A new poll has found that three out of four consumers would change insurance companies to participate in a loyalty rewards program, and brokers have their fingers crossed that carriers will get the message.
“I would agree,” said Keith Izsak, manager, Affinity Insurance. “As we get into a more competitive market with other brokers and direct writers, we need to concentrate on what we do offer over and above what we would consider to be great service, which nowadays only gets you so far.”
Izsak says that one his markets used to offer an air miles reward program, but unexpectedly put an end to it for unknown reasons. Still, he feels that carriers could put more effort into helping advisors retain their “stickiness” with clients, particularly as they are constantly bombarded with opportunities to purchase coverage elsewhere.
“They pay premiums and are always looking to get something out of those premiums, especially if the policy has never been used,” Izsak said. “The peace-of-mind part of it is starting to wear a little thin.”
While Iszak does acknowledge that policyholders can receive rebates for maintaining a good driving record, he feels that this doesn’t provide the same psychological pull that a reward does.
“Getting a discount or change in policy terms just isn’t the same as something tangible that tells the consumer, ‘Listen. You’re not just buying a policy, but entering an air miles program or other client reward program,’” he said.
The CMO Council recently found that 21% of consumers who learn that their insurance company has initiated additional products or services reach out to their carriers to enroll or learn more about the offering. As a result, Entertainment Corporate Marketing Solutions suggests that carriers employ a “tiered system” where the rewards are continually made more valuable as customers purchase more policies or upgrade their existing coverage.
“With the help of a customized loyalty rewards program that focuses on building awareness while adding unmatched value through targeted benefits, insurance companies can keep their customers from switching policies,” it advises.
