Insurance firms urged to ape supermarkets in rewarding customer loyalty
Insurance firms are being urged to take a leaf out of supermarkets books by rewarding their customer’s loyalty, following publication of a new survey highlighting consumer ignorance of insurance industry loyalty programmes.
A survey of 2,500 UK consumers carried out by The Grass Roots Group found that around 90 per cent of consumers were oblivious as to whether such programmes existed for their home or car insurance.
This lack of awareness contrasts with the 55 per cent of UK consumers who rate loyalty schemes as an important factor in their decision making process when scouting for new providers.
Supermarkets are currently setting the pace for the sector with 52 per cent of those surveyed being a member of one scheme or another with the sector as a whole regarded as the most eager to retain custom – with insurance firms bringing up the rear.
Ian Horsham, divisional director, promotions and incentives at The Grass Roots Group said: “Supermarkets and health and beauty retailers are using points schemes as part of their customer loyalty strategy with great success. However other industries still focus too much on attracting new business – some providers will scream about special offers and rates for new customers, while loyalty schemes for existing ones are either non-existent or hidden away in the form of cash back within terms and conditions.”