Your SlideShare is downloading. ×
The Break Up- Why Insurance Companies Can't Retain Customers
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

The Break Up- Why Insurance Companies Can't Retain Customers

8,057
views

Published on

Insurance companies are great at acquisition but bad at retention. Jack Morton offers our unique POV and 5 ways insurance brands can keep more customers.

Insurance companies are great at acquisition but bad at retention. Jack Morton offers our unique POV and 5 ways insurance brands can keep more customers.

Published in: Business

1 Comment
19 Likes
Statistics
Notes
  • more..
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total Views
8,057
On Slideshare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
458
Comments
1
Likes
19
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. WHY INSURANCE COMPANIES ARE GREATAT ACQUISITION BUT BAD AT RETENTION,AND 5 WAYS INSURANCE BRANDS CANKEEP MORE CUSTOMERS.THE BREAK UP
  • 2. CUSTOMERS ARE BREAKING UP WITHTHEIR INSURANCE PROVIDER.INTRODUCTION Hanah Holpe Creative Strategist at Jack Morton ChicagoHanah HolpeOnce upon a time… insurance was sold exclusively by Agents – primarilyrelying on building relationships and generating word-of-mouth to drivebusiness.But today, customers have stopped caring about relationships because manyinsurance companies have stopped focusing on them. Outside of receiving abill or filing a claim, a policyholder has only infrequent contact with his or herinsurance carrier. And that contact isn’t typically by choice—driven by a needto file a claim or update coverage. Consumers have been choosing providersby convenience, or even price. The reality is that it’s a whole new insurance ballgame, requiring a whole new approach.The following pages highlight some top-level findings and focus on five ways JackMorton can improve your customer experience. We’d love to hear what you think.THE BREAK UP: 5 WAYS INSURANCE BRANDS CAN RETAIN MORE CUSTOMERS 2
  • 3. CONSUMERSVALUE EXPERIENCE.In a recent study we conducted, we discovered that1…80%Agree (60% strongly) 87% Agree that previous 78% Agree (44% strongly) thatthat overall experience experience is they’d pay more for ais the #1 factor when important (62% very product or service if theydeciding to purchase a important) when choosing knew they’d have a uniqueproduct or service. brands to use in the future experience with that brand However, we found an interesting gap… Only 26% believe that the experiences they’ve actually had with brands have been extremely or very uniqueTHE BREAK UP: 5 WAYS INSURANCE BRANDS CAN RETAIN MORE CUSTOMERS 3
  • 4. AND THERE AREHIGH EXPECTATIONSFOR THE WAY AN 66%INSURANCE BRAND of recent auto insurance buyers said “strongENGAGES. customer advocacy” makes a big difference when choosing anSure, price is a key factor when shopping for insurance, but insurance brand.3it isn’t the only thing that matters. In fact, 10% of recent auto 64%insurance shoppers didn’t select the lowest priced quote.2 It’s really about the experience above all else. of recent auto insurance buyers said it’s important for a brand to be knownResearch shows that strong customer advocacy and for “superior customersuperior customer service are rated the top two things service.”3customers look for in insurance providers.THE BREAK UP: 5 WAYS INSURANCE BRANDS CAN RETAIN MORE CUSTOMERS 4
  • 5. YET, THE PRICETUG-OF-WAR ISCOMMONPLACE.Customers are armed with an increasing number of price-comparison shopping tools.And brands are playing along with the price war with constant “switch and save”messaging. But really, how low can insurance companies go?In addition, switching rates have sharply increased – doubling from 2005 to2011, rising sharply since 2008.4THE BREAK UP: 5 WAYS INSURANCE BRANDS CAN RETAIN MORE CUSTOMERS 5
  • 6. AND THE SPLASHYAD CAMPAIGNS AREPERVASIVE.Do-it-yourself, rate-shopping companies and traditional insurancecompanies are all campaigning to be the loudest –investing a lot of money on mass advertising (4.15 billion in 2009– more than double what the industry spent in 2000), and evenon multiple campaigns at once.5It’s a competition to be the loudest, most convincing, or cheapest.Sure, the messaging is attention grabbing and they’re gettingcreative on storytelling, but they’re doing very little todeliver on that investment. Ultimately, they’re losing,rather than retaining, the customers acquired.THE BREAK UP: 5 WAYS INSURANCE BRANDS CAN RETAIN MORE CUSTOMERS 6
  • 7. INSURANCE BRANDSWILL RETAIN MORECUSTOMERS ONCETHEY GET BACK TOENGAGING WITHTHEM (NOT JUSTTALKING AT THEM).
  • 8. EXPERIENCE BRANDSCREATE DEEPER, STRONGERRELATIONSHIPS THROUGHENGAGEMENT.Many brands are wising up. They recognize the power of experiences can inspirepeople and drive business growth. They’re investing in unique engagements andmaximizing every touchpoint where they interact with key audiences.We call these brands “experience brands.” However, too many insurance brands are still missing the mark.They fall short at exactly those moments when a brand can build arelationship with its most important people.THE BREAK UP: 5 WAYS INSURANCE BRANDS CAN RETAIN MORE CUSTOMERS 8
  • 9. TO BE AN EXPERIENCE BRAND,INSURANCE BRANDS SHOULD… 1. AVOID THE PRICE WAR AND FOCUS ON HOLISTIC VALUE 2. TRANSFORM THEIR EMPLOYEES AND CUSTOMERS INTO BRAND ADVOCATES 3. CREATE CROSS-CHANNEL CONSISTENCY FOR A SINGULAR COHESIVE EXPERIENCE 4. DELIVER SUPERIOR CUSTOMER SERVICE BY ENHANCING OWNED MEDIA 5. BUILD LOCAL RELATIONSHIPS TO GENERATE QUALITY REFERRALSTHE BREAK UP: 5 WAYS INSURANCE BRANDS CAN RETAIN MORE CUSTOMERS 9
  • 10. 1. AVOID THE PRICE WAR AND FOCUS ON HOLISTIC VALUEPrice matters to shoppers and customersalike. But what matters most is the return onexperience (ROE) brands provide. D EXMake it your goal to redefine what value AN YO IEN PEmeans to your brand – not just customers’ BR Rpockets – by championing the unique offering UR CES UR(beyond your products) you provide to UNIQUE YOcustomers. VALUEEvery interaction your brand has withcustomers and shoppers should provide aninimitable interaction that brings your YOUR PEOPLEbrand’s unique offering to life – yourbrand, your people and the experiences youprovide help differentiate.THE BREAK UP: 5 WAYS INSURANCE BRANDS CAN RETAIN MORE CUSTOMERS 10
  • 11. 2. TRANSFORM EMPLOYEES (AND CUSTOMERS) INTO BRAND ADVOCATESSimilar to any franchise model, keeping the brand consistent from marketing to field agents is difficult.Align and guide your most important assets – front-line employees including Agents,Agency Managers, Customer Service Reps and Sales Reps. They can be your greatest advocates—transforming your customers into advocates, too. A three-pronged focus will help your Agents becomea relationship-focused and make your brand a proactive, service-oriented brand. Distribute focused, timely and relevant communication to your COMMUNICATE workforce so they’re up-to-date on key messages and programs Provide a forum for agents to share insights and ideas, fueling a BRAND ENGAGE sense of ownership and responsibility for corporate initiatives PASSIONATES Equip agents with useful tools and information that empower EMPOWER them with confidence to advocate your brandTHE BREAK UP: 5 WAYS INSURANCE BRANDS CAN RETAIN MORE CUSTOMERS 11
  • 12. 3. CREATE CROSS-CHANNEL CONSISTENCY FOR A COHESIVE EXPERIENCEToday, insurers rely on multiple channels:along with agents, they sell directly through call CU S RRcenters, the web, and increasingly, mobile devices. P ER FIELD E OFFICE N PAnd the consumer is in the driver’s seat – expecting to T O CU L. SH MOseamlessly and conveniently hop from one channel to CIA SO . DIG . SO BIL ITAL BIL S TOM E ITA CIAL NEWthe next. MO DIG E. L. ER S .Cross-channel selling is complicated. And while everytouchpoint should be customized by audience and SALES CLAIMSneed, focusing on holistic experience design – CENTER CENTERchoreographing the interactions between a brand and DIGITAL. MOBILE. SOCIAL.its most important people – makes a big difference.Create simple and direct transitions from one touchpointto the next to enable customers to focus on theexperience rather than the logistics.THE BREAK UP: 5 WAYS INSURANCE BRANDS CAN RETAIN MORE CUSTOMERS 12
  • 13. 4. DELIVER SUPERIOR CUSTOMER SERVICE BY ENHANCING OWNED MEDIAInsurance is an intangible product (not to mention complicated). Owned mediaexperiences – the touchpoints and assets your brand owns – in the customer’s shopping, purchasingand service journey are most important in helping make it as simple, empowering, helpful andtangible as possible. Three owned media channels are key: your digital ecosystem, your people andyour environments. Enhancing owned media will, in turn, influence positive earned media. DIGITAL PEOPLE ENVIRONMENTAL • Empower consumers with easy- • Provide a clear set of customer • Develop a kit of parts to make to-use online tools and apps service expectations to deliver a each local office experience feel • Balance education and seamless experience and look the same entertainment on your website • Offer educational and training • Make each local office • Leverage social media for opportunities that focus on the environment feel like a destination ongoing customer customer experience • Bring your office into the service and • Develop a platform for employees community with a pop-up or STAT! insight- COOL lennials to stay up-to-date on campaigns mobile experience f Mil gathering 48% o h 28% it and programs ared w (comp mers) get oo of Baby B otes nce qu insura online. 4THE BREAK UP: 5 WAYS INSURANCE BRANDS CAN RETAIN MORE CUSTOMERS 13
  • 14. 5. BUILD LOCAL RELATIONSHIPS TO GENERATE QUALITY REFERRALSRelying on cold calling will do very little in building relationships (not to mention little opportunityto differentiate from the competition). What generates the most successful and long-term business iscreating a pipeline of quality referrals – from both your most loyal customers, of course, butalso your (many times overlooked) local business partners. From mortgage brokers and realestate agents to the local go-to auto shop, these connections can help Agents tap into a pool of like-minded, relevant shoppers. Create appreciation Integrate business Develop a standard programs for your most partner referrals into process when valuable local business your sales goals and engaging partners partners to encourage metrics to encourage for agents and agency referrals, celebrate your the field to hunt for managers to fully maximize partnership and generate new relationships and the long-term power of brand loyalty. strengthen existing ones. these business partners.THE BREAK UP: 5 WAYS INSURANCE BRANDS CAN RETAIN MORE CUSTOMERS 14
  • 15. INSTEAD OF THE LONG-TERM RELATIONSHIPSGETTING INVOLVED INSURANCE BRANDSIN A SEEMINGLY CREATE WITH THEIR MOST IMPORTANT PEOPLE –NEVER-ENDING FROM EMPLOYEES TOACQUISITION CUSTOMERS, SHOPPERS,COMPETITION, BUSINESS PARTNERS AND THE LOCAL COMMUNITYMAKE IT YOUR – IS KEY TO BUILDINGPRIORITY TO A STRONG BASE OF LONGTIME CUSTOMERS.SATISFY ANDRETAIN CURRENTCUSTOMERS IT’S TIME TOBY HAVING GET BACK TOMEANINGFUL ENGAGING (NOTINTERACTIONS JUST TALKING).WITH THEM.THE BREAK UP: 5 WAYS INSURANCE BRANDS CAN RETAIN MORE CUSTOMERS 15
  • 16. RESOURCES1. Jack Morton proprietary study, “The Best Experience Brands”, 20112. J.D. Power & Associates Reports, “Importance of Price to Insurance Shoppers Increases, While Satisfaction with Price Decreases”, 20103. Forrester, “The US Auto Insurance Buyers Journey”, 20094. McKinsey Consumer and Shopper Insights, “Consumers Shake Up the Insurance Market”, June 20115. Advertising Age, “How the Insurance Industry Got Into a $4 Billion Ad Brawl”, February 2011
  • 17. ABOUT JACK MORTON JACK MORTON WORLDWIDE IS AGLOBAL BRAND EXPERIENCE AGENCY WITH OFFICES ONFIVE CONTINENTS. OUR AGENCY CULTURE PROMOTESBREAKTHROUGH IDEAS ABOUT HOW EXPERIENCES CONNECTBRANDS AND PEOPLE—IN PERSON, ONLINE, AT RETAIL ANDTHROUGH THE POWER OF DIGITAL AND WORD OF MOUTHINFLUENCE. WE WORK WITH BOTH BtoC AND BtoB CLIENTS TOCREATE POWERFUL AND EFFECTIVE EXPERIENCES THAT ENGAGECUSTOMERS AND CONSUMERS, LAUNCH PRODUCTS, ALIGNEMPLOYEES AND BUILD STRONG EXPERIENCE BRANDS.RANKED AT THE TOP OF OUR FIELD, WE EARNED OVER 50AWARDS LAST YEAR.CONTACTDoug Wilber+1 312 274 6034doug_wilber@jackmorton.com© Jack Morton Worldwide 2012

×