Wonder

Research Outline

Prepared for Amy X. | Delivered December 10, 2019

Customer Retention Best Practices

Goals

To find information on case studies that showcase best practices in customer retention within the supplemental insurance category. Examples in the supplemental insurance include AAA, supplemental healthcare, and car or home insurance (e.g. hospital insurance for health, glass coverage for auto, flood coverage for home).

Early Findings

By improving customer retention, organizations can prevent billions of dollars of lost revenue in the insurance industry.
In the United States, avoidable churn costs businesses $136 billion.
Reducing customer churn by improving customer retention requires "insurance companies to think outside the box" and offer major changes to the way they present, offer, and market products and services to consumers. 
Examples of changes that insurance companies can make includes offering more than insurance
 and cultivating an online reputation.
Offering more than InsuranceThe major ways of offering more than insurance to customers include providing a personalized experience, creating a product ecosystem, and expanding digital efforts.
Cultivating an Online ReputationGrowing an online reputation entails companies actively monitoring and responding to reviews because doing so can actually create loyalty and retaining customers.
A recent survey found out that 80% of consumers believe that a business entity cares for their needs if management responds to their online reviews.
The survey also reported that 61.2% of consumers "see online reviews as influential when choosing a new insurance agent." 