Finance in Focus: How to gain customer loyalty in the insurance industry
Today we explore the ways that advanced analytics can help insurance companies heighten their customers’ loyalty while boosting retention. Data and analytics can help insurers identify whether a policyholder poses a retention risk while also determining what actions can help mitigate that risk. Indeed, timely and appropriate action can create significant cost savings by boosting customer satisfaction and helping retain valuable policyholders—for insurers must spend seven times more to attract a new customer than they do to retain an existing one.
How can companies retain their customers while attracting new ones? They can start by addressing the disconnect between what CEOs and customers think about the quality of customer service. For example, the Bain & Company report Closing the Delivery Gap revealed that 80 percent of CEOs believe that they provide a superior experience—but that only 8 percent of their customers agree.
Certainly knowing your customers and dealing with them individually is less difficult for those who have only a handful of clients to please—but what about organizations that have thousands of clients? How can such companies scale to provide individualized service while pleasing their entire range of customers? When you tune in to hear Tony Boobier and Stephen Mills discuss this question, discover what steps insurance executives are taking to please their customers.
This week’s moderator:
- Susan Visser, social marketing strategist for IBM Analytics, financial services sector
This week’s experts:
- Tony Boobier, worldwide executive, insurance, IBM Analytics
- Stephen Mills, associate partner, insurance, IBM Analytics
To learn more about customer retention, explore the following resources, which describe how insurers can use advanced analytics to woo—and keep—their customers:
- 7 ways insurers can boost customer retention
- IBM Institute for Business Value Executive Report: Capturing hearts, minds and market share: How connected insurers are improving customer retention