Customer loyalty linked to higher policy renewals
Car insurance customers with high commitment levels are more likely to renew their policies and are less sensitive to pricing offers from competitors, a US insurance survey says.
The study by auto industry researchers JD Powers says 59% of customers with high commitment levels would not switch their insurer for any price, while only 9% of low-commitment customers say they would stay with their present insurer.
Policy renewals are also more likely among satisfied customers, with 90% reporting they “definitely will” renew their policy, compared with only 14 % of low-commitment customers.
Customers with low commitment levels are also much less likely to provide recommendations to friends and family (9%) compared with highly committed customers (81%).
The study says intense competition in the US car insurance market proves insurance companies should recognise that merely satisfying customers is not enough to remain competitive.
The study by auto industry researchers JD Powers says 59% of customers with high commitment levels would not switch their insurer for any price, while only 9% of low-commitment customers say they would stay with their present insurer.
Policy renewals are also more likely among satisfied customers, with 90% reporting they “definitely will” renew their policy, compared with only 14 % of low-commitment customers.
Customers with low commitment levels are also much less likely to provide recommendations to friends and family (9%) compared with highly committed customers (81%).
The study says intense competition in the US car insurance market proves insurance companies should recognise that merely satisfying customers is not enough to remain competitive.