According to the article below, “It costs insurers seven times more to attract a new customer than to retain an existing one”. Therefore, it would benefit insurers to focus on maintaining an exceptional and consistent customer experience in order to retain members. Technology that provides carriers with real-time insights into their member’s activity would help carriers provide a tailored experience resulting in improved member sentiment and retention. The following article provides a few more ways that insurers can boost customer retention.
1. Get to know customer values and behaviors.
“We found that while insurers understand well how to cover risks, they often fail to engage their customers on an individual basis. Even though insurance is complex, customers want to be involved, emotionally and rationally. When insurers act on this knowledge, customer share can rise.”
2. Enter into active dialogs.
“Use social media analytics and conversations via social networks to increase customer touch points. Use the gained knowledge about their wants and needs to sustain intermittent conversation about things that are helpful to the customer.”
3. Support customers in areas they value.
“Support your customers in areas they personally value, even if they are not directly related to your core business. Offer information to your customers in useful areas that are widely related to their coverage: for example, traffic or weather information for auto insurers. Create communities of interest—in social networks or directly hosted by you—to share news, tips and enhance exchange among like-minded individuals and your organization.”
4. Optimize each interaction with every policyholder.
“Our data show that appropriate communication with customers sets off a positive chain reaction. First, it increased the use of that type of interaction. Customers perceived the interaction as more positive and ultimately this increased emotional involvement with their providers—the ‘heart share’ of our study title. Finally, emotional involvement is strongly connected to customer loyalty, so increasing involvement from medium to high had a dramatic impact on the loyalty index.”
Zipari’s insurance specific CRM Apps-powered by data analytics, addresses the challenges of the insurance industry, by providing carriers with a solution that not only provides a unified view of all customer data but actionable recommendations to help carriers and their organization improve member engagement and experience. Click here to learn more and download the data sheet.