.

Ello Group surveyed over 2,000 consumers to understand their perception of loyalty today, the factors influencing their purchasing decisions, their expectations from an insurance provider, and, most importantly, the key elements that ensure their long-term commitment to their current insurer. 

So, what did we find?

• 44% of consumers admit they’re not loyal to their insurer.
• One in ten feels valued by their insurer.
• One in five respondents reported not receiving better deals for sticking with their provider over multiple years.
• 14% feel it pays to be loyal to their insurer.
• People tend to be more disloyal to insurers than to their supermarkets, telecoms, finance, banking, retail, and utility providers.

How can a company best build customer trust?

Customers typically have a set list of qualities that they look for in an insurer. Among the more obvious factors, such as price and reliability, customers in the 21st century want to know that the organisations they support share their values.

Our findings told us that one in five people would leave a brand if they engaged in unethical practices, and a quarter would leave if they found out that they mistreated employees (such as not paying them fairly or forcing them to work long hours). After all, if a company can’t treat their employees properly, why would it care about its customers' well-being? 

Excellent customer service is another must when it comes to loyalty and retention. Three in five consumers that we reached out to admitted that negative interactions and poor customer service impact their loyalty to a brand, and often push them to cut ties.

How to improve customer loyalty in insurance.

The insurance industry is undeniably competitive, with endless companies price-matching and even offering a range of perks and loyalty schemes to retain their customer base. This has meant that going the extra mile is a must. Companies need to express that they value their customer to encourage them to stick around.

As customer engagement specialists, we’re well-equipped to guide you in how to both attract and retain customers in the insurance industry via loyalty and rewards platforms and other useful techniques.

• Increase touchpoints: Increasing customer touchpoints across platforms boosts communication with your customer, serving as frequent reminders of your company’s value and offerings. If you’re regularly reaching out or in contact with customers, they’re far more likely to think of you fondly when it comes to potential renewals.
• Lifestyle rewards: Rewards and loyalty platforms are huge in the world of insurance. Ello’s solutions include a selection of dining rewards, coffee shop rewards, entertainment benefits, and cinema rewards - each supporting customers in enjoying some of life’s most special moments. Now, just think, every time your customer makes use of one of our special benefits, your organisation is on their mind. 
• Tiered rewards: Speaking of rewards, you can even create bespoke systems with Ello, allowing customers to unlock different benefits over time based on their extended loyalty to your organisation. This tactic works to incentivise long-term commitment through your insurance loyalty programme.

Find out how to improve customer service in insurance with Ello?

Think your organisation could benefit from Ello’s solutions? Get in touch with our fantastic team today, and let’s come up with a new business strategy. We’re keen to help you switch things up, reduce customer churn, and incentivise customer loyalty across your business. Now that you’ve got a better idea of how to improve customer experience in insurance, put what you’ve learned into practice with Ello.