Executive Summary
You know this: it costs much more to attract new customers than to retain an existing ones
The insurance industry has the highest customer acquisition costs of any industry. You can reduce policyholder acquisition costs by 8 by focusing on retaining existing customers rather than to attract new ones – according to an article on Independent Insurance Agents of Dallas.2
The same article cited that the average customer retention rate in the insurance industry is 84% in comparison with a 93% to 95% retention rate maintained by the top 5 companies in a wide span of industries. That 10% difference represents a sizeable loss of profitability.
Clearly, loyalty matters.
There is both an art and a science to keeping customers engaged in your brand. nd this is particularly important when it comes to usage-based insurance (UBI) programs, during an era where users are actively considering alternatives to their current insurers.
When customer retention is stable, insurers have a better opportunity to engage with customers more regularly. Frequent engagement touchpoints can be used t0 encourage safer driving practices, offer enhanced services, handle risk issues with more immediacy, and more importantly build trust.
Fill out the form to download our free white paper to discover the importance of engagement touchpoints when launching a connected insurance program.
You will also learn how rewarding policyholders can reduce your loss ratio.
