More than a third of UK consumers (35%) feel no loyalty to their insurance provider, according to a new report into consumer attitudes published by customer engagement, loyalty and lifetime optimisation specialist ELLO Media.
As a result, more than one in five consumers (21%) have switched insurance providers in the past year, with 83% saying that cost had influenced the decision to leave a previous provider. Overall, nearly half of respondents (47%) said that they feel it no longer pays to be loyal to any brand. However, more than a third of consumers across all market sectors said they would be loyal to brands if they got true value for their loyalty.
The report also revealed the insurance brands that consumers feel most loyal towards. From a list of the six biggest insurance providers, respondents identified Aviva (14%) as the brand they feel most loyal towards. 9% of respondents identified Direct Line as the brand insurance company they feel most loyal to, with 3% selecting Bupa, 3% Zurich, 2.5% RSA and 1% selecting AIG.
Commenting on the report, Michael Kalli, Managing Director for ELLO Media, said: “The fact that so many consumers feel it no longer pays to be loyal shows that brands’ loyalty programmes simply aren’t delivering for their customers.
“Rapid developments in data capture have presented insurance businesses with an incredible opportunity to learn more about their customers than ever before,” Kalli continued “Yet many brands still aren’t making full use of the technology on offer, leading to their loyalty schemes failing to meet customer expectations. With it costing five times as much to acquire a new customer as it does to retain an existing one, it is in insurance brands’ best interests to start improving their loyalty programmes in earnest.”
The Understanding Customer Expectations of Brand Loyalty Programmes report, which looks into consumer expectations surrounding loyalty and the loyalty schemes that brands deliver. It draws on a survey of 1,000 UK consumers and provides brands with a resource that will help them shape the customer loyalty.