With today’s transparent premium comparison, increased competition, and profit pressures, retaining customers is more important than ever.
Getting a new customer can be up to five times more costly than keeping a current customer satisfied, according to http://cheapautoinsurance.net. This means that more of the direct written premium from a customer you retain goes to the bottom line. Therefore, a two percent increase in retention of customers can equal a ten percent cost reduction.
Data is Important in Customer Retention
Insurance underwriters have a crucial and, for the most part, untapped tool for improving customer retention: Years of rich internal claim, policy and customer data containing insights that can be used for revealing analysis. The result is a deeper understanding of the motivators of buying behaviors and sign of defection.
Using the right customer retention solution helps you:
1. Identify your best customers. Use customer value-analysis to segment and rank customers to inform tiered-service programs and marketing campaigns. This way, you target the right type of customers, thus improving customer satisfaction and retention.
2. Determine the best products for your current customers. Use purchase analysis as a predictive model for analyzing purchases and finding other products the customer may be interested in. This model connects the dots between the insurance underwriter’s customer and products, ensuring higher customer satisfaction, increased premium income and effective cross-selling.
How do you get started?
Identify a customer retention strategy that baselines current customer retention, defining goals, and assessing current data usage and underlying technology to come up with recommendations, a roadmap and top-level business care.
The next step is putting to action tools that draw from external and internal data sources to fuel your industry-specific visualization and models. This stage reveals new insights into retention that can be used in operations and marketing for verifiable and measurable results.
Identify an insurance customer retention analytics service that provides continuous support for your analytic dashboards, data, and models to deliver ongoing insights.
Leverage the service’s in-depth expertise in insurance, as well as intellectual property.
Make certain you use an insurance customer retention service that is purpose-built for the insurance industry. It should make use of data integration accelerators, pre-configured dashboards, and insurance-specific analytic models. Such a service would provide fresh insights into buying behavior, customer churn and customer value.
The service’s insurance industry data model should be engineered specially for analytics use, unlike most other approaches targeted for processing transactions. In a few words, the system should provide you with specific answers to your most specific questions.
As competitor and customer behaviors continue to morph and profit pressures become more intense, you need to invest to get more value from the assets you already possess and manage. You must identify your best customers and retain them. Insurance customer retention services are uniquely equipped to help you achieve these objectives in the most effective way.
A vast majority of insurance customer retention services are available online. With a little research, you can identify a suitable one for your auto insurance business.
