3 essential techniques for building customer loyalty in the insurance sector

26 May 2022

Gaining a new customer cost much more than retaining an existing one, as it is well known. And in the insurance sector, this is even more important, as the user is not a one-off buyer, but establishes a long-term relationship by paying a regular fee. Therefore, the value that each customer can bring to the company is very high and extends over time. So, it is particularly important to satisfy and retain that customer. This can be done using a variety of loyalty techniques that, combined with the right technologies can increase the profitability that each policyholder brings to the insurance company.

Using data to personalize insurance policies

It is important for insurers to have reliable and unified customer data. Therefore, it will be important to have a Customer Data Platform (CDP) and a powerful CRM (Customer Relationship Management), as this will allow them to know the characteristics of their policyholders and their contacts and history with the insurer. In this way, they can offer specific products or modifications to existing policies. For example, if a customer has a health insurance policy and has included a child in it, the child may need to be included in the car insurance policy when he or she comes of age. This cross-referencing will make the customer feel that the company knows them and is with them throughout their life cycle.

Rewarding systems for existing policyholders

It is common to find that companies in all sectors publish offers to attract new customers. This can make those who already trust the company feel left alone and move on to another one. It makes sense for insurers to also offer rewards to their most loyal customers, to ensure that they do not lose them. For example, they may offer a discount on insurance for people who have been with the company for more than a certain period of time, other offers for those who have more than one insurance policy, or bonuses to policyholders who give hardly any insurance claims. This will help policyholders not to look for other offers from competitors, as they will get the best deal from their own company. It will also encourage up-selling and the attraction of new customers close to existing customers.

Marketing Automation to build policyholder loyalty

Finally, Marketing Automation tools will allow you to send personalized and automated marketing campaigns. These platforms will be able to draw on the company’s existing data, sending different communications depending on the type of customer, their previous interactions, and their favourite channels. One of the most frequent communication channels in loyalty strategies is email, due to its low cost and personalization capabilities. However, when using this resource, it is important to offer valuable content, attract the user’s attention and avoid anti-spam filters so that the email does not get lost among the dozens of communications in their inbox.

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