A friend in need is a friend indeed!
Mortgage crisis, Credit crisis, Job losses, Car sales plummet – Welcome to the new economy of the 21st Century global village. For all businesses including insurance carriers, retention of existing customer is extremely important. So what do we do? Launch an elaborate customer data analysis, and create “n” more tiers of segmentation and focus on the top tier (the ones who contribute high volume of premium, no claim whatsoever) and shoo others? Well, that is an approach for the short term. What we need is a loyal customer base with a mix of the top tier, moderate and some average- to provide the right customer mix and size that can sustain the value for the long term. It is another story some of the heavy hitters on the claim side swear loyalty to life! Jill Griffin (author of "Customer Loyalty: How to Earn It, How to Keep It." ) mentions that “customer loyalty lifecycle comprises of six stages: suspect, prospect, first-time buyer, repeat customer, client and, finally, advocate. The goal of all relationship marketing is to continually move a customer to increasingly higher stages within the loyalty life cycle” Focusing on research that helps you find which lifecycle stage the customer is, what will enhance the value and move them to the next stage will be of great help.
For example, how do we help those who are still with us but not in the top tier or moderate layer? Here are some simple actions that can help. A good first step is to review their current needs through a proactive conversation and rework the coverage based on information. May be longer / shorter driving due to job changes, reduced income level etc. Does that rental service at additional premium is still a need? Can a slightly higher deductible bring down the premium? Can we move from 3-pay to 6–pay? Can we speed up that bumper claim and settle it? It is the same as any small town community does in hard times – helping one another. Of course, we recognize that this is a business and we need to sustain revenue and profits. But, any small step / action that we try to generate value above and beyond what the customer expects from us will go a long way. For starters, helping our customers take their car for a job search out of town out with proper insurance instead of going uninsured. And believe me, if only we knew our customer’s needs better and any action that we do today to help our customers remain afloat and sustain will go a long way in earning their loyalty forever.
Do you agree?
“We are all in the same boat in a stormy sea, and we owe each other a terrible loyalty. “- G.K. CHESTERTON
