Businesses in every sector are experiencing massive challenges created by the current global context: The cost-of-living crisis, the ripple effects created by the pandemic, and uncertainty about the future.
The effect on consumer behaviour is marked by cautious and considered spending and the impetus to shop around for the best value – even if it means switching from brands and providers that they have been loyal to in the past.
Consumers also have a wealth of options to choose from, offered by many insurers that are highly similar. A solid strategy for insurance customer retention needs to be built into every aspect of the brand’s offering, in order to ensure a healthy and loyal customer base.
How can you prevent customers from shopping around?
The motor insurance industry is no different, and additionally, there have been recent regulatory changes in the UK that have affected the insurance market, such as the Financial Conduct Authority’s (FCA) ban on pricewalking.
However, amongst the upheaval, there are a number of opportunities for brokers to find a point of differentiation in the market by becoming known for unmatched customer service, demonstrable time efficiency and in turn, concrete value for money.
Customers who are confident that you can save them time, make their lives easier, and handle their needs in a smooth and seamless way, are less likely to shop around. But delivering on such a tall order consistently for every customer can be a difficult and delicate balancing act – unless you are backed by the best.
1. Use a centralised system for better communication and service delivery
Once a claims handling process is centralised through one provider, it makes the conversation between insurer and the insured quicker, and more transparent. Consumers can feel like they are in an active partnership with their insurer, instead of being just another customer bankrolling the business with their premiums.
People who feel like valued members of a two-way partnership are more easily retained. The value of managing expectations and “over communicating” at times can also not be overstated. For example, instead of waiting for a customer to follow up or ask a question, brokers can leverage the processes put in place by a savvy end-to-end incident management company to ensure that customers always feel in the know.
2. Look for ways to add value even when no claim has been made
A simple way to keep your customers happy is to remember that they are busy individuals who don’t always have time for administrative tasks.
Frictionless service features can include:
- Automated payment options
- Auto-generated maintenance reminders
- Access to apps, allowing customers to access all of their information, quote requests and coverage upgrades
- Digitalisation of policies and procedures to minimise the need for too much paperwork
All of these are simple ways to streamline the customer experience, but a proactive incident management company with access to state-of-the-art technology can help to make further suggestions and upgrades that are targeted to your particular customer base.
3. Be data-driven
Collecting high-quality data in order to build an evidence base will give you the edge over your competitors.
A good incident management company will help their partners to:
- Make better-informed decisions by collecting and analysing customer preference data
- Track individual customer behaviour
- Document customer needs through feedback channels
- Keep on top of market movements
All of this helps to develop products and processes that anticipate the needs of a policyholder.
4. Be flexible and fast
When incidents happen, it causes the driver considerable distress. But claims can be handled quickly and with minimal hassle when connected with a highly responsive end-to-end incident management company that employs a flexible approach.
The peace of mind that a customer feels when they are supported, reassured, and their needs are pre-empted goes a long way towards keeping that person retained as a loyal and long-term customer – and may even bring in new business through referrals and positive testimonials.
5. Ensure your incident management partner covers everything
Outsourcing the claims management process to the right end-to-end incident management company gives you access to the experts, and can help you retain customers by making their experience effortless and efficient.
Consider services such as:
- Vehicle recovery and collection
- Replacement vehicle deployment
- Repair and service management
- Engineering services
- Legal expense insurance
- Uninsured loss recovery (ULR) services
Talk to an expert to learn how to retain motor insurance customers
Motor Assist is an end-to-end incident management solution that has invested in systems and solutions that deal with the claims process from the first notice of loss right through to vehicle repair and replacement. We place an emphasis on sharing information about each stage of the claims process proactively and in real time, so that the customer always feels in the loop, and in control.
Our high level service offers a customer-centric approach to incident management, with an emphasis on value for money. Talk to one of Motor Assist’s experts today about how to partner with them to keep customers satisfied and increase retention.