In a recent interview with Insurance Business, marketing leaders from across the insurance ecosystem shared how they’ve seen the industry’s approach to marketing change over time. With advertising expenditure in the UK amounting to over £36 billion last year, the role of effective branding is under scrutiny – and the pressure is on not just to attract new customers but retain those already on your books.
In a competitive landscape, what are some of the main ways in which insurance brands can build brand loyalty?
In simple terms, insurance brands need to create ‘wow’ moments, according to Conny Kalcher (pictured below, right), group chief customer office and Zurich Insurance Group. These are the moments that create a real difference in customers’ lives, she said, which means delivering a truly exceptional experience – and not just in terms of meeting the industry standards of insurance.
“Insurers must match the expectations of good service created by fast-moving sectors like consumer goods and tech,” she said. “After all, if brands in these sectors can deliver goods overnight, why can’t our customers submit a claim with just a picture and a few details or data points?
“Building loyalty also hinges on insurers basing everything they do on the needs of the customer, including how and when they want to be served. This means there’s no one-size-fits-all approach, with customers requiring a simplified, seamless experience tailored to their individual needs and preferences.”
Lynn Cufley (pictured top, left), senior director of marketing communications at Crawford & Company, noted that, in today’s market, customer loyalty hinges on more than just providing great products. “it’s about building trust and demonstrating real value,” she said. “At Crawford, we focus heavily on empowering our people to be advocates for our brand. They are the face of our company and are crucial in building lasting relationships with clients.”
Adding her perspective, Adding her perspective, Miriam Boote (pictured below, left), managing director at Designate, said it might sound old-fashioned, but the reality is that building brand loyalty comes down to really understanding customers’ changing needs, and adapting to them. “Insurance and FS brands are there to be present in individuals' and businesses’ lives and adapt to market, individual and societal conditions,” she said. “A really good example of this was during COVID and how brands handled and adapted to enhanced anxieties and a need for understanding.”
Tim Crighton (pictured top, right) of Crighton Marketing, also looked to the positive examples set by some brands, citing Direct Line and Admiral as having been clever with multi-policy or family discounts which encourages customer loyalty on the personal lines side of the market. However, he said, the ease of shopping around using the aggregators has obstructed this somewhat.
“On the business insurance side, good old-fashioned customer service is a key way to build customer loyalty,” he said. “That’s especially true on the claims side when a broker is perceived to be needed most. On the pure marketing side for either personal lines or commercial lines, encouraging customer loyalty via pure marketing messages is inherently difficult.
“The product itself is boring to those outside the industry and doesn’t change for the customer year after year, unlike cars, holiday destinations and clothing brands. That means in a competitive landscape you differentiate by price which erodes margins or customer service, which everyone says is first class, so differentiation and standing out is not easy.”
The best way ahead for insurance brands is to practice what they preach, Crighton said. That includes getting lots of positive reviews and using all the marketing channels available in order to get those reviews and testimonials out there via Google reviews, social media, etc. In today’s review culture, this is powerful and will reassure potential customers that their insurance will be in safe hands.
