Why Insurance Companies Should Utilize Retention Strategies To Boost Revenue
Bringing a new customer onboard costs 7 to 9 times as much as holding an existing client.
The first step for companies to boost business revenue is to prevent attrition of present customers. Currently, it is hard to find customers unless programs are designed to retain such quality customers. And with well-thought-out customer up-sell and cross-sell strategies, insurance companies should look into increasing revenue.
The current average customer retention rate in the industry is 84%. If your company takes preventive measures to keep customers taking their business to a competitor. By offering more digital options, you can bring it up by almost 10%.
Read the article to know more about various strategies to boost your customer retention rate.
Key Strategies for Growth
Digitize Your Platform
It turns out that about 80% of insurance shoppers utilize a digital channel to purchase insurance policies. But, many fail to secure an insurance product, and they choose to move to other companies as a result. By digitizing your operations, improving the customer onboarding process, and allowing customers to buy and manage policies online, your company improves the chances of retaining a customer.
By digitizing, you can enhance the customer experience. And for customers, the experience matters as much as the product or service. But, cost-effectiveness also matters when devising a strategy to boost conversions.
Customers want insurance companies to understand their concerns, and many suggest that they stay loyal if basic requirements are met. For instance, if you do not offer an insurance dashboard, customers will search for other options with more perquisites.
Generate Actionable Insights
Business Intelligence and predictive analytics solutions generate actionable insights into your current performance. Approaching customers with comprehensive marketing, sales and retention strategies leads to higher revenue.
Here are some reasons why a loyal customer can boost revenue generation for your company:
- Customer retention is far cheaper than customer acquisition.
- A loyal customer can refer your company through word-of-mouth referrals.
- Customers can provide market intelligence feedback to keep you on top of market dynamics.
Social media and the internet are effective resources for customers. They have pushed customers away from businesses that do not tailor effective pricing and product strategies. Customers can compare various prices and products from different businesses, and they can make a fair assessment. What they need are products that are tailored to their requirements. And a digitized platform to speed up purchase, onboarding, and management of said insurance products can help.
Most consumers are now tech-savvy, and digitizing your operations helps you stand out among such customers. Amity Software is a renowned software development company. We offer custom software solutions to enable automation of your business and digitalization of your operations. Our company can bring your company up to speed with the current technology. Contact us now!