Understand your customers to provide them with a relevant offering they’re interested in.
Our recent research into acquisition and retention schemes in the insurance industry discovered that while it may be beneficial to implement a reward scheme and obtain good working relationships with consumers, having an accurate measure of how your campaigns are working is important. Customers’ attitudes and expectations are always changing and they expect companies to understand automatically what they like and dislike, what they need and want.
According to a study published by Invensis Global Outsourcing Services, “Consumers want offers that are relevant to them. Irrelevant spam mail, telemarketing calls and online advertisements are an irritant for many consumers and can affect their perception of the insurance company.” Loyalty reward schemes are an excellent way to not only attain customers, but also collect the data that ensures you make appropriate offerings to the customer.
The benefit of using data that you can collect from customer interactions is that your service to customers can be personalised and improved. You can predict what the customer will ask for next and tailor your communication methods to each individual’s preference. While some many find price as a pain point, some people may find that it’s speed or delivery of the policy.
The vital time to do this is when customers sign up for a reward scheme by giving them the opportunity to answer some questions that give you the data needed to target them with personalised offers.
From the insurance experts that we spoke to, we found that successful measurement of a reward scheme’s effectiveness is a challenge. Daniel Tamarjan, Online Marketing Manager of Freedom Health Insurance said that there was some internal confusion for the employees looking after how these reward schemes were implemented: “The lack of a proper system to record how these rewards were applied made the schemes hard to measure especially when running different promotions at the same time (even if to different audience).”
Ed Rochfort, Product Director of Carrot Car Insurance, agreed stating it was a challenge “to turn this extremely accurate measurement of driving performance into meaningful feedback that would enable us to reward customers for maintaining a positive driving score.” It’s clear that it’s crucial for effective and organised measurement and application of data for a positive return of this analysis that ensures appropriate rewards are set for customer’s wants and needs.
Implementing Reward Schemes
Before implementing a reward scheme, it is essential to have proper data collection and campaign measurement tactics in place. A reward scheme provides you with the perfect opportunity to learn more about your customer and build a personalised offering that will resonate. If you are not recording this information appropriately you risk wasting the opportunity.
For more information or to find out how M&S Corporate Gifts can help you, please do get in touch.