Is customer loyalty dead?

customer loyalty insurance industry

These days, everyone is looking out for ‘numero uno’, and loyalty can be a hard thing to come by, if indeed it’s not a completely outdated concept…

The financial crisis and the recession have had a huge impact on customers and the relationships they have with companies – people are less trusting, and know that they have the power to choose who they buy from or invest with; and the customer’s ability to shop around leaves us wondering if loyalty is something anyone can expect in this day and age?

The cost of change

The problem is not so much a lack of loyalty though, so much as the havoc and cost created in an industry where people are constantly chopping and changing from one insurer to another.

The reality is that some rates have gone up, but in the past, if we could keep the rate the same, a customer would normally be happy to keep their business with you. With the economy in the state that it is though, people are shopping around at review and moving – say from Sanlam to Old Mutual, Capital Alliance, or Hollard – for much smaller savings than they used to.

At TSA, we understand how compelling it can be to save a few Rands, but we also know that there’s a cost attached to moving.

Our number one priority

We just want our customers to understand that we’re willing to do almost anything for them – because we do believe in loyalty, and our customers are our only ‘numero uno’.

To us, loyalty means building a relationship with our customers, by making insurance personal, making life easier, and keeping their best interests at the heart of everything we do. With that in mind, we thought we’d explain what happens at review…

When we run a quote, the rate (or price) is valid for 12 months. Just before those 12 months expire, we do a review to see what rate we can offer our customer for the next 12 months. When we do the review, we run a quote with the existing insurer, as well as others, to see whether any of them can offer a better rate.

First prize for us is to stay with the existing insurer, but if that insurer’s rate has gone up a lot, then we’ll look to move it to another of our insurers. This move isn’t ideal though – the reality is that if people shop around enough, they’re bound to find a cheaper option, but cheapest isn’t always best with insurance, and it’s not always sustainable.

Easier, simpler, happier

At TSA, we believe in honesty and care about the needs of our customers. We know that their needs change, they have more options available to them, and that it’s hard to trust a business because traditionally, business puts profit ahead of people. What we’ve learnt at TSA though is that companies should make dealing with them easier, simpler and overall a happier experience for their customers. That’s our aim anyway.

That’s why we don’t give all our special offers to new customers – our old customers are the ones who have stuck by us through the good and the bad, and they deserve our special treatment just as much as the next (or new) guy.

We will always try our best to earn and keep earning a customer’s trust (and hopefully loyalty) to build a long-lasting relationship that’s mutually beneficial to both parties.

So what do you think? Is customer loyalty dead?

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