Whether it’s a new policy or a renewal, individual customer experiences can act as a “moment of truth.” If mishandled or even handled mediocrely, that moment can trigger a customer’s decision to defect to a new provider.
Continuing on from my previous blog post where we discussed the “switching economy” and declining customer loyalty, in this post we will talk about how a “playing to win” strategy can help you take advantage of the current climate.
Declining customer loyalty—how can insurers protect their customer base?
Research shows that North American markets, along with those of France and Japan, are actually the most stable—with the lowest number of customers who are very likely or somewhat likely to move from their current provider. Globally, 40 percent of those polled are likely to switch to a new provider, whereas in North America, only about 1 in 4 people reported that they are likely to change providers. Even so, imagine the benefits to your business if you could protect that 25 percent of your existing customer base.
Adopting a new strategy—playing to win
While most carriers will continue to employ an “avoid losing” mentality, for insurers wanting to navigate through this switching economy successfully, adopting a “playing to win” strategy is imperative. But what does that mean for insurers? It means:
- Adopting an authentic customer-centric mindset.
- Creating more relevant and personalized products and services for your customers.
- Embracing digital technologies to meet the increasing expectations of customers today.
In my next post, I will discuss five core elements required to shape a customer-centric strategy that embraces the changes to come in the switching economy.
To learn more, download: Accenture 2013 Consumer-Driven Innovation Survey: Playing to Win.