According to an article by the Tivoli Partners, “Customer loyalty, by definition, means commitment. A customer that is loyal to your brand continues to buy your product or service over and over again.” Insurance is an intangible product, so how do you build customer loyalty, rather than brand loyalty, to your business and why?
First, let’s tackle the why.
According to PWC, “32% of all customers would stop doing business with a brand they loved after one bad experience.” With that in mind, we know that we can’t rely simply on brand loyalty to keep generating renewals. You must generate customer loyalty to you and your company. In the truck insurance industry, retaining renewal business costs much less than finding new business. Cost factors for time, travel, and opportunity costs all need to be considered. It takes a lot of money to find new business, persuade businesses to work with you, and figure out how to differentiate yourself against competition in that area.
Additionally, loyal customers will bring you referrals. If you can get a client that’s so loyal they’re willing to give you a referral, that’s the most effective way to get in the door at a new business. You have someone on your side, in the same link of work as your perspective, that has the same goals in mind. Helping to create a positive impression through a shared contact is the easiest way to help generate new business. You can even get loyal customers to promote you on social media platforms. Get reviews and connections from your customers that are heavily active on social media. Proudly boast to the digital world your loyal customers.
Now, let’s confront the how.
Loyalty is earned by going the extra mile to provide service that exceeds expectations. Never take your insureds for granted, and always make sure they feel appreciated, valued, and satisfied whenever possible. There are several ways to accomplish this.
As a retail agent, do not wait for a customer to call you with a problem. Reach out to them and touch base. Show your motor carrier clients that you know their employees by name. Ask them leading questions, such as:
“What can we do for you?”
“What can we improve on?”
“Do you have any suggestions?
“Is there anything we can do to make your job easier?”
“Are there any types of technology I can suggest to make your job easier?”
“Do you know what type of items you need to have prepared in case of audit by DOT?”
Intervene and help insureds with problems. Keep track of and notify them if anything goes wrong. Use Alert-VU to monitor your insureds in real-time. Stay on top of all changes occurring with that customer in public transportation databases. Early knowledge can help quickly resolve problems for motor carriers that create liable situations. Here are some examples.
“I noticed you have a vehicle out here that’s not on your scheduled policy”
“Hey, I noticed that your MCS-150 is coming due shortly, do you want me to update it for you?”
“Your operating authority has been revoked. Is this correct? If not, we need to get this fixed immediately.”
“I see one of your BASICs in nearing Alert Status, should we brainstorm how we can avoid crossing the threshold?”
When you see the opportunity to help solve a client’s problem, do what you say you’re going to do. Trucking is a big industry, so building a positive reputation for your agency is critical.
Building customer loyalty is a key strategy for growing your business in today’s marketplace. Carrier Software has an entire suite of insurtech tools available to help assist you in growing your truck insurance business and expanding your customer offerings. Contact us today and we can help you find a unique solution to grow loyalty within your customer base.