For years, retaining customers hasn’t been much of a priority for insurers. Price comparison websites and an industry-wide trend for keeping the best deals for new customers meant that people would move insurers at the earliest opportunity.
And with bigger savings and lower premiums on offer, rewards were seen by customers as an added bonus instead of a real incentive. A film or meal voucher might sweeten the pot, but insurance customers were mostly just on the lookout for better deals.
That could all change.
Insurers need to look past price as an incentive
As of January 1st, renewal quotes can’t be any more expensive than those offered to new home or car insurance customers. The age of the switching discount is over, and client retention is now a bigger priority.
Something else has changed too.
Without a renewal discount as a hook, insurers now need better incentives to attract new customers and retain existing ones.
And vouchers just won’t cut it.
It’s all about psychology
The fact of the matter is that nobody forms a meaningful connection because of a two-for-Tuesday voucher. Even if the customer remembers that a particular discount voucher came from their insurer and not their mobile phone provider, optician or accountant (and why would they?), vouchers just don’t trigger the same psychological response as a physical gift.
Answering the door, being handed a gift that you unwrap, unbox, open and touch is a real, physical experience. You can hold that reward in your hands – you can feel the value.
We don’t get that same feeling when the receipt from a high street restaurant mentions a 25% discount.
We forget the feeling that voucher gives you before we’ve made it back to the car.
But physical gifts are long lasting
Once a voucher has been used, it’s gone. Forever. Your customer might remember the film they saw or the dinner they enjoyed, but they won’t recall the voucher. They won’t remember who gave it to them.
They won’t remember your brand.
But a physical gift with a place in their home? Something they use time and time again? That constantly reminds insurance customers of the experience of receiving that gift.
It constantly reminds them of your brand.
You start building much stronger connections with your customers that will be valued more highly than the “seen it, had it, spent it” vouchers that insurance clients have become used to.
You can give customers a choice
A voucher offers a customer a binary choice. Here’s 50% off a film, or a meal. Use it or don’t.
Physical gifts can be the same. Here’s a gift – if you want it, have it. If you don’t, then don’t.
But if you can give your customers a choice, show them that you care by giving them the opportunity to pick out a gift that they want, that they’ll use – then they’ll be much more appreciative and form a much stronger bond with your company.
So how do you say goodbye to vouchers?
Whether you’re an insurer or work in any other sector, the psychology is the same. Vouchers don’t deliver the experience customers demand. It’s time to switch to physical rewards, it’s time to offer a real choice.
It’s time to Gift & Go.
Gift & Go integrates with Amazon Business – including Prime Delivery – and dozens of other leading suppliers – so you can give your customers a real choice of gifts.
A real, relevant, useful physical gift, delivered directly to their door.
They’ll enjoy the simple, straightforward user experience of claiming their gift, and they’ll love receiving and using that gift even more.
Best of all with Gift & Go, we take care of the whole process for you – with no extra workload for your staff, no stockholding, and no hassle.
It’s time to say goodbye to vouchers.
It’s time to Gift & Go.
Apply for a free trial or book a demo and claim your free gift.