What does it take to retain a loyal customer now and in the future? Accenture Financial Services recently published the 2017 Global Distribution & Marketing Consumer Survey, a study of 32,715 insurance customers across 18 markets. The results provide clear insights into what customers expect from insurers in exchange for their information and loyalty.
Pricing remains a top loyalty driver
With the rise of aggregators and other digital comparison tools comes the commoditization of insurance. Customers are evaluating insurance offerings online and many are hunting for the best price. Competitive pricing is the top loyalty driver for auto (52 percent) and home insurance (50 percent) customers, as well as for 38 percent of life insurance customers.
Gain consumer trust through data-collection transparency and value-added benefits
Would more customer data help your enterprise develop more personalized products and services? Fifty-seven percent of consumers are willing to share more information with their insurers in exchange for added benefits. Many also want to know how their data will be used and how secure it will be.
Insurers must be transparent and show their commitment to data governance and security if they want to build trust
Insurance customers want personalized services
Every consumer wants more value for money. Insurers can meet this demand by employing digital, big data, mobile and analytics to personalize and customize customer interactions. They can also introduce services that are more relevant to consumers’ everyday lives. For example, 44 percent of insurance customers say it’s important that insurers provide personalized health advice. And more than four out of five Nomads, a digitally active segment comprising 40 percent of insurance customers, are interested in receiving auto insurance adjustments based on car usage.
This data points to the need for insurers to consider alternative distribution models that offer customers a fulsome suite of relevant products and services. Brands that stand out by enhancing customer engagement will be able to defend their pricing. First movers with strong brands stand to benefit the most.