What are you telling your customers?

If you read last week’s blog you will know how unhappy I am with my last insurance company’s customer service. This time I’m going to share some of their marketing mistakes with you.

The renewal notice showed the level of cover for each item together with the associated premium. The buildings and contents covers both came with a statement ‘includes accidental cover and the opportunity to earn a No Claim Discount’. Last year’s renewal showed that I had a 10% no claims discount so my immediate reaction, when faced with a 20% increase in premium and this statement, was that they had forgotten to apply the discount. When I queried this I was told ‘we’ve changed the paperwork, you have got the discount’.

I’m not sure I believe them. If I have got a discount why not tell me what it is? I can only assume that it is not as good as last year.

The point of a no claims discount is to build customer loyalty. If you’re not going to tell me what I have gained how will I see the benefit and, if I can’t see the benefit, why should I be loyal? The way the schedule was worded I thought there had been a mistake so they then had a ‘phone call to deal with. Every ‘phone call costs money which will no doubt find it’s way on to my premium, one more reason for me to question my loyalty.

My old insurance company spends a fortune on marketing. I wonder if the marketing department has any idea what is in the renewal schedules? The schedule comes with a benefit laden letter complete with testimonials but that’s just empty promises if I don’t see what I personally have gained.

Marketing is not effective if it isolated from other aspects of the business nor should it just be focussed on winning new customers. Research suggests that it costs at least 12 times as much to win a new customer as it does to retain an existing one. Other research suggests that as many as 25% of our customers will be in the market for a new supplier for our product or service at any one time. It is therefore vital that we deliver a consistently good service to our existing customers and remind them regularly of the benefits of staying with us.

Every contact point a customer has with us is a marketing opportunity, this doesn’t mean a hard sell, rather the chance to thank our customers for sticking with us. It’s about creating a relationship which sticks, like a friendship. It’s hard to say no to our friends isn’t it? So why not make it hard for your customers to say no to you?

We offer a range of services to help you win and keep customers so whether you want a course or workshop, a review of your customer contact points or some marketing copy, we can help. Call Glenda on 020 8991 2767 to discuss your needs.

If you’ve got some good or bad examples of communications you’ve had with businesses or other organisations we’d love to hear about them, just hit the ‘comment’ button.

Best wishes

Glenda

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