Staying one step ahead of the competition

With so much competition about, staying one step ahead of your competitors is imperative in order to give your business a strategic advantage in the market place.

Staying one step ahead of the competition

This was one of the findings of our research in the financial sector to find out what makes a successful acquisition and retention strategy and how to attract new customers as well as keeping existing customers loyal.

Staying one step ahead of the competition

Every consumer is different in what they want from their insurance provider based on their personal circumstances. Yet in our survey, all the participants indicated that when it comes to deciding insurance providers, price, reward schemes, customer service and the brand name all come into consideration in their decision. With 75% of respondents stating they would persuaded to switch insurance companies if another provider could offer an additional benefit alongside the same price, it’s clear that customers do respond to the provider that benefits them most overall.

The difficulty with insurance companies is that the internet has made information on every single company readily available for consumers. Becky Roberts, a representative of Carrot Car Insurance, told us that: “Motor insurers are well aware that young drivers, and their parents, have access to many tools such as comparison sites, social media and blogs which provide them with up to date information on providers and the best deals available when it comes to insurance.” In this abundance of noise online, it is even more difficult for insurers to stand out in an already competitive industry.

The Co-operative Insurance has responded to this by setting up a rewards programme, with its own website, where customers can choose from a variety of discounts on entertainment, home and garden, lifestyle and leisure, travel, motoring and many more. This scheme gives the company a real competitive edge as customers are aware of this benefit before purchasing a policy or product which could influence their decision.

It is certain from this example that added benefits with your products give you an edge in the competitive market, yet this should be exploited. With 45% of our survey respondents stating they were unaware if their insurance provider offered a reward scheme or not, it’s clear this lack of communication puts insurance providers at risk of losing customers.

M&S for business provide ‘Insurance Replacement’, which allows insurance companies to offer claimants M&S gift cards for an innovative and attractive bonus to their policy that could make your company stand out from the crowd. For more information on Insurance Replacement, please feel free to get in touch with us.