Every insurance company in the world is concerned about “persistency,” keeping policies in force by making sure clients pay their premiums year after year.
A small increase in persistency can yield a very large boost in company profits, making it essential for companies to improve customer loyalty.
I have policies with several insurance companies. Every year I am stunned by the incredibly impersonal notices I receive stating: “Premium Due.” They do nothing to improve customer loyalty.
These communications seem to regard me as nothing more than an account number, a payment amount and a due date. As a prospect, I was engaged as a real person with needs and concerns, hopes and dreams. I was treated as a valued partner in the necessary world of personal financial planning.
Now that the policy is in force, I am just an invoice and no steps are taken to improve customer loyalty.
Here’s what I would much prefer. (If you have an insurance policy, you might appreciate it, too, as a way to improve customer loyalty.)
Ten months into the year, two months before the premium is due, a smart insurance company should send me a simple customized letter to improve customer loyalty. Something like this:
Dear Mr. Kaufman,
In two months the annual premium for your insurance policy number 123456 will be due.
I want to take a moment now to congratulate you on your decision to keep this policy in force, and to remind you of the many benefits you have been receiving, and will continue to receive, throughout the year.
In addition to basic financial protection for you and your family members, your insurance policy has provided you with (include all of the following that apply):
• a guaranteed savings program
• effective retirement planning
• education planning for your children
• risk coverage against death or disability, and
• precious peace of mind.
Each year at this time, we ask valued clients like you if any major changes have occurred during the past ten months.
Have you added a new family member? Have you received a promotion or otherwise increased your income? Have you purchased a new home or automobile? Have any of your family members or friends recently married?
If any of these changes have occurred, we encourage you to speak with your insurance agent (name here), who can be easily contacted at (contact details here).
Once again, we congratulate you for maintaining the benefits of your valuable insurance program. If you have any questions, please feel free to contact your agent, or our office directly at (contact details here).
With best regards,
(Fill in the blank with the name of a smart, positive, pro-active and profitable insurance company.)
Key Learning Point To Improve Customer Loyalty
Whether you are in education, marketing, retail, logistics, government service, entertainment or insurance, communicating positively and proactively with your clients makes sense to improve customer loyalty.
Action Steps To Improve Customer Loyalty
Don’t wait until the last minute. Make an effort to stay in touch with your customers and clients with positive news and proactive views. This will help improve customer loyalty.
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Copyright, Ron Kaufman. Used with permission. Ron Kaufman is the world’s leading educator and motivator for upgrading customer service and uplifting service culture. He is author of the bestselling “UP! Your Service” books and founder of UP! Your Service. To enjoy more customer service training and service culture articles, visit UpYourService.com.
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